Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Fee for the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered the CTMCA did not utilize the R5-million allotted to order or create a museum.
They also found which the CTMCA only purchased land really worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA employed resources within the Lottery to acquire workshop gear from certainly one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to set up a museum to rejoice town’s loaded minstrel record went astray. The museum was hardly ever made.
The details on the abuse of millions of rands of Lottery cash for any museum that by no means was are revealed in an investigative report commissioned from the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery resources allotted into the CTMCA among 2003 and 2017.
The first part of the investigation, by legislation firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which involved funding for your museum. The permitted price range for the museum was much more than R12.eight-million, with R5-million of that allotted for just a constructing to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building to the museum and if the museum “in fact existed”.
The agency was also instructed to research
the acquisition with Lottery funds of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
different equipment “obtained with the producing from the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few directors from the organisation. Stemmet was reappointed for a director in May possibly 2021.
The investigation followed in depth reporting by GroundUp with regards to the many rands of Lottery funding allocated on the CTMCA (see here, listed here and below) and just how the cash almost certainly aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The making on the correct was the supposed internet site with the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to the Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “tasks” - including the museum - among 2012 and 2015. All 3 projects had been completed, she informed MPs.
Nevertheless the investigators identified no evidence that a museum had at any time existed.
At the beginning the museum was resulting from open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of your meant Wetton museum shows a coffee store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung on the walls, and also a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni explained it was “not in a position” to verify if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum were moved as they could not afford to pay for the rent of R100,000 a month. He stated the CTMCA experienced procured home for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for the same rate. Schaapkraal is inside a peri-urban region significantly from the town.
As a result, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which are within an industrial region, the investigators mentioned they doubted whether a proper museum existed there. Pictures attached to the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, shown on tables and distribute out on the ground, without clarification.
“There is a negligible volume of items for the museum [that] under no circumstances symbolize the over one hundred-year background on the Cape City Carnival, the investigators stated, including that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum will not glimpse to become open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by shifting the location in the museum to an alternative location with out notifying the NLC.
The Schaapkraal assets, on which no museum was at any time constructed. Image: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver within the rented Crete Road premises mainly because it experienced run up a R4-million credit card debt with town of Cape City and was frightened its devices could be hooked up.
“Due to lawful battles and also the debts, the organisation had to maneuver its residence from 5 Crete Highway to steer clear of the sheriff from attaching the assets with the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery resources were stored within a top secret spot “concealed with the Sheriff”. Nevertheless the investigators said they have been unable to verify that any buses experienced ever been acquired.
Stemmet also confirmed that the buses were hidden to halt them getting seized. But when the investigators questioned for being taken on the area in which the buses were stored, he informed them that “the operator of The trick area wasn't accessible to open up the premises for us”.
“The CTMCA could not deliver evidence of payment for 2 autos that it allegedly purchased with grant dollars,” the investigators noted.
Soeker also instructed them the Schaapkraal house were offered as a result of credit card debt.
“Mr Soeker defined that according to his comprehending, a result of the personal debt owed to the town of Cape Town, the CTMCA decided it would be greatest to promote their [Schaapkraal] property … and also to also to cover the assets in the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously instructed GroundUp the CTMCA “threw money away” on litigation with the town.
“Every year like clockwork, as we method the end with the year, the CTMCA picks a legal battle with the town, about permits or something else. We hardly ever initiate it. They continue to keep throwing cash away on vexatious litigation which they get rid of and have prices awarded from them. That is completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of each of the admin, finances and managing หุ้น ชอง 9 the CTMCA.” The investigators stated they had been struggling to contact Momberg.
Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered many machines, some in great problem, some in undesirable issue and many that seemed rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-internet site storage facility wherever “devices and some machinery” were being held.
“We asked him to choose us to the facility but he was evasive to our ask for.”
According to pics and invoices in GroundUp’s possession, some, if not all, on the items appear to be products which was illegally faraway from the CTMCA’s previous premises. Stemmet is going through rates for this removing.
In accordance with the last progress report submitted on the NLC because of the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter had been directors at some time.
The investigators uncovered this “alarming”.
“Within the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be designed and/or transformed,” they noted.
An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded the CTMCA was in the whole process of purchasing “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.
Based on Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, which means R6.nine-million remains to be owed, although there's no payment day set for when this must be paid out.
The Kopano audit and also the near hyperlink concerning the companies “reveal to us that there's ‘foul Engage in’ linked to the purchase in the equipment of your museum workshop”, the investigators mentioned from the report.
“We discover that it is remarkably possible that CTMCA utilised the funding of the NLC to ‘refund’ one among its main directors for the property at a higher overpriced price than the particular price and price of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were expended.
“The truth is, a detailed report on how the funding of the NLC was made use of, can be extremely hard as the CTMCA does not have any receipts, or evidence of payments to confirm the quantities used on Every single product it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not carried out a site check out right before approving the grant. But this wasn't conventional observe at some time they usually observed no evidence of negligence by NLC workforce.
At enough time, the NLC’s policies did not require funded organisations to post proof of payment with interim stories, they pointed out. This intended that the CTMCA was ready to receive a next tranche of funding without needing to provide proof that it experienced used the primary tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni recommended that
the NLC drop any future funding applications from the CTMCA;
the CTMCA and any members who were linked to the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open a felony scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, rather then act about the report’s recommendations, the NLC – beneath its prior administration – selected to suppress it, as it experienced done While using the earlier experiences into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to deliver the queries by e mail much too. But no reaction were been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph