Leaked report exposes abuse of lottery revenue paid out to minstrel group
Leaked report exposes abuse of lottery revenue paid out to minstrel group
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Minstrels complete in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no proof that a museum ever existed.
The investigators uncovered the CTMCA didn't use the R5-million allocated to acquire or make a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA used cash through the Lottery to buy workshop machines from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was by no means developed.
The small print in the abuse of an incredible number of rands of Lottery money for any museum that never ever was are unveiled in an investigative report commissioned via the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The main Section of the investigation, by regulation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The authorized funds with the museum was more than R12.eight-million, with R5-million of that allotted for a developing to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing for your museum and whether the museum “basically existed”.
The business was also instructed to research
the purchase with Lottery cash of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many machines “procured to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors in the organisation. Stemmet was reappointed being a director in May perhaps 2021.
The investigation adopted extensive reporting by GroundUp with regard to the many rands of Lottery funding allotted to your CTMCA (see below, listed here and right here) and the way in which the resources likely aided finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the supposed web-site in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few jobs were done, she explained to MPs.
However the investigators discovered no proof that a museum experienced at any time existed.
To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung on the walls, along with a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He reported the CTMCA experienced purchased home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar selling price. Schaapkraal is in a very peri-city spot much from the city.
Consequently, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which happen to be in an industrial space, the investigators explained they doubted regardless of whether an appropriate museum existed there. Pictures connected into the report present a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, with no explanation.
“You will find a minimal amount of things for the museum [that] on no account signify the much more than a hundred-yr record of your Cape City Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum doesn't search to become open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of the museum to an alternate location devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to move with the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was concerned its devices might be connected.
“Mainly because of the lawful battles plus the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the home of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of your CTMCA, advised them which the two buses bought with lottery resources had been saved inside a solution place “hidden with the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses had ever been bought.
Stemmet also confirmed that the buses were concealed to halt them being seized. But when the investigators questioned to be taken to the place where the buses were being saved, he advised them that “the owner of The trick site was not accessible to open the premises for us”.
“The CTMCA couldn't give proof of payment for 2 automobiles that it allegedly procured with grant dollars,” the investigators noted.
Soeker also explained to them the Schaapkraal house were sold due to the personal debt.
“Mr Soeker described that In keeping with his knowing, mainly because of the debt owed to the City of Cape Town, the CTMCA made the decision It could be finest to provide their [Schaapkraal] assets … also to also to cover the property from the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has Formerly advised GroundUp which the CTMCA “threw money away” on litigation with the town.
“Annually like clockwork, as we solution the end from the yr, the CTMCA picks a legal battle with the City, more than permits or something else. We in no way initiate it. They hold throwing funds away on vexatious litigation that they reduce and possess charges awarded in opposition to them. This can be entirely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the principle function gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of many of the admin, finances and managing ตรวจ รางวัล the CTMCA.” The investigators said they were unable to Call Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “found quite a few equipment, some in excellent ailment, some in negative affliction and some that looked rusty and very outdated”. Stemmet instructed the investigators that there was also an off-site storage facility exactly where “instruments and a few machinery” had been stored.
“We asked him to consider us to the facility but he was evasive to our ask for.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, in the products look like machines that was illegally faraway from the CTMCA’s past premises. Stemmet is going through costs for this removing.
Based on the remaining progress report submitted into the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter were directors at enough time.
The investigators found this “alarming”.
“From your CIPC research of Martin-Conne Milliners as well as invoices submitted, we note the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Road, Wetton, Cape City, the same handle on which the museum was meant to be created and/or converted,” they reported.
An audit by accountants Kopano Included, connected to the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.
In accordance with Dabishi Nthambeleni, the corporation has paid R1.2-million for a deposit, meaning R6.9-million continues to be owed, while there's no payment date set for when this have to be paid out.
The Kopano audit as well as shut connection between the businesses “suggest to us that there's ‘foul Enjoy’ involved with the purchase from the equipment with the museum workshop”, the investigators explained inside the report.
“We find that it's extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors for that property at an increased overpriced price than the particular price and value of the residence and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant into the CTMCA were spent.
“Actually, an in depth report on how the funding with the NLC was made use of, would be unattainable since the CTMCA does not have any receipts, or proof of payments to substantiate the quantities expended on Just about every merchandise it requested funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located that the NLC experienced not carried out a website visit in advance of approving the grant. But this was not conventional follow at some time and so they uncovered no evidence of negligence by NLC workforce.
At time, the NLC’s regulations didn't demand funded organisations to submit evidence of payment with interim experiences, they identified. This intended that the CTMCA was capable to receive a 2nd tranche of funding while not having to present evidence that it experienced applied the main tranche for its supposed intent.
Next the appointment of a new board, commissioner and senior govt staff, the NLC has tightened up on these and various difficulties.
Dabishi Nthambeleni encouraged that
the NLC decline any future funding purposes from your CTMCA;
the CTMCA and any members who ended up involved in the grant be subjected into the NLC’s “delinquency” method;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated resources.
But, as opposed to act about the report’s tips, the NLC – less than its prior administration – chose to suppress it, as it had carried out With all the preceding stories into corruption it had commissioned.
GroundUp sent questions to Stemmet and Soeker via SMS, and questioned for e mail addresses to ship the queries by email much too. But no reaction had been gained at time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph