Leaked report exposes abuse of lottery money paid out to minstrel team
Leaked report exposes abuse of lottery money paid out to minstrel team
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Minstrels conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant through the Countrywide Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators discovered which the CTMCA didn't make use of the R5-million allotted to order or make a museum.
They also observed that the CTMCA only bought land value R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA utilized cash in the Lottery to get workshop devices from certainly one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape City Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to build a museum to celebrate town’s abundant minstrel background went astray. The museum was in no way produced.
The small print of the abuse of numerous rands of Lottery funds for a museum that under no circumstances was are discovered within an investigative report commissioned with the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery funds allocated into the CTMCA involving 2003 and 2017.
The very first Component of the investigation, by law firm Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for that museum. The authorized spending plan for your museum was a lot more than R12.eight-million, with R5-million of that allocated for any creating to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a building to the museum and whether the museum “actually existed”.
The firm was also instructed to analyze
the purchase with Lottery funds of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
different machines “ordered to the manufacturing of your costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators of the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation adopted comprehensive reporting by GroundUp about the countless rands of Lottery funding allocated to the CTMCA (see right here, here and in this article) and the way the resources probably assisted finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The building on the best was the meant web-site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph
In response into a Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “projects” - including the museum - in between 2012 and 2015. All 3 tasks had been concluded, she informed MPs.
Although the investigators found no evidence that a museum experienced ever existed.
At the outset the museum was resulting from open up in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp with the meant Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of images haphazardly hung over the walls, and a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it absolutely was “not able” to substantiate if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum were moved as they could not afford the hire of R100,000 per month. He mentioned the CTMCA experienced obtained home for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for the same rate. Schaapkraal is in a very peri-urban spot considerably from the town.
Due to this fact, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after going to the premises, which happen to be within an industrial place, the investigators reported they doubted regardless of whether a correct museum existed there. Images connected on the report present a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, without clarification.
“You will find a negligible degree of objects with the museum [that] by no means symbolize the over 100-12 months history on the Cape Town Carnival, the investigators explained, introducing that there was “no signage exterior the premises indicating they housed a museum and … normally, the museum won't appear being open up to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by shifting the location in the museum to an alternative area without having notifying the NLC.
The Schaapkraal home, on which no museum was ever crafted. Picture: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver from your rented Crete Highway premises since it experienced run up a R4-million debt with the town of Cape Town and was afraid its devices will be connected.
“Due to legal battles as well as debts, the organisation experienced to maneuver its house from 5 Crete Road to avoid the sheriff from attaching the home in the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director from the CTMCA, informed them which the two buses purchased with lottery funds were being stored inside a secret site “hidden through the Sheriff”. Even so the investigators explained they had been unable to verify that any buses had ever been acquired.
Stemmet also confirmed that the buses had been hidden to prevent them currently being seized. But if the investigators asked to get taken to the area where by the buses had been stored, he instructed them that “the operator of the secret spot wasn't accessible to open up the premises for us”.
“The CTMCA couldn't supply evidence of payment for 2 automobiles that it allegedly acquired with grant money,” the investigators described.
Soeker also explained to them the Schaapkraal property had been bought due to personal debt.
“Mr Soeker defined that Based on his knowing, as a result of debt owed to town of Cape Town, the CTMCA made a decision It might be finest to market their [Schaapkraal] property … and also to also to cover the belongings of your CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and safety, has Beforehand explained to GroundUp the CTMCA “threw money absent” on litigation with the City.
“Every year like clockwork, as we strategy the end in the yr, the CTMCA picks a legal battle with town, over permits or something else. We hardly ever initiate it. They preserve throwing income away on vexatious litigation that they reduce and also have charges awarded towards them. This can be entirely self-inflicted,” he claimed.
Soeker advised the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of each of the admin, finances and functioning ตรวจ หวย ลาว วัน นี้ the CTMCA.” The investigators said they had been not able to Get in touch with Momberg.
Hats
All through their “investigation in loco” in the Primrose Park premises, the investigators “identified various equipment, some in good condition, some in poor issue and several that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-internet site storage facility the place “instruments and a few equipment” were being saved.
“We questioned him to acquire us to the facility but he was evasive to our ask for.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, from the products look like equipment that was illegally faraway from the CTMCA’s prior premises. Stemmet is facing fees for this elimination.
In accordance with the final progress report submitted on the NLC via the CTMCA, the machinery was acquired from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were being directors at time.
The investigators found this “alarming”.
“In the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape City, exactly the same handle on which the museum was meant to be created and/or converted,” they described.
An audit by accountants Kopano Integrated, connected to the investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the administrators.
According to Dabishi Nthambeleni, the business has compensated R1.two-million for a deposit, this means R6.nine-million remains owed, though there is absolutely no payment date established for when this needs to be paid out.
The Kopano audit plus the close hyperlink concerning the companies “suggest to us that there's ‘foul Engage in’ involved in the acquisition from the equipment on the museum workshop”, the investigators stated in the report.
“We find that it is really probable that CTMCA used the funding in the NLC to ‘refund’ one of its principal administrators for the home at a better overpriced amount than the particular cost and value of the home and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant on the CTMCA were invested.
“In reality, an in depth report on how the funding of the NLC was used, would be unattainable as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on each product it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not conducted a web-site go to in advance of approving the grant. But this wasn't regular apply at time plus they uncovered no proof of carelessness by NLC staff members.
At time, the NLC’s policies did not require funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was ready to receive a next tranche of funding while not having to give evidence that it had made use of the 1st tranche for its intended intent.
Adhering to the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these and various troubles.
Dabishi Nthambeleni recommended that
the NLC decline any foreseeable future funding purposes in the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards the NLC’s “delinquency” method;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated funds.
But, rather than act over the report’s suggestions, the NLC – under its past administration – chose to suppress it, mainly because it had finished Along with the earlier stories into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to deliver the issues by electronic mail as well. But no response had been acquired at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph