Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant from the Countrywide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no evidence that a museum at any time existed.
The investigators identified which the CTMCA did not make use of the R5-million allotted to buy or make a museum.
In addition they identified the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They identified the CTMCA applied resources from the Lottery to buy workshop tools from considered one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to set up a museum to celebrate the town’s prosperous minstrel history went astray. The museum was hardly ever made.
The main points on the abuse of millions of rands of Lottery money for any museum that in no way was are uncovered in an investigative report commissioned from the NLC in 2021.
The museum grant was part of more than R64-million in Lottery funds allocated into the CTMCA between 2003 and 2017.
The main A part of the investigation, by legislation organization Dabishi Nthambeleni, was executed involving September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which provided funding for the museum. The accredited finances for the museum was in excess of R12.eight-million, with R5-million of that allocated for just a creating to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the setting up for the museum and whether the museum “actually existed”.
The business was also instructed to research
the purchase with Lottery funds of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
many machines “purchased for the manufacturing of the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several administrators in the organisation. Stemmet was reappointed as a director in May well 2021.
The investigation followed considerable reporting by GroundUp about the many rands of Lottery funding allocated on the CTMCA (see in this article, right here and below) and just how the funds possibly aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The setting up on the right was the supposed site of the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph
In response to the Parliamentary dilemma, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - including the museum - concerning 2012 and 2015. All 3 projects had been done, she advised MPs.
However the investigators observed no proof that a museum had ever existed.
At the beginning the museum was on account of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp on the intended Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung to the walls, and also a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not in a position” to confirm if a museum had ever operated from these premises.
Stemmet advised the investigators the museum were moved mainly because they could no more afford the rent of R100,000 a month. He said the CTMCA experienced bought property for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been offered for the same selling price. Schaapkraal is inside of a peri-urban region considerably from the city.
As a result, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after checking out the premises, which can be in an industrial place, the investigators said they doubted no matter if a proper museum existed there. Photographs connected on the report clearly show a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and unfold out on the floor, with no explanation.
“There's a minimal quantity of items within the museum [that] under no circumstances symbolize the over a hundred-12 months background of your Cape Town Carnival, the investigators said, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … normally, the museum would not appear for being open up to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by going The situation with the museum to an alternate spot without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever built. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to move from the rented Crete Road premises as it experienced run up a R4-million debt with the town of Cape City and was worried its tools could well be connected.
“A result of the legal battles as well as the debts, the organisation experienced to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the property with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director on the CTMCA, told them the two buses acquired with lottery money were stored inside of a mystery locale “hidden through the Sheriff”. Nevertheless the investigators said they ended up not able to substantiate that any buses had ever been acquired.
Stemmet also verified that the buses had been hidden to stop them remaining seized. But when the investigators questioned to get taken to your spot where the buses were being stored, he told them that “the owner of The trick locale wasn't accessible to open up the premises for us”.
“The CTMCA could not offer proof of payment for two vehicles that it allegedly acquired with grant funds,” the investigators reported.
Soeker also instructed them the Schaapkraal assets had been marketed because of the credit card debt.
“Mr Soeker defined that In accordance with his comprehending, because of the debt owed to the town of Cape Town, the CTMCA resolved It will be best to promote their [Schaapkraal] property … and to also to hide the property on the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and stability, has Formerly told GroundUp which the CTMCA “threw cash away” on litigation with town.
“Every year like clockwork, as we technique the end from the year, the CTMCA picks a legal battle with the town, around permits or something else. We under no circumstances initiate it. They keep throwing money absent on vexatious litigation they drop and have prices awarded from them. That is completely self-inflicted,” he said.
Soeker told the Dabishi Nthambeleni investigators that the most crucial position 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 ผล หวย the CTMCA.” The investigators mentioned they were not able to Call Momberg.
Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “observed numerous machines, some in excellent affliction, some in bad situation and several that seemed rusty and extremely previous”. Stemmet informed the investigators that there was also an off-web site storage facility the place “instruments and a few machinery” were being saved.
“We requested him to get us to the facility but he was evasive to our ask for.”
Dependant on images and invoices in GroundUp’s possession, some, if not all, of the merchandise seem like gear which was illegally faraway from the CTMCA’s prior premises. Stemmet is facing prices for this removal.
Based on the final development report submitted for the NLC by the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation during which Stemmet, his wife and his daughter have been administrators at some time.
The investigators discovered this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, hooked up for the investigative report, recorded which the CTMCA was in the process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the administrators.
In accordance with Dabishi Nthambeleni, the corporation has compensated R1.two-million as a deposit, which means R6.9-million continues to be owed, however there is not any payment day set for when this have to be paid out.
The Kopano audit as well as the close hyperlink in between the businesses “point out to us that there is ‘foul Participate in’ involved with the purchase with the machinery of your museum workshop”, the investigators claimed inside the report.
“We discover that it is remarkably probable that CTMCA utilised the funding of your NLC to ‘refund’ one among its most important directors to the residence at a higher overpriced charge than the particular price and value of the home and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA had been spent.
“In reality, an in depth report on how the funding of the NLC was used, would be not possible as the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Every single item it asked for funding for. The interim report and ultimate report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered which the NLC had not done a web site go to right before approving the grant. But this was not typical apply at enough time and they observed no proof of negligence by NLC personnel.
At the time, the NLC’s regulations didn't demand funded organisations to submit proof of payment with interim studies, they identified. This intended which the CTMCA was in a position to receive a next tranche of funding without needing to give proof that it had used the very first tranche for its intended objective.
Following the appointment of a brand new board, commissioner and senior govt staff, the NLC has tightened up on these and various difficulties.
Dabishi Nthambeleni advisable that
the NLC decline any upcoming funding apps from the CTMCA;
the CTMCA and any customers who were associated with the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open up a criminal scenario 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, rather than act within the report’s suggestions, the NLC – less than its former administration – chose to suppress it, mainly because it experienced performed While using the former stories into corruption it had commissioned.
GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for email addresses to ship the queries by email far too. But no response had been been given at the time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph
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