Leaked report exposes abuse of lottery revenue paid out to minstrel team
Leaked report exposes abuse of lottery revenue paid out to minstrel team
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Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed which the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
Additionally they identified that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They observed the CTMCA utilised funds within the Lottery to acquire workshop gear from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel historical past went astray. The museum was under no circumstances established.
The details of the abuse of numerous rands of Lottery money for any museum that in no way was are uncovered in an investigative report commissioned by the NLC in 2021.
The museum grant was Portion of in excess of R64-million in Lottery resources allotted for the CTMCA between 2003 and 2017.
The 1st Portion 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 accepted finances with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a developing for your museum and if the museum “truly existed”.
The organization was also instructed to investigate
the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
many devices “purchased for your production of the costumes and hats” for the minstrels carnival, for R5.4-million.
At the 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 spouse Zainonesa and daughter Raziah continued as two of various administrators from the organisation. Stemmet was reappointed like a director in May perhaps 2021.
The investigation adopted in depth reporting by GroundUp with regard to the many rands of Lottery funding allotted on the CTMCA (see listed here, here and in this article) and the best way the cash likely aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at some time by Marius Fransman.
The building on the correct was the supposed web page of your minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph
In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “tasks” - such as the museum - in between 2012 and 2015. All a few tasks had been done, she advised MPs.
Nevertheless the investigators found no proof that a museum experienced at any time existed.
In the beginning the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photo attained by GroundUp from the supposed Wetton museum displays a coffee shop with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, plus a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer find the money for the hire of R100,000 per month. He said the CTMCA had bought home for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for the same price. Schaapkraal is inside a peri-urban area considerably from town.
Subsequently, the museum were moved to a fresh area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial space, the investigators explained they doubted regardless of whether an appropriate museum existed there. Photographs hooked up towards the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without rationalization.
“There is a minimal level of objects with the museum [that] under no circumstances depict the in excess of one hundred-yr history of your Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum won't search to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by shifting The placement of your museum to an alternative spot without notifying the NLC.
The Schaapkraal home, on which no museum was ever designed. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to maneuver from 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 afraid its equipment would be hooked up.
“Mainly because of the authorized battles along with the debts, the organisation had to maneuver its home from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director of your CTMCA, informed them which the two buses acquired with lottery money ended up saved within a top secret place “hidden with the Sheriff”. But the investigators mentioned they ended up not able to verify that any buses had ever been bought.
Stemmet also confirmed that the buses were concealed to prevent them staying seized. But if the investigators requested for being taken for the spot in which the buses had been saved, he advised them that “the owner of The trick spot was not accessible to open up the premises for us”.
“The CTMCA could not provide evidence of payment for 2 autos that it allegedly bought with grant dollars,” the investigators noted.
Soeker also explained to them the Schaapkraal home had been bought because of the debt.
“Mr Soeker spelled out that In accordance with his knowing, a result of the debt owed to the City of Cape Town, the CTMCA decided It might be most effective to market their [Schaapkraal] assets … and to also to cover the assets in the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and stability, has previously told GroundUp that the CTMCA “threw dollars absent” on litigation with town.
“Yearly like clockwork, as we approach the tip of the year, the CTMCA picks a lawful fight with the City, in excess of permits or another thing. We never initiate it. They preserve throwing cash away on vexatious litigation which they lose and have expenses awarded in opposition to them. This is certainly solely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the leading position gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for many of the admin, finances and working หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators claimed they had been not able to Call Momberg.
Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “observed numerous equipment, some in good situation, some in negative issue and some that looked rusty and very old”. Stemmet informed the investigators that there was also an off-website storage facility exactly where “instruments and a few equipment” were being saved.
“We requested him to just take us to the facility but he was evasive to our request.”
Determined by shots and invoices in GroundUp’s possession, some, if not all, with the objects look like tools which was illegally removed from the CTMCA’s past premises. Stemmet is going through costs for this elimination.
In accordance with the ultimate development report submitted to the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter had been directors at time.
The investigators located this “alarming”.
“With the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we note the following alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Street, Wetton, Cape Town, the identical handle on which the museum was intended to be built and/or converted,” they described.
An audit by accountants Kopano Incorporated, hooked up to your 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, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the administrators.
As outlined by Dabishi Nthambeleni, the company has paid R1.2-million as being a deposit, which means R6.nine-million is still owed, nevertheless there is no payment day established for when this have to be paid out.
The Kopano audit as well as the close connection involving the businesses “reveal to us that there's ‘foul Enjoy’ associated with the acquisition with the machinery with the museum workshop”, the investigators mentioned during the report.
“We find that it is hugely possible that CTMCA made use of the funding from the NLC to ‘refund’ considered one of its primary directors for your house at the next overpriced level than the particular selling price and price of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant on the CTMCA had been invested.
“In fact, a detailed report on how the funding of the NLC was applied, can be unachievable as being the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities put in on Every merchandise it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not conducted a web site take a look at right before approving the grant. But this wasn't conventional observe at some time plus they located no evidence of carelessness by NLC staff members.
At time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was in the position to get a 2nd tranche of funding without having to deliver proof that it had used the primary tranche for its supposed objective.
Pursuing the appointment of a fresh board, commissioner and senior govt workforce, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni encouraged that
the NLC drop any upcoming funding applications from your CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, as opposed to act on the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had performed With all the past experiences into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by electronic mail much too. But no reaction were gained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph