Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the National Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum at any time existed.
The investigators located the CTMCA didn't make use of the R5-million allotted to order or build a museum.
Additionally they uncovered that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA applied money from the Lottery to buy workshop tools from certainly one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) because of the Nationwide Lotteries Commission (NLC) to set up a museum to rejoice the city’s abundant minstrel historical past went astray. The museum was never ever created.
The small print of your abuse of an incredible number of rands of Lottery resources for any museum that hardly ever was are exposed in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of over R64-million in Lottery money allocated for the CTMCA amongst 2003 and 2017.
The 1st Element of the investigation, by regulation organization Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which provided funding for your museum. The authorized spending plan to the museum was over R12.eight-million, with R5-million of that allocated for your creating to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a constructing with the museum and whether the museum “truly existed”.
The organization was also instructed to analyze
the acquisition with Lottery resources of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of devices “acquired to the production in the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many directors with the organisation. Stemmet was reappointed being a director in Might 2021.
The investigation adopted substantial reporting by GroundUp in regards to the millions of rands of Lottery funding allocated into the CTMCA (see right here, below and here) and the best way the resources in all probability assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.
The building on the best was the intended internet site in the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photo: Raymond Joseph
In response to a Parliamentary query, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “jobs” - including the museum - in between 2012 and 2015. All a few jobs were completed, she told MPs.
Nevertheless the investigators uncovered no evidence that a museum had ever existed.
Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp of your meant Wetton museum shows a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung around the partitions, plus a design ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum were moved as they could not afford to pay for the rent of R100,000 a month. He explained the CTMCA had ordered property for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been bought for the same price tag. Schaapkraal is in a peri-urban spot much from the town.
Because of this, the museum were moved to a new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after visiting the premises, which are in an industrial space, the investigators claimed they doubted no matter if a proper museum existed there. Photographs attached towards the report show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, shown on tables and distribute out on the floor, without having explanation.
“There is a nominal quantity of merchandise on the museum [that] on no account symbolize the much more than 100-yr record from the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum does not appear to become open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting The situation with the museum to an alternate place with out notifying the NLC.
The Schaapkraal property, on which no museum was ever constructed. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Highway premises because it had operate up a R4-million debt with the City of Cape Town and was worried its tools might be hooked up.
“As a result of authorized battles as well as debts, the organisation experienced to maneuver its assets from five Crete Highway to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director of the CTMCA, explained to them which the two buses purchased with lottery money were saved in a very mystery area “concealed with the Sheriff”. Even so the investigators stated they were being unable to substantiate that any buses had ever been acquired.
Stemmet also confirmed the buses were hidden to prevent them remaining seized. But once the investigators requested to generally be taken for the position where the buses have been stored, he instructed them that “the operator of The trick locale wasn't accessible to open up the premises for us”.
“The CTMCA couldn't present evidence of payment for two autos that it allegedly acquired with grant income,” the investigators described.
Soeker also advised them the Schaapkraal house had been bought as a result of credit card debt.
“Mr Soeker described that Based on his comprehending, mainly because of the credit card debt owed to the City of Cape Town, the CTMCA decided It could be best to market their [Schaapkraal] property … and to also to hide the property of the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and stability, has previously informed GroundUp that the CTMCA “threw funds away” on litigation with the town.
“Each and every year like clockwork, as we tactic the top with the 12 months, the CTMCA picks a authorized battle with the City, around permits or another thing. We under no circumstances initiate it. They retain throwing income away on vexatious litigation which they get rid of and have prices awarded in opposition to them. This can be totally self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of all of the admin, funds and operating ตรวจ หวย ย้อน หลัง the CTMCA.” The investigators stated they had been struggling to Call Momberg.
Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “identified many equipment, some in fantastic affliction, some in poor condition plus some that looked rusty and very old”. Stemmet advised the investigators that there was also an off-web page storage facility where “instruments and some machinery” were kept.
“We questioned him to take us to the power but he was evasive to our ask for.”
Determined by photographs and invoices in GroundUp’s possession, some, if not all, with the goods seem like gear which was illegally removed from the CTMCA’s previous premises. Stemmet is facing expenses for this removing.
Based on the last development report submitted into the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation through which Stemmet, his wife and his daughter were directors at some time.
The investigators located this “alarming”.
“Through the CIPC search of Martin-Conne Milliners plus the invoices submitted, we note the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the company is 5 Crete Highway, Wetton, Cape City, the exact same deal with on which the museum was intended to be crafted and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, attached to the investigative report, recorded the CTMCA was in the process of acquiring “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the administrators.
According to Dabishi Nthambeleni, the corporation has paid R1.two-million as being a deposit, this means R6.nine-million continues to be owed, while there is absolutely no payment day established for when this must be paid.
The Kopano audit along with the near backlink between the businesses “indicate to us that there is ‘foul Engage in’ associated with the purchase of the equipment on the museum workshop”, the investigators explained from the report.
“We discover that it is really probable that CTMCA employed the funding from the NLC to ‘refund’ certainly one of its key directors for the house at a higher overpriced fee than the particular value and price of the property and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been unable to determine how the grant to the CTMCA had been expended.
“In fact, a detailed report on how the funding of the NLC was applied, would be unattainable because the CTMCA does not have any receipts, or evidence of payments to verify the amounts invested on Every single merchandise it asked for funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered which the NLC experienced not carried out a web site pay a visit to ahead of approving the grant. But this wasn't typical follow at the time they usually identified no proof of negligence by NLC staff.
At some time, the NLC’s policies didn't need funded organisations to submit proof of payment with interim studies, they pointed out. This meant that the CTMCA was capable to receive a second tranche of funding without needing to offer proof that it experienced made use of the first tranche for its supposed reason.
Pursuing the appointment of a different board, commissioner and senior executive workforce, the NLC has tightened up on these and other difficulties.
Dabishi Nthambeleni advised that
the NLC drop any foreseeable future funding purposes from your CTMCA;
the CTMCA and any users who had been involved with the grant be subjected to the NLC’s “delinquency” course of action;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated resources.
But, rather than act around the report’s tips, the NLC – less than its former administration – selected to suppress it, because it experienced finished Along with the preceding reviews into corruption it experienced commissioned.
GroundUp sent thoughts to Stemmet and Soeker through SMS, and asked for e mail addresses to send the inquiries by email way too. But no reaction had been acquired at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph
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