Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated 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 with the Countrywide Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to order or make a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They located the CTMCA employed resources with the Lottery to buy workshop equipment from considered one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was hardly ever created.
The details on the abuse of a lot of rands of Lottery cash for your museum that under no circumstances was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery funds allocated to your CTMCA amongst 2003 and 2017.
The initial part of the investigation, by regulation agency Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which included funding to the museum. The authorised price range to the museum was much more than R12.8-million, with R5-million of that allocated for a constructing to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a building for the museum and if the museum “actually existed”.
The agency was also instructed to investigate
the acquisition with Lottery funds of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous equipment “obtained with the producing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various administrators with the organisation. Stemmet was reappointed as being a director in May well 2021.
The investigation adopted substantial reporting by GroundUp in regards to the many rands of Lottery funding allotted to the CTMCA (see here, here and here) and the way the funds almost certainly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The constructing on the appropriate was the meant internet site from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to a Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “jobs” - including the museum - concerning 2012 and 2015. All three assignments were completed, she instructed MPs.
Nevertheless the investigators uncovered no proof that a museum had ever existed.
Initially the museum was on account of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp from the meant Wetton museum demonstrates a espresso shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, in addition to a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not able” to substantiate if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum had been moved because they could now not find the money for the lease of R100,000 per month. He reported the CTMCA had obtained property for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and were offered for the same rate. Schaapkraal is within a peri-city area far from the city.
Therefore, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after viewing the premises, that happen to be in an industrial spot, the investigators said they doubted whether a correct museum existed there. Pics connected on the report demonstrate a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the floor, without clarification.
“There is a negligible volume of products for the museum [that] in no way stand for the in excess of 100-yr historical past of the Cape Town Carnival, the investigators mentioned, including that there was “no signage exterior the premises indicating that they housed a museum and … usually, the museum doesn't appear to be open up to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by shifting The situation from the museum to an alternate locale without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to move in the rented Crete Road premises since it had operate up a R4-million personal debt with town of Cape City and was concerned its devices might be connected.
“Due to authorized battles as well as the debts, the organisation experienced to maneuver its home from 5 Crete Highway to stay away from the sheriff from attaching the home from the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery funds were being stored inside a key spot “hidden from your Sheriff”. Nevertheless the investigators explained they were unable to verify that any buses experienced ever been bought.
Stemmet also verified the buses were concealed to stop them remaining seized. But when the investigators requested to become taken into the spot where by the buses had been stored, he instructed them that “the operator of The trick location was not available to open the premises for us”.
“The CTMCA could not provide proof of payment for two vehicles that it allegedly bought with grant funds,” the investigators documented.
Soeker also explained to them the Schaapkraal residence were marketed as a result of debt.
“Mr Soeker described that In line with his comprehension, mainly because of the debt owed to the City of Cape City, the CTMCA made the decision It will be finest to offer their [Schaapkraal] home … and also to also to cover the assets of the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and safety, has Earlier advised GroundUp that the CTMCA “threw revenue away” on litigation with the City.
“On a yearly basis like clockwork, as we strategy the tip with the calendar year, the CTMCA picks a lawful combat with the town, in excess of permits or something else. We under no circumstances initiate it. They retain throwing funds absent on vexatious litigation they shed and possess charges awarded in opposition to them. This is totally self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the principle function players on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of the many admin, funds and working ตา ว จ หวย the CTMCA.” The investigators reported they had been not able to Get hold of Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “identified quite a few devices, some in fantastic condition, some in terrible condition and some that appeared rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-internet site storage facility the place “devices and several equipment” have been kept.
“We requested him to consider us to the ability but he was evasive to our request.”
According to photos and invoices in GroundUp’s possession, some, Otherwise all, from the goods appear to be equipment that was illegally faraway from the CTMCA’s prior premises. Stemmet is experiencing costs for this elimination.
In accordance with the final progress report submitted on the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter have been directors at the time.
The investigators found this “alarming”.
“In the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, connected to the investigative report, recorded that the CTMCA was in the entire process of purchasing “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million like a deposit, that means R6.9-million remains owed, while there isn't a payment date established for when this needs to be paid out.
The Kopano audit and also the shut website link concerning the companies “point out to us that there's ‘foul Perform’ involved with the acquisition of the machinery of your museum workshop”, the investigators mentioned during the report.
“We discover that it's extremely probable that CTMCA employed the funding with the NLC to ‘refund’ amongst its main administrators for the property at the next overpriced amount than the particular selling price and worth of the home and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant towards the CTMCA were invested.
“In reality, an in depth report on how the funding in the NLC was utilized, could well be unachievable as being the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every single product it asked for funding for. The interim report and final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not carried out a web-site stop by just before approving the grant. But this was not common follow at time and they discovered no proof of negligence by NLC workers.
At some time, the NLC’s regulations did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to deliver proof that it had applied the very first tranche for its meant reason.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni advisable that
the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up 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 – below its past administration – chose to suppress it, because it experienced done Along with the prior studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to ship the issues by electronic mail too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph