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 complete in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the Countrywide Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no evidence that a museum at any time existed.
The investigators found that the CTMCA did not make use of the R5-million allotted to acquire or establish a museum.
In addition they located which the CTMCA only acquired land worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA used funds through the Lottery to purchase workshop devices from among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel historical past went astray. The museum was hardly ever established.
The main points of the abuse of many rands of Lottery funds for any museum that hardly ever was are discovered within an investigative report commissioned via the NLC in 2021.
The museum grant was Portion of much more than R64-million in Lottery resources allocated to your CTMCA between 2003 and 2017.
The very first Element of the investigation, by legislation company Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which included funding to the museum. The authorized budget to the museum was over R12.eight-million, with R5-million of that allocated for just a creating to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a making to the museum and whether or not the museum “really existed”.
The business was also instructed to analyze
the acquisition with Lottery funds of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
different equipment “purchased with the manufacturing of the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators in the organisation. Stemmet was reappointed like a director in Might 2021.
The investigation adopted in depth reporting by GroundUp with regard to the millions of rands of Lottery funding allotted to the CTMCA (see in this article, below and below) and how the money possibly assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The developing on the ideal was the meant web site with the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photo: Raymond Joseph
In response to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “assignments” - including the museum - between 2012 and 2015. All a few jobs were completed, she advised MPs.
However the investigators located no proof that a museum experienced at any time existed.
Initially the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp from the intended Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of photographs haphazardly hung over the partitions, plus a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not ready” to verify if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved as they could now not find the money for the hire of R100,000 per month. He reported the CTMCA had procured house for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were marketed for the same cost. Schaapkraal is inside of a peri-urban area significantly from town.
Due to this fact, the museum had been moved to a brand new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after browsing the premises, which happen to be within an industrial location, the investigators mentioned they doubted no matter whether a suitable museum existed there. Images attached into the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, exhibited on tables and unfold out on the floor, without having rationalization.
“You will find a minimal degree of things at the museum [that] on no account stand for the much more than a hundred-yr heritage with the Cape City Carnival, the investigators claimed, adding that there was “no signage exterior the premises indicating that they housed a museum and … normally, the museum would not seem being open to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by going The placement of the museum to another site without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever built. Picture: Raymond Joseph
Buses
Stemmet told the investigators which the CTMCA had to maneuver within the rented Crete Street premises since it had run up a R4-million financial debt with the town of Cape City and was worried its tools can be attached.
“As a result of authorized battles along with the debts, the organisation experienced to move its home from 5 Crete Highway to avoid the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director in the CTMCA, told them that the two buses bought with lottery money had been saved in a very mystery spot “hidden within the Sheriff”. Though the investigators stated they had been unable to confirm that any buses experienced ever been bought.
Stemmet also verified the buses had been concealed to stop them becoming seized. But when the investigators questioned to get taken on the spot in which the buses had been saved, he instructed them that “the proprietor of The key location was not accessible to open up the premises for us”.
“The CTMCA could not present evidence of payment for 2 automobiles that it allegedly ordered with grant funds,” the investigators described.
Soeker also explained to them the Schaapkraal residence had been bought due to the credit card debt.
“Mr Soeker explained that In keeping with his comprehending, due to credit card debt owed to the town of Cape Town, the CTMCA made the decision It could be ideal to market their [Schaapkraal] assets … and also to also to hide the belongings in the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for basic safety and safety, has Earlier advised GroundUp which the CTMCA “threw funds absent” on litigation with the City.
“Each year like clockwork, as we technique the top in the 12 months, the CTMCA picks a authorized combat with town, above permits or something else. We never ever initiate it. They hold throwing dollars away on vexatious litigation that they drop and also have prices awarded versus them. This really is entirely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial purpose players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, funds and working ltpbet the CTMCA.” The investigators explained they were struggling to Speak to Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “located many equipment, some in great issue, some in lousy ailment and some that appeared rusty and intensely old”. Stemmet advised the investigators that there was also an off-web page storage facility in which “instruments and a few equipment” were held.
“We asked him to acquire us to the ability but he was evasive to our ask for.”
Based upon images and invoices in GroundUp’s possession, some, if not all, with the objects look like products that was illegally removed from the CTMCA’s past premises. Stemmet is going through rates for this removal.
Based on the closing development report submitted to the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter have been directors at the time.
The investigators uncovered this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Road, Wetton, Cape Town, a similar address on which the museum was intended to be created and/or transformed,” they described.
An audit by accountants Kopano Included, attached for the investigative report, recorded that the CTMCA was in the entire process of getting “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.
Based on Dabishi Nthambeleni, the company has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, though there is no payment date established for when this has to be compensated.
The Kopano audit along with the shut hyperlink involving the companies “show to us that there's ‘foul Participate in’ involved in the purchase on the equipment with the museum workshop”, the investigators reported within the report.
“We find that it is highly probable that CTMCA used the funding of the NLC to ‘refund’ among its primary directors with the residence at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant for the CTMCA were invested.
“In point of fact, a detailed report on how the funding with the NLC was employed, could well be unattainable given that the CTMCA does not have any receipts, or proof of payments to confirm the amounts put in on each item 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 conducted a website go to just before approving the grant. But this was not conventional exercise at enough time and so they found no proof of negligence by NLC employees.
At enough time, the NLC’s principles didn't call for funded organisations to submit proof of payment with interim reports, they pointed out. This intended that the CTMCA was in the position to get a second tranche of funding without the need to offer proof that it experienced made use of the initial tranche for its meant reason.
Following the appointment of a whole new board, commissioner and senior government staff, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any members who had been involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced completed with the earlier experiences into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to mail the questions by email as well. But no reaction were been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph