Leaked report exposes abuse of lottery cash compensated to minstrel team
Leaked report exposes abuse of lottery cash compensated to minstrel team
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Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant from the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has located no evidence that a museum at any time existed.
The investigators discovered the CTMCA did not utilize the R5-million allotted to obtain or build a museum.
They also discovered that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They found the CTMCA employed funds from the Lottery to buy workshop tools from one among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) because of the National Lotteries Fee (NLC) to arrange a museum to celebrate the town’s rich minstrel record went astray. The museum was under no circumstances made.
The main points of the abuse of countless rands of Lottery funds for a museum that by no means was are revealed within an investigative report commissioned via the NLC in 2021.
The museum grant was A part of over R64-million in Lottery resources allocated into the CTMCA among 2003 and 2017.
The primary Portion of the investigation, by legislation business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which integrated funding for your museum. The accredited funds for your museum was much more than R12.eight-million, with R5-million of that allocated for the creating to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making with the museum and whether or not the museum “truly existed”.
The company was also instructed to investigate
the acquisition with Lottery cash of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of equipment “bought for that production with the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few directors in the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation followed extensive reporting by GroundUp with regards to the an incredible number of rands of Lottery funding allotted towards the CTMCA (see here, below and here) and the way the cash likely assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.
The creating on the right was the supposed website with the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph
In reaction to some Parliamentary query, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “projects” - including the museum - amongst 2012 and 2015. All 3 initiatives had been done, she informed MPs.
But the investigators located no evidence that a museum experienced ever existed.
At first the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of the intended Wetton museum shows a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung within the walls, along with a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it was “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum were moved given that they could no longer pay for the rent of R100,000 per month. He stated the CTMCA experienced ordered residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar cost. Schaapkraal is in a very peri-city area considerably from the town.
Consequently, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which can be in an industrial location, the investigators reported they doubted regardless of whether a suitable museum existed there. Pics connected for the report show a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and unfold out on the ground, without having explanation.
“There exists a negligible quantity of things with the museum [that] under no circumstances stand for the greater than 100-yr background on the Cape City Carnival, the investigators explained, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum isn't going to seem for being open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by shifting The situation with the museum to an alternative spot with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time designed. Photo: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to maneuver within the rented Crete Road premises since it experienced operate up a R4-million personal debt with town of Cape City and was fearful its machines would be attached.
“A result of the lawful battles plus the debts, the organisation experienced to move its home from five Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director with the CTMCA, informed them which the two buses bought with lottery cash were stored inside of a key location “hidden through the Sheriff”. However the investigators claimed they have been not able to substantiate that any buses had at any time been bought.
Stemmet also verified the buses had been hidden to prevent them getting seized. But in the event the investigators questioned for being taken towards the area where by the buses were being stored, he informed them that “the operator of The trick location wasn't accessible to open up the premises for us”.
“The CTMCA couldn't deliver proof of payment for 2 automobiles that it allegedly procured with grant revenue,” the investigators noted.
Soeker also advised them the Schaapkraal residence were bought due to the credit card debt.
“Mr Soeker spelled out that In accordance with his knowledge, because of the financial debt owed to town of Cape Town, the CTMCA made the decision It could be most effective to provide their [Schaapkraal] house … also to also to hide the assets on the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for safety and protection, has previously explained to GroundUp that the CTMCA “threw cash away” on litigation with the City.
“Annually like clockwork, as we method the end of the yr, the CTMCA picks a authorized battle with town, above permits or another thing. We never ever initiate it. They continue to keep throwing cash away on vexatious litigation that they get rid of and possess prices awarded versus them. This really is entirely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the primary role gamers on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in command of every one of the admin, funds and working หวย the CTMCA.” The investigators claimed they were struggling to Get in touch with Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified quite a few devices, some in very good issue, some in undesirable condition plus some that appeared rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web site storage facility where “devices and some equipment” were retained.
“We asked him to just take us to the power but he was evasive to our request.”
Determined by photos and invoices in GroundUp’s possession, some, if not all, on the merchandise look like gear that was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with charges for this removal.
In accordance with the final development report submitted to the NLC through the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter ended up directors at some time.
The investigators observed this “alarming”.
“Through the CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address 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 claimed.
An audit by accountants Kopano Included, connected on the investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.
According to Dabishi Nthambeleni, the organization has compensated R1.two-million like a deposit, which means R6.nine-million continues to be owed, although there isn't any payment day set for when this needs to be paid.
The Kopano audit as well as close backlink in between the companies “point out to us that there's ‘foul Perform’ linked to the purchase from the machinery on the museum workshop”, the investigators reported in the report.
“We find that it is highly possible that CTMCA used the funding of the NLC to ‘refund’ among its major directors to the house at an increased overpriced amount than the actual price tag and value of the assets and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA were put in.
“In fact, an in depth report on how the funding from the NLC was applied, could be unachievable because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts spent 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 executed a web-site take a look at before approving the grant. But this wasn't regular apply at the time and so they identified no evidence of carelessness by NLC staff members.
At enough time, the NLC’s regulations did not require funded organisations to post proof of payment with interim stories, they pointed out. This intended which the CTMCA was in the position to receive a 2nd tranche of funding without needing to offer evidence that it experienced employed the main tranche for its intended function.
Next the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni advised that
the NLC decline any potential funding programs from your CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open up 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 about the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, mainly because it had finished With all the former reviews into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send out the thoughts by email as well. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph