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 conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has observed no proof that a museum ever existed.
The investigators found which the CTMCA did not make use of the R5-million allocated to get or make a museum.
They also located the CTMCA only purchased land worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA employed resources from the Lottery to invest in workshop products from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to put in place a museum to rejoice the city’s abundant minstrel background went astray. The museum was in no way created.
The details of the abuse of many rands of Lottery resources to get a museum that never ever was are uncovered in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of a lot more than R64-million in Lottery cash allocated to your CTMCA involving 2003 and 2017.
The 1st Portion of the investigation, by regulation organization Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which included funding for your museum. The permitted funds for your museum was greater than R12.8-million, with R5-million of that allotted for just a constructing to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating with the museum and if the museum “basically existed”.
The organization was also instructed to investigate
the acquisition with Lottery resources of two cars – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
many devices “acquired for the producing of the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of directors with the organisation. Stemmet was reappointed as a director in May well 2021.
The investigation adopted in depth reporting by GroundUp about the numerous rands of Lottery funding allocated into the CTMCA (see right here, right here and right here) and the way the money likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.
The constructing on the proper was the intended web site with the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to the Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All three jobs had been finished, she informed MPs.
Even so the investigators located no proof that a museum had at any time existed.
At first the museum was resulting from open in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp of the intended Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of photographs haphazardly hung over the partitions, in addition to a model ship on its plinth within a corner.
In its report, Dabishi Nthambeleni mentioned it was “not in a position” to confirm if a museum had ever operated from these premises.
Stemmet informed the investigators the museum had been moved because they could no longer find the money for the lease of R100,000 a month. He reported the CTMCA had obtained home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were offered for a similar rate. Schaapkraal is inside of a peri-city location considerably from the town.
Due to this fact, the museum had been moved to a brand new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after browsing the premises, which happen to be within an industrial area, the investigators mentioned they doubted regardless of whether a suitable museum existed there. Photos connected to the report demonstrate a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the floor, without any explanation.
“There is a minimal quantity of things with the museum [that] by no means symbolize the a lot more than 100-12 months background with the Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating they housed a museum and … generally, the museum will not glimpse to become open to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by relocating The placement on the museum to another site without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever created. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA experienced to move from your rented Crete Highway premises mainly because it had run up a R4-million debt with the town of Cape Town and was fearful its machines can be hooked up.
“Because of the authorized battles as well as debts, the organisation experienced to maneuver its assets from 5 Crete Road to steer clear of the sheriff from attaching the home with the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director of the CTMCA, advised them the two buses purchased with lottery cash had been saved inside a solution location “hidden through the Sheriff”. Although the investigators stated they had been unable to substantiate that any buses had ever been bought.
Stemmet also confirmed which the buses had been hidden to prevent them staying seized. But if the investigators asked to be taken into the spot exactly where the buses had been saved, he advised them that “the owner of the secret spot was not accessible to open the premises for us”.
“The CTMCA could not deliver evidence of payment for 2 vehicles that it allegedly acquired with grant money,” the investigators described.
Soeker also instructed them the Schaapkraal residence were marketed due to personal debt.
“Mr Soeker discussed that according to his being familiar with, due to the credit card debt owed to the town of Cape City, the CTMCA resolved It might be most effective to promote their [Schaapkraal] assets … and also to also to hide the belongings of your CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and safety, has Beforehand informed GroundUp the CTMCA “threw funds away” on litigation with the City.
“Each year like clockwork, as we tactic the top in the 12 months, the CTMCA picks a authorized battle with the town, more than permits or something else. We under no circumstances initiate it. They maintain throwing dollars absent on vexatious litigation they drop and also have costs awarded against them. This really is totally self-inflicted,” he claimed.
Soeker explained to the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and functioning luckyvip77 the CTMCA.” The investigators reported they had been struggling to Speak to Momberg.
Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “identified various machines, some in fantastic condition, some in lousy situation and several that appeared rusty and intensely aged”. Stemmet told the investigators that there was also an off-web site storage facility the place “devices plus some machinery” were kept.
“We asked him to take us to the facility but he was evasive to our request.”
Based upon shots and invoices in GroundUp’s possession, some, if not all, from the goods appear to be equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with expenses for this removing.
In accordance with the final progress report submitted on the NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization where Stemmet, his wife and his daughter had been directors at enough time.
The investigators uncovered this “alarming”.
“Within the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Highway, Wetton, Cape Town, precisely the same address on which the museum was meant to be constructed and/or transformed,” they reported.
An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded that the CTMCA was in the entire process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.
According to Dabishi Nthambeleni, the business has compensated R1.two-million being a deposit, indicating R6.nine-million remains to be owed, however there is not any payment date established for when this has to be paid.
The Kopano audit and the shut url involving the companies “indicate to us that there's ‘foul Perform’ involved with the purchase with the machinery on the museum workshop”, the investigators stated in the report.
“We find that it is remarkably possible that CTMCA utilised the funding of the NLC to ‘refund’ amongst its major directors for your residence at a greater overpriced amount than the particular selling price and price of the assets and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant into the CTMCA were invested.
“In reality, an in depth report on how the funding on the NLC was utilized, might be difficult since the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities put in on Every single item it requested funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC had not done a internet site visit just before approving the grant. But this wasn't conventional apply at the time and so they located no evidence of negligence by NLC staff.
At time, the NLC’s guidelines didn't involve funded organisations to submit evidence of payment with interim experiences, they pointed out. This intended the CTMCA was capable to receive a 2nd tranche of funding without having to deliver proof that it experienced employed the first tranche for its intended function.
Following the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni advised that
the NLC decrease any long run funding apps from the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a criminal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated money.
But, as opposed to act on the report’s tips, the NLC – below its former administration – chose to suppress it, mainly because it had finished Together with the previous reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e mail addresses to mail the queries by e mail too. But no reaction were obtained at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph