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 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has observed no proof that a museum ever existed.
The investigators identified the CTMCA didn't use the R5-million allotted to get or establish a museum.
Additionally they observed that the CTMCA only bought land well worth R1.7-million, not R5-million as allocated.
They identified the CTMCA applied funds from your Lottery to get workshop machines from certainly one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) with the Nationwide Lotteries Commission (NLC) to build a museum to rejoice the town’s rich minstrel heritage went astray. The museum was under no circumstances developed.
The main points of the abuse of an incredible number of rands of Lottery resources for just a museum that in no way was are unveiled in an investigative report commissioned because of the NLC in 2021.
The museum grant was part of in excess of R64-million in Lottery resources allotted to your CTMCA involving 2003 and 2017.
The first Element of the investigation, by legislation organization Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which integrated funding for that museum. The accepted budget to the museum was over R12.eight-million, with R5-million of that allotted to get a constructing to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the creating for that museum and whether or not the museum “truly existed”.
The firm was also instructed to research
the acquisition with Lottery resources of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of devices “acquired with the producing from the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few administrators of your organisation. Stemmet was reappointed as a director in Could 2021.
The investigation followed considerable reporting by GroundUp with regard to the numerous rands of Lottery funding allotted to the CTMCA (see below, in this article and listed here) and the best way the money likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.
The creating on the best was the supposed internet site of your minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to your Parliamentary dilemma, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “projects” - such as the museum - in between 2012 and 2015. All a few initiatives had been concluded, she instructed MPs.
But the investigators found no proof that a museum experienced at any time existed.
At the outset the museum was because of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of the meant Wetton museum reveals a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung about the partitions, 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 confirm if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved since they could no more pay for the lease of R100,000 per month. He explained the CTMCA experienced obtained residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were marketed for a similar price. Schaapkraal is in a peri-urban space much from the town.
Subsequently, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after viewing the premises, that are in an industrial spot, the investigators reported they doubted no matter whether a correct museum existed there. Pictures attached towards the report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without having clarification.
“There is a nominal quantity of goods at the museum [that] by no means depict the much more than a hundred-year history on the Cape City Carnival, the investigators stated, introducing that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum isn't going to glance to get open to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting the location in the museum to an alternative location without the need of notifying the NLC.
The Schaapkraal house, on which no museum was at any time crafted. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver in the rented Crete Street premises as it experienced operate up a R4-million personal debt with the City of Cape City and was frightened its tools can be connected.
“Mainly because of the lawful battles as well as debts, the organisation experienced to move its home from 5 Crete Highway to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director with the CTMCA, advised them that the two buses purchased with lottery resources ended up saved in a very magic formula locale “hidden within the Sheriff”. Although the investigators mentioned they ended up not able to confirm that any buses had ever been purchased.
Stemmet also verified which the buses were concealed to halt them becoming seized. But once the investigators requested being taken into the place exactly where the buses were stored, he told them that “the operator of The trick locale wasn't accessible to open up the premises for us”.
“The CTMCA could not deliver evidence of payment for 2 autos that it allegedly obtained with grant cash,” the investigators claimed.
Soeker also instructed them the Schaapkraal house were offered due to credit card debt.
“Mr Soeker defined that according to his knowledge, because of the credit card debt owed to town of Cape City, the CTMCA decided It might be finest to sell their [Schaapkraal] home … and to also to hide the assets of the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and protection, has Formerly informed GroundUp which the CTMCA “threw revenue absent” on litigation with the town.
“Annually like clockwork, as we solution the tip with the yr, the CTMCA picks a authorized fight with the town, about permits or another thing. We in no way initiate it. They preserve throwing income away on vexatious litigation that they eliminate and also have expenses awarded towards them. This really is entirely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all the admin, finances and managing เช ค หวย the CTMCA.” The investigators mentioned they were struggling to contact Momberg.
Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “located quite a few devices, some in excellent issue, some in terrible affliction and many that seemed rusty and very old”. Stemmet explained to the investigators that there was also an off-web-site storage facility the place “instruments plus some machinery” were retained.
“We asked him to choose us to the facility but he was evasive to our request.”
Based on pics and invoices in GroundUp’s possession, some, if not all, in the merchandise appear to be tools which was illegally faraway from the CTMCA’s previous premises. Stemmet is going through prices for this removing.
According to the last progress report submitted on the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation wherein 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 often a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Included, hooked up towards 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 a detailed corporation of which Stemmet was among the directors.
Based on Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, meaning R6.nine-million is still owed, while there isn't a payment date established for when this must be paid out.
The Kopano audit and the near connection among the businesses “indicate to us that there is ‘foul Engage in’ linked to the acquisition of the machinery in the museum workshop”, the investigators claimed during the report.
“We discover that it's remarkably possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its most important administrators to the house at a greater overpriced price than the particular selling price and worth of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA were put in.
“In reality, an in depth report on how the funding of the NLC was applied, could be difficult as the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Each and every merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not done a site go to prior to approving the grant. But this wasn't conventional observe at enough time and so they discovered no proof of negligence by NLC workers.
At some time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was ready to receive a next tranche of funding without needing to deliver proof that it had utilised the first tranche for its intended reason.
Following the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any associates who were involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its former administration – chose to suppress it, because it experienced finished Together with the former reviews into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to mail the questions by email as well. But no response were been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph