Leaked report exposes abuse of lottery revenue paid out to minstrel group
Leaked report exposes abuse of lottery revenue paid out to minstrel group
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Minstrels accomplish in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Fee to the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allocated to get or develop a museum.
They also found which the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of money in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel history went astray. The museum was never ever made.
The main points of your abuse of many rands of Lottery resources for just a museum that hardly ever was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.
The primary part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for that museum. The approved price range to the museum was much more than R12.eight-million, with R5-million of that allotted for just a developing to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the making to the museum and if the museum “really existed”.
The firm was also instructed to analyze
the purchase with Lottery resources of two cars – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous devices “bought with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal 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 continued as two of many administrators with the organisation. Stemmet was reappointed as a director in Might 2021.
The investigation followed substantial reporting by GroundUp about the countless rands of Lottery funding allotted into the CTMCA (see in this article, below and below) and the best way the funds probably served finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.
The creating on the right was the intended website with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph
In response to your Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - including the museum - concerning 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.
Although the investigators located no evidence that a museum had ever existed.
At the outset the museum was due to open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp on the intended Wetton museum displays a coffee shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung about the walls, along with a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni mentioned it was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved since they could no more afford the rent of R100,000 a month. He explained the CTMCA experienced procured property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for the same value. Schaapkraal is in a very peri-city place significantly from the town.
Due to this fact, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which are within an industrial region, the investigators reported they doubted irrespective of whether a correct museum existed there. Shots attached into the report present a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without having rationalization.
“There's a minimum number of goods within the museum [that] on no account represent the over 100-yr background of the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to search to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to an alternate locale without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear could be attached.
“Because of the lawful battles as well as debts, the organisation experienced to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director on the CTMCA, told them the two buses acquired with lottery funds were being stored in the top secret area “concealed within the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses had at any time been acquired.
Stemmet also verified the buses were hidden to prevent them currently being seized. But if the investigators requested being taken to your position wherever the buses ended up stored, he told them that “the operator of The key place wasn't available to open up the premises for us”.
“The CTMCA could not provide proof of payment for 2 autos that it allegedly obtained with grant money,” the investigators documented.
Soeker also told them the Schaapkraal residence were sold as a result of debt.
“Mr Soeker spelled out that Based on his knowledge, because of the financial debt owed to the town of Cape Town, the CTMCA made the decision It could be finest to offer their [Schaapkraal] residence … and also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and security, has Beforehand instructed GroundUp that the CTMCA “threw money absent” on litigation with the City.
“On a yearly basis like clockwork, as we technique the end with the year, the CTMCA picks a authorized fight with the town, around permits or something else. We under no circumstances initiate it. They preserve throwing dollars absent on vexatious litigation that they get rid of and possess costs awarded in opposition to them. This is often entirely self-inflicted,” he explained.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial role gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for the many admin, finances and operating ตรวจ สลาก the CTMCA.” The investigators explained they were not able to Get hold of Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “found numerous equipment, some in fantastic issue, some in undesirable issue and a few that appeared rusty and intensely previous”. Stemmet told the investigators that there was also an off-web-site storage facility in which “devices and several equipment” had been saved.
“We asked him to acquire us to the power but he was evasive to our request.”
Determined by photos and invoices in GroundUp’s possession, some, if not all, in the goods look like equipment which was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with fees for this elimination.
Based on the remaining progress report submitted to your NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter have been directors at time.
The investigators located this “alarming”.
“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Observe the next alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape Town, the identical handle on which the museum was meant to be constructed and/or converted,” they reported.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was among the directors.
In keeping with Dabishi Nthambeleni, the business has paid out R1.2-million as a deposit, which means R6.nine-million remains owed, although there is absolutely no payment date established for when this has to be compensated.
The Kopano audit along with the shut url in between the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition on the machinery of your museum workshop”, the investigators claimed in the report.
“We find that it is remarkably possible that CTMCA utilized the funding with the NLC to ‘refund’ one of its primary directors for the property at a higher overpriced rate than the particular value and value of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant on the CTMCA had been expended.
“In fact, an in depth report on how the funding from the NLC was used, can be unattainable since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Just about every product it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not executed a site go to prior to approving the grant. But this was not standard practice at some time and so they discovered no proof of negligence by NLC workers.
At some time, the NLC’s policies did not have to have funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was ready to receive a 2nd tranche of funding without the need to supply evidence that it experienced used the primary tranche for its supposed purpose.
Subsequent the appointment of a different board, commissioner and senior govt 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 members who were being linked to the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated money.
But, instead of act to the report’s recommendations, the NLC – beneath its former administration – chose to suppress it, because it experienced done Together with the former reports into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and requested for e mail addresses to send out the issues by electronic mail far too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph