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 conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant because of the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no evidence that a museum ever existed.
The investigators located that the CTMCA did not use the R5-million allotted to order or develop a museum.
In addition they identified which the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They identified the CTMCA applied money within the Lottery to buy workshop devices from certainly one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel background went astray. The museum was hardly ever developed.
The small print in the abuse of a lot of rands of Lottery resources for any museum that never was are unveiled within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery funds allotted on the CTMCA involving 2003 and 2017.
The 1st Component of the investigation, by law company Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which incorporated funding to the museum. The accepted finances for your museum was over R12.8-million, with R5-million of that allocated for your developing to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the making for your museum and if the museum “in fact existed”.
The firm was also instructed to analyze
the purchase with Lottery resources of two autos – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
numerous equipment “obtained with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several directors from the organisation. Stemmet was reappointed like a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp about the a lot of rands of Lottery funding allotted into the CTMCA (see below, listed here and right here) and just how the cash possibly served finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the intended internet site with the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to a Parliamentary query, previous NLC Commissioner Thabang Mampane stated grants to three CTMCA “jobs” - including the museum - in between 2012 and 2015. All 3 jobs had been concluded, she informed MPs.
But the investigators located no evidence that a museum had ever existed.
Initially the museum was due to open in rented premises in Crete Road, Wetton. A photo acquired by GroundUp of your intended Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of images haphazardly hung to the walls, and also a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it was “not ready” to verify if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum were moved given that they could no longer afford the rent of R100,000 a month. He said the CTMCA had bought assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were sold for the same selling price. Schaapkraal is in a peri-city region far from the city.
Therefore, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after visiting the premises, that happen to be within an industrial space, the investigators explained they doubted whether or not a correct museum existed there. Photographs attached for the report present a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the floor, without rationalization.
“You will find a minimal volume of merchandise in the museum [that] under no circumstances depict the over a hundred-year historical past of your Cape City Carnival, the investigators said, adding that there was “no signage outside the premises indicating which they housed a museum and … usually, the museum doesn't search to become open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of the museum to another area with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time designed. Image: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to move with the rented Crete Road premises as it experienced operate up a R4-million personal debt with the City of Cape Town and was fearful its gear can be connected.
“Due to the lawful battles and the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the home in the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses acquired with lottery money were saved within a key site “hidden within the Sheriff”. Even so the investigators explained they were unable to substantiate that any buses experienced at any time been bought.
Stemmet also verified that the buses were concealed to stop them being seized. But when the investigators questioned being taken into the spot in which the buses were stored, he informed them that “the operator of the secret area wasn't accessible to open up the premises for us”.
“The CTMCA couldn't supply proof of payment for 2 vehicles that it allegedly acquired with grant income,” the investigators claimed.
Soeker also explained to them the Schaapkraal residence had been sold due to the financial debt.
“Mr Soeker discussed that according to his knowing, as a result of credit card debt owed to the town of Cape Town, the CTMCA resolved It could be very best to provide their [Schaapkraal] house … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and security, has Formerly advised GroundUp the CTMCA “threw dollars absent” on litigation with the town.
“On a yearly basis like clockwork, as we approach the top of your 12 months, the CTMCA picks a authorized battle with town, over permits or another thing. We never ever initiate it. They preserve throwing income away on vexatious litigation which they eliminate and also have expenses awarded against them. This really is solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the main part gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of every one of the admin, funds and functioning หวย วัน นี้ the CTMCA.” The investigators stated they were struggling to Speak to Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “uncovered several devices, some in very good issue, some in undesirable ailment plus some that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-website storage facility wherever “instruments and some machinery” were saved.
“We requested him to take us to the ability but he was evasive to our ask for.”
Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, of the goods look like tools which was illegally faraway from the CTMCA’s past premises. Stemmet is going through rates for this removal.
According to the ultimate progress report submitted on the NLC via the CTMCA, the equipment was obtained from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter have been directors at some time.
The investigators observed this “alarming”.
“With the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape Town, exactly the same address on which the museum was meant to be constructed and/or transformed,” they noted.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded which the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.
Based on Dabishi Nthambeleni, the business has paid out R1.2-million like a deposit, that means R6.9-million remains owed, while there is not any payment day set for when this should be compensated.
The Kopano audit plus the close connection amongst the companies “point out to us that there's ‘foul Engage in’ linked to the purchase in the equipment of your museum workshop”, the investigators mentioned from the report.
“We discover that it's really probable that CTMCA utilized the funding on the NLC to ‘refund’ certainly one of its major administrators for that residence at a better overpriced fee than the actual price tag and value of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to the CTMCA were invested.
“In fact, an in depth report on how the funding in the NLC was utilized, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to substantiate the amounts put in on each merchandise it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered that the NLC had not performed a web-site visit just before approving the grant. But this was not typical observe at some time they usually observed no proof of negligence by NLC workers.
At the time, the NLC’s procedures didn't demand funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in the position to receive a next tranche of funding while not having to give evidence that it experienced applied the very first tranche for its meant purpose.
Subsequent the appointment of a brand new board, commissioner and senior government crew, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni advised that
the NLC decrease any foreseeable future funding purposes from the CTMCA;
the CTMCA and any users who were involved in the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, instead of act over the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it had carried out with the previous studies into corruption it experienced commissioned.
GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to deliver the queries by electronic mail too. But no response had been received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph