Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the National Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has found no proof that a museum at any time existed.
The investigators found which the CTMCA didn't utilize the R5-million allotted to buy or establish a museum.
Additionally they observed which the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They discovered the CTMCA utilised money through the Lottery to acquire workshop machines from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape City Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to put in place a museum to celebrate the town’s prosperous minstrel history went astray. The museum was never made.
The main points from the abuse of countless rands of Lottery money for your museum that never ever was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery resources allotted on the CTMCA among 2003 and 2017.
The main Portion of the investigation, by legislation agency Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which involved funding for your museum. The permitted budget to the museum was much more than R12.8-million, with R5-million of that allocated for the creating to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a setting up with the museum and whether the museum “truly existed”.
The business was also instructed to research
the acquisition with Lottery cash of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
various devices “obtained for the manufacturing with the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors with the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation followed substantial reporting by GroundUp regarding the countless rands of Lottery funding allotted to the CTMCA (see right here, right here and listed here) and the best way the resources in all probability assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.
The creating on the proper was the supposed website in the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to the Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “jobs” - including the museum - between 2012 and 2015. All 3 tasks had been concluded, she told MPs.
Although the investigators found no proof that a museum experienced at any time existed.
To start with the museum was because of open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp with the meant Wetton museum shows a coffee shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung about the walls, plus a model ship on its plinth in 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 instructed the investigators the museum had been moved given that they could no more pay for the hire of R100,000 a month. He said the CTMCA experienced bought assets for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for the same selling price. Schaapkraal is in a peri-city space far from the city.
Because of this, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial area, the investigators claimed they doubted irrespective of whether a suitable museum existed there. Images connected for the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, displayed on tables and unfold out on the ground, with no rationalization.
“There exists a negligible quantity of objects within the museum [that] by no means characterize the over one hundred-yr historical past with the Cape Town Carnival, the investigators claimed, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … normally, the museum will not search to get open to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by transferring the location of your museum to an alternate place with out notifying the NLC.
The Schaapkraal home, on which no museum was ever built. Picture: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to move from the rented Crete Street premises because it had operate up a R4-million financial debt with town of Cape City and was frightened its machines would be connected.
“Due to the authorized battles and the debts, the organisation experienced to maneuver its home from 5 Crete Street to stay away from the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director in the CTMCA, advised them that the two buses acquired with lottery money were saved in the secret place “concealed with the Sheriff”. Though the investigators explained they had been unable to verify that any buses experienced at any time been bought.
Stemmet also verified that the buses were hidden to stop them becoming seized. But when the investigators requested to be taken on the spot the place the buses had been stored, he instructed them that “the owner of the secret area was not available to open up the premises for us”.
“The CTMCA couldn't give evidence of payment for 2 vehicles that it allegedly bought with grant income,” the investigators claimed.
Soeker also explained to them the Schaapkraal assets had been bought due to credit card debt.
“Mr Soeker discussed that Based on his comprehending, due to the credit card debt owed to town of Cape Town, the CTMCA made the decision it would be most effective to promote their [Schaapkraal] assets … and to also to hide the property on the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for basic safety and stability, has Earlier told GroundUp which the CTMCA “threw cash absent” on litigation with town.
“On a yearly basis like clockwork, as we method the top with the yr, the CTMCA picks a lawful combat with the City, around permits or something else. We in no way initiate it. They keep throwing dollars away on vexatious litigation they lose and also have prices awarded towards them. This really is fully self-inflicted,” he stated.
Soeker instructed the Dabishi Nthambeleni investigators that the primary job players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and managing ltpbet the CTMCA.” The investigators reported they were struggling to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered numerous equipment, some in superior situation, some in negative problem and a few that looked rusty and very previous”. Stemmet instructed the investigators that there was also an off-site storage facility exactly where “devices and some equipment” have been stored.
“We questioned him to consider us to the ability but he was evasive to our ask for.”
Determined by shots and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be tools that was illegally removed from the CTMCA’s former premises. Stemmet is going through rates for this removal.
According to the ultimate progress report submitted to your NLC with the CTMCA, the equipment was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter were being administrators at time.
The investigators identified this “alarming”.
“Through the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape Town, a similar deal with on which the museum was meant to be created and/or transformed,” they reported.
An audit by accountants Kopano Integrated, attached for the investigative report, recorded which the CTMCA was in the entire process of purchasing “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.
In accordance with Dabishi Nthambeleni, the corporate has paid out R1.2-million as being a deposit, which means R6.nine-million remains to be owed, however there is not any payment date established for when this need to be paid.
The Kopano audit and also the shut backlink amongst the businesses “show to us that there's ‘foul Enjoy’ involved in the acquisition of the machinery of your museum workshop”, the investigators explained within the report.
“We find that it's extremely probable that CTMCA made use of the funding in the NLC to ‘refund’ considered one of its main directors to the residence at the next overpriced rate than the actual price and value of the home and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA had been used.
“In point of fact, a detailed report on how the funding of the NLC was made use of, could well be unachievable since the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts expended on Each and every product it asked for funding for. The interim report and last report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not conducted a web-site go to ahead of approving the grant. But this was not regular follow at enough time and so they identified no evidence of carelessness by NLC workers.
At the time, the NLC’s rules didn't have to have funded organisations to submit evidence of payment with interim stories, they pointed out. This intended the CTMCA was capable of receive a 2nd tranche of funding without needing to provide proof that it experienced utilized the main tranche for its meant intent.
Adhering to the appointment of a whole new board, commissioner and senior govt crew, the NLC has tightened up on these and other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a criminal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, as it had done While using the earlier experiences into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to ship the issues by e mail much too. But no reaction were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph