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 complete in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA made use of cash in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s abundant minstrel record went astray. The museum was by no means designed.
The small print with the abuse of numerous rands of Lottery cash for just a museum that by no means was are discovered within an investigative report commissioned by the NLC in 2021.
The museum grant was Component of more than R64-million in Lottery cash allocated for the CTMCA concerning 2003 and 2017.
The primary part of the investigation, by regulation agency Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for the museum. The authorised finances for that museum was much more than R12.eight-million, with R5-million of that allocated for just a developing to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a creating to the museum and whether or not the museum “essentially existed”.
The firm was also instructed to analyze
the acquisition with Lottery cash of two vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
a variety of equipment “bought to the production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors in the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation followed intensive reporting by GroundUp with regard to the numerous rands of Lottery funding allotted into the CTMCA (see listed here, listed here and in this article) and the best way the money likely served finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The making on the best was the supposed web page with the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Photo: Raymond Joseph
In response into a Parliamentary issue, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “tasks” - such as the museum - among 2012 and 2015. All 3 projects had been concluded, she told MPs.
Although the investigators identified no evidence that a museum experienced at any time existed.
At first the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of the meant Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the partitions, in addition to a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni said it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum had been moved because they could no more find the money for the rent of R100,000 per month. He said the CTMCA had bought residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been bought for the same selling price. Schaapkraal is inside a peri-city area much from the town.
As a result, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after browsing the premises, which happen to be within an industrial area, the investigators stated they doubted no matter if a correct museum existed there. Photographs attached to the report clearly show a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, without having clarification.
“There's a negligible amount of goods on the museum [that] in no way stand for the in excess of 100-year historical past in 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 … generally, the museum doesn't appear to become open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by relocating the location of your museum to another place without having notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Photo: Raymond Joseph
Buses
Stemmet told the investigators which the CTMCA had to move within the rented Crete Street premises mainly because it experienced run up a R4-million personal debt with the City of Cape Town and was frightened its tools can be connected.
“Mainly because of the lawful battles and the debts, the organisation experienced to move its home from five Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director with the CTMCA, told them the two buses purchased with lottery funds have been stored inside a key spot “hidden through the Sheriff”. Even so the investigators reported they were not able to substantiate that any buses experienced ever been acquired.
Stemmet also confirmed that the buses had been concealed to stop them getting seized. But in the event the investigators asked to generally be taken towards the position in which the buses were being saved, he informed them that “the proprietor of The key site wasn't available to open the premises for us”.
“The CTMCA could not present evidence of payment for two autos that it allegedly procured with grant revenue,” the investigators reported.
Soeker also instructed them the Schaapkraal house were marketed due to the credit card debt.
“Mr Soeker defined that In keeping with his comprehending, because of the debt owed to the City of Cape Town, the CTMCA made a decision It will be finest to sell their [Schaapkraal] assets … and also to also to cover the property from the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and safety, has Beforehand advised GroundUp which the CTMCA “threw income absent” on litigation with the City.
“Every year like clockwork, as we tactic the end of your year, the CTMCA picks a legal battle with the City, about permits or another thing. We hardly ever initiate it. They keep throwing cash absent on vexatious litigation which they eliminate and possess expenditures awarded versus them. This really is completely self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the principle part gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and managing ผล สลากกินแบ่ง the CTMCA.” The investigators reported they had been not able to Call Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered numerous machines, some in good situation, some in poor issue and several that looked rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web-site storage facility the place “instruments and many machinery” were kept.
“We requested him to consider us to the power but he was evasive to our request.”
According to pics and invoices in GroundUp’s possession, some, if not all, in the items seem like equipment which was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing costs for this elimination.
In accordance with the final progress report submitted on the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter had been directors at some time.
The investigators uncovered this “alarming”.
“Within the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Observe the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape Town, a similar handle on which the museum was intended to be designed and/or transformed,” they described.
An audit by accountants Kopano Incorporated, connected to the investigative report, recorded that the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.
In line with Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, that means R6.9-million remains owed, while there is not any payment date established for when this has to be compensated.
The Kopano audit as well as near link concerning the businesses “reveal to us that there's ‘foul Perform’ linked to the purchase in the equipment of your museum workshop”, the investigators stated while in the report.
“We discover that it's highly probable that CTMCA utilized the funding in the NLC to ‘refund’ considered one of its most important administrators for your property at a higher overpriced price than the actual rate and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA were put in.
“Actually, a detailed report on how the funding of your NLC was utilised, could be impossible as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts used on Every single product it requested funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not performed a internet site stop by right before approving the grant. But this wasn't typical observe at enough time plus they observed no evidence of negligence by NLC employees.
At enough time, the NLC’s policies did not involve funded organisations to submit evidence of payment with interim stories, they pointed out. This intended the CTMCA was in a position to get a 2nd tranche of funding without needing to offer proof that it experienced made use of the primary tranche for its supposed function.
Next the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these together with other concerns.
Dabishi Nthambeleni encouraged that
the NLC decrease any upcoming funding purposes within the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected to your 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 the whole process of recovering the misappropriated money.
But, instead of act to the report’s suggestions, the NLC – underneath its prior administration – selected to suppress it, as it had done Along with the prior studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and requested for e-mail addresses to ship the issues by electronic mail too. But no reaction were received at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph