Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has identified no proof that a museum at any time existed.
The investigators located the CTMCA did not utilize the R5-million allocated to obtain or build a museum.
Additionally they observed which the CTMCA only purchased land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA made use of resources from your Lottery to buy workshop equipment from considered one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to put in place a museum to rejoice the city’s wealthy minstrel history went astray. The museum was never ever established.
The details of the abuse of numerous rands of Lottery funds for a museum that never was are disclosed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery funds allotted to your CTMCA concerning 2003 and 2017.
The very first A part of the investigation, by legislation company Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which incorporated funding to the museum. The approved price range for your museum was over R12.eight-million, with R5-million of that allotted to get a constructing to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for the museum and if the museum “in fact existed”.
The business was also instructed to analyze
the purchase with Lottery cash of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
various machines “procured to the manufacturing in the costumes and hats” for your minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from 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 to be a director in May possibly 2021.
The investigation followed intensive reporting by GroundUp in regards to the numerous rands of Lottery funding allotted into the CTMCA (see here, right here and right here) and the best way the money almost certainly assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The creating on the proper was the meant web site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Image: Raymond Joseph
In response to your Parliamentary query, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All 3 jobs were completed, she informed MPs.
Although the investigators uncovered no evidence that a museum experienced at any time existed.
At the beginning the museum was because of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of shots haphazardly hung about the partitions, plus a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni explained it had been “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum had been moved because they could now not pay for the rent of R100,000 a month. He claimed the CTMCA experienced bought house for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been marketed for a similar selling price. Schaapkraal is inside of a peri-city area far from the city.
Consequently, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following visiting the premises, that are within an industrial location, the investigators stated they doubted whether or not a suitable museum existed there. Pictures connected to the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the ground, without any rationalization.
“You will find a minimum amount of items for the museum [that] on no account depict the much more than one hundred-12 months history on the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum doesn't appear for being open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation on the museum to an alternate area with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time developed. Photo: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to maneuver from the rented Crete Road premises since it had run up a R4-million credit card debt with town of Cape City and was fearful its machines will be connected.
“Because of the legal battles and the debts, the organisation had to maneuver its house from 5 Crete Road to steer clear of the sheriff from attaching the property of your organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of your CTMCA, instructed them the two buses acquired with lottery money were being stored in a very magic formula site “concealed through the Sheriff”. However the investigators claimed they had been not able to substantiate that any buses experienced at any time been acquired.
Stemmet also confirmed that the buses had been hidden to prevent them remaining seized. But when the investigators asked to become taken on the position exactly where the buses had been stored, he explained to them that “the operator of The key place wasn't accessible to open the premises for us”.
“The CTMCA couldn't supply evidence of payment for two vehicles that it allegedly procured with grant income,” the investigators reported.
Soeker also instructed them the Schaapkraal home were bought due to the personal debt.
“Mr Soeker defined that Based on his being familiar with, a result of the debt owed to the City of Cape Town, the CTMCA made a decision it would be greatest to offer their [Schaapkraal] property … and to also to hide the property on the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for safety and safety, has Earlier explained to GroundUp which the CTMCA “threw money absent” on litigation with the town.
“Each and every year like clockwork, as we technique the end of the year, the CTMCA picks a authorized struggle with the town, over permits or something else. We by no means initiate it. They retain throwing cash away on vexatious litigation which they get rid of and have charges awarded against them. This is often entirely self-inflicted,” he claimed.
Soeker told the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of all of the admin, funds and running lottovip the CTMCA.” The investigators stated they had been unable to Speak to Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “found numerous equipment, some in superior condition, some in poor situation and some that appeared rusty and very old”. Stemmet informed the investigators that there was also an off-website storage facility where “devices and many machinery” had been kept.
“We asked him to choose us to the ability but he was evasive to our request.”
According to shots and invoices in GroundUp’s possession, some, if not all, of the goods appear to be devices which was illegally removed from the CTMCA’s past premises. Stemmet is experiencing expenses for this elimination.
Based on the remaining development report submitted on the NLC by the CTMCA, the machinery was bought from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter were being directors at the time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the same tackle on which the museum was intended to be crafted and/or converted,” they described.
An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded which the CTMCA was in the process of paying for “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.
Based on Dabishi Nthambeleni, the corporate has paid out R1.2-million to be a deposit, indicating R6.9-million remains owed, however there's no payment day set for when this needs to be paid.
The Kopano audit as well as close backlink in between the companies “suggest to us that there is ‘foul Perform’ involved with the acquisition of the machinery from the museum workshop”, the investigators explained from the report.
“We discover that it's remarkably possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its most important administrators for that 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 for the CTMCA were put in.
“In reality, an in depth report on how the funding of the NLC was utilised, would be difficult as the CTMCA does not have any receipts, or proof of payments to verify the quantities invested on Each individual item it requested funding for. The interim report and ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not conducted a internet site stop by prior to approving the grant. But this was not common observe at some time they usually discovered no proof of carelessness by NLC personnel.
At time, the NLC’s principles did not require funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without having to deliver proof that it had made use of the initial tranche for its meant purpose.
Subsequent the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these and also other challenges.
Dabishi Nthambeleni recommended that
the NLC drop any future funding applications in the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a legal 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 cash.
But, rather than act around the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, mainly because it had carried out Using the past reports into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker through SMS, and requested for electronic mail addresses to deliver the issues by email as well. But no response had been gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph