Leaked report exposes abuse of lottery funds compensated to minstrel team
Leaked report exposes abuse of lottery funds compensated to minstrel team
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Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no evidence that a museum ever existed.
The investigators located the CTMCA did not use the R5-million allocated to purchase or develop a museum.
Additionally they identified that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They uncovered the CTMCA applied cash in the Lottery to purchase workshop machines from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the town’s abundant minstrel history went astray. The museum was never ever created.
The details from the abuse of an incredible number of rands of Lottery cash for your museum that hardly ever was are revealed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of much more than R64-million in Lottery cash allocated into the CTMCA involving 2003 and 2017.
The primary Portion of the investigation, by regulation agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding with the museum. The accredited budget to the museum was much more than R12.eight-million, with R5-million of that allotted to get a constructing to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a constructing for that museum and if the museum “in fact existed”.
The agency was also instructed to analyze
the acquisition with Lottery money of two vehicles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various equipment “acquired for the production in the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with 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 ongoing as two of a number of directors with the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp with regards to the many rands of Lottery funding allotted to the CTMCA (see here, here and here) and the way the resources probably served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The building on the ideal was the intended website of your minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In response into a Parliamentary question, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - between 2012 and 2015. All three initiatives were done, she informed MPs.
Even so the investigators uncovered no evidence that a museum experienced at any time existed.
At the beginning the museum was because of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp in the intended Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung around the walls, as well as a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not in a position” to substantiate if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum were moved because they could now not find the money for the rent of R100,000 per month. He explained the CTMCA had ordered house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar value. Schaapkraal is inside of a peri-city spot much from the city.
Consequently, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after viewing the premises, that happen to be in an industrial space, the investigators explained they doubted no matter if a proper museum existed there. Pics attached on the report show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.
“You will find a negligible amount of products in the museum [that] by no means depict the in excess of one hundred-yr background from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum doesn't glimpse to get open up to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement with the museum to an alternative area without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever designed. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to maneuver from 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 maneuver its property from 5 Crete Road to avoid the sheriff from attaching the property from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director from the CTMCA, informed them that the two buses acquired with lottery cash ended up stored inside a magic formula location “concealed from your Sheriff”. Nevertheless the investigators said they were being unable to substantiate that any buses had at any time been bought.
Stemmet also confirmed which the buses had been concealed to halt them currently being seized. But when the investigators requested to generally be taken for the put in which the buses ended up saved, he informed them that “the proprietor of The key site wasn't accessible to open up the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators documented.
Soeker also advised them the Schaapkraal house had been sold due to personal debt.
“Mr Soeker stated that In keeping with his being familiar with, mainly because of the credit card debt owed to the City of Cape City, the CTMCA determined It will be ideal to promote their [Schaapkraal] assets … and to also to hide the belongings from the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously advised GroundUp the CTMCA “threw revenue away” on litigation with the City.
“Yearly like clockwork, as we tactic the top of your calendar year, the CTMCA picks a lawful struggle with town, around permits or another thing. We hardly ever initiate it. They continue to keep throwing revenue absent on vexatious litigation they drop and have prices awarded versus them. This is certainly fully self-inflicted,” he mentioned.
Soeker told the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing หวย the CTMCA.” The investigators mentioned they were not able to Make contact with Momberg.
Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located many devices, some in good affliction, some in poor issue plus some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility the place “devices and many equipment” were being saved.
“We questioned him to take us to the power but he was evasive to our ask for.”
Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be gear which was illegally removed from the CTMCA’s prior premises. Stemmet is facing rates for this elimination.
According to the closing progress report submitted into the NLC with the CTMCA, the equipment was acquired from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter had been administrators at some time.
The investigators discovered this “alarming”.
“With the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape Town, the same handle on which the museum was meant to be designed and/or converted,” they noted.
An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the administrators.
In accordance with Dabishi Nthambeleni, the company has paid out R1.two-million as a deposit, that means R6.nine-million is still owed, even though there is not any payment day established for when this should be paid out.
The Kopano audit along with the shut connection between the companies “indicate to us that there's ‘foul Participate in’ linked to the acquisition on the machinery in the museum workshop”, the investigators mentioned within the report.
“We discover that it is extremely possible that CTMCA applied the funding in the NLC to ‘refund’ among its main directors for the residence at a greater overpriced level than the actual rate and value of the residence and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant towards the CTMCA had been expended.
“In reality, a detailed report on how the funding from the NLC was utilised, could well be not possible because the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on Each individual product it asked for funding for. The interim report and ultimate report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered the NLC had not done a web page take a look at ahead of approving the grant. But this was not conventional follow at the time plus they discovered no proof of carelessness by NLC staff.
At some time, the NLC’s principles didn't require funded organisations to submit proof of payment with interim stories, they identified. This intended which the CTMCA was in the position to receive a 2nd tranche of funding while not having to offer proof that it experienced used the primary tranche for its supposed objective.
Adhering to the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni advised that
the NLC decline any potential funding programs in the CTMCA;
the CTMCA and any members who were linked to the grant be subjected into the NLC’s “delinquency” approach;
the NLC open up a felony situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated resources.
But, rather than act to the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, since it experienced accomplished With all the past reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker through SMS, and requested for e mail addresses to send the questions by electronic mail as well. But no response were been given at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph