Leaked report exposes abuse of lottery revenue compensated to minstrel group
Leaked report exposes abuse of lottery revenue compensated to minstrel group
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Minstrels accomplish in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the National Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators discovered that the CTMCA didn't make use of the R5-million allotted to buy or establish a museum.
Additionally they identified the CTMCA only purchased land really worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used funds through the Lottery to invest in workshop equipment from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to your Cape City Minstrel Carnival Association (CTMCA) by the National Lotteries Fee (NLC) to build a museum to rejoice the city’s rich minstrel historical past went astray. The museum was hardly ever developed.
The small print of the abuse of numerous rands of Lottery cash to get a museum that never was are exposed in an investigative report commissioned with the NLC in 2021.
The museum grant was A part of over R64-million in Lottery resources allotted into the CTMCA between 2003 and 2017.
The 1st Element of the investigation, by legislation business Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which bundled funding for your museum. The authorised funds for the museum was in excess of R12.eight-million, with R5-million of that allotted to get a creating to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing for that museum and if the museum “truly existed”.
The agency was also instructed to investigate
the purchase with Lottery cash of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
numerous equipment “ordered for the production in the costumes and hats” with the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors on the organisation. Stemmet was reappointed as being a director in May 2021.
The investigation followed considerable reporting by GroundUp about the countless rands of Lottery funding allotted into the CTMCA (see listed here, here and below) and the way in which the cash likely assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at the time by Marius Fransman.
The creating on the ideal was the meant web page of your minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to a Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All a few assignments were finished, she told MPs.
But the investigators observed no evidence that a museum had ever existed.
At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo received by GroundUp on the intended Wetton museum reveals a coffee store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung to the partitions, plus a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to substantiate if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved simply because they could no longer afford the hire of R100,000 a month. He explained the CTMCA experienced acquired house for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar rate. Schaapkraal is in a peri-urban spot far from the town.
As a result, the museum had been moved to a whole new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after going to the premises, which might be in an industrial location, the investigators explained they doubted irrespective of whether an appropriate museum existed there. Photos hooked up to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without having clarification.
“There is a small quantity of goods with the museum [that] by no means represent the greater than one hundred-12 months record of your Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum does not look to generally be open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by shifting the location from the museum to another site without notifying the NLC.
The Schaapkraal home, on which no museum was ever crafted. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move with the rented Crete Street premises since it experienced operate up a R4-million debt with town of Cape Town and was frightened its tools could be connected.
“A result of the legal battles as well as the debts, the organisation experienced to move its property from five Crete Highway to avoid the sheriff from attaching the property of the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director with the CTMCA, informed them that the two buses acquired with lottery funds had been stored in the magic formula area “hidden from your Sheriff”. But the investigators said they have been not able to substantiate that any buses had ever been purchased.
Stemmet also confirmed the buses had been concealed to stop them currently being seized. But once the investigators asked being taken for the spot in which the buses were being stored, he told them that “the operator of the secret locale was not accessible to open up the premises for us”.
“The CTMCA couldn't supply evidence of payment for 2 cars that it allegedly purchased with grant income,” the investigators documented.
Soeker also explained to them the Schaapkraal property had been sold due to the financial debt.
“Mr Soeker described that Based on his comprehension, due to the personal debt owed to the town of Cape Town, the CTMCA resolved It might be very best to sell their [Schaapkraal] home … and to also to cover the property of the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and security, has Earlier told GroundUp the CTMCA “threw money away” on litigation with the City.
“On a yearly basis like clockwork, as we strategy the tip from the 12 months, the CTMCA picks a authorized struggle with the town, in excess of permits or something else. We hardly ever initiate it. They keep throwing cash absent on vexatious litigation they reduce and also have expenses awarded towards them. This really is completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial part gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for the many admin, funds and operating ตรวจ หวย ล่าสุด the CTMCA.” The investigators mentioned they were struggling to Speak to Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “uncovered many machines, some in great problem, some in negative issue and several that looked rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility the place “devices and many machinery” were kept.
“We requested him to get us to the power but he was evasive to our request.”
Dependant on images and invoices in GroundUp’s possession, some, if not all, with the products seem like machines that was illegally removed from the CTMCA’s past premises. Stemmet is dealing with fees for this elimination.
Based on the closing development report submitted to the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter had been directors at enough time.
The investigators located this “alarming”.
“From your CIPC search of Martin-Conne Milliners plus the invoices submitted, we Observe the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Highway, Wetton, Cape City, precisely the same handle on which the museum was intended to be created and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, connected to your investigative report, recorded which the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.
Based on Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, indicating R6.9-million is still owed, nevertheless there is no payment day set for when this should be compensated.
The Kopano audit plus the near hyperlink between the businesses “show to us that there's ‘foul Enjoy’ associated with the acquisition on the equipment from the museum workshop”, the investigators reported while in the report.
“We discover that it's very possible that CTMCA applied the funding of your NLC to ‘refund’ certainly one of its major directors to the house at a better overpriced fee than the actual cost and price of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA were expended.
“Actually, an in depth report on how the funding with the NLC was utilised, will be unattainable given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts used on Every single product it asked for funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC had not carried out a web page pay a visit to right before approving the grant. But this wasn't regular apply at the time and so they found no proof of negligence by NLC employees.
At some time, the NLC’s procedures didn't call for funded organisations to submit evidence of payment with interim reviews, they identified. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without the need to present proof that it experienced utilised the primary tranche for its supposed goal.
Next the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni advisable that
the NLC decrease any long run funding apps within the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, rather then act about the report’s recommendations, the NLC – under its past administration – chose to suppress it, since it experienced accomplished Using the past reviews into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and asked for e-mail addresses to ship the questions by e-mail way too. But no reaction were received at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph