Leaked report exposes abuse of lottery money paid out to minstrel team
Leaked report exposes abuse of lottery money paid out to minstrel team
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Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators observed which the CTMCA didn't use the R5-million allocated to get or create a museum.
In addition they found that the CTMCA only bought land value R1.seven-million, not R5-million as allotted.
They found the CTMCA utilised money within the Lottery to invest in workshop machines from among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way made.
The small print with the abuse of many rands of Lottery resources for just a museum that hardly ever was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was Section of over R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.
The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding with the museum. The accepted finances with the museum was greater than R12.8-million, with R5-million of that allocated to get a constructing to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the acquisition with Lottery funds of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “obtained for the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted considerable reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated for the CTMCA (see listed here, right here and right here) and the way the resources in all probability assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the supposed web page in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph
In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - such as the museum - in between 2012 and 2015. All three assignments had been concluded, she instructed MPs.
But the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, plus a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to verify if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could not find the money for the hire of R100,000 per month. He said the CTMCA experienced bought home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-city space considerably from the town.
Due to this fact, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which might be in an industrial space, the investigators mentioned they doubted regardless of whether an appropriate museum existed there. Photographs connected to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without explanation.
“You will find a minimal volume of items with the museum [that] under no circumstances depict the a lot more than one hundred-calendar year background from the Cape Town Carnival, the investigators reported, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … generally, the museum would not look to be open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni noted, by shifting The situation on the museum to an alternative place without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever constructed. Picture: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver in the rented Crete Street premises as it experienced run up a R4-million credit card debt with the town of Cape Town and was frightened its gear will be attached.
“A result of the authorized battles and also the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery resources had been saved inside of a mystery locale “hidden from your Sheriff”. Though the investigators mentioned they ended up not able to verify that any buses experienced ever been purchased.
Stemmet also confirmed that the buses had been concealed to halt them being seized. But when the investigators questioned to generally be taken to the place where the buses were being saved, he advised them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA couldn't supply evidence of payment for two vehicles that it allegedly ordered with grant funds,” the investigators reported.
Soeker also instructed them the Schaapkraal home were bought due to the credit card debt.
“Mr Soeker defined that In keeping with his knowing, mainly because of the debt owed to the City of Cape Town, the CTMCA determined It might be ideal to offer their [Schaapkraal] residence … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and protection, has Beforehand told GroundUp that the CTMCA “threw income absent” on litigation with town.
“Every year like clockwork, as we method the tip in the yr, the CTMCA picks a authorized battle with the City, above permits or something else. We in no way initiate it. They preserve throwing funds away on vexatious litigation which they eliminate and also have fees awarded towards them. This is solely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and functioning ตรวจ หวย ลาว the CTMCA.” The investigators said they were unable to contact Momberg.
Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in superior problem, some in lousy problem and many that appeared rusty and extremely old”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” had been stored.
“We requested him to get us to the facility but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, if not all, of the merchandise look like devices which was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with rates for this removal.
Based on the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization wherein Stemmet, his spouse and his daughter were directors at some time.
The investigators found this “alarming”.
“In the CIPC search of Martin-Conne Milliners plus the invoices submitted, we note the following alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Street, Wetton, Cape Town, precisely the same tackle on which the museum was intended to be created and/or transformed,” they described.
An audit by accountants Kopano Integrated, attached to the investigative report, recorded that the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was considered one of the directors.
According to Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, that means R6.nine-million is still owed, however there is no payment date established for when this must be paid.
The Kopano audit along with the shut connection involving the companies “point out to us that there is ‘foul Enjoy’ involved in the purchase of your machinery in the museum workshop”, the investigators mentioned during the report.
“We discover that it is highly possible that CTMCA applied the funding on the NLC to ‘refund’ amongst its most important administrators for the property at the next overpriced amount than the actual price and worth of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant for the CTMCA had been expended.
“In reality, a detailed report on how the funding in the NLC was applied, could well be impossible 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 from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered the NLC had not conducted a web page take a look at ahead of approving the grant. But this was not common apply at some time and so they uncovered no evidence of negligence by NLC employees.
At time, the NLC’s procedures did not call for funded organisations to post evidence of payment with interim reviews, they pointed out. This meant the CTMCA was able to receive a second tranche of funding without needing to give evidence that it experienced utilised the main tranche for its supposed intent.
Following the appointment of a new board, commissioner and senior executive workforce, the NLC has tightened up on these and other issues.
Dabishi Nthambeleni proposed that
the NLC decrease any foreseeable future funding applications within the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a prison situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated resources.
But, as opposed to act over the report’s tips, the NLC – below its preceding administration – selected to suppress it, since it experienced finished Using the earlier studies into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to mail the issues by e mail also. But no response were acquired at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph