Leaked report exposes abuse of lottery dollars compensated to minstrel team
Leaked report exposes abuse of lottery dollars compensated to minstrel team
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Minstrels accomplish in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum at any time existed.
The investigators identified that the CTMCA didn't use the R5-million allotted to acquire or make a museum.
Additionally they discovered the CTMCA only bought land really worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA employed cash from your Lottery to acquire workshop gear from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Countrywide Lotteries Commission (NLC) to setup a museum to celebrate the city’s prosperous minstrel history went astray. The museum was never created.
The small print with the abuse of countless rands of Lottery funds for just a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Element of over R64-million in Lottery cash allocated on the CTMCA amongst 2003 and 2017.
The main Section of the investigation, by law company Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which included funding for that museum. The permitted funds for the museum was a lot more than R12.8-million, with R5-million of that allotted for the building to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the creating with the museum and whether or not the museum “really existed”.
The firm was also instructed to investigate
the purchase with Lottery cash of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
several devices “purchased for that manufacturing of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few administrators of your organisation. Stemmet was reappointed as being a director in Might 2021.
The investigation adopted in depth reporting by GroundUp in regards to the countless rands of Lottery funding allotted towards the CTMCA (see in this article, listed here and right here) and just how the funds likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at enough time by Marius Fransman.
The building on the best was the supposed web site on the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph
In response to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All 3 initiatives had been accomplished, she instructed MPs.
However the investigators discovered no evidence that a museum had ever existed.
To start with the museum was on account of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp with the supposed Wetton museum reveals a coffee shop with a few musical instruments and minstrel costumes and collages of images haphazardly hung to the partitions, plus a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to verify if a museum had at any time operated from these premises.
Stemmet advised the investigators the museum had been moved since they could no more pay for the hire of R100,000 per month. He mentioned the CTMCA experienced obtained property for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been bought for the same rate. Schaapkraal is in a very peri-city region considerably from town.
Consequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which happen to be within an industrial location, the investigators mentioned they doubted irrespective of whether a suitable museum existed there. Images connected on the report clearly show a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the floor, without any explanation.
“You will find there's small volume of items on the museum [that] under no circumstances represent the in excess of a hundred-yr record in the Cape Town Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum won't look to become open up to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by moving The placement on the museum to an alternate spot without the need of notifying the NLC.
The Schaapkraal assets, on which no museum was at any time built. Picture: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to move with the rented Crete Street premises as it experienced run up a R4-million personal debt with the City of Cape City and was scared its gear can be hooked up.
“A result of the lawful battles plus the debts, the organisation experienced to maneuver its property from 5 Crete Street to stay away from the sheriff from attaching the residence from the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director of the CTMCA, informed them which the two buses bought with lottery funds have been stored in the solution locale “concealed from your Sheriff”. Although the investigators explained they were unable to substantiate that any buses experienced ever been acquired.
Stemmet also verified which the buses had been hidden to stop them currently being seized. But when the investigators asked being taken on the place in which the buses were stored, he explained to them that “the owner of The key place wasn't accessible to open the premises for us”.
“The CTMCA couldn't offer proof of payment for two automobiles that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also told them the Schaapkraal house had been offered because of the personal debt.
“Mr Soeker defined that In keeping with his comprehension, due to personal debt owed to town of Cape Town, the CTMCA determined It will be finest to offer their [Schaapkraal] property … and also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for security and safety, has Earlier told GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Yearly like clockwork, as we technique the tip in the yr, the CTMCA picks a lawful combat with the town, in excess of permits or something else. We never ever initiate it. They retain throwing money absent on vexatious litigation that they drop and have expenses awarded versus them. This is solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of all the admin, finances and functioning cat888 the CTMCA.” The investigators claimed they were not able to Call Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered many machines, some in excellent issue, some in bad situation and several that seemed rusty and very previous”. Stemmet informed the investigators that there was also an off-web site storage facility exactly where “instruments plus some equipment” had been kept.
“We questioned him to consider us to the power but he was evasive to our ask for.”
Determined by images and invoices in GroundUp’s possession, some, Otherwise all, on the products seem like gear which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with expenses for this removing.
According to the remaining progress report submitted to your NLC by the CTMCA, the machinery was bought from Martin-Conne Milliners, a business where Stemmet, his wife and his daughter had been directors at enough time.
The investigators located this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Road, Wetton, Cape Town, precisely the same address on which the museum was meant to be created and/or transformed,” they noted.
An audit by accountants Kopano Included, hooked up for the investigative report, recorded which the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.
Based on Dabishi Nthambeleni, the business has paid R1.two-million as a deposit, this means R6.9-million continues to be owed, although there's no payment date established for when this has to be compensated.
The Kopano audit as well as near hyperlink concerning the companies “show to us that there's ‘foul Perform’ linked to the purchase with the equipment of the museum workshop”, the investigators explained in the report.
“We find that it is hugely possible that CTMCA made use of the funding in the NLC to ‘refund’ amongst its principal directors with the property at a greater overpriced charge than the actual value and value of the property and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant into the CTMCA were put in.
“The truth is, a detailed report on how the funding in the NLC was employed, could be impossible as being the CTMCA does not have any receipts, or evidence of payments to confirm the amounts spent on Each individual item it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not done a site check out in advance of approving the grant. But this wasn't typical exercise at some time plus they located no evidence of carelessness by NLC employees.
At some time, the NLC’s rules didn't call for funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without having to present proof that it had made use of the initial tranche for its supposed goal.
Pursuing the appointment of a brand new board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni proposed that
the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any customers who have been involved with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, rather than act over the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, because it experienced completed Using the past reports into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for email addresses to send out the thoughts by email way too. But no response were gained at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph