Leaked report exposes abuse of lottery money compensated to minstrel group
Leaked report exposes abuse of lottery money compensated to minstrel group
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Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has discovered no evidence that a museum ever existed.
The investigators discovered which the CTMCA did not utilize the R5-million allotted to purchase or establish a museum.
They also uncovered that the CTMCA only bought land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA utilized cash in the Lottery to get workshop devices from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to create a museum to rejoice town’s loaded minstrel record went astray. The museum was by no means produced.
The main points in the abuse of many rands of Lottery resources for just a museum that under no circumstances was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of in excess of R64-million in Lottery cash allotted towards the CTMCA in between 2003 and 2017.
The first Component of the investigation, by regulation business Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which incorporated funding to the museum. The authorised price range to the museum was greater than R12.8-million, with R5-million of that allotted to get a creating to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a setting up to the museum and whether the museum “really existed”.
The company was also instructed to investigate
the acquisition with Lottery money of two autos – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
several equipment “acquired for the production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators with the organisation. Stemmet was reappointed being a director in May possibly 2021.
The investigation followed considerable reporting by GroundUp about the many rands of Lottery funding allocated into the CTMCA (see below, right here and in this article) and the way in which the resources in all probability aided finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.
The constructing on the best was the supposed web site with the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - including the museum - amongst 2012 and 2015. All a few projects were completed, she explained to MPs.
Although the investigators observed no proof that a museum experienced at any time existed.
To start with the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum exhibits a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung within the walls, and a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni mentioned it was “not ready” to confirm if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum were moved as they could no longer find the money for the rent of R100,000 a month. He said the CTMCA experienced purchased assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were sold for the same value. Schaapkraal is in a peri-urban place considerably from the city.
Because of this, the museum had been moved to a completely new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following going to the premises, which happen to be within an industrial region, the investigators said they doubted whether a suitable museum existed there. Pictures connected towards the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without explanation.
“There exists a small amount of objects for the museum [that] on no account symbolize the in excess of 100-yr historical past of the Cape City Carnival, the investigators said, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum would not glance to get open to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by relocating the location of your museum to an alternative area without the need of notifying the NLC.
The Schaapkraal property, on which no museum was at any time created. Photo: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move from the rented Crete Highway premises as it had run up a R4-million financial debt with the town of Cape City and was worried its machines could well be connected.
“Due to authorized battles as well as the debts, the organisation experienced to move its property from 5 Crete Road to steer clear of the sheriff from attaching the property with the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director of the CTMCA, told them that the two buses acquired with lottery resources were being stored in a very solution site “hidden from your Sheriff”. Nevertheless the investigators explained they have been unable to substantiate that any buses experienced ever been acquired.
Stemmet also verified the buses were hidden to halt them remaining seized. But once the investigators questioned for being taken to the area exactly where the buses ended up stored, he told them that “the proprietor of The trick area wasn't available to open the premises for us”.
“The CTMCA couldn't supply evidence of payment for 2 motor vehicles that it allegedly obtained with grant dollars,” the investigators reported.
Soeker also informed them the Schaapkraal residence had been marketed because of the debt.
“Mr Soeker discussed that In line with his knowledge, mainly because of the financial debt owed to the City of Cape Town, the CTMCA made a decision It will be ideal to offer their [Schaapkraal] home … also to also to hide the assets of your CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and safety, has previously instructed GroundUp the CTMCA “threw money away” on litigation with the town.
“On a yearly basis like clockwork, as we strategy the tip of your year, the CTMCA picks a legal fight with town, above permits or another thing. We in no way initiate it. They maintain throwing money away on vexatious litigation that they drop and have charges awarded versus them. This can be fully self-inflicted,” he said.
Soeker informed the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in command of many of the admin, funds and managing หวย หุ้น the CTMCA.” The investigators mentioned they were not able to Call Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “identified several machines, some in excellent situation, some in poor condition plus some that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-web page storage facility where by “devices and a few equipment” have been kept.
“We requested him to take us to the ability but he was evasive to our ask for.”
Determined by pictures and invoices in GroundUp’s possession, some, if not all, of the objects look like equipment that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing costs for this elimination.
Based on the ultimate progress report submitted on the NLC because of the CTMCA, the equipment was acquired from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter have been directors at some time.
The investigators found this “alarming”.
“Within the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be developed and/or transformed,” they noted.
An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of purchasing “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 certainly one of the directors.
According to Dabishi Nthambeleni, the company has compensated R1.2-million as a deposit, this means R6.9-million is still owed, while there isn't a payment date set for when this must be paid out.
The Kopano audit and also the near link amongst the businesses “show to us that there's ‘foul Participate in’ involved in the purchase with the equipment of the museum workshop”, the investigators mentioned from the report.
“We discover that it's remarkably possible that CTMCA applied the funding of your NLC to ‘refund’ one of its main administrators with the assets at a higher overpriced level than the particular price tag and worth of the property and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to the CTMCA were invested.
“In reality, a detailed report on how the funding of the NLC was made use of, can be unattainable as the CTMCA does not have any receipts, or evidence of payments to confirm the amounts put in on Each individual item it requested funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not carried out a web-site stop by prior to approving the grant. But this wasn't standard practice at the time and they identified no evidence of negligence by NLC employees.
At some time, the NLC’s procedures didn't have to have funded organisations to submit evidence of payment with interim studies, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without having to deliver proof that it had made use of the primary tranche for its supposed purpose.
Subsequent the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these along with other issues.
Dabishi Nthambeleni advised that
the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated cash.
But, as an alternative to act within the report’s tips, the NLC – underneath its previous administration – chose to suppress it, since it had performed Together with the former reviews into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for email addresses to send the concerns by e-mail also. But no response had been received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph