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 perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission to your Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators found that the CTMCA didn't use the R5-million allotted to order or make a museum.
They also located the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used funds in the Lottery to buy workshop gear from certainly one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Association (CTMCA) from the National Lotteries Commission (NLC) to setup a museum to rejoice town’s loaded minstrel background went astray. The museum was never established.
The small print of your abuse of countless rands of Lottery cash for just a museum that never ever was are revealed in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery money allotted towards the CTMCA involving 2003 and 2017.
The first Component of the investigation, by law business Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The authorized budget to the museum was much more than R12.eight-million, with R5-million of that allocated for the making to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a setting up for your museum and if the museum “essentially existed”.
The firm was also instructed to investigate
the purchase with Lottery funds of two cars – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
different devices “procured for the manufacturing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation followed comprehensive reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allocated for the CTMCA (see here, here and here) and the way the resources almost certainly helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.
The creating on the appropriate was the supposed web site with the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane shown grants to a few CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All a few projects were done, she informed MPs.
But the investigators observed no evidence that a museum experienced at any time existed.
Initially the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp on the supposed Wetton museum exhibits a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung on the walls, in addition to a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to verify if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved since they could no more afford the lease of R100,000 a month. He mentioned the CTMCA had ordered residence for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for a similar price. Schaapkraal is within a peri-city area significantly from the city.
As a result, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after browsing the premises, which can be within an industrial area, the investigators explained they doubted whether or not a correct museum existed there. Pics hooked up for the report display a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the floor, without clarification.
“You will find there's minimum number of items at the museum [that] on no account signify the greater than a hundred-year heritage on the Cape City Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … frequently, the museum isn't going to look to become open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by transferring The situation from the museum to an alternative locale with no notifying the NLC.
The Schaapkraal residence, on which no museum was ever constructed. Photo: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA experienced to move from the rented Crete Highway premises because it had run up a R4-million personal debt with the City of Cape Town and was afraid its devices will be connected.
“Because of the authorized battles and also the debts, the organisation had to move its residence from five Crete Highway to steer clear of the sheriff from attaching the property from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director on the CTMCA, explained to them which the two buses purchased with lottery cash were being saved in a very secret locale “hidden with the Sheriff”. Though the investigators reported they have been not able to verify that any buses experienced at any time been acquired.
Stemmet also confirmed the buses were hidden to prevent them being seized. But if the investigators requested to be taken for the put exactly where the buses have been saved, he instructed them that “the operator of The trick locale wasn't accessible to open up the premises for us”.
“The CTMCA could not offer evidence of payment for 2 cars that it allegedly bought with grant cash,” the investigators documented.
Soeker also advised them the Schaapkraal residence were marketed due to the debt.
“Mr Soeker defined that In line with his knowledge, mainly because of the financial debt owed to the town of Cape Town, the CTMCA made a decision it would be ideal to provide their [Schaapkraal] property … and also to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for basic safety and security, has Formerly advised GroundUp the CTMCA “threw dollars absent” on litigation with town.
“Each year like clockwork, as we strategy the end of the calendar year, the CTMCA picks a authorized fight with town, in excess of permits or something else. We by no means initiate it. They keep throwing dollars away on vexatious litigation which they get rid of and also have fees awarded towards them. This is solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been accountable for all of the admin, finances and managing ผล หวย ลาว วัน นี้ the CTMCA.” The investigators claimed they had been not able to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “found many devices, some in great condition, some in bad problem and several that seemed rusty and very outdated”. Stemmet explained to the investigators that there was also an off-site storage facility in which “instruments and many equipment” were being held.
“We asked him to consider us to the power but he was evasive to our request.”
Determined by photos and invoices in GroundUp’s possession, some, if not all, of your merchandise appear to be equipment that was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing charges for this elimination.
According to the remaining progress report submitted into the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter were being directors at time.
The investigators observed this “alarming”.
“From the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Road, Wetton, Cape City, the identical handle on which the museum was intended to be designed and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, hooked up to the investigative report, recorded which the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.
In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million like a deposit, indicating R6.9-million remains to be owed, nevertheless there's no payment date set for when this should be compensated.
The Kopano audit as well as shut backlink amongst the companies “suggest to us that there is ‘foul play’ involved with the acquisition in the equipment of the museum workshop”, the investigators mentioned from the report.
“We discover that it's remarkably possible that CTMCA made use of the funding of the NLC to ‘refund’ one among its most important administrators for that residence at an increased overpriced amount than the particular price tag and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA had been used.
“In point of fact, an in depth report on how the funding with the NLC was utilised, could be unachievable since the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts spent on Just about every item it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC experienced not done a internet site visit ahead of approving the grant. But this wasn't common exercise at enough time plus they located no evidence of negligence by NLC workers.
At the time, the NLC’s rules didn't demand funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was capable to get a 2nd tranche of funding without having to deliver evidence that it experienced employed the very first tranche for its meant intent.
Adhering to the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni proposed that
the NLC decline any potential funding programs through the CTMCA;
the CTMCA and any customers who ended up associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, as opposed to act around the report’s suggestions, the NLC – below its previous administration – chose to suppress it, mainly because it had finished Along with the prior studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for e-mail addresses to ship the inquiries by e mail much too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph