Leaked report exposes abuse of lottery income paid to minstrel group
Leaked report exposes abuse of lottery income paid to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allotted to get or establish a museum.
They also identified the CTMCA only acquired land well worth R1.7-million, not R5-million as allocated.
They identified the CTMCA utilised cash with the Lottery to invest in workshop equipment from one among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) with the Nationwide Lotteries Commission (NLC) to set up a museum to celebrate the town’s abundant minstrel record went astray. The museum was never ever produced.
The main points with the abuse of an incredible number of rands of Lottery money for just a museum that never ever was are exposed within an investigative report commissioned with the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery money allocated to your CTMCA amongst 2003 and 2017.
The main Portion of the investigation, by legislation firm Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which integrated funding with the museum. The authorized finances for the museum was a lot more than R12.8-million, with R5-million of that allocated for any making to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for your museum and whether or not the museum “basically existed”.
The firm was also instructed to research
the acquisition with Lottery money of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
numerous machines “obtained to the producing from the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators on the organisation. Stemmet was reappointed like a director in Might 2021.
The investigation followed substantial reporting by GroundUp with regards to the millions of rands of Lottery funding allotted to the CTMCA (see here, here and here) and the way the resources probably served finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.
The creating on the proper was the meant internet site of the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - such as the museum - among 2012 and 2015. All a few tasks were concluded, she informed MPs.
Although the investigators discovered no proof that a museum experienced at any time existed.
At the beginning the museum was resulting from open in rented premises in Crete Street, Wetton. A photo attained by GroundUp in the meant Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, as well as a design ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni said it was “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum were moved given that they could now not afford to pay for the lease of R100,000 a month. He stated the CTMCA experienced ordered residence for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were offered for a similar rate. Schaapkraal is inside of a peri-urban spot much from town.
Therefore, the museum were moved to a brand new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after viewing the premises, that happen to be within an industrial region, the investigators explained they doubted regardless of whether a correct museum existed there. Images hooked up towards the report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the ground, without explanation.
“There's a minimal number of things within the museum [that] by no means signify the greater than one hundred-calendar year history of your Cape Town Carnival, the investigators stated, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … generally, the museum isn't going to glimpse to be open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by moving The situation of your museum to another spot without having notifying the NLC.
The Schaapkraal home, on which no museum was at any time constructed. Picture: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to maneuver through the rented Crete Highway premises since it had operate up a R4-million personal debt with the City of Cape Town and was concerned its devices could well be hooked up.
“Because of the legal battles as well as the debts, the organisation had to maneuver its assets from five Crete Highway to stay away from the sheriff from attaching the house in the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director on the CTMCA, instructed them which the two buses acquired with lottery money had been stored inside a secret place “concealed from the Sheriff”. Though the investigators explained they had been not able to verify that any buses had at any time been purchased.
Stemmet also confirmed that the buses had been concealed to stop them getting seized. But in the event the investigators asked to generally be taken on the location wherever the buses were being stored, he informed them that “the operator of the secret spot wasn't accessible to open the premises for us”.
“The CTMCA could not present evidence of payment for 2 vehicles that it allegedly acquired with grant revenue,” the investigators documented.
Soeker also instructed them the Schaapkraal residence were marketed due to credit card debt.
“Mr Soeker defined that In keeping with his understanding, as a result of financial debt owed to the City of Cape City, the CTMCA made the decision It might be greatest to promote their [Schaapkraal] home … and to also to hide the property of the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and safety, has previously informed GroundUp the CTMCA “threw dollars absent” on litigation with the City.
“Every year like clockwork, as we technique the top of the 12 months, the CTMCA picks a legal combat with the town, above permits or something else. We never ever initiate it. They hold throwing revenue away on vexatious litigation they drop and possess charges awarded in opposition to them. This really is entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the primary part players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of all of the admin, finances and running ตรวจ the CTMCA.” The investigators mentioned they had been not able to contact Momberg.
Hats
All through their “investigation in loco” in the Primrose Park premises, the investigators “located numerous machines, some in good condition, some in poor situation and some that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-web-site storage facility wherever “instruments and many machinery” have been kept.
“We requested him to acquire us to the facility but he was evasive to our request.”
Based upon pictures and invoices in GroundUp’s possession, some, if not all, on the merchandise look like tools that was illegally faraway from the CTMCA’s past premises. Stemmet is facing expenses for this elimination.
Based on the ultimate progress report submitted on the NLC because of the CTMCA, the equipment was ordered from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter were being directors at some time.
The investigators found this “alarming”.
“In the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be crafted and/or converted,” they described.
An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.
In line with Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, which means R6.9-million remains owed, nevertheless there is no payment day set for when this should be paid.
The Kopano audit as well as near backlink among the companies “indicate to us that there's ‘foul Enjoy’ involved with the acquisition of your equipment with the museum workshop”, the investigators stated in the report.
“We discover that it's hugely possible that CTMCA made use of the funding of the NLC to ‘refund’ considered one of its main directors for the home at a better overpriced fee than the actual value and value of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to the CTMCA were put in.
“The truth is, an in depth report on how the funding with the NLC was utilised, would be impossible since the CTMCA does not have any receipts, or proof of payments to substantiate the amounts used on Every single item it requested funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not executed a website check out right before approving the grant. But this wasn't typical exercise at the time they usually uncovered no proof of negligence by NLC employees.
At some time, the NLC’s procedures did not require funded organisations to post proof of payment with interim reports, they identified. This intended the CTMCA was in a position to get a second tranche of funding without the need to supply evidence that it experienced utilized the main tranche for its intended function.
Following the appointment of a whole new 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 through the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated cash.
But, as an alternative to act around the report’s suggestions, the NLC – under its past administration – chose to suppress it, because it experienced carried out While using the earlier 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 far too. But no reaction had been obtained at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph