Leaked report exposes abuse of lottery revenue compensated to minstrel team
Leaked report exposes abuse of lottery revenue compensated to minstrel team
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Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has discovered no proof that a museum ever existed.
The investigators identified the CTMCA did not make use of the R5-million allocated to purchase or make a museum.
They also uncovered that the CTMCA only purchased land really worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA employed funds within the Lottery to buy workshop equipment from one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape Town Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to build a museum to rejoice town’s wealthy minstrel record went astray. The museum was in no way established.
The details in the abuse of an incredible number of rands of Lottery resources for the museum that never ever was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Component of a lot more than R64-million in Lottery cash allotted on the CTMCA in between 2003 and 2017.
The very first Component of the investigation, by law agency Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which bundled funding to the museum. The permitted finances to the museum was in excess of R12.eight-million, with R5-million of that allotted for a creating to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a making for the museum and whether or not the museum “essentially existed”.
The business was also instructed to investigate
the purchase with Lottery resources of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
various equipment “bought with the production of the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted prison 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 continued as two of many directors of the organisation. Stemmet was reappointed as a director in May 2021.
The investigation adopted substantial reporting by GroundUp concerning the numerous rands of Lottery funding allocated towards the CTMCA (see here, here and in this article) and just how the cash in all probability helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.
The setting up on the ideal was the supposed site with the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “projects” - such as the museum - amongst 2012 and 2015. All 3 initiatives were accomplished, she informed MPs.
Nevertheless the investigators uncovered no evidence that a museum experienced ever existed.
To start with the museum was as a result of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp in the intended Wetton museum shows a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung within the walls, as well as a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni claimed it absolutely was “not in a position” to verify if a museum had at any time operated from these premises.
Stemmet told the investigators the museum were moved given that they could no longer afford to pay for the hire of R100,000 per month. He reported the CTMCA experienced procured house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for a similar cost. Schaapkraal is in a peri-city spot far from the town.
Consequently, the museum were moved to a different place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after visiting the premises, which happen to be in an industrial place, the investigators stated they doubted whether or not a correct museum existed there. Images connected on the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the floor, with no explanation.
“You will find a nominal amount of merchandise with the museum [that] on no account characterize the more than a hundred-12 months history of the Cape Town Carnival, the investigators stated, adding that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum won't search to generally be open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by moving The situation on the museum to another spot with no notifying the NLC.
The Schaapkraal residence, on which no museum was at any time created. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to move from your rented Crete Highway premises because it experienced run up a R4-million financial debt with the town of Cape Town and was scared its products might be connected.
“Mainly because of the authorized battles as well as the debts, the organisation experienced to maneuver its house from 5 Crete Road to avoid the sheriff from attaching the residence of the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director from the CTMCA, informed them that the two buses bought with lottery funds have been saved within a key site “concealed from your Sheriff”. However the investigators stated they had been not able to verify that any buses had at any time been purchased.
Stemmet also confirmed which the buses were hidden to prevent them getting seized. But if the investigators requested for being taken towards the position where the buses had been stored, he informed them that “the owner of The trick place wasn't accessible to open up the premises for us”.
“The CTMCA couldn't present evidence of payment for 2 vehicles that it allegedly acquired with grant money,” the investigators claimed.
Soeker also instructed them the Schaapkraal property were offered because of the debt.
“Mr Soeker explained that In keeping with his comprehension, mainly because of the credit card debt owed to the City of Cape City, the CTMCA decided it would be very best to sell their [Schaapkraal] assets … and to also to cover the assets of your CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and protection, has Formerly informed GroundUp which the CTMCA “threw funds absent” on litigation with the City.
“Yearly like clockwork, as we approach the top in the 12 months, the CTMCA picks a lawful struggle with the City, above permits or something else. We under no circumstances initiate it. They hold throwing funds away on vexatious litigation that they lose and possess expenditures awarded versus them. This is fully self-inflicted,” he claimed.
Soeker instructed the Dabishi Nthambeleni investigators that the leading part players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of all the admin, funds and operating หวย วัน นี้ the CTMCA.” The investigators said they had been not able to Get in touch with Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “observed numerous machines, some in great problem, some in undesirable ailment and some that looked rusty and intensely previous”. Stemmet informed the investigators that there was also an off-web site storage facility the place “instruments and several machinery” have been stored.
“We questioned him to just take us to the facility but he was evasive to our request.”
Determined by shots and invoices in GroundUp’s possession, some, if not all, of your things seem like machines that was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing charges for this removal.
According to the final development report submitted towards the NLC through the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were being administrators at time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the next alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Highway, Wetton, Cape Town, the same deal with on which the museum was meant to be built and/or converted,” they described.
An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid R1.two-million as a deposit, meaning R6.nine-million remains to be owed, while there isn't a payment date established for when this need to be paid out.
The Kopano audit as well as the shut backlink involving the companies “reveal to us that there is ‘foul Engage in’ linked to the purchase with the equipment of the museum workshop”, the investigators claimed within the report.
“We find that it is remarkably possible that CTMCA made use of the funding of the NLC to ‘refund’ one among its key administrators to the residence at an increased overpriced fee than the actual cost and price of the assets and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been unable to determine how the grant on the CTMCA were expended.
“Actually, an in depth report on how the funding on the NLC was employed, could well be difficult because the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts put in on Every merchandise it requested funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not executed a web page go to just before approving the grant. But this was not regular apply at the time they usually located no evidence of carelessness by NLC staff members.
At time, the NLC’s rules didn't demand funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to receive a 2nd tranche of funding without needing to deliver proof that it had applied the first tranche for its intended reason.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these and also other challenges.
Dabishi Nthambeleni recommended that
the NLC drop any future funding applications in the CTMCA;
the CTMCA and any associates who have been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it experienced carried out While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to send out the issues by electronic mail much too. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph