Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated to minstrel team
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Minstrels execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant through the Countrywide Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has found no evidence that a museum ever existed.
The investigators located which the CTMCA did not make use of the R5-million allotted to buy or produce a museum.
Additionally they discovered the CTMCA only acquired land value R1.seven-million, not R5-million as allotted.
They observed the CTMCA utilized cash in the Lottery to acquire workshop devices from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape City Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate town’s prosperous minstrel background went astray. The museum was by no means made.
The details in the abuse of a lot of rands of Lottery resources for a museum that under no circumstances was are disclosed within an investigative report commissioned by the NLC in 2021.
The museum grant was Component of over R64-million in Lottery money allotted towards the CTMCA involving 2003 and 2017.
The first A part of the investigation, by law business Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding for your museum. The authorized price range to the museum was in excess of R12.8-million, with R5-million of that allotted for the constructing to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the setting up to the museum and whether or not the museum “truly existed”.
The organization was also instructed to analyze
the purchase with Lottery money of two vehicles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
different machines “ordered to the production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At 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 wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.
The investigation adopted extensive reporting by GroundUp with regards to the many rands of Lottery funding allotted towards the CTMCA (see listed here, in this article and here) and just how the money possibly served finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.
The constructing on the proper was the meant website in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction into a Parliamentary problem, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “initiatives” - including the museum - among 2012 and 2015. All three projects were finished, she told MPs.
Even so the investigators observed no proof that a museum experienced at any time existed.
In the beginning the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp of your supposed Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung on the partitions, and a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni claimed it had been “not in a position” to confirm if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum were moved since they could now not find the money for the hire of R100,000 per month. He mentioned the CTMCA experienced obtained assets for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is in the peri-urban spot significantly from the town.
Due to this fact, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which are within an industrial region, the investigators said they doubted whether or not an appropriate museum existed there. Photographs hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without rationalization.
“There's a nominal degree of objects for the museum [that] on no account signify the a lot more than one hundred-yr historical past on the Cape Town Carnival, the investigators claimed, including that there was “no signage outside the premises indicating which they housed a museum and … generally, the museum does not look to generally be open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by relocating The situation with the museum to an alternative site without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators the CTMCA experienced to move with the rented Crete Highway premises because it had run up a R4-million personal debt with the City of Cape Town and was concerned its equipment could be attached.
“Due to lawful battles as well as the debts, the organisation had to maneuver its residence from five Crete Road to avoid the sheriff from attaching the home from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director on the CTMCA, informed them that the two buses purchased with lottery funds ended up saved within a top secret place “hidden within the Sheriff”. Nevertheless the investigators reported they were unable to confirm that any buses had ever been bought.
Stemmet also verified which the buses were concealed to prevent them currently being seized. But if the investigators requested for being taken for the spot in which the buses had been saved, he instructed them that “the owner of The trick site was not accessible to open the premises for us”.
“The CTMCA couldn't supply evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.
Soeker also informed them the Schaapkraal assets had been offered due to debt.
“Mr Soeker discussed that Based on his knowledge, due to the financial debt owed to the City of Cape Town, the CTMCA made the decision It could be finest to offer their [Schaapkraal] assets … also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and security, has Beforehand instructed GroundUp that the CTMCA “threw money absent” on litigation with the City.
“On a yearly basis like clockwork, as we tactic the end with the year, the CTMCA picks a authorized fight with the town, around permits or something else. We hardly ever initiate it. They preserve throwing dollars absent on vexatious litigation that they get rid of and possess costs awarded towards them. This is certainly solely self-inflicted,” he said.
Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for each of the admin, finances and managing หวย ลาว ล่าสุด the CTMCA.” The investigators mentioned they were unable to Call Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “found quite a few devices, some in good condition, some in negative problem and many that appeared rusty and intensely previous”. Stemmet told the investigators that there was also an off-website storage facility where by “instruments and some equipment” were saved.
“We requested him to consider us to the power but he was evasive to our request.”
According to pics and invoices in GroundUp’s possession, some, if not all, on the products seem like machines which was illegally removed from the CTMCA’s former premises. Stemmet is dealing with prices for this removing.
According to the closing development report submitted to the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were administrators at time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Highway, Wetton, Cape Town, the same deal with on which the museum was meant to be crafted and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected to the investigative report, recorded that the CTMCA was in the process of getting “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.two-million to be a deposit, indicating R6.9-million remains owed, while there is absolutely no payment day set for when this needs to be paid.
The Kopano audit as well as close backlink between the companies “point out to us that there's ‘foul play’ associated with the acquisition of your machinery in the museum workshop”, the investigators explained from the report.
“We discover that it's hugely probable that CTMCA utilised the funding on the NLC to ‘refund’ one among its major directors for the property at the next overpriced amount than the actual cost and price of the house and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant on the CTMCA were invested.
“In point of fact, a detailed report on how the funding with the NLC was utilized, might be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts invested on Just about every product it asked for funding for. The interim report and remaining report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC experienced not executed a web-site stop by right before approving the grant. But this wasn't normal apply at the time they usually located no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not involve funded organisations to submit evidence of payment with interim reports, they pointed out. This intended that the CTMCA was in the position to receive a second tranche of funding without the need to offer proof that it experienced made use of the initial tranche for its meant reason.
Following the appointment of a fresh board, commissioner and senior government crew, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni suggested that
the NLC decline any future funding applications within the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, in lieu of act within the report’s tips, the NLC – under its preceding administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by email as well. But no response were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph