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 conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators found that the CTMCA didn't utilize the R5-million allotted to acquire or establish a museum.
In addition they observed the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA utilized resources with the Lottery to acquire workshop tools from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to put in place a museum to rejoice town’s prosperous minstrel history went astray. The museum was in no way developed.
The details of the abuse of millions of rands of Lottery resources for a museum that in no way was are revealed in an investigative report commissioned by the NLC in 2021.
The museum grant was Section of in excess of R64-million in Lottery funds allotted on the CTMCA in between 2003 and 2017.
The very first Portion of the investigation, by regulation organization Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for the museum. The permitted price range for that museum was much more than R12.eight-million, with R5-million of that allotted for just a building to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether or not the museum “basically existed”.
The organization was also instructed to research
the acquisition with Lottery cash of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
many devices “procured for that manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on 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 with the organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated towards the CTMCA (see here, here and here) and just how the cash almost certainly helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.
The constructing on the correct was the meant web site of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 jobs were done, she told MPs.
Nevertheless the investigators located no proof that a museum had at any time existed.
At the beginning the museum was because of open up in rented premises in Crete Street, Wetton. A photo received by GroundUp of the meant Wetton museum shows a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung around the walls, and a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not ready” to verify if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum had been moved given that they could now not find the money for the lease of R100,000 a month. He stated the CTMCA experienced bought house for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and were offered for the same price. Schaapkraal is in the peri-city space far from the town.
Due to this fact, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after viewing the premises, which happen to be within an industrial area, the investigators mentioned they doubted no matter if an appropriate museum existed there. Photographs connected to the report show a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the floor, without having rationalization.
“You will find there's nominal quantity of merchandise on the museum [that] under no circumstances stand for the over one hundred-yr heritage of the Cape City Carnival, the investigators mentioned, including that there was “no signage exterior the premises indicating that they housed a museum and … usually, the museum will not appear to be open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by going The placement of the museum to another place with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Picture: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to maneuver with the rented Crete Highway premises mainly because it experienced operate up a R4-million debt with town of Cape City and was frightened its tools can be connected.
“Due to authorized battles as well as debts, the organisation experienced to move its property from five Crete Highway to steer clear of the sheriff from attaching the house in the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director with the CTMCA, advised them which the two buses purchased with lottery money were saved within a magic formula place “hidden from your Sheriff”. Even so the investigators explained they were not able to confirm that any buses had at any time been purchased.
Stemmet also confirmed the buses had been hidden to stop them getting seized. But once the investigators asked to become taken for the spot in which the buses had been saved, he instructed them that “the proprietor of the secret locale was not accessible to open the premises for us”.
“The CTMCA couldn't deliver proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators documented.
Soeker also told them the Schaapkraal house were sold as a result of personal debt.
“Mr Soeker described that according to his comprehension, due to the debt owed to the City of Cape Town, the CTMCA made the decision It could be finest to provide their [Schaapkraal] assets … also to also to cover the belongings of your CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and safety, has Formerly told GroundUp which the CTMCA “threw dollars away” on litigation with the City.
“Every year like clockwork, as we tactic the end of your 12 months, the CTMCA picks a legal combat with the City, around permits or something else. We never initiate it. They retain throwing cash absent on vexatious litigation which they shed and also have prices awarded towards them. This is totally self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the key purpose gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in control of every one of the admin, funds and managing ผล หวย หุ้น the CTMCA.” The investigators reported they were struggling to contact Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “identified quite a few machines, some in great situation, some in bad condition plus some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-site storage facility where by “instruments and a few equipment” had been kept.
“We requested him to take us to the ability but he was evasive to our ask for.”
According to pics and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like machines that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing costs for this removal.
Based on the closing progress report submitted for the NLC with the CTMCA, the machinery was obtained from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were being directors at some time.
The investigators observed this “alarming”.
“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming finding: 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, exactly the same address on which the museum was meant to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, connected into the investigative report, recorded which the CTMCA was in the process of acquiring “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 one of the administrators.
Based on Dabishi Nthambeleni, the organization has paid out R1.2-million as being a deposit, meaning R6.9-million remains to be owed, while there is no payment date established for when this needs to be paid out.
The Kopano audit and also the near hyperlink concerning the companies “reveal to us that there is ‘foul play’ involved with the purchase of your machinery of your museum workshop”, the investigators explained within the report.
“We discover that it's highly possible that CTMCA applied the funding in the NLC to ‘refund’ certainly one of its key directors for your residence at the next overpriced price than the actual cost and value of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA had been expended.
“In point of fact, an in depth report on how the funding with the NLC was utilised, can be unattainable as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts put in on Every merchandise it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC experienced not done a web site stop by just before approving the grant. But this wasn't standard apply at the time they usually found no proof of negligence by NLC staff members.
At some time, the NLC’s guidelines didn't need funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without having to deliver proof that it had utilized the very first tranche for its meant purpose.
Adhering to the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni recommended that
the NLC decrease any foreseeable future funding applications from your CTMCA;
the CTMCA and any users who were involved in the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a criminal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated cash.
But, in lieu of act about the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it experienced performed Together with the earlier stories into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the thoughts by email as well. But no response had been been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph