Leaked report exposes abuse of lottery dollars paid out to minstrel group
Leaked report exposes abuse of lottery dollars paid out to minstrel group
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Minstrels carry out in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Fee towards the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no evidence that a museum at any time existed.
The investigators found which the CTMCA didn't utilize the R5-million allotted to obtain or create a museum.
Additionally they uncovered that the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of cash from your Lottery to purchase workshop machines from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to build a museum to rejoice town’s wealthy minstrel heritage went astray. The museum was by no means designed.
The main points with the abuse of millions of rands of Lottery funds to get a museum that in no way was are unveiled in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery resources allocated to the CTMCA concerning 2003 and 2017.
The main Section of the investigation, by law business Dabishi Nthambeleni, was carried out 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 accredited spending plan with the museum was more than R12.8-million, with R5-million of that allocated for any making to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the making with the museum and whether or not the museum “essentially existed”.
The organization was also instructed to research
the purchase with Lottery resources of two cars – a 60-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “procured to the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous administrators of your organisation. Stemmet was reappointed as being a director in May well 2021.
The investigation adopted extensive reporting by GroundUp about the an incredible number of rands of Lottery funding allotted on the CTMCA (see here, right here and listed here) and just how the resources in all probability served finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at some time by Marius Fransman.
The creating on the correct was the supposed site with the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph
In response to some Parliamentary question, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “assignments” - including the museum - concerning 2012 and 2015. All three assignments had been accomplished, she informed MPs.
However the investigators observed no proof that a museum experienced at any time existed.
In the beginning the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp from the supposed Wetton museum demonstrates a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung about the walls, and also a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni said it had been “not able” to confirm if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum were moved since they could now not pay for the lease of R100,000 a month. He claimed the CTMCA experienced purchased home for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been offered for the same value. Schaapkraal is in the peri-urban location much from the city.
Because of this, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after traveling to the premises, which might be in an industrial space, the investigators explained they doubted no matter whether a proper museum existed there. Images hooked up for the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.
“You will find a negligible quantity of things on the museum [that] under no circumstances characterize the much more than one hundred-yr background from the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not appear to generally be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to an alternate locale without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to maneuver with the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its tools will be attached.
“Because of the legal battles and the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of your CTMCA, advised them which the two buses bought with lottery cash had been stored inside of a key locale “hidden from your Sheriff”. Though the investigators stated they have been not able to verify that any buses experienced ever been purchased.
Stemmet also confirmed that the buses had been hidden to halt them becoming seized. But when the investigators asked to be taken towards the location exactly where the buses were saved, he advised them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA couldn't give proof of payment for two vehicles that it allegedly ordered with grant funds,” the investigators reported.
Soeker also instructed them the Schaapkraal property had been marketed because of the credit card debt.
“Mr Soeker explained that In line with his comprehending, a result of the personal debt owed to town of Cape City, the CTMCA decided it would be very best to promote their [Schaapkraal] house … and to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for security and security, has Beforehand advised GroundUp that the CTMCA “threw revenue absent” on litigation with the City.
“Every year like clockwork, as we tactic the end of your yr, the CTMCA picks a lawful battle with town, above permits or another thing. We by no means initiate it. They continue to keep throwing cash absent on vexatious litigation which they lose and also have expenditures awarded against them. This can be fully self-inflicted,” he said.
Soeker told the Dabishi Nthambeleni investigators that the principle purpose gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, finances and jogging lottovip the CTMCA.” The investigators explained they were unable to contact Momberg.
Hats
During their “investigation in loco” within the Primrose Park premises, the investigators “uncovered quite a few machines, some in great ailment, some in poor situation and a few that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-web page storage facility where “devices and some equipment” have been kept.
“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 merchandise appear to be products which was illegally faraway from the CTMCA’s previous premises. Stemmet is going through rates for this removal.
According to the ultimate development report submitted towards the NLC through the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company where Stemmet, his spouse and his daughter had been directors at time.
The investigators observed this “alarming”.
“From the CIPC research of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Road, Wetton, Cape City, exactly the same handle on which the museum was intended to be built and/or transformed,” they documented.
An audit by accountants Kopano Included, hooked up to your investigative report, recorded that the CTMCA was in the whole process of paying for “equipment, plant and stock” 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 one among the administrators.
In accordance with Dabishi Nthambeleni, the corporate has paid R1.two-million to be a deposit, this means R6.9-million remains to be owed, even though there is not any payment day set for when this should be compensated.
The Kopano audit plus the close backlink among the businesses “indicate to us that there is ‘foul Participate in’ involved with the acquisition on the machinery on the museum workshop”, the investigators stated while in the report.
“We discover that it is remarkably possible that CTMCA employed the funding of your NLC to ‘refund’ among its key administrators with the property at a greater overpriced charge than the actual rate and value of the property and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant towards the CTMCA were put in.
“In reality, an in depth report on how the funding in the NLC was used, can be not possible given that the CTMCA does not have any receipts, or proof of payments to verify the amounts used on Each and every merchandise it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not executed a web page go to prior to approving the grant. But this was not standard practice at the time they usually observed no evidence of carelessness by NLC workforce.
At enough time, the NLC’s principles didn't call for funded organisations to submit proof of payment with interim reports, they identified. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to present evidence that it had utilised the first tranche for its intended reason.
Following the appointment of a whole new board, commissioner and senior government workforce, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni encouraged that
the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, in lieu of act within the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it experienced completed While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the issues by e mail much too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph