Leaked report exposes abuse of lottery money compensated to minstrel group
Leaked report exposes abuse of lottery money compensated to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no evidence that a museum at any time existed.
The investigators discovered that the CTMCA didn't use the R5-million allocated to obtain or produce a museum.
Additionally they identified which the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilised resources in the Lottery to invest in workshop gear from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) with the Nationwide Lotteries Commission (NLC) to setup a museum to rejoice the city’s rich minstrel background went astray. The museum was under no circumstances made.
The main points of your abuse of numerous rands of Lottery funds to get a museum that by no means was are disclosed in an investigative report commissioned via the NLC in 2021.
The museum grant was part of much more than R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.
The initial A part of the investigation, by regulation agency Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which included funding for your museum. The authorized finances for the museum was over R12.eight-million, with R5-million of that allocated for just a constructing 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 if the museum “basically existed”.
The firm was also instructed to research
the purchase with Lottery cash of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “bought for that producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several directors with the organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation followed intensive reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated towards the CTMCA (see in this article, listed here and here) and just how the resources probably assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The building on the correct was the meant internet site of the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph
In response to some Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - such as the museum - among 2012 and 2015. All a few projects had been done, she explained to MPs.
Although the investigators identified no evidence that a museum experienced ever existed.
At the outset the museum was as a result of open in rented premises in Crete Street, Wetton. A photo acquired by GroundUp of your meant Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung around the walls, along with a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum were moved because they could now not manage the hire of R100,000 a month. He stated the CTMCA had ordered house for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were sold for the same selling price. Schaapkraal is within a peri-city location considerably from the town.
As a result, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following viewing the premises, which are in an industrial space, the investigators said they doubted whether an appropriate museum existed there. Shots hooked up to your report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the floor, without any explanation.
“There is a negligible number of things on the museum [that] on no account characterize the much more than one hundred-year record with the Cape Town Carnival, the investigators explained, adding that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum won't appear for being open to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The situation of the museum to an alternate spot without the need of notifying the NLC.
The Schaapkraal home, on which no museum was at any time built. Image: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA had to maneuver with the rented Crete Street premises because it experienced operate up a R4-million credit card debt with the City of Cape City and was fearful its products would be connected.
“Due to the legal battles as well as the debts, the organisation had to move its house from 5 Crete Road to avoid the sheriff from attaching the home from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery funds were saved in a top secret site “hidden from your Sheriff”. Nevertheless the investigators reported they ended up unable to substantiate that any buses had at any time been bought.
Stemmet also verified which the buses were hidden to stop them staying seized. But when the investigators asked being taken into the spot wherever the buses were stored, he explained to them that “the owner of the secret place wasn't accessible to open up the premises for us”.
“The CTMCA could not give evidence of payment for 2 vehicles that it allegedly acquired with grant money,” the investigators noted.
Soeker also told them the Schaapkraal residence were marketed as a result of credit card debt.
“Mr Soeker discussed that Based on his understanding, a result of the financial debt owed to the town of Cape Town, the CTMCA made a decision It will be finest to provide their [Schaapkraal] residence … and also to also to cover the assets from the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and protection, has Earlier informed GroundUp which the CTMCA “threw money away” on litigation with the City.
“Every year like clockwork, as we solution the top from the yr, the CTMCA picks a legal battle with the City, more than permits or another thing. We never ever initiate it. They retain throwing dollars away on vexatious litigation that they lose and possess costs awarded from them. This is often solely self-inflicted,” he claimed.
Soeker advised the Dabishi Nthambeleni investigators that the key role players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of all the admin, finances and managing หวย ออก the CTMCA.” The investigators mentioned they were struggling to Get in touch with Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “discovered several devices, some in excellent problem, some in negative issue and several that seemed rusty and extremely outdated”. Stemmet advised the investigators that there was also an off-web site storage facility exactly where “devices and several equipment” ended up stored.
“We requested him to take us to the power but he was evasive to our request.”
Based upon pictures and invoices in GroundUp’s possession, some, Otherwise all, of the objects look like gear that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing expenses for this elimination.
Based on the closing development report submitted to your NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter ended up directors at the time.
The investigators uncovered this “alarming”.
“Within the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was meant to be created and/or transformed,” they noted.
An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the entire process of paying for “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.
In line with Dabishi Nthambeleni, the business has paid R1.two-million for a deposit, indicating R6.9-million continues to be owed, while there is not any payment day set for when this must be compensated.
The Kopano audit along with the close backlink among the businesses “show to us that there's ‘foul play’ involved with the purchase on the equipment on the museum workshop”, the investigators stated in the report.
“We find that it is hugely possible that CTMCA used the funding on the NLC to ‘refund’ one of its major administrators for the home at a better overpriced fee than the actual cost and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been unable to determine how the grant for the CTMCA were expended.
“Actually, a detailed report on how the funding of your NLC was made use of, might be extremely hard because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities invested on Each individual item it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered that the NLC had not performed a internet site stop by before approving the grant. But this wasn't conventional exercise at some time plus they located no evidence of carelessness by NLC staff members.
At time, the NLC’s principles did not involve funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was capable of get a second tranche of funding without the need to supply evidence that it experienced employed the first tranche for its intended function.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni suggested that
the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, instead of act over the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had finished Along with the previous stories into corruption it experienced commissioned.
GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to send the queries by e mail much too. But no reaction were received at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph