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 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has uncovered no proof that a museum at any time existed.
The investigators discovered that the CTMCA did not use the R5-million allocated to purchase or make a museum.
Additionally they identified the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied cash from your Lottery to purchase workshop gear from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel historical past went astray. The museum was under no circumstances produced.
The small print with the abuse of millions of rands of Lottery funds to get a museum that in no way was are uncovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery funds allotted for the CTMCA in between 2003 and 2017.
The first Element of the investigation, by legislation firm Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The authorised price range for that museum was more than R12.8-million, with R5-million of that allocated for your setting up to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the developing for your museum and whether the museum “really existed”.
The company was also instructed to investigate
the purchase with Lottery resources of two cars – a 60-seater bus and a 23-seater bus – for R2.four-million; and
different machines “purchased 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 from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many directors of your organisation. Stemmet was reappointed like a director in May perhaps 2021.
The investigation adopted in depth reporting by GroundUp concerning the numerous rands of Lottery funding allotted to your CTMCA (see in this article, below and below) and the best way the funds probably aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The developing on the ideal was the intended web page in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph
In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - including the museum - involving 2012 and 2015. All a few jobs were done, she explained to MPs.
Although the investigators located no evidence that a museum had at any time existed.
At the outset the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of the intended Wetton museum shows a coffee shop with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung about the partitions, and a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni claimed it had been “not in a position” to substantiate if a museum experienced ever operated from these premises.
Stemmet advised the investigators the museum had been moved given that they could not pay for the hire of R100,000 a month. He explained the CTMCA experienced bought assets for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been marketed for a similar cost. Schaapkraal is in the peri-city space far from the city.
Subsequently, the museum were moved to a new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after checking out the premises, that happen to be in an industrial area, the investigators reported they doubted whether or not an appropriate museum existed there. Pics attached to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, without having explanation.
“You will find a minimal number of items on the museum [that] under no circumstances characterize the more than 100-year background in the Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating which they housed a museum and … normally, the museum will not appear to be open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating the location with the museum to an alternative spot with out notifying the NLC.
The Schaapkraal house, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had run up a R4-million debt with the City of Cape City and was afraid its gear could be attached.
“As a result of legal battles and also the debts, the organisation experienced to move its property from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery funds ended up stored in the secret area “concealed from the Sheriff”. Even so the investigators reported they had been unable to verify that any buses had ever been purchased.
Stemmet also confirmed that the buses had been hidden to stop them becoming seized. But once the investigators asked to become taken to your location wherever the buses had been stored, he instructed them that “the operator of the secret area wasn't accessible to open up the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators documented.
Soeker also instructed them the Schaapkraal residence had been sold because of the debt.
“Mr Soeker explained that Based on his comprehending, because of the debt owed to the town of Cape Town, the CTMCA resolved It might be best to offer their [Schaapkraal] house … also to also to hide the property of your CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for security and protection, has previously informed GroundUp the CTMCA “threw revenue away” on litigation with the City.
“Each and every year like clockwork, as we solution the top of the year, the CTMCA picks a legal fight with the City, over permits or something else. We by no means initiate it. They maintain throwing funds away on vexatious litigation which they eliminate and also have fees awarded towards them. This really is entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the key role gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of the many admin, funds and working hihuay the CTMCA.” The investigators explained they had been struggling to Speak to Momberg.
Hats
For the duration of their “investigation in loco” in the Primrose Park premises, the investigators “uncovered several equipment, some in excellent condition, some in undesirable condition and several that seemed rusty and intensely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where “instruments and a few machinery” had been held.
“We requested him to just take us to the ability but he was evasive to our request.”
Depending on images and invoices in GroundUp’s possession, some, if not all, from the products appear to be machines which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with prices for this removal.
In accordance with the ultimate progress report submitted to your NLC through the CTMCA, the equipment was obtained from Martin-Conne Milliners, a company where Stemmet, his wife and his daughter have been administrators at the time.
The investigators located this “alarming”.
“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Road, Wetton, Cape City, the identical handle on which the museum was intended to be created and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, connected to your investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.
According to Dabishi Nthambeleni, the company has compensated R1.two-million like a deposit, which means R6.nine-million remains owed, nevertheless there is no payment day set for when this should be compensated.
The Kopano audit plus the near hyperlink between the companies “suggest to us that there's ‘foul play’ associated with the acquisition of the machinery from the museum workshop”, the investigators explained while in the report.
“We discover that it's remarkably probable that CTMCA made use of the funding of your NLC to ‘refund’ among its key administrators to the home at a greater overpriced charge than the actual price and price of the house and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been expended.
“In fact, an in depth report on how the funding from the NLC was made use of, might be difficult since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities used on Every merchandise it requested funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not performed a web site check out ahead of approving the grant. But this was not regular practice at some time plus they identified no evidence of carelessness by NLC staff.
At the time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to give evidence that it experienced employed the main tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni recommended that
the NLC drop any future funding purposes within the CTMCA;
the CTMCA and any customers who ended up associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated money.
But, instead of act to the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced carried out Along with the previous studies into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by email as well. But no response were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph