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 perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only acquired land value R1.7-million, not R5-million as allocated.
They found the CTMCA made use of money in the Lottery to invest in workshop tools from certainly one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to arrange a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances established.
The main points of your abuse of millions of rands of Lottery funds for just a museum that never was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery resources allocated into the CTMCA amongst 2003 and 2017.
The initial Element of the investigation, by legislation business Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which involved funding for the museum. The accepted finances for the museum was over R12.8-million, with R5-million of that allocated to get a creating to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing for your museum and whether 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
a variety of machines “ordered for the production of the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of administrators on the organisation. Stemmet was reappointed like a director in Could 2021.
The investigation adopted in depth reporting by GroundUp regarding the numerous rands of Lottery funding allocated on the CTMCA (see in this article, here and here) and the best way the cash likely served finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The developing on the best was the supposed internet site of your minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph
In reaction into a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “tasks” - such as the museum - among 2012 and 2015. All 3 initiatives were done, she told MPs.
Even so the investigators observed no evidence that a museum had ever existed.
To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the partitions, and also a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved since they could no more afford to pay for the rent of R100,000 a month. He mentioned the CTMCA had acquired residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar selling price. Schaapkraal is in a very peri-city spot significantly from the town.
Therefore, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after viewing the premises, which might be in an industrial space, the investigators explained they doubted no matter if a proper museum existed there. Pics attached on 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 amount of products on the museum [that] by no means depict the a lot more than one hundred-year history of the Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum does not glance for being open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location on the museum to another place devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within 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 scared its tools will be attached.
“Because of the lawful battles as well as debts, the organisation had to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the property with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery funds have been saved inside a solution location “hidden with the Sheriff”. But the investigators mentioned they ended up not able to substantiate that any buses experienced at any time been purchased.
Stemmet also confirmed the buses had been hidden to halt them being seized. But when the investigators questioned to generally be taken to the place where the buses were being saved, he informed them that “the owner of The trick area wasn't accessible to open the premises for us”.
“The CTMCA couldn't offer evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also informed them the Schaapkraal assets had been offered due to financial debt.
“Mr Soeker spelled out that In accordance with his being familiar with, because of the credit card debt owed to the town of Cape Town, the CTMCA made a decision It will be best to sell their [Schaapkraal] property … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw income away” on litigation with the town.
“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a authorized struggle with the City, about permits or something else. We under no circumstances initiate it. They preserve throwing funds away on vexatious litigation which they eliminate and also have fees awarded towards them. This really is fully self-inflicted,” he stated.
Soeker explained to the Dabishi Nthambeleni investigators that the leading function gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of every one of the admin, finances and functioning ผล หวย ลาว the CTMCA.” The investigators explained they were unable to Call Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “found many machines, some in good situation, some in bad situation plus some that appeared rusty and intensely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where “instruments and a few machinery” had been stored.
“We asked him to get us to the ability but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like tools that was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with rates for this elimination.
According to the remaining progress report submitted into the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter were directors at enough time.
The investigators found this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the company is five Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be constructed and/or transformed,” they claimed.
An audit by accountants Kopano Integrated, attached to the investigative report, recorded which the CTMCA was in the entire process of buying “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 considered one of the directors.
As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as being a deposit, indicating R6.nine-million is still owed, even though there is no payment date set for when this has to be paid out.
The Kopano audit along with the near backlink concerning the businesses “suggest to us that there's ‘foul Enjoy’ involved with the purchase in the machinery of the museum workshop”, the investigators reported during the report.
“We find that it is really probable that CTMCA utilized the funding of your NLC to ‘refund’ considered one of its major administrators to the property at an increased overpriced price than the particular price and worth of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant on the CTMCA were used.
“In reality, a detailed report on how the funding in the NLC was applied, would be not possible since the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on Each individual product it requested funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered the NLC had not done a web-site check out just before approving the grant. But this wasn't common practice at enough time and they observed no evidence of negligence by NLC workforce.
At time, the NLC’s regulations didn't demand funded organisations to post evidence of payment with interim experiences, they pointed out. This meant that the CTMCA was in the position to get a next tranche of funding without having to offer proof that it had utilized the initial tranche for its meant goal.
Adhering to the appointment of a whole new board, commissioner and senior government group, the NLC has tightened up on these and also other concerns.
Dabishi Nthambeleni advised that
the NLC drop any upcoming funding apps in the CTMCA;
the CTMCA and any users who have been involved in the grant be subjected to your NLC’s “delinquency” method;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated funds.
But, as an alternative to act over the report’s recommendations, the NLC – below its preceding administration – selected to suppress it, since it experienced finished Using the earlier studies into corruption it had commissioned.
GroundUp sent questions to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to send out the inquiries by e-mail as well. But no reaction were acquired at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph