Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA did not make use of the R5-million allotted to obtain or establish a museum.
In addition they observed the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA employed resources through the Lottery to purchase workshop machines from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances created.
The details of the abuse of numerous rands of Lottery money for any museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The main Section of the investigation, by law agency Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding with the museum. The accepted finances with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the purchase with Lottery funds of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous equipment “obtained with the production with the costumes and hats” for your minstrels carnival, for R5.four-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 numerous administrators with the organisation. Stemmet was reappointed as a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated to the CTMCA (see here, in this article and in this article) and how the money 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 proper was the meant web site of your minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “tasks” - including the museum - involving 2012 and 2015. All 3 tasks had been done, she explained to MPs.
Even so the investigators found no proof that a museum had at any time existed.
To start with the museum was as a consequence of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp with the intended Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung around the walls, in addition to a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it had been “not able” to substantiate if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum were moved because they could no longer pay for the lease of R100,000 a month. He claimed the CTMCA had bought home for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for the same selling price. Schaapkraal is in the peri-urban spot far from the town.
Therefore, the museum were moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after browsing the premises, which might be in an industrial area, the investigators claimed they doubted irrespective of whether a correct museum existed there. Photos connected into the report exhibit a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed on the wall, displayed on tables and spread out on the ground, without having explanation.
“There exists a minimal number of items for the museum [that] on no account characterize the greater than one hundred-12 months heritage with the Cape Town 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 glimpse to get open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by shifting The placement of the museum to an alternate site with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet instructed 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 products can be connected.
“A result of the authorized battles and also the debts, the organisation experienced to move its home from five Crete Street to avoid the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director from the CTMCA, instructed them that the two buses purchased with lottery resources had been saved in a mystery location “hidden through the Sheriff”. But the investigators mentioned they ended up not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified which the buses were concealed to prevent them currently being seized. But if the investigators requested to get taken on the area the place the buses have been stored, he told them that “the operator of The key place wasn't available to open up the premises for us”.
“The CTMCA could not provide evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also advised them the Schaapkraal property had been marketed because of the credit card debt.
“Mr Soeker explained that As outlined by his comprehending, due to debt owed to the City of Cape Town, the CTMCA determined It might be ideal to offer their [Schaapkraal] assets … also to also to cover the property in 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 informed GroundUp which the CTMCA “threw dollars away” on litigation with town.
“Annually like clockwork, as we technique the end with the yr, the CTMCA picks a legal battle with the City, above permits or something else. We in no way initiate it. They hold throwing income away on vexatious litigation that they reduce and possess charges awarded in opposition to them. This can be completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the principle function gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of all the admin, finances and jogging ผล หวย หุ้น the CTMCA.” The investigators mentioned they had been struggling to Speak to Momberg.
Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located many devices, some in good issue, some in bad problem and many that appeared rusty and extremely previous”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” had been held.
“We requested him to get us to the ability but he was evasive to our request.”
According to photographs and invoices in GroundUp’s possession, some, Otherwise all, in the things seem like devices that was illegally removed from the CTMCA’s previous premises. Stemmet is going through rates for this removing.
According to the last progress report submitted towards the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter were administrators at time.
The investigators discovered this “alarming”.
“From the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Road, Wetton, Cape City, the same deal with on which the museum was meant to be designed and/or converted,” they documented.
An audit by accountants Kopano Included, hooked up for the investigative report, recorded which the CTMCA was in the whole process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the directors.
In keeping with Dabishi Nthambeleni, the corporation has paid R1.2-million for a deposit, meaning R6.nine-million is still owed, although there isn't a payment date set for when this must be compensated.
The Kopano audit and the shut backlink amongst the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition on the equipment from the museum workshop”, the investigators reported while in the report.
“We discover that it's remarkably possible that CTMCA utilized the funding from the NLC to ‘refund’ considered one of its primary directors for that residence at a greater overpriced fee than the particular rate and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA were expended.
“In point of fact, an in depth report on how the funding of your NLC was made use of, might be impossible as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Every product it requested funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC had not executed a internet site go to right before approving the grant. But this was not common practice at time plus they discovered no evidence of carelessness by NLC employees.
At the time, the NLC’s guidelines did not have to have funded organisations to submit proof of payment with interim reviews, they identified. This meant that the CTMCA was in a position to get a 2nd tranche of funding without needing to give proof that it experienced applied the 1st tranche for its intended intent.
Adhering to the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these as well as other issues.
Dabishi Nthambeleni advised that
the NLC decrease any long run funding purposes from the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a legal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, in lieu of act about the report’s tips, the NLC – underneath its prior administration – selected to suppress it, mainly because it had carried out with the earlier experiences into corruption it had commissioned.
GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for e-mail addresses to send out the questions by email also. But no response had been gained at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph