Leaked report exposes abuse of lottery revenue paid out to minstrel team
Leaked report exposes abuse of lottery revenue paid out to minstrel team
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Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has located no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to order or make a museum.
They also discovered which the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They discovered the CTMCA used cash from your Lottery to purchase workshop machines from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was hardly ever created.
The details in the abuse of an incredible number of rands of Lottery cash for your museum that under no circumstances was are discovered within an investigative report commissioned with the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.
The very first part of the investigation, by legislation firm 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 accepted finances with the museum was over R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing for the museum and whether or not the museum “basically existed”.
The business was also instructed to research
the purchase with Lottery resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “acquired for your manufacturing of your costumes and hats” to the 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 a number of administrators of your organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp with regard to the millions of rands of Lottery funding allotted into the CTMCA (see in this article, in this article and below) and how the money almost certainly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.
The making on the correct was the meant internet site of the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph
In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “tasks” - including the museum - among 2012 and 2015. All 3 initiatives had been completed, she instructed MPs.
However the investigators uncovered no evidence that a museum experienced ever existed.
At the outset the museum was due to open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp from the supposed Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung within the partitions, along with a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not able” to verify if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved since they could now not find the money for the rent of R100,000 per month. He reported the CTMCA had obtained assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been marketed for a similar rate. Schaapkraal is in the peri-city location significantly from town.
Subsequently, the museum were moved to a whole new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following checking out the premises, which are in an industrial spot, the investigators explained they doubted whether or not a correct museum existed there. Images attached for the report demonstrate a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the floor, without any rationalization.
“You will find there's minimum amount of objects for the museum [that] in no way stand for the a lot more than one hundred-calendar year background with the Cape City Carnival, the investigators explained, adding that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum won't look to generally be open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by relocating The placement with the museum to an alternate place without having notifying the NLC.
The Schaapkraal residence, on which no museum was ever built. Photo: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to maneuver in the rented Crete Highway premises as it had run up a R4-million financial debt with town of Cape Town and was afraid its machines can be hooked up.
“A result of the lawful battles along with the debts, the organisation experienced to maneuver its property from 5 Crete Road to avoid the sheriff from attaching the home on the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director of the CTMCA, told them that the two buses acquired with lottery cash ended up saved in a magic formula spot “concealed within the Sheriff”. Although the investigators explained they have been not able to verify that any buses had at any time been acquired.
Stemmet also verified that the buses had been concealed to halt them getting seized. But when the investigators requested to get taken on the put exactly where the buses have been stored, he instructed them that “the operator of The trick site wasn't available to open up the premises for us”.
“The CTMCA could not supply proof of payment for 2 cars that it allegedly acquired with grant funds,” the investigators reported.
Soeker also instructed them the Schaapkraal home were sold as a result of debt.
“Mr Soeker spelled out that As outlined by his comprehension, because of the credit card debt owed to town of Cape City, the CTMCA determined It might be finest to provide their [Schaapkraal] property … and to also to hide the assets of the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and stability, has Earlier advised GroundUp that the CTMCA “threw money absent” on litigation with the town.
“Yearly like clockwork, as we method the top on the year, the CTMCA picks a authorized fight with the town, over permits or something else. We never initiate it. They hold throwing money away on vexatious litigation they reduce and have fees awarded from them. This really is totally self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the primary function players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been in command of all the admin, funds and jogging ตรวจ สลาก the CTMCA.” The investigators reported they had been unable to Get in touch with Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified quite a few devices, some in very good ailment, some in lousy situation and some that appeared rusty and very previous”. Stemmet explained to the investigators that there was also an off-web-site storage facility the place “instruments plus some machinery” had been stored.
“We questioned him to get us to the power but he was evasive to our request.”
According to shots and invoices in GroundUp’s possession, some, if not all, with the products appear to be devices which was illegally faraway from the CTMCA’s prior premises. Stemmet is going through fees for this removal.
According to the last progress report submitted for the NLC because of the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization wherein Stemmet, his spouse and his daughter were being administrators at some time.
The investigators discovered this “alarming”.
“Through the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Notice the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the company is five Crete Road, Wetton, Cape City, precisely the same address on which the museum was intended to be built and/or converted,” they described.
An audit by accountants Kopano Included, connected to the investigative report, recorded that the CTMCA was in the entire process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the directors.
Based on Dabishi Nthambeleni, the business has paid out R1.2-million to be a deposit, that means R6.9-million is still owed, although there is not any payment day established for when this needs to be compensated.
The Kopano audit plus the near url among the businesses “point out to us that there is ‘foul Enjoy’ associated with the purchase with the machinery with the museum workshop”, the investigators explained inside the report.
“We find that it's extremely probable that CTMCA utilised the funding with the NLC to ‘refund’ certainly one of its principal directors for the property at a higher overpriced price than the particular rate and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant into the CTMCA had been spent.
“In fact, an in depth report on how the funding on the NLC was utilised, could be not possible given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Each and every product it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not performed a internet site take a look at right before approving the grant. But this wasn't typical exercise at time and they located no evidence of negligence by NLC staff.
At the time, the NLC’s policies didn't require funded organisations to post proof of payment with interim experiences, they identified. This meant which the CTMCA was in the position to receive a 2nd tranche of funding while not having to give evidence that it had utilized the very first tranche for its meant intent.
Adhering to the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these and various concerns.
Dabishi Nthambeleni encouraged that
the NLC decline any foreseeable future funding apps within the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as an alternative to act around the report’s tips, the NLC – beneath its prior administration – selected to suppress it, as it had finished Along with the previous stories into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for e mail addresses to mail the questions by email also. But no response had been received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph