Leaked report exposes abuse of lottery money paid to minstrel group
Leaked report exposes abuse of lottery money paid to minstrel group
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Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Fee to the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum ever existed.
The investigators discovered that the CTMCA did not make use of the R5-million allotted to acquire or build a museum.
They also located the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA employed cash within the Lottery to buy workshop products from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Fee (NLC) to build a museum to celebrate the city’s prosperous minstrel record went astray. The museum was under no circumstances produced.
The details on the abuse of millions of rands of Lottery money for just a museum that never ever was are disclosed within an investigative report commissioned through the NLC in 2021.
The museum grant was Section of greater than R64-million in Lottery funds allocated for the CTMCA among 2003 and 2017.
The initial Section of the investigation, by law firm Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which included funding with the museum. The accredited spending budget for your museum was much more than R12.eight-million, with R5-million of that allotted for a creating to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the building for the museum and whether the museum “really existed”.
The company was also instructed to investigate
the purchase with Lottery cash of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
numerous equipment “purchased for the producing with the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several directors of the organisation. Stemmet was reappointed for a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp with regards to the many rands of Lottery funding allotted into the CTMCA (see in this article, here and right here) and the way in which the money probably aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The making on the right was the meant website from the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In response to the Parliamentary concern, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “projects” - such as the museum - amongst 2012 and 2015. All 3 projects were done, she informed MPs.
Although the investigators found no evidence that a museum experienced ever existed.
In the beginning the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp on the meant Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung on the partitions, plus a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni explained it had been “not in a position” 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 afford to pay for the lease of R100,000 a month. He claimed the CTMCA experienced bought home for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is within a peri-urban location considerably from the town.
Subsequently, the museum were moved to a new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial location, the investigators reported they doubted no matter if an appropriate museum existed there. Photographs hooked up to the report present a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, displayed on tables and distribute out on the floor, without having rationalization.
“There is a minimal level of things at the museum [that] in no way stand for the much more than one hundred-calendar year history with the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum won't search to be open to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation of your museum to another location with no notifying the NLC.
The Schaapkraal residence, on which no museum was at any time designed. Image: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to maneuver within the rented Crete Highway premises since it had operate up a R4-million financial debt with the City of Cape City and was concerned its tools might be hooked up.
“Due to lawful battles along with the debts, the organisation experienced to maneuver its property from 5 Crete Street to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director of your CTMCA, instructed them the two buses acquired with lottery resources have been saved in the top secret place “hidden in the Sheriff”. Although the investigators said they had been not able to verify that any buses had at any time been bought.
Stemmet also verified which the buses had been hidden to prevent them becoming seized. But if the investigators questioned to be taken for the place the place the buses were being stored, he advised them that “the operator of The trick location was not available to open up the premises for us”.
“The CTMCA couldn't give proof of payment for two automobiles that it allegedly obtained with grant dollars,” the investigators claimed.
Soeker also explained to them the Schaapkraal property were marketed due to the debt.
“Mr Soeker stated that In keeping with his being familiar with, mainly because of the financial debt owed to the town of Cape City, the CTMCA made the decision It could be very best to market their [Schaapkraal] property … and also to also to cover the belongings of your CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for security and security, has previously explained to GroundUp which the CTMCA “threw dollars absent” on litigation with the town.
“On a yearly basis like clockwork, as we approach the top from the year, the CTMCA picks a authorized battle with the City, around permits or another thing. We under no circumstances initiate it. They hold throwing dollars away on vexatious litigation that they lose and possess charges awarded towards them. This can be solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the leading purpose gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of many of the admin, finances and working สลาก กิน the CTMCA.” The investigators explained they were unable to Speak to Momberg.
Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “uncovered many devices, some in fantastic affliction, some in terrible affliction and many that looked rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility exactly where “devices and several equipment” ended up held.
“We questioned him to acquire us to the facility but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, if not all, in the goods look like gear that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with costs for this removal.
Based on the closing development report submitted to the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter were administrators at some time.
The investigators uncovered this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Street, Wetton, Cape Town, the identical handle on which the museum was intended to be developed and/or converted,” they claimed.
An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of purchasing “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 certainly one of the directors.
As outlined by Dabishi Nthambeleni, the corporation has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, although there isn't any payment day set for when this needs to be paid out.
The Kopano audit and also the near url in between the companies “indicate to us that there's ‘foul Enjoy’ associated with the acquisition with the machinery of your museum workshop”, the investigators mentioned within the report.
“We discover that it's remarkably possible that CTMCA utilised the funding of the NLC to ‘refund’ amongst its primary administrators for that property at a greater overpriced fee than the particular value and worth of the residence and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant to your CTMCA had been invested.
“In fact, an in depth report on how the funding on the NLC was employed, would be impossible since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Every single product it asked for funding for. The interim report and final report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not conducted a web site take a look at prior to approving the grant. But this was not regular follow at enough time plus they located no evidence of negligence by NLC workers.
At the time, the NLC’s rules did not require funded organisations to post proof of payment with interim reports, they identified. This meant the CTMCA was in the position to receive a 2nd tranche of funding while not having to supply evidence that it had made use of the 1st tranche for its supposed function.
Following the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these and also other issues.
Dabishi Nthambeleni advisable that
the NLC drop any long term funding apps within the CTMCA;
the CTMCA and any users who were involved in the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a felony scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated cash.
But, in lieu of act about the report’s recommendations, the NLC – underneath its preceding administration – chose to suppress it, since it experienced performed While using the preceding reports into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker by means of SMS, and asked for e-mail addresses to mail the concerns by e-mail far too. But no reaction were obtained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph