Leaked report exposes abuse of lottery income compensated to minstrel group
Leaked report exposes abuse of lottery income compensated to minstrel group
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Minstrels accomplish in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission on 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 found the CTMCA didn't utilize the R5-million allocated to acquire or establish a museum.
They also found the CTMCA only bought land really worth R1.7-million, not R5-million as allocated.
They found the CTMCA made use of cash within the Lottery to get workshop gear from one among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Commission (NLC) to build a museum to celebrate the city’s abundant minstrel history went astray. The museum was by no means produced.
The main points from the abuse of a lot of rands of Lottery resources for a museum that in no way was are exposed within an investigative report commissioned by the NLC in 2021.
The museum grant was Element of a lot more than R64-million in Lottery funds allotted towards the CTMCA involving 2003 and 2017.
The primary part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which involved funding with the museum. The permitted funds with the museum was over R12.eight-million, with R5-million of that allocated for your setting up to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a making for that museum and if the museum “really existed”.
The organization was also instructed to investigate
the acquisition with Lottery money of two motor vehicles – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
different devices “acquired for that producing in the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director on 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 a number of directors from the organisation. Stemmet was reappointed as being a director in Might 2021.
The investigation adopted intensive reporting by GroundUp about the an incredible number of rands of Lottery funding allocated to the CTMCA (see below, right here and in this article) and the best way the money in all probability assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The creating on the appropriate was the intended internet site of your minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to a Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All three projects were accomplished, she advised MPs.
Even so the investigators discovered no evidence that a museum had at any time existed.
To start with the museum was due to open in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp of your supposed Wetton museum exhibits a espresso store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung about the partitions, and also a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni said it was “not ready” to substantiate if a museum had ever operated from these premises.
Stemmet advised the investigators the museum had been moved since they could no longer afford the hire of R100,000 a month. He said the CTMCA experienced ordered residence for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and were bought for a similar price tag. Schaapkraal is in the peri-urban spot far from town.
Subsequently, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following viewing the premises, which can be within an industrial region, the investigators explained they doubted regardless of whether a suitable museum existed there. Pictures connected to your report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed on the wall, shown on tables and distribute out on the ground, without rationalization.
“There exists a nominal number of items on the museum [that] by no means symbolize the over 100-calendar year heritage in the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outside the house the premises indicating they housed a museum and … frequently, the museum doesn't glance to generally be open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by moving The placement from the museum to an alternative area without having notifying the NLC.
The Schaapkraal home, on which no museum was ever constructed. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises because it experienced run up a R4-million debt with town of Cape Town and was afraid its products could well be attached.
“As a result of authorized battles as well as debts, the organisation experienced to move its assets from 5 Crete Street to stay away from the sheriff from attaching the home on the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery funds had been saved inside a secret locale “hidden from the Sheriff”. But the investigators reported they were being unable to verify that any buses had ever been acquired.
Stemmet also confirmed the buses were hidden to stop them remaining seized. But once the investigators questioned being taken to the spot wherever the buses were being saved, he advised them that “the proprietor of The trick spot wasn't available to open the premises for us”.
“The CTMCA couldn't supply proof of payment for two automobiles that it allegedly purchased with grant revenue,” the investigators claimed.
Soeker also explained to them the Schaapkraal assets were sold as a result of financial debt.
“Mr Soeker described that As outlined by his knowledge, as a result of personal debt owed to the City of Cape Town, the CTMCA made the decision It will be very best to offer their [Schaapkraal] assets … and to also to hide the assets on the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for security and protection, has Beforehand told GroundUp that the CTMCA “threw money absent” on litigation with town.
“On a yearly basis like clockwork, as we approach the end from the year, the CTMCA picks a lawful combat with the City, over permits or another thing. We hardly ever initiate it. They preserve throwing funds absent on vexatious litigation that they reduce and have expenditures awarded towards them. This can be fully self-inflicted,” he said.
Soeker informed the Dabishi Nthambeleni investigators that the principle purpose gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of the many admin, finances and working luckyvip77 the CTMCA.” The investigators mentioned they had been not able to Speak to Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “discovered several machines, some in fantastic affliction, some in terrible issue and several that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility wherever “instruments and some equipment” were being saved.
“We requested him to get us to the facility but he was evasive to our ask for.”
Based on shots and invoices in GroundUp’s possession, some, if not all, of the goods appear to be devices that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this removal.
Based on the remaining progress report submitted for the NLC because of the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were being administrators at time.
The investigators located this “alarming”.
“From the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Street, Wetton, Cape City, the identical tackle on which the museum was meant to be created and/or transformed,” they reported.
An audit by accountants Kopano Integrated, attached for the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the directors.
As outlined by Dabishi Nthambeleni, the corporation has compensated R1.two-million being a deposit, that means R6.9-million remains owed, even though there's no payment day set for when this needs to be paid.
The Kopano audit as well as close connection among the businesses “suggest to us that there is ‘foul Perform’ involved with the acquisition of your equipment of the museum workshop”, the investigators mentioned from the report.
“We discover that it's really possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its main administrators with the assets at the next overpriced level than the particular price tag and value of the assets and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant into the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was utilized, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to substantiate the amounts invested on Each individual item it requested funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC experienced not conducted a website take a look at ahead of approving the grant. But this wasn't regular follow at time and so they identified no evidence of carelessness by NLC employees.
At some time, the NLC’s policies did not need funded organisations to post proof of payment with interim reviews, they identified. This intended which the CTMCA was capable of receive a next tranche of funding while not having to present proof that it experienced employed the first tranche for its meant purpose.
Pursuing the appointment of a whole new board, commissioner and senior govt group, the NLC has tightened up on these as well as other difficulties.
Dabishi Nthambeleni advised that
the NLC drop any long term funding purposes from the CTMCA;
the CTMCA and any members who have been associated with the grant be subjected into the NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, rather then act over the report’s suggestions, the NLC – below its former administration – chose to suppress it, mainly because it had finished Along with the prior stories into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker via SMS, and asked for e mail addresses to mail the queries by e mail too. But no reaction had been obtained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph