Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators discovered the CTMCA didn't utilize the R5-million allocated to order or establish a museum.
They also located the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA utilized funds from your Lottery to get workshop products from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to create a museum to rejoice the town’s wealthy minstrel history went astray. The museum was by no means established.
The details with the abuse of numerous rands of Lottery cash for a museum that under no circumstances was are revealed in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery money allocated towards the CTMCA among 2003 and 2017.
The initial Section of the investigation, by legislation company Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which included funding for that museum. The accredited price range with the museum was in excess of R12.8-million, with R5-million of that allocated for just a constructing to deal with the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for that museum and whether or not the museum “really existed”.
The agency was also instructed to analyze
the acquisition with Lottery cash of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
various equipment “purchased with the producing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators on the organisation. Stemmet was reappointed as being a director in May perhaps 2021.
The investigation followed considerable reporting by GroundUp concerning the many rands of Lottery funding allotted to your CTMCA (see below, below and right here) and the way the cash almost certainly helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.
The setting up on the ideal was the meant site with the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to a Parliamentary query, former NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - including the museum - among 2012 and 2015. All 3 assignments were finished, she instructed MPs.
Nevertheless the investigators uncovered no proof that a museum had ever existed.
At the outset the museum was due to open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp with the meant Wetton museum demonstrates a coffee shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung about the walls, and a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it had been “not in a position” to verify if a museum had at any time operated from these premises.
Stemmet instructed the investigators the museum were moved since they could now not manage the lease of R100,000 a month. He stated the CTMCA had ordered assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for the same price. Schaapkraal is in a very peri-city location significantly from town.
Due to this fact, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after going to the premises, which happen to be within an industrial space, the investigators stated they doubted no matter if an appropriate museum existed there. Shots hooked up to your report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without any explanation.
“You will find there's nominal level of items for the museum [that] by no means stand for the in excess of a hundred-yr heritage of the Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum won't look to become open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation with the museum to an alternate area without having notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators which the CTMCA had to maneuver in the rented Crete Highway premises since it experienced operate up a R4-million financial debt with town of Cape Town and was concerned its gear might be hooked up.
“A result of the lawful battles and also the debts, the organisation had to maneuver its property from 5 Crete Road to steer clear of the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director on the CTMCA, instructed them the two buses purchased with lottery money ended up stored within a top secret location “concealed from the Sheriff”. Nevertheless the investigators stated they were being unable to substantiate that any buses had at any time been bought.
Stemmet also verified that the buses had been concealed to stop them remaining seized. But once the investigators questioned to become taken to your location wherever the buses were stored, he advised them that “the operator of The trick location was not available to open the premises for us”.
“The CTMCA could not supply proof of payment for two autos that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also explained to them the Schaapkraal assets were marketed due to the financial debt.
“Mr Soeker defined that In line with his comprehension, a result of the debt owed to town of Cape Town, the CTMCA resolved It might be best to offer their [Schaapkraal] home … and also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for protection and security, has previously advised GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Each year like clockwork, as we strategy the tip on the 12 months, the CTMCA picks a authorized battle with the City, more than permits or something else. We by no means initiate it. They maintain throwing money absent on vexatious litigation they drop and have expenses awarded against them. That is fully self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the leading purpose gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of many of the admin, funds and functioning cat888 the CTMCA.” The investigators claimed they had been not able to Speak to Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “observed several devices, some in superior condition, some in terrible condition and a few that seemed rusty and intensely old”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “instruments and several machinery” have been retained.
“We requested him to get us to the facility but he was evasive to our ask for.”
According to pictures and invoices in GroundUp’s possession, some, if not all, of the items seem like machines which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.
In accordance with the last development report submitted for the NLC through the CTMCA, the equipment was bought from Martin-Conne Milliners, a company during which Stemmet, his spouse and his daughter were being directors at the time.
The investigators identified this “alarming”.
“With the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was meant to be developed and/or converted,” they noted.
An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded which the CTMCA was in the process of purchasing “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was amongst the administrators.
In line with Dabishi Nthambeleni, the organization has paid out R1.2-million for a deposit, this means R6.nine-million is still owed, even though there is not any payment day established for when this must be paid out.
The Kopano audit as well as shut hyperlink amongst the businesses “reveal to us that there is ‘foul Engage in’ involved with the purchase with the equipment of your museum workshop”, the investigators reported during the report.
“We find that it's very possible that CTMCA utilised the funding from the NLC to ‘refund’ certainly one of its primary administrators for your assets at an increased overpriced fee than the particular price tag and price of the assets and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant for the CTMCA had been put in.
“The truth is, a detailed report on how the funding in the NLC was applied, might be unachievable as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Each and every product it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not performed a web-site go to in advance of approving the grant. But this wasn't regular follow at enough time they usually found no proof of carelessness by NLC employees.
At the time, the NLC’s guidelines did not need funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding without needing to offer evidence that it had utilized the first tranche for its meant objective.
Next the appointment of a completely new board, commissioner and senior government workforce, the NLC has tightened up on these and various concerns.
Dabishi Nthambeleni proposed that
the NLC decline any long run funding applications from your CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – beneath its prior administration – selected to suppress it, since it had finished While using the preceding reviews into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker by way of SMS, and questioned for email addresses to ship the questions by e-mail much too. But no response had been acquired at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph
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