Leaked report exposes abuse of lottery dollars compensated to minstrel team
Leaked report exposes abuse of lottery dollars compensated to minstrel team
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Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA did not make use of the R5-million allotted to purchase or produce a museum.
In addition they discovered that the CTMCA only bought land really worth R1.7-million, not R5-million as allocated.
They observed the CTMCA applied resources within the Lottery to invest in workshop machines from amongst 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 put in place a museum to rejoice town’s wealthy minstrel heritage went astray. The museum was never ever created.
The small print with the abuse of millions of rands of Lottery funds for any museum that hardly ever was are unveiled within an investigative report commissioned via the NLC in 2021.
The museum grant was part of in excess of R64-million in Lottery resources allotted towards the CTMCA among 2003 and 2017.
The very first part of the investigation, by regulation agency Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which integrated funding to the museum. The accredited price range to the museum was over R12.eight-million, with R5-million of that allocated for the developing to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making for that museum and if the museum “truly existed”.
The agency was also instructed to investigate
the acquisition with Lottery cash of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
numerous equipment “obtained for your manufacturing with the costumes and hats” for that 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 wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed as a director in May 2021.
The investigation followed intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see here, right here and below) and the way in which the resources likely aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.
The making on the proper was the meant web-site on the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to a Parliamentary question, former NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All three tasks were concluded, she told MPs.
Although the investigators discovered no proof that a museum had ever existed.
At the outset the museum was because of open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp with the supposed Wetton museum shows a coffee shop with some musical instruments and minstrel costumes and collages of images haphazardly hung around the walls, as well as a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it absolutely was “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum were moved since they could not pay for the rent of R100,000 a month. He explained the CTMCA experienced ordered home for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for a similar price. Schaapkraal is inside of a peri-city space much from town.
Therefore, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after viewing the premises, that happen to be within an industrial spot, the investigators said they doubted irrespective of whether a suitable museum existed there. Pics attached towards the report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the ground, without explanation.
“There's a minimum quantity of merchandise on the museum [that] under no circumstances stand for the a lot more than a hundred-12 months record with the Cape Town Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not appear to be open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of the museum to an alternate site without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to move from your rented Crete Street premises as it experienced run up a R4-million credit card debt with the town of Cape Town and was concerned 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 Road to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director with the CTMCA, informed them that the two buses acquired with lottery money have been stored in a top secret area “concealed through the Sheriff”. However the investigators claimed they were unable to substantiate that any buses had at any time been purchased.
Stemmet also verified the buses were concealed to stop them remaining seized. But when the investigators asked for being taken for the area where by the buses were being saved, he explained to them that “the owner of the secret site wasn't accessible to open up the premises for us”.
“The CTMCA couldn't supply proof of payment for 2 cars that it allegedly purchased with grant funds,” the investigators documented.
Soeker also explained to them the Schaapkraal residence had been marketed due to the personal debt.
“Mr Soeker explained that according to his being familiar with, a result of the personal debt owed to town of Cape Town, the CTMCA made a decision It will be very best to market their [Schaapkraal] residence … also to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for protection and stability, has Beforehand instructed GroundUp the CTMCA “threw income absent” on litigation with the town.
“Annually like clockwork, as we strategy the tip with the year, the CTMCA picks a authorized struggle with town, around permits or another thing. We hardly ever initiate it. They maintain throwing revenue away on vexatious litigation which they lose and possess expenditures awarded towards them. This really is solely self-inflicted,” he explained.
Soeker informed the Dabishi Nthambeleni investigators that the main purpose gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up answerable for all the admin, funds and running หวย the CTMCA.” The investigators mentioned they were unable to Get hold of Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered many devices, some in fantastic condition, some in poor problem and some that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-site storage facility the place “instruments plus some machinery” ended up retained.
“We requested him to get us to the facility but he was evasive to our ask for.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, on the things look like products that was illegally faraway from the CTMCA’s prior premises. Stemmet is dealing with rates for this removal.
Based on the ultimate progress report submitted to your NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter have been directors at enough time.
The investigators found this “alarming”.
“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, a similar deal with on which the museum was meant to be constructed and/or converted,” they described.
An audit by accountants Kopano Included, attached to the investigative report, recorded the CTMCA was in the whole process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was certainly one of the directors.
In keeping with Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, meaning R6.nine-million remains to be owed, while there is no payment day set for when this should be compensated.
The Kopano audit plus the near hyperlink concerning the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition of the machinery of the museum workshop”, the investigators claimed inside the report.
“We discover that it's very possible that CTMCA utilized the funding on the NLC to ‘refund’ among its major administrators for your residence at a greater overpriced amount than the particular cost and value of the property and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were put in.
“Actually, a detailed report on how the funding of the NLC was made use of, can be extremely hard because the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities spent on Just about every merchandise it asked for funding for. The interim report and last report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located which the NLC experienced not performed a web-site go to ahead of approving the grant. But this wasn't conventional apply at enough time they usually found no evidence of carelessness by NLC employees.
At the time, the NLC’s principles did not require funded organisations to post proof of payment with interim stories, they pointed out. This intended the CTMCA was in a position to get a second tranche of funding without the need to supply evidence that it experienced employed the first tranche for its meant objective.
Pursuing the appointment of a brand new board, commissioner and senior government workforce, the NLC has tightened up on these together with other concerns.
Dabishi Nthambeleni proposed that
the NLC decline any foreseeable future funding apps within the CTMCA;
the CTMCA and any users who were linked to the grant be subjected into the NLC’s “delinquency” process;
the NLC open up a felony scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, rather then act to the report’s suggestions, the NLC – under its past administration – chose to suppress it, mainly because it had done Along with the prior stories into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to send out the thoughts by email way too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph