Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allocated to get or develop a museum.
They also uncovered the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA utilized resources through the Lottery to purchase workshop devices from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s loaded minstrel history went astray. The museum was in no way designed.
The small print on the abuse of a lot of rands of Lottery cash for the museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The main Section of the investigation, by regulation agency Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding with the museum. The accepted finances with the museum was more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether or not the museum “basically existed”.
The organization was also instructed to research
the acquisition with Lottery money of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
different equipment “acquired for the production of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous directors on the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation adopted in depth reporting by GroundUp with regards to the many rands of Lottery funding allotted on the CTMCA (see listed here, listed here and right here) and the way the resources in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The building on the appropriate was the supposed internet site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to a Parliamentary issue, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives had been concluded, she instructed MPs.
Though the investigators found no evidence that a museum experienced ever existed.
In the beginning the museum was on account of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp of the meant Wetton museum displays a espresso shop with some musical devices and minstrel costumes and collages of pics haphazardly hung about the walls, as well as a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni explained it was “not ready” to verify if a museum had ever operated from these premises.
Stemmet informed the investigators the museum had been moved because they could not find the money for the rent of R100,000 per month. He said the CTMCA experienced ordered assets for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been marketed for a similar value. Schaapkraal is inside of a peri-urban place far from the town.
Because of this, the museum were moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after traveling to the premises, which might be within an industrial region, the investigators stated they doubted whether a suitable museum existed there. Pics hooked up on the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the ground, without any explanation.
“You will find there's minimum number of goods at the museum [that] on no account characterize the over a hundred-yr record on the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … usually, the museum will not seem for being open to the general public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation on the museum to an alternative spot with no notifying the NLC.
The Schaapkraal property, on which no museum was ever built. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to maneuver from the rented Crete Street premises as it experienced operate up a R4-million debt with the City of Cape Town and was scared its machines can be hooked up.
“Mainly because of the authorized battles and also the debts, the organisation experienced to maneuver its home from five Crete Highway to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director of the CTMCA, explained to them the two buses acquired with lottery money were stored in a solution spot “hidden in the Sheriff”. Even so the investigators mentioned they have been unable to confirm that any buses experienced ever been acquired.
Stemmet also confirmed that the buses were hidden to halt them staying seized. But if the investigators requested to become taken to the put where by the buses ended up saved, he advised them that “the operator of The key location wasn't accessible to open up the premises for us”.
“The CTMCA could not present proof of payment for two motor vehicles that it allegedly obtained with grant money,” the investigators described.
Soeker also explained to them the Schaapkraal assets were sold because of the financial debt.
“Mr Soeker discussed that Based on his knowing, due to credit card debt owed to the town of Cape Town, the CTMCA decided it would be best to provide their [Schaapkraal] residence … and to also to cover the assets of the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for security and stability, has Formerly explained to GroundUp the CTMCA “threw revenue away” on litigation with the town.
“Every year like clockwork, as we technique the top from the 12 months, the CTMCA picks a lawful fight with the City, in excess of permits or another thing. We never initiate it. They maintain throwing income away on vexatious litigation they get rid of and also have expenditures awarded from them. This is often solely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the main job players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for all of the admin, funds and working สลาก กิน the CTMCA.” The investigators reported they were unable to Get in touch with Momberg.
Hats
During their “investigation in loco” within the Primrose Park premises, the investigators “observed several equipment, some in very good condition, some in undesirable condition and a few that seemed rusty and intensely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where by “devices and some machinery” were stored.
“We asked him to consider us to the facility but he was evasive to our request.”
According to photographs and invoices in GroundUp’s possession, some, if not all, of the products appear to be machines which was illegally removed from the CTMCA’s prior premises. Stemmet is dealing with charges for this removing.
Based on the final development report submitted for the NLC from the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter were being directors at time.
The investigators observed this “alarming”.
“In the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we note the following alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Street, Wetton, Cape Town, the identical deal with on which the museum was intended to be built and/or transformed,” they claimed.
An audit by accountants Kopano Included, hooked up to your investigative report, recorded that the CTMCA was in the process of paying for “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one among the administrators.
In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million as a deposit, meaning R6.nine-million remains owed, while there is not any payment date established for when this needs to be paid out.
The Kopano audit along with the close website link in between the businesses “point out to us that there is ‘foul Perform’ linked to the acquisition in the equipment on the museum workshop”, the investigators said while in the report.
“We discover that it's remarkably possible that CTMCA utilized the funding in the NLC to ‘refund’ amongst its main administrators with the residence at an increased overpriced amount than the actual cost and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA were spent.
“The truth is, a detailed report on how the funding with the NLC was utilized, might be unattainable given that the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts expended on each item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not conducted a website visit just before approving the grant. But this was not normal follow at time and they discovered no proof of carelessness by NLC staff.
At the time, the NLC’s rules didn't demand funded organisations to post proof of payment with interim reports, they identified. This meant the CTMCA was capable of get a second tranche of funding without having to offer evidence that it experienced utilised the 1st tranche for its intended reason.
Next the appointment of a whole new board, commissioner and senior government workforce, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any future funding applications from the CTMCA;
the CTMCA and any members who had been involved in the grant be subjected into the NLC’s “delinquency” system;
the NLC open a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, rather than act to the report’s tips, the NLC – beneath its former administration – chose to suppress it, because it experienced done Together with the prior stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to deliver the inquiries by e-mail also. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph