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 two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allocated to buy or establish a museum.
In addition they observed the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA applied cash with the Lottery to buy workshop devices from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) by the National Lotteries Fee (NLC) to build a museum to celebrate town’s prosperous minstrel record went astray. The museum was hardly ever made.
The small print with the abuse of millions of rands of Lottery cash for the museum that by no means was are discovered within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of much more than R64-million in Lottery resources allotted into the CTMCA concerning 2003 and 2017.
The main Section of the investigation, by regulation company Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which incorporated funding with the museum. The authorized finances to the museum was a lot more than R12.eight-million, with R5-million of that allocated for just a constructing to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a setting up with the museum and whether the museum “basically existed”.
The firm was also instructed to investigate
the acquisition with Lottery cash of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
several machines “procured with the production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.
The investigation followed intensive reporting by GroundUp in regards to the a lot of rands of Lottery funding allotted for the CTMCA (see listed here, listed here and right here) and the way the resources likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The developing on the ideal was the intended web page in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph
In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been finished, she advised MPs.
Although the investigators found no evidence that a museum experienced ever existed.
To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the supposed Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung around the partitions, along with a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni reported it was “not able” to substantiate if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum were moved given that they could now not pay for the rent of R100,000 a month. He explained the CTMCA experienced procured assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar price tag. Schaapkraal is in a very peri-urban location much from the city.
Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, that are within an industrial region, the investigators reported they doubted irrespective of whether a correct museum existed there. Shots attached on the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the floor, with no explanation.
“There exists a nominal number of merchandise at the museum [that] in no way represent the more than a hundred-12 months historical past on the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not look being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement of your museum to an alternative area without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever designed. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to move from your rented Crete Street premises as it experienced operate up a R4-million personal debt with the town of Cape City and was afraid its devices can be attached.
“Due to the authorized battles along with the debts, the organisation had to maneuver its house from five Crete Road to stay away from the sheriff from attaching the residence of the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director on the CTMCA, advised them the two buses bought with lottery resources were being saved in a very mystery area “hidden from the Sheriff”. Nevertheless the investigators explained they were being not able to verify that any buses had at any time been purchased.
Stemmet also verified which the buses were hidden to prevent them getting seized. But if the investigators requested to get taken on the location where by the buses had been stored, he explained to them that “the owner of the secret spot wasn't accessible to open the premises for us”.
“The CTMCA could not supply proof of payment for 2 autos that it allegedly obtained with grant cash,” the investigators noted.
Soeker also told them the Schaapkraal property were offered due to financial debt.
“Mr Soeker stated that Based on his understanding, mainly because of the credit card debt owed to town of Cape City, the CTMCA determined It might be ideal to offer their [Schaapkraal] residence … and also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously told GroundUp the CTMCA “threw income away” on litigation with the town.
“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a authorized struggle with the City, around permits or something else. We hardly ever initiate it. They preserve throwing revenue away on vexatious litigation that they eliminate and possess expenses awarded from them. This is completely self-inflicted,” he explained.
Soeker instructed the Dabishi Nthambeleni investigators that the main role gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and working cat888 the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “discovered numerous equipment, some in fantastic issue, some in negative situation plus some that seemed rusty and intensely outdated”. Stemmet told the investigators that there was also an off-web-site storage facility in which “devices and some machinery” were being stored.
“We requested him to choose us to the facility but he was evasive to our request.”
Based upon photos and invoices in GroundUp’s possession, some, if not all, in the objects seem like machines which was illegally faraway from the CTMCA’s former premises. Stemmet is facing charges for this removal.
In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were administrators at the time.
The investigators uncovered this “alarming”.
“Through the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Be aware the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape City, exactly the same deal with on which the museum was intended to be created and/or transformed,” they described.
An audit by accountants Kopano Included, hooked up into the investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was certainly one of the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.two-million being a deposit, which means R6.nine-million is still owed, nevertheless there isn't a payment date set for when this needs to be paid.
The Kopano audit plus the close website link involving the companies “show to us that there is ‘foul Enjoy’ linked to the acquisition of the machinery from the museum workshop”, the investigators mentioned while in the report.
“We find that it is extremely probable that CTMCA used the funding of the NLC to ‘refund’ certainly one of its primary administrators for that house at a greater overpriced price than the particular price tag and value of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant on the CTMCA were put in.
“In reality, a detailed report on how the funding with the NLC was utilized, might be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts invested on Each and every item it asked for funding for. The interim report and closing report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered which the NLC had not conducted a web page take a look at ahead of approving the grant. But this was not common apply at enough time and they observed no evidence of negligence by NLC staff members.
At the time, the NLC’s regulations didn't demand funded organisations to submit evidence of payment with interim experiences, they pointed out. This meant that the CTMCA was capable to get a 2nd tranche of funding without the need to deliver evidence that it experienced made use of the first tranche for its intended purpose.
Following the appointment of a brand new board, commissioner and senior executive workforce, the NLC has tightened up on these and other issues.
Dabishi Nthambeleni proposed that
the NLC decrease any potential funding applications with the CTMCA;
the CTMCA and any associates who were being involved with the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open a felony circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, rather then act around the report’s suggestions, the NLC – beneath its past administration – selected to suppress it, mainly because it experienced done With all the earlier studies into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to send out the inquiries by e-mail as well. But no reaction had been obtained at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph