Leaked report exposes abuse of lottery money paid to minstrel group
Leaked report exposes abuse of lottery money paid to minstrel group
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Minstrels complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators discovered the CTMCA didn't make use of the R5-million allotted to obtain or establish a museum.
Additionally they discovered the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They located the CTMCA made use of resources within the Lottery to acquire workshop devices from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate town’s wealthy minstrel record went astray. The museum was never ever created.
The main points of the abuse of a lot of rands of Lottery money for a museum that hardly ever was are exposed in an investigative report commissioned from the NLC in 2021.
The museum grant was part of in excess of R64-million in Lottery funds allotted into the CTMCA between 2003 and 2017.
The very first A part of the investigation, by regulation agency Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which integrated funding for the museum. The authorised finances for your museum was more than R12.8-million, with R5-million of that allocated for just a constructing to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the developing for your museum and whether or not the museum “really existed”.
The firm was also instructed to investigate
the acquisition with Lottery money of two autos – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
many equipment “acquired for your manufacturing with the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors of your organisation. Stemmet was reappointed as being a director in May well 2021.
The investigation adopted comprehensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allotted into the CTMCA (see here, here and here) and the way in which the funds most likely served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The building on the correct was the meant web site in the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “tasks” - such as the museum - among 2012 and 2015. All 3 jobs were completed, she told MPs.
Nevertheless the investigators observed no evidence that a museum experienced ever existed.
At first the museum was resulting from open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp in the supposed Wetton museum shows a espresso shop with a few musical devices and minstrel costumes and collages of pics haphazardly hung about the partitions, in addition to a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni explained it was “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved given that they could now not afford the hire of R100,000 per month. He claimed the CTMCA had acquired home for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and were offered for a similar price tag. Schaapkraal is in a very peri-urban area considerably from the town.
Subsequently, the museum were moved to a whole new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following traveling to the premises, which can be in an industrial space, the investigators mentioned they doubted no matter whether an appropriate museum existed there. Shots hooked up into the report show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the floor, without any explanation.
“You will find there's small volume of products at the museum [that] on no account stand for the greater than one hundred-yr history of your Cape Town Carnival, the investigators said, incorporating that there was “no signage outside the premises indicating they housed a museum and … generally, the museum would not seem to be open to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation of your museum to another spot without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever constructed. Image: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA experienced to move in the rented Crete Street premises since it experienced run up a R4-million personal debt with the City of Cape City and was scared its machines can be hooked up.
“As a result of lawful 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 home in the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director in the CTMCA, told them the two buses purchased with lottery cash ended up stored in a very key place “hidden through the Sheriff”. Although the investigators mentioned they had been not able to substantiate that any buses had ever been purchased.
Stemmet also verified that the buses were concealed to stop them staying seized. But in the event the investigators requested to generally be taken towards the area wherever the buses have been stored, he explained to them that “the proprietor of the secret location wasn't available to open the premises for us”.
“The CTMCA couldn't give proof of payment for 2 cars that it allegedly procured with grant revenue,” the investigators reported.
Soeker also explained to them the Schaapkraal residence were offered as a result of financial debt.
“Mr Soeker stated that In keeping with his knowing, a result of the personal debt owed to town of Cape City, the CTMCA resolved It will be very best to promote their [Schaapkraal] house … and to also to cover the property in the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for protection and protection, has Formerly advised GroundUp that the CTMCA “threw cash absent” on litigation with the City.
“On a yearly basis like clockwork, as we technique the top with the yr, the CTMCA picks a lawful battle with town, more than permits or something else. We by no means initiate it. They hold throwing money away on vexatious litigation which they reduce and have expenses awarded versus them. This really is completely self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the leading position players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of many of the admin, finances and jogging สลาก กิน the CTMCA.” The investigators said they were unable to contact Momberg.
Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “observed quite a few machines, some in great condition, some in undesirable condition plus some that appeared rusty and very outdated”. Stemmet told the investigators that there was also an off-web site storage facility the place “devices and some machinery” were stored.
“We requested him to get us to the facility but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, if not all, of your merchandise seem like products that was illegally faraway from the CTMCA’s earlier premises. Stemmet is going through expenses for this removing.
In accordance with the closing progress report submitted to your NLC through the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter had been administrators at some time.
The investigators found this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape City, exactly the same deal with on which the museum was intended to be developed and/or converted,” they claimed.
An audit by accountants Kopano Included, connected for the investigative report, recorded the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was certainly one of the administrators.
In accordance with Dabishi Nthambeleni, the organization has compensated R1.2-million being a deposit, which means R6.nine-million is still owed, although there is no payment date set for when this need to be compensated.
The Kopano audit as well as the near backlink in between the companies “indicate to us that there is ‘foul Perform’ involved with the acquisition from the machinery of the museum workshop”, the investigators stated inside the report.
“We find that it's hugely probable that CTMCA used the funding with the NLC to ‘refund’ one of its key directors with the house at a higher overpriced fee than the particular cost and worth of the residence and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was unable to establish how the grant on the CTMCA were expended.
“In point of fact, an in depth report on how the funding with the NLC was made use of, would be not possible as the CTMCA doesn't have any receipts, or proof of payments to verify the amounts spent on Each individual merchandise it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located that the NLC had not conducted a web page take a look at prior to approving the grant. But this was not conventional apply at enough time plus they uncovered no proof of carelessness by NLC workers.
At time, the NLC’s policies did not call for funded organisations to submit proof of payment with interim reports, they identified. This intended the CTMCA was in the position to receive a second tranche of funding without needing to supply proof that it experienced utilised the initial tranche for its intended intent.
Adhering to the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these and also other problems.
Dabishi Nthambeleni encouraged that
the NLC decline any long run funding applications from your CTMCA;
the CTMCA and any customers who were associated with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a prison case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, rather then act over the report’s tips, the NLC – underneath its preceding administration – chose to suppress it, mainly because it experienced completed Using the previous reports into corruption it had commissioned.
GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and asked for e mail addresses to deliver the thoughts by e-mail much too. But no response had been been given at the time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph
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