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 conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has uncovered no proof that a museum at any time existed.
The investigators discovered which the CTMCA didn't utilize the R5-million allotted to buy or create a museum.
Additionally they identified the CTMCA only acquired land well worth R1.7-million, not R5-million as allocated.
They found the CTMCA made use of resources with the Lottery to buy workshop tools from among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to build a museum to rejoice town’s loaded minstrel record went astray. The museum was never designed.
The small print in the abuse of an incredible number of rands of Lottery money for a museum that under no circumstances was are disclosed in an investigative report commissioned from the NLC in 2021.
The museum grant was part of much more than R64-million in Lottery resources allotted for the CTMCA in between 2003 and 2017.
The primary Component of the investigation, by regulation firm Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which involved funding with the museum. The accepted funds for that museum was greater than R12.8-million, with R5-million of that allotted to get a constructing to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a building for the museum and if the museum “in fact existed”.
The firm was also instructed to research
the purchase with Lottery cash of two vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous devices “acquired to the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous directors in the organisation. Stemmet was reappointed being a director in May possibly 2021.
The investigation followed in depth reporting by GroundUp with regards to the many rands of Lottery funding allocated towards the CTMCA (see right here, here and below) and the way in which the resources likely assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The developing on the best was the supposed web site with the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph
In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - amongst 2012 and 2015. All 3 initiatives were finished, she instructed MPs.
Though the investigators uncovered no proof that a museum had at any time existed.
Initially the museum was resulting from open up in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of the intended Wetton museum shows a coffee shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung about the walls, plus a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni said it had been “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved because they could no more afford to pay for the hire of R100,000 per month. He explained the CTMCA had bought home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar selling price. Schaapkraal is inside a peri-city area significantly from the town.
Due to this fact, the museum had been moved to a different place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after viewing the premises, which can be in an industrial place, the investigators said they doubted no matter if an appropriate museum existed there. Photos attached for the report present a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, shown on tables and spread out on the ground, without any rationalization.
“You will find a small level of products within the museum [that] by no means characterize the greater than 100-yr history on the Cape City Carnival, the investigators said, adding that there was “no signage outdoors the premises indicating that they housed a museum and … normally, the museum would not appear to generally be open up to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation in the museum to an alternate locale without the need of notifying the NLC.
The Schaapkraal house, on which no museum was ever built. Image: Raymond Joseph
Buses
Stemmet instructed the investigators the CTMCA experienced to maneuver with the rented Crete Street premises since it experienced run up a R4-million debt with town of Cape City and was worried its tools would be attached.
“Because of the legal battles along with the debts, the organisation experienced to maneuver its residence from five Crete Road to stay away from the sheriff from attaching the property of the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director in the CTMCA, informed them which the two buses acquired with lottery resources were being saved in a very magic formula site “concealed from the Sheriff”. However the investigators stated they had been unable to verify that any buses had at any time been bought.
Stemmet also verified the buses were concealed to stop them becoming seized. But in the event the investigators asked to be taken on the location the place the buses were being saved, he told them that “the proprietor of The key location was not available to open the premises for us”.
“The CTMCA couldn't offer proof of payment for two cars that it allegedly purchased with grant funds,” the investigators documented.
Soeker also advised them the Schaapkraal house had been bought due to credit card debt.
“Mr Soeker discussed that In line with his comprehension, as a result of debt owed to the town of Cape City, the CTMCA made a decision it would be most effective to market their [Schaapkraal] assets … and to also to hide the belongings of the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for safety and safety, has Formerly advised GroundUp the CTMCA “threw dollars absent” on litigation with the town.
“Annually like clockwork, as we approach the top of your calendar year, the CTMCA picks a authorized fight with town, about permits or something else. We by no means initiate it. They preserve throwing cash absent on vexatious litigation which they get rid of and also have fees awarded against them. This can be completely self-inflicted,” he stated.
Soeker told the Dabishi Nthambeleni investigators that the leading function gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were in command of all of the admin, finances and jogging ตรวจ หวย ลาว the CTMCA.” The investigators stated they were unable to Call Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “discovered a lot of machines, some in very good situation, some in undesirable affliction and many that seemed rusty and very old”. Stemmet told the investigators that there was also an off-site storage facility where “devices and a few equipment” ended up stored.
“We questioned him to get us to the power but he was evasive to our request.”
Based on images and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise appear to be machines that was illegally removed from the CTMCA’s past premises. Stemmet is facing expenses for this elimination.
Based on the remaining development report submitted to the NLC with the CTMCA, the equipment was ordered from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter ended up administrators at the time.
The investigators located this “alarming”.
“Within the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Road, Wetton, Cape City, a similar tackle on which the museum was intended to be built and/or transformed,” they noted.
An audit by accountants Kopano Integrated, attached to your investigative report, recorded which the CTMCA was in the process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million as being a deposit, that means R6.9-million remains owed, nevertheless there is no payment day set for when this must be compensated.
The Kopano audit along with the shut backlink amongst the companies “point out to us that there's ‘foul Engage in’ involved in the purchase with the equipment from the museum workshop”, the investigators reported while in the report.
“We discover that it's extremely probable that CTMCA employed the funding on the NLC to ‘refund’ certainly one of its primary directors for your house at a better overpriced amount than the particular selling price and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were invested.
“In reality, an in depth report on how the funding from the NLC was made use of, might be unattainable as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended on Each and every product it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not executed a site pay a visit to ahead of approving the grant. But this wasn't typical exercise at time and so they discovered no proof of carelessness by NLC workforce.
At enough time, the NLC’s regulations did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was capable to get a second tranche of funding without the need to give evidence that it had utilised the first tranche for its meant intent.
Subsequent the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni suggested that
the NLC decline any potential funding programs through the CTMCA;
the CTMCA and any associates who have been associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act over the report’s suggestions, the NLC – less than its preceding administration – selected to suppress it, since it experienced accomplished Together with the previous stories into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and questioned for email addresses to deliver the issues by electronic mail as well. But no response were received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph