Leaked report exposes abuse of lottery revenue compensated to minstrel team
Leaked report exposes abuse of lottery revenue compensated 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.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA utilized cash from your Lottery to purchase workshop devices from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to arrange a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances established.
The main points of your abuse of millions of rands of Lottery resources for just a museum that never was are revealed within an investigative report commissioned from the NLC in 2021.
The museum grant was Component of a lot more than R64-million in Lottery funds allotted for the CTMCA between 2003 and 2017.
The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The authorized funds with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the making for your museum and whether or not the museum “really existed”.
The organization was also instructed to analyze
the acquisition with Lottery funds of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
different devices “purchased for that production of the costumes and hats” for the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few directors from the organisation. Stemmet was reappointed as being a director in May possibly 2021.
The investigation followed intensive reporting by GroundUp concerning the many rands of Lottery funding allotted for the CTMCA (see listed here, listed here and here) and just how the money in all probability helped finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.
The setting up on the right was the meant web page of your minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to a Parliamentary issue, former NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “assignments” - such as the museum - amongst 2012 and 2015. All a few assignments were completed, she informed MPs.
However the investigators identified no proof that a museum experienced at any time existed.
At the outset the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp in the supposed Wetton museum shows a espresso store with some musical instruments and minstrel costumes and collages of images haphazardly hung to the partitions, along with a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to verify if a museum had at any time operated from these premises.
Stemmet advised the investigators the museum were moved as they could no more afford the rent of R100,000 a month. He explained the CTMCA experienced procured property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar price. Schaapkraal is in a peri-city space considerably from the town.
Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial area, the investigators explained they doubted no matter if a proper museum existed there. Images hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having explanation.
“There's a minimum volume of goods for the museum [that] on no account stand for the much more than a hundred-yr background of the Cape City Carnival, the investigators explained, including that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum would not seem to become open up to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by relocating The situation from the museum to an alternate site with out notifying the NLC.
The Schaapkraal house, on which no museum was at any time built. Image: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced run up a R4-million financial debt with the City of Cape City and was worried its equipment could well be hooked up.
“Due to authorized battles as well as the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house of the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director with the CTMCA, informed them the two buses acquired with lottery funds ended up saved inside a solution location “hidden through the Sheriff”. Though the investigators stated they have been unable to verify that any buses had ever been bought.
Stemmet also confirmed which the buses were concealed to prevent them currently being seized. But if the investigators requested for being taken for the location exactly where the buses were saved, he advised them that “the owner of The trick area was not accessible to open up the premises for us”.
“The CTMCA couldn't offer evidence of payment for two cars that it allegedly obtained with grant revenue,” the investigators documented.
Soeker also told them the Schaapkraal house were sold due to the personal debt.
“Mr Soeker explained that In accordance with his understanding, a result of the financial debt owed to the City of Cape City, the CTMCA made a decision It could be ideal to promote their [Schaapkraal] assets … and also to also to cover the assets from the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and protection, has previously instructed GroundUp that the CTMCA “threw funds away” on litigation with the City.
“Yearly like clockwork, as we strategy the end from the calendar year, the CTMCA picks a legal struggle with the City, around permits or something else. We by no means initiate it. They keep throwing dollars away on vexatious litigation that they eliminate and also have expenses awarded against them. This really is fully self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the primary position gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of many of the admin, funds and operating เช ค หวย the CTMCA.” The investigators explained they were unable to Get in touch with Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “discovered many machines, some in great problem, some in negative situation and a few that looked rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-web page storage facility where “instruments and a few machinery” were being retained.
“We requested him to consider us to the facility but he was evasive to our ask for.”
Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, with the things look like gear that was illegally removed from the CTMCA’s former premises. Stemmet is going through charges for this removal.
In accordance with the last progress report submitted for the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were administrators at enough time.
The investigators observed this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming finding: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Road, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or transformed,” they reported.
An audit by accountants Kopano Integrated, connected to the investigative report, recorded which the CTMCA was in the process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million as a deposit, this means R6.9-million is still owed, nevertheless there is not any payment date established for when this has to be compensated.
The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul Participate in’ associated with the purchase with the equipment of your museum workshop”, the investigators stated inside the report.
“We discover that it is hugely probable that CTMCA employed the funding in the NLC to ‘refund’ one among its major directors for your property at a higher overpriced level than the particular cost and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant towards the CTMCA were invested.
“In point of fact, a detailed report on how the funding of your NLC was utilised, would be extremely hard as the CTMCA does not have any receipts, or proof of payments to verify the quantities spent on Each and every merchandise it asked for funding for. The interim report and final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not executed a web page go to just before approving the grant. But this was not regular practice at some time they usually observed no evidence of negligence by NLC staff.
At the time, the NLC’s rules did not require funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to deliver proof that it had applied the very first tranche for its meant reason.
Next the appointment of a fresh board, commissioner and senior government crew, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any members who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, instead of act over the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, since it experienced carried out Along with the previous reviews into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by email too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph