Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels carry out in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the Countrywide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no proof that a museum ever existed.
The investigators uncovered that the CTMCA did not make use of the R5-million allocated to obtain or develop a museum.
In addition they identified which the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of money with the Lottery to purchase workshop products from one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Commission (NLC) to create a museum to celebrate the town’s loaded minstrel background went astray. The museum was never designed.
The small print on the abuse of millions of rands of Lottery cash to get a museum that by no means was are exposed within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of more than R64-million in Lottery resources allocated towards the CTMCA involving 2003 and 2017.
The main Element of the investigation, by legislation business Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which provided funding with the museum. The permitted spending plan for that museum was more than R12.eight-million, with R5-million of that allocated for a creating to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a setting up to the museum and if the museum “in fact existed”.
The firm was also instructed to research
the acquisition with Lottery cash of two autos – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
many equipment “bought to the producing from the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director from 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 quite a few directors with the organisation. Stemmet was reappointed as being a director in May perhaps 2021.
The investigation adopted extensive reporting by GroundUp with regards to the millions of rands of Lottery funding allocated to the CTMCA (see below, here and listed here) and the way the cash almost certainly served finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the supposed web-site of the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “tasks” - including the museum - in between 2012 and 2015. All three jobs had been completed, she informed MPs.
Nevertheless the investigators located no proof that a museum had at any time existed.
At the beginning the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the meant Wetton museum exhibits a coffee store with some musical instruments and minstrel costumes and collages of pics haphazardly hung around the walls, plus a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni mentioned it was “not in a position” to confirm if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum had been moved simply because they could no longer afford the hire of R100,000 per month. He explained the CTMCA had purchased assets for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been bought for a similar value. Schaapkraal is within a peri-urban area considerably from the town.
Consequently, the museum were moved to a fresh place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial place, the investigators said they doubted no matter if a proper museum existed there. Photographs attached to your report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, shown on tables and unfold out on the floor, with no clarification.
“There exists a small quantity of things in the museum [that] on no account depict the greater than a hundred-year historical past of your Cape Town Carnival, the investigators reported, including that there was “no signage outside the house the premises indicating that they housed a museum and … normally, the museum doesn't seem being open up to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring The situation with the museum to an alternate area with no notifying the NLC.
The Schaapkraal residence, on which no museum was ever constructed. Photo: Raymond Joseph
Buses
Stemmet told the investigators which the CTMCA experienced to maneuver with the rented Crete Street premises since it had run up a R4-million financial debt with the City of Cape City and was fearful its machines would be attached.
“As a result of authorized battles and the debts, the organisation experienced to move its home from five Crete Road to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director in the CTMCA, advised them which the two buses acquired with lottery resources were stored inside of a key place “concealed from the Sheriff”. Although the investigators reported they have been not able to confirm that any buses experienced at any time been bought.
Stemmet also verified that the buses were hidden to halt them being seized. But in the event the investigators requested to become taken to the area the place the buses were stored, he informed them that “the owner of the secret site wasn't accessible to open up the premises for us”.
“The CTMCA could not deliver proof of payment for two automobiles that it allegedly ordered with grant revenue,” the investigators reported.
Soeker also informed them the Schaapkraal house were sold as a result of credit card debt.
“Mr Soeker stated that Based on his being familiar with, as a result of credit card debt owed to the City of Cape Town, the CTMCA made the decision It might be very best to sell their [Schaapkraal] assets … and to also to cover the property in the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for protection and safety, has previously instructed GroundUp which the CTMCA “threw income away” on litigation with the City.
“Annually like clockwork, as we solution the top of your calendar year, the CTMCA picks a lawful combat with the town, in excess of permits or another thing. We hardly ever initiate it. They keep throwing money absent on vexatious litigation they get rid of and also have fees awarded towards them. This is entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in command of each of the admin, funds and running ผล หวย the CTMCA.” The investigators mentioned they were not able to contact Momberg.
Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “uncovered several devices, some in superior problem, some in terrible ailment and some that looked rusty and extremely old”. Stemmet informed the investigators that there was also an off-web site storage facility the place “devices and several machinery” were kept.
“We questioned him to acquire us to the ability but he was evasive to our request.”
Based on pics and invoices in GroundUp’s possession, some, if not all, of the merchandise seem like equipment that was illegally faraway from the CTMCA’s past premises. Stemmet is going through rates for this elimination.
In accordance with the final progress report submitted into the NLC with the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter had been directors at enough time.
The investigators uncovered this “alarming”.
“From the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the next alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape City, the identical address on which the museum was meant to be constructed and/or transformed,” they documented.
An audit by accountants Kopano Included, connected to the investigative report, recorded the CTMCA was in the whole process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was amongst the directors.
In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million for a deposit, this means R6.nine-million remains owed, nevertheless there is not any payment day set for when this have to be paid out.
The Kopano audit along with the close hyperlink between the businesses “point out to us that there is ‘foul play’ linked to the purchase from the equipment on the museum workshop”, the investigators mentioned within the report.
“We discover that it is remarkably probable that CTMCA made use of the funding with the NLC to ‘refund’ considered one of its principal administrators for the house at a higher overpriced fee than the particular cost and worth of the house and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA had been put in.
“The truth is, a detailed report on how the funding on the NLC was applied, might be impossible as the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Just about every merchandise it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC experienced not performed a site take a look at ahead of approving the grant. But this wasn't normal exercise at time plus they uncovered no evidence of negligence by NLC staff.
At enough time, the NLC’s procedures didn't require funded organisations to submit evidence of payment with interim experiences, they identified. This intended the CTMCA was capable to receive a next tranche of funding without the need to deliver evidence that it had used the first tranche for its supposed function.
Subsequent the appointment of a brand new board, commissioner and senior govt group, the NLC has tightened up on these as well as other difficulties.
Dabishi Nthambeleni advised that
the NLC drop any potential funding apps in the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for 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, as an alternative to act about the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had done Using the previous stories into corruption it had commissioned.
GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to ship the questions 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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