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 accomplish in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the National Lotteries Fee towards the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no proof that a museum at any time existed.
The investigators observed the CTMCA did not make use of the R5-million allotted to get or build a museum.
In addition they discovered the CTMCA only acquired land well worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA made use of funds with the Lottery to invest in workshop gear from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to arrange a museum to celebrate town’s loaded minstrel historical past went astray. The museum was under no circumstances made.
The small print with the abuse of millions of rands of Lottery resources for a museum that in no way was are uncovered in an investigative report commissioned from the NLC in 2021.
The museum grant was part of over R64-million in Lottery cash allocated to your CTMCA amongst 2003 and 2017.
The primary Element of the investigation, by legislation agency Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which included funding to the museum. The accepted price range for the museum was much more than R12.8-million, with R5-million of that allotted for a developing to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing with the museum and whether or not the museum “truly existed”.
The company was also instructed to research
the purchase with Lottery money of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
different equipment “ordered for that producing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At time, convicted felony 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 spouse Zainonesa and daughter Raziah continued as two of a number of directors of the organisation. Stemmet was reappointed being a director in May 2021.
The investigation followed comprehensive reporting by GroundUp regarding the millions of rands of Lottery funding allotted to the CTMCA (see here, in this article and below) and how the funds probably aided finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.
The making on the ideal was the intended website of your minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “initiatives” - such as the museum - between 2012 and 2015. All a few assignments had been completed, she explained to MPs.
Even so the investigators found no evidence that a museum experienced at any time existed.
To start with the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp on the intended Wetton museum reveals a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung about the partitions, plus a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it was “not ready” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved given that they could no longer find the money for the hire of R100,000 per month. He explained the CTMCA experienced ordered property for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been sold for the same price. Schaapkraal is within a peri-urban space much from the town.
As a result, the museum had been moved to a completely new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after visiting the premises, which might be within an industrial place, the investigators said they doubted whether or not an appropriate museum existed there. Photos connected on the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without having clarification.
“There's a minimal volume of items at the museum [that] on no account represent the a lot more than a hundred-calendar year record of your Cape City Carnival, the investigators claimed, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum isn't going to glimpse to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting The situation in the museum to another place without the need of notifying the NLC.
The Schaapkraal house, on which no museum was at any time constructed. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to move through the rented Crete Street premises since it had operate up a R4-million credit card debt with the town of Cape Town and was frightened its products can be attached.
“Mainly because of the authorized battles along with the debts, the organisation had to move its home from five Crete Highway to steer clear of the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director with the CTMCA, advised them that the two buses purchased with lottery resources ended up saved within a secret site “hidden through the Sheriff”. Nevertheless the investigators said they had been unable to substantiate that any buses experienced ever been purchased.
Stemmet also confirmed the buses were concealed to halt them becoming seized. But once the investigators asked to get taken to the place where the buses have been saved, he explained to them that “the owner of The trick area wasn't available to open up the premises for us”.
“The CTMCA could not give proof of payment for 2 motor vehicles that it allegedly procured with grant income,” the investigators documented.
Soeker also instructed them the Schaapkraal residence were marketed as a result of personal debt.
“Mr Soeker described that As outlined by his comprehension, a result of the financial debt owed to town of Cape City, the CTMCA decided It will be ideal to market their [Schaapkraal] assets … and also to also to hide the property of your CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and protection, has Beforehand informed GroundUp the CTMCA “threw revenue away” on litigation with the City.
“Each and every year like clockwork, as we solution the tip in the calendar year, the CTMCA picks a legal combat with town, about permits or something else. We never initiate it. They continue to keep throwing income absent on vexatious litigation that they drop and possess charges awarded against them. This is entirely self-inflicted,” he stated.
Soeker instructed the Dabishi Nthambeleni investigators that the primary position gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, finances and running หุ้น ชอง 9 the CTMCA.” The investigators claimed they had been unable to contact Momberg.
Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “observed quite a few devices, some in good condition, some in lousy condition plus some that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-web-site storage facility the place “devices plus some machinery” have been saved.
“We asked him to consider us to the facility but he was evasive to our request.”
According to pics and invoices in GroundUp’s possession, some, Otherwise all, with the merchandise appear to be tools that was illegally removed from the CTMCA’s previous premises. Stemmet is dealing with costs for this removing.
Based on the last development report submitted on the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization during which Stemmet, his spouse and his daughter had been administrators at time.
The investigators found this “alarming”.
“With the CIPC search of Martin-Conne Milliners and the invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Highway, Wetton, Cape Town, the exact same handle on which the museum was meant to be built and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, hooked up into the investigative report, recorded the CTMCA was in the entire process of getting “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was considered one of the directors.
In accordance with Dabishi Nthambeleni, the corporation has paid R1.2-million as a deposit, this means R6.9-million remains to be owed, though there isn't a payment date set for when this has to be paid out.
The Kopano audit and also the near backlink among the companies “show to us that there's ‘foul Participate in’ involved in the acquisition of your equipment on the museum workshop”, the investigators claimed from the report.
“We discover that it is very probable that CTMCA used the funding of the NLC to ‘refund’ certainly one of its primary administrators for that house at a greater overpriced level than the actual price tag and value of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant on the CTMCA were spent.
“In fact, an in depth report on how the funding of the NLC was employed, can be unachievable because the CTMCA does not have any receipts, or proof of payments to verify the amounts invested on Every single item it asked for funding for. The interim report and ultimate report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC experienced not performed a site stop by ahead of approving the grant. But this wasn't normal exercise at the time and so they located no proof of carelessness by NLC workers.
At time, the NLC’s regulations didn't need funded organisations to submit proof of payment with interim reviews, they pointed out. This meant the CTMCA was able to get a 2nd tranche of funding without the need to deliver evidence that it had employed the initial tranche for its intended purpose.
Next the appointment of a completely new board, commissioner and senior government team, the NLC has tightened up on these as well as other issues.
Dabishi Nthambeleni proposed that
the NLC decline any upcoming funding programs within the CTMCA;
the CTMCA and any associates who were being associated with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a felony circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated money.
But, as an alternative to act over the report’s tips, the NLC – underneath its previous administration – selected to suppress it, since it experienced completed With all the prior experiences into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and requested for electronic mail addresses to send out the queries by electronic mail also. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph
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