Leaked report exposes abuse of lottery cash compensated to minstrel team
Leaked report exposes abuse of lottery cash compensated to minstrel team
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Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no proof that a museum at any time existed.
The investigators discovered the CTMCA did not use the R5-million allocated to acquire or build a museum.
They also uncovered that the CTMCA only acquired land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA employed cash within the Lottery to invest in workshop equipment from certainly one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel background went astray. The museum was hardly ever created.
The details from the abuse of numerous rands of Lottery money for the museum that never ever was are discovered in an investigative report commissioned with the NLC in 2021.
The museum grant was Component of much more than R64-million in Lottery cash allocated to the CTMCA concerning 2003 and 2017.
The 1st Component of the investigation, by law firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding with the museum. The permitted funds for that museum was a lot more than R12.eight-million, with R5-million of that allocated for your creating to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the creating for that museum and if the museum “truly existed”.
The organization was also instructed to research
the purchase with Lottery resources of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
several machines “purchased with the producing from the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors of the organisation. Stemmet was reappointed being a director in Might 2021.
The investigation adopted substantial reporting by GroundUp with regard to the numerous rands of Lottery funding allotted into the CTMCA (see here, below and listed here) and the best way the resources likely helped finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.
The setting up on the proper was the intended web page of the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to the Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - including the museum - involving 2012 and 2015. All a few tasks were completed, she advised MPs.
But the investigators observed no evidence that a museum experienced at any time existed.
In the beginning the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photo received by GroundUp in the intended Wetton museum demonstrates a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung around the partitions, plus a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni reported it had been “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum had been moved mainly because they could no more manage the rent of R100,000 per month. He mentioned the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar price tag. Schaapkraal is in the peri-city location far from the town.
Consequently, the museum had been moved to a fresh location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which might be within an industrial place, the investigators claimed they doubted regardless of whether a correct museum existed there. Pictures hooked up on the report present a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, with no clarification.
“You will find there's minimal volume of items with the museum [that] in no way stand for the a lot more than a hundred-year heritage from the Cape Town Carnival, the investigators explained, including that there was “no signage outdoors the premises indicating that they housed a museum and … normally, the museum isn't going to glance being open up to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by moving The situation of the museum to an alternate area with out notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver from your rented Crete Highway premises since it had operate up a R4-million personal debt with the City of Cape Town and was concerned its equipment could be attached.
“Due to the legal battles along with the debts, the organisation had to maneuver its property from five Crete Street to steer clear of the sheriff from attaching the home on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director from the CTMCA, explained to them which the two buses purchased with lottery funds were saved in a very mystery spot “hidden from the Sheriff”. Nevertheless the investigators stated they ended up unable to substantiate that any buses had at any time been acquired.
Stemmet also confirmed the buses were hidden to prevent them being seized. But in the event the investigators requested to generally be taken for the position exactly where the buses ended up saved, he informed them that “the operator of The trick spot was not accessible to open up the premises for us”.
“The CTMCA could not deliver evidence of payment for 2 automobiles that it allegedly procured with grant cash,” the investigators claimed.
Soeker also instructed them the Schaapkraal assets had been sold due to the debt.
“Mr Soeker explained that In keeping with his being familiar with, mainly because of the credit card debt owed to the City of Cape City, the CTMCA made the decision It might be greatest to promote their [Schaapkraal] property … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for safety and safety, has Beforehand explained to GroundUp that the CTMCA “threw revenue absent” on litigation with the City.
“On a yearly basis like clockwork, as we technique the tip of the year, the CTMCA picks a authorized combat with town, over permits or something else. We by no means initiate it. They hold throwing income away on vexatious litigation which they reduce and also have charges awarded in opposition to them. This really is completely self-inflicted,” he stated.
Soeker told the Dabishi Nthambeleni investigators that the primary role gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for the many admin, funds and operating ตรวจ หวย ลาว the CTMCA.” The investigators mentioned they had been struggling to Make contact with Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “observed many devices, some in superior condition, some in negative issue plus some that looked rusty and intensely aged”. Stemmet advised the investigators that there was also an off-web page storage facility where by “devices and many equipment” ended up saved.
“We questioned him to acquire us to the ability but he was evasive to our ask for.”
According to photos and invoices in GroundUp’s possession, some, if not all, of your things look like gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removal.
Based on the last development report submitted into the NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, a business where Stemmet, his wife and his daughter have been directors at time.
The investigators located this “alarming”.
“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the following alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporation is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was intended to be crafted and/or transformed,” they noted.
An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was considered one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, that means R6.9-million continues to be owed, even though there is no payment date established for when this have to be paid out.
The Kopano audit along with the near url among the companies “point out to us that there is ‘foul play’ involved with the purchase from the equipment from the museum workshop”, the investigators said while in the report.
“We discover that it's hugely possible that CTMCA employed the funding of your NLC to ‘refund’ one among its main directors for that property at a greater overpriced fee than the particular rate and price of the home and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant for the CTMCA had been used.
“In point of fact, a detailed report on how the funding of your NLC was applied, will be impossible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not executed a web page visit prior to approving the grant. But this wasn't conventional exercise at enough time and so they identified no evidence of carelessness by NLC personnel.
At time, the NLC’s principles didn't involve funded organisations to post proof of payment with interim reports, they identified. This intended that the CTMCA was in a position to get a second tranche of funding without the need to supply evidence that it had made use of the initial tranche for its supposed objective.
Pursuing the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these and also other challenges.
Dabishi Nthambeleni suggested that
the NLC decline any foreseeable future funding purposes from the CTMCA;
the CTMCA and any members who have been involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a criminal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated funds.
But, rather then act to the report’s recommendations, the NLC – underneath its previous administration – selected to suppress it, mainly because it had accomplished Using the preceding reviews into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to mail the concerns by e-mail way too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph