Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated to minstrel team
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Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to get or develop a museum.
They also discovered which the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of money in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel history went astray. The museum was never ever established.
The main points of your abuse of many rands of Lottery resources for just a museum that hardly ever was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery resources allocated into the CTMCA involving 2003 and 2017.
The initial part of the investigation, by legislation business Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding to the museum. The approved price range for that museum was more than R12.8-million, with R5-million of that allotted for a developing to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the acquisition with Lottery funds of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “acquired for the production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted extensive reporting by GroundUp with regards to the many rands of Lottery funding allotted to your CTMCA (see below, here and below) and the best way the resources most likely assisted finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.
The developing on the right was the intended web site in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph
In response to the Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “jobs” - including the museum - between 2012 and 2015. All 3 initiatives had been finished, she informed MPs.
Though the investigators found 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 Street, Wetton. A photo attained by GroundUp in the supposed Wetton museum shows a espresso store with some musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, as well as a model ship on its plinth within a corner.
In its report, Dabishi Nthambeleni reported it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved given that they could no more afford to pay for the hire of R100,000 a month. He mentioned the CTMCA experienced acquired residence for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were marketed for the same cost. Schaapkraal is inside a peri-urban area significantly from the town.
Therefore, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after viewing the premises, which might be within an industrial region, the investigators reported they doubted regardless of whether a correct museum existed there. Images connected on the report show a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and distribute out on the floor, without having clarification.
“There's a small volume of items with the museum [that] by no means stand for the much more than one hundred-year heritage of the Cape Town Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum isn't going to search to become open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by going The placement with the museum to an alternate site devoid of 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 move from your rented Crete Road premises mainly because it had operate up a R4-million credit card debt with the town of Cape City and was scared its tools could be connected.
“As a result of lawful battles and the debts, the organisation had to maneuver its house from five Crete Street to steer clear of the sheriff from attaching the house of the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director of your CTMCA, told them that the two buses acquired with lottery resources were being saved in the key locale “concealed within the Sheriff”. Even so the investigators mentioned they were being unable to confirm that any buses experienced ever been acquired.
Stemmet also verified the buses had been concealed to stop them getting seized. But in the event the investigators asked being taken for the put where by the buses have been stored, he explained to them that “the operator of the secret site wasn't accessible to open the premises for us”.
“The CTMCA could not present evidence of payment for two autos that it allegedly acquired with grant dollars,” the investigators reported.
Soeker also advised them the Schaapkraal assets were marketed due to personal debt.
“Mr Soeker explained that In line with his being familiar with, due to the personal debt owed to the town of Cape Town, the CTMCA decided It might be very best to offer their [Schaapkraal] property … and to also to cover the belongings from the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for safety and safety, has Earlier explained to GroundUp which the CTMCA “threw income absent” on litigation with the City.
“Each year like clockwork, as we solution the top from the 12 months, the CTMCA picks a legal combat with the town, in excess of permits or something else. We by no means initiate it. They maintain throwing revenue away on vexatious litigation that they eliminate and have charges awarded towards them. This is certainly totally self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the key purpose players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of the many admin, funds and running หวย the CTMCA.” The investigators stated they were struggling to Make contact with Momberg.
Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “observed various equipment, some in good situation, some in poor situation and some that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “devices and a few machinery” were being saved.
“We requested him to choose us to the facility but he was evasive to our ask for.”
According to pics and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like tools that was illegally faraway from the CTMCA’s prior premises. Stemmet is going through charges for this removing.
According to the ultimate progress report submitted into the NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were being administrators at the time.
The investigators observed this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Road, Wetton, Cape Town, precisely the same address on which the museum was meant to be developed and/or transformed,” they noted.
An audit by accountants Kopano Included, connected to the investigative report, recorded the CTMCA was in the whole 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 considered one of the directors.
According to Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, this means R6.nine-million remains owed, nevertheless there is absolutely no payment date established for when this should be compensated.
The Kopano audit and the near url involving the businesses “show to us that there's ‘foul Engage in’ involved in the acquisition of the equipment of your museum workshop”, the investigators claimed inside the report.
“We discover that it's remarkably possible that CTMCA utilized the funding in the NLC to ‘refund’ one of its principal directors for your house at a better overpriced level than the particular price and price of the assets and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to your CTMCA had been spent.
“In point of fact, an in depth report on how the funding from the NLC was used, could well be unachievable as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts expended on Every single product it requested funding for. The interim report and ultimate report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC had not done a website stop by ahead of approving the grant. But this wasn't conventional observe at some time plus they observed no proof of carelessness by NLC employees.
At the time, the NLC’s principles did not demand funded organisations to submit evidence of payment with interim studies, they pointed out. This meant the CTMCA was capable to receive a 2nd tranche of funding without needing to offer evidence that it experienced utilised the primary tranche for its supposed goal.
Next the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated money.
But, as opposed to act on the report’s tips, the NLC – below its previous administration – selected to suppress it, mainly because it had done While using the earlier reports into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for electronic mail addresses to deliver the inquiries by electronic mail as well. But no response had been obtained at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph