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 execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant from the National Lotteries Fee on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allocated to buy or make a museum.
They also uncovered which the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilized cash from your Lottery to acquire workshop tools from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Fee (NLC) to put in place a museum to rejoice town’s abundant minstrel record went astray. The museum was never designed.
The details with the abuse of a lot of rands of Lottery money for a museum that in no way was are disclosed within an investigative report commissioned from the NLC in 2021.
The museum grant was Component of more than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.
The initial Element of the investigation, by law organization Dabishi Nthambeleni, was performed between September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which involved funding for your museum. The authorised funds with the museum was a lot more than R12.eight-million, with R5-million of that allotted to get a making to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the building for that museum and whether or not the museum “truly existed”.
The business was also instructed to investigate
the purchase with Lottery funds of two vehicles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various equipment “acquired to the production in the costumes and hats” for the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators from the organisation. Stemmet was reappointed for a director in Could 2021.
The investigation followed extensive reporting by GroundUp with regard to the many rands of Lottery funding allocated into the CTMCA (see listed here, in this article and here) and the best way the money in all probability served finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.
The making on the ideal was the meant internet site with the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to some Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “assignments” - including the museum - in between 2012 and 2015. All a few initiatives had been completed, she instructed MPs.
Although the investigators identified no evidence that a museum had ever existed.
At the outset the museum was on account of open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp on the supposed Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung over the walls, as well as a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni reported it was “not able” to verify if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved mainly because they could now not find the money for the lease of R100,000 per month. He reported the CTMCA experienced obtained assets for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar value. Schaapkraal is inside of a peri-urban place much from town.
Subsequently, the museum were moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which are within an industrial place, the investigators reported they doubted regardless of whether a proper museum existed there. Photos hooked up to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, with no clarification.
“You will find there's minimum number of objects in the museum [that] in no way depict the much more than a hundred-12 months heritage with the Cape City Carnival, the investigators claimed, incorporating that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum isn't going to appear for being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternative locale with no notifying the NLC.
The Schaapkraal property, on which no museum was at any time designed. Image: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA had to maneuver from your rented Crete Highway premises because it experienced operate up a R4-million credit card debt with the town of Cape City and was fearful its machines might be attached.
“A result of the legal battles and the debts, the organisation experienced to move its house from five Crete Highway to avoid the sheriff from attaching the house of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director in the CTMCA, informed them that the two buses bought with lottery money ended up stored in a very solution site “hidden from the Sheriff”. Although the investigators claimed they have been unable to substantiate that any buses experienced at any time been bought.
Stemmet also confirmed which the buses had been concealed to prevent them staying seized. But in the event the investigators requested to be taken into the area wherever the buses ended up stored, he advised them that “the owner of The key site wasn't accessible to open the premises for us”.
“The CTMCA could not give proof of payment for two cars that it allegedly procured with grant cash,” the investigators documented.
Soeker also advised them the Schaapkraal house had been sold due to personal debt.
“Mr Soeker stated that As outlined by his being familiar with, mainly because of the financial debt owed to town of Cape City, the CTMCA made the decision It will be most effective to promote their [Schaapkraal] property … also to also to cover the assets with the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for safety and security, has Earlier told GroundUp that the CTMCA “threw cash away” on litigation with the City.
“Yearly like clockwork, as we technique the end from the year, the CTMCA picks a lawful combat with the town, in excess of permits or something else. We hardly ever initiate it. They retain throwing income away on vexatious litigation that they shed and have expenses awarded towards them. This is often totally self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all of the admin, finances and jogging หวย ลาว ล่าสุด the CTMCA.” The investigators mentioned they were struggling to Speak to Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “observed several machines, some in fantastic condition, some in poor problem and several that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-website storage facility exactly where “devices and several equipment” have been stored.
“We requested him to get us to the facility but he was evasive to our ask for.”
Determined by pictures and invoices in GroundUp’s possession, some, if not all, from the objects look like tools that was illegally faraway from the CTMCA’s previous premises. Stemmet is going through prices for this removing.
In accordance with the closing development report submitted to your NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter have been directors at time.
The investigators found this “alarming”.
“In the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Highway, Wetton, Cape City, the exact same deal with on which the museum was meant to be constructed and/or transformed,” they reported.
An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one among the directors.
In line with Dabishi Nthambeleni, the corporate has paid R1.2-million as a deposit, this means R6.9-million is still owed, while there isn't a payment date set for when this should be compensated.
The Kopano audit plus the close link involving the companies “point out to us that there is ‘foul Engage in’ linked to the acquisition in the equipment of your museum workshop”, the investigators mentioned while in the report.
“We discover that it's remarkably possible that CTMCA used the funding in the NLC to ‘refund’ considered one of its most important administrators to the house at a better overpriced fee than the actual rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant on the CTMCA had been expended.
“Actually, an in depth report on how the funding in the NLC was utilized, could well be difficult since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities used on Every single item it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not executed a web page go to ahead of approving the grant. But this was not common exercise at enough time plus they located no evidence of negligence by NLC workforce.
At some time, the NLC’s procedures did not need funded organisations to submit evidence of payment with interim studies, they pointed out. This meant that the CTMCA was ready to get a 2nd tranche of funding without having to present evidence that it had applied the first tranche for its supposed intent.
Adhering to the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni encouraged that
the NLC drop any foreseeable future funding purposes from your CTMCA;
the CTMCA and any associates who ended up involved with the grant be subjected to your NLC’s “delinquency” process;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, in lieu of act about the report’s suggestions, the NLC – less than its preceding administration – selected to suppress it, since it experienced completed Using the past reports into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send out the concerns by e-mail way too. But no response had been gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph