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 complete in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators found the CTMCA did not make use of the R5-million allocated to acquire or establish a museum.
Additionally they observed that the CTMCA only bought land value R1.7-million, not R5-million as allocated.
They located the CTMCA utilised funds with the Lottery to buy workshop gear from amongst its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice the town’s wealthy minstrel history went astray. The museum was by no means established.
The main points of the abuse of millions of rands of Lottery resources to get a museum that in no way was are exposed in an investigative report commissioned with the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery funds allotted to the CTMCA amongst 2003 and 2017.
The very first Element of the investigation, by law firm Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which involved funding to the museum. The accepted funds for the museum was much more than R12.eight-million, with R5-million of that allocated for the developing to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a building with the museum and if the museum “actually existed”.
The company was also instructed to research
the acquisition with Lottery funds of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
several machines “bought for that producing from the costumes and hats” to the minstrels carnival, for R5.4-million.
At enough time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various administrators with the organisation. Stemmet was reappointed for a director in May possibly 2021.
The investigation adopted intensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted on the CTMCA (see listed here, here and listed here) and the way in which the cash likely helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The creating on the right was the supposed website from the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to your Parliamentary problem, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “initiatives” - such as the museum - among 2012 and 2015. All three tasks were concluded, she advised MPs.
Although the investigators uncovered no proof that a museum experienced ever existed.
At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp from the intended Wetton museum reveals a espresso store with some musical instruments and minstrel costumes and collages of pics haphazardly hung on the walls, plus a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni said it was “not able” to verify 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 acquired residence for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for the same value. Schaapkraal is inside a peri-city region significantly from the city.
Because of this, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after going to the premises, which are in an industrial location, the investigators mentioned they doubted whether a proper museum existed there. Pictures hooked up on the report present a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without explanation.
“There's a negligible volume of merchandise with the museum [that] on no account symbolize the much more than 100-year history on the Cape Town Carnival, the investigators explained, including that there was “no signage outdoors the premises indicating that they housed a museum and … usually, the museum isn't going to glimpse to be open up to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The placement in the museum to an alternative location devoid of notifying the NLC.
The Schaapkraal house, on which no museum was ever designed. Picture: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to maneuver with the rented Crete Highway premises since it experienced operate up a R4-million credit card debt with the town of Cape Town and was scared its products might be attached.
“Mainly because of the lawful battles as well as debts, the organisation had to maneuver its residence from 5 Crete Road to avoid the sheriff from attaching the property with the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director on the CTMCA, told them the two buses bought with lottery funds have been stored in the solution locale “hidden from your Sheriff”. Although the investigators mentioned they were unable to verify that any buses experienced ever been purchased.
Stemmet also verified which the buses had been concealed to stop them getting seized. But in the event the investigators asked being taken to the position in which the buses were stored, he advised them that “the proprietor of The trick place was not accessible to open up the premises for us”.
“The CTMCA couldn't provide proof of payment for two automobiles that it allegedly obtained with grant dollars,” the investigators reported.
Soeker also informed them the Schaapkraal home were marketed because of the personal debt.
“Mr Soeker explained that In accordance with his knowing, as a result of personal debt owed to the town of Cape City, the CTMCA decided It might be best to market their [Schaapkraal] assets … and to also to hide the assets on the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for security and safety, has Formerly advised GroundUp which the CTMCA “threw money away” on litigation with town.
“Every year like clockwork, as we approach the top of the calendar year, the CTMCA picks a authorized combat with the City, about permits or something else. We never initiate it. They keep throwing money absent on vexatious litigation which they reduce and also have expenses awarded against them. This is solely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the principle role players on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of the many admin, funds and working ตรวจ รางวัล the CTMCA.” The investigators reported they had been unable to Call Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “found several devices, some in superior ailment, some in bad condition plus some that appeared rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-web site storage facility exactly where “devices and a few equipment” have been kept.
“We questioned him to get us to the power but he was evasive to our request.”
Determined by pictures and invoices in GroundUp’s possession, some, if not all, of the goods appear to be machines which was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing charges for this removal.
Based on the closing development report submitted towards the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were directors at some time.
The investigators found this “alarming”.
“From the CIPC search of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be constructed and/or converted,” they reported.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the administrators.
As outlined by Dabishi Nthambeleni, the company has compensated R1.2-million for a deposit, this means R6.nine-million remains to be owed, however there is not any payment date established for when this need to be paid out.
The Kopano audit and also the shut connection involving the companies “point out to us that there is ‘foul Enjoy’ involved in the purchase of your equipment in the museum workshop”, the investigators reported from the report.
“We discover that it's extremely probable that CTMCA utilised the funding on the NLC to ‘refund’ one of its major directors with the assets at a higher overpriced price than the particular price and value of the property and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant to the CTMCA were expended.
“In point of fact, an in depth report on how the funding in the NLC was utilised, will be difficult as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities spent on each merchandise it asked for funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified which the NLC had not done a web-site pay a visit to before approving the grant. But this wasn't standard apply at time and so they observed no proof of carelessness by NLC staff members.
At enough time, the NLC’s procedures didn't involve funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was in the position to get a 2nd tranche of funding without the need to present proof that it had used the very first tranche for its supposed goal.
Subsequent the appointment of a new board, commissioner and senior government staff, the NLC has tightened up on these and also other issues.
Dabishi Nthambeleni advised that
the NLC decrease any long run funding purposes from the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open up a felony scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, rather then act to the report’s recommendations, the NLC – under its previous administration – selected to suppress it, as it experienced accomplished with the preceding reviews into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker by means of SMS, and asked for e mail addresses to send the issues by email way too. But no reaction were received at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph