Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the National Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has observed no evidence that a museum ever existed.
The investigators discovered that the CTMCA did not make use of the R5-million allotted to obtain or produce a museum.
In addition they identified the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA utilized resources from your Lottery to acquire workshop devices from certainly one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to put in place a museum to rejoice the town’s prosperous minstrel historical past went astray. The museum was never ever developed.
The small print with the abuse of a lot of rands of Lottery funds for a museum that never was are unveiled in an investigative report commissioned because of the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery cash allotted on the CTMCA amongst 2003 and 2017.
The 1st Component of the investigation, by law business Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which provided funding to the museum. The accepted price range for your museum was much more than R12.eight-million, with R5-million of that allotted for a setting up to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing for your museum and whether or not the museum “truly existed”.
The organization was also instructed to research
the acquisition with Lottery cash of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
several machines “obtained with the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of 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 continued as two of quite a few administrators on the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted comprehensive reporting by GroundUp with regards to the millions of rands of Lottery funding allotted on the CTMCA (see here, below and in this article) and the best way the cash probably assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.
The making on the proper was the meant site of your minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - including the museum - involving 2012 and 2015. All 3 tasks were completed, she instructed MPs.
Nevertheless the investigators identified no evidence that a museum experienced at any time existed.
To start with the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp in the intended Wetton museum reveals a espresso store with a few musical instruments and minstrel costumes and collages of photos haphazardly hung to the walls, plus a model ship on its plinth within a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not able” to substantiate if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum were moved since they could no more afford to pay for the lease of R100,000 per month. He stated the CTMCA had procured house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for a similar price tag. Schaapkraal is inside a peri-urban space much from the city.
Because of this, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after traveling to the premises, that are within an industrial space, the investigators claimed they doubted whether or not an appropriate museum existed there. Photos attached into the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, displayed on tables and spread out on the floor, without any explanation.
“You will find there's nominal degree of products with the museum [that] on no account represent the greater than a hundred-calendar year historical past in the Cape Town Carnival, the investigators explained, adding that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum will not look to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to an alternative spot with no notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet instructed the investigators the CTMCA experienced to move with the rented Crete Street premises mainly because it experienced run up a R4-million debt with town of Cape Town and was concerned its devices can be connected.
“Mainly because of the authorized battles as well as the debts, the organisation had to maneuver its house from five Crete Highway to stay away from the sheriff from attaching the home from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of your CTMCA, instructed them which the two buses bought with lottery money were being stored in a very mystery locale “concealed from your Sheriff”. Nevertheless the investigators reported they had been unable to verify that any buses had at any time been bought.
Stemmet also confirmed that the buses were concealed to prevent them becoming seized. But when the investigators asked for being taken to your place the place the buses were being saved, he explained to them that “the owner of The key site wasn't accessible to open the premises for us”.
“The CTMCA could not provide proof of payment for 2 autos that it allegedly obtained with grant funds,” the investigators documented.
Soeker also told them the Schaapkraal house were offered as a result of credit card debt.
“Mr Soeker explained that according to his comprehension, due to the financial debt owed to the town of Cape Town, the CTMCA resolved It might be most effective to promote their [Schaapkraal] home … also to also to cover the property in the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and security, has Earlier explained to GroundUp the CTMCA “threw income away” on litigation with town.
“On a yearly basis like clockwork, as we method the end in the yr, the CTMCA picks a lawful battle with town, in excess of permits or something else. We in no way initiate it. They maintain throwing revenue absent on vexatious litigation which they drop and possess expenditures awarded versus them. This is often solely self-inflicted,” he claimed.
Soeker told the Dabishi Nthambeleni investigators that the leading function players on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for every one of the admin, funds and managing ตรวจ หวย ลาว the CTMCA.” The investigators reported they were unable to Make contact with Momberg.
Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “located numerous equipment, some in fantastic issue, some in terrible ailment and many that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-site storage facility wherever “devices plus some machinery” have been kept.
“We asked him to just take us to the ability but he was evasive to our request.”
Based upon photos and invoices in GroundUp’s possession, some, if not all, of the things appear to be tools that was illegally faraway from the CTMCA’s earlier premises. Stemmet is going through prices for this elimination.
Based on the last progress report submitted to your NLC because of the CTMCA, the machinery was bought from Martin-Conne Milliners, a business by which Stemmet, his spouse and his daughter had been administrators at enough time.
The investigators identified this “alarming”.
“In the CIPC research of Martin-Conne Milliners and the invoices submitted, we Take note the following alarming getting: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the business is 5 Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be crafted and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, attached into the investigative report, recorded that the CTMCA was in the whole process of purchasing “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the directors.
In keeping with Dabishi Nthambeleni, the company has compensated R1.2-million to be a deposit, that means R6.nine-million remains to be owed, nevertheless there isn't a payment date set for when this needs to be paid.
The Kopano audit plus the near link in between the companies “point out to us that there's ‘foul Participate in’ involved in the purchase on the equipment with the museum workshop”, the investigators said inside the report.
“We find that it's highly possible that CTMCA utilised the funding of your NLC to ‘refund’ certainly one of its primary administrators for the residence at an increased overpriced fee than the actual selling price and value of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant for the CTMCA were spent.
“The truth is, a detailed report on how the funding in the NLC was made use of, will be impossible because the CTMCA does not have any receipts, or proof of payments to confirm the amounts invested on Each and every item it requested funding for. The interim report and final report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC had not performed a web site pay a visit to before approving the grant. But this was not regular observe at time and they observed no evidence of carelessness by NLC workforce.
At the time, the NLC’s rules didn't require funded organisations to submit proof of payment with interim studies, they identified. This intended which the CTMCA was capable to get a 2nd tranche of funding without having to supply proof that it had applied the main tranche for its supposed objective.
Subsequent the appointment of a whole new board, commissioner and senior government team, the NLC has tightened up on these as well as other problems.
Dabishi Nthambeleni recommended that
the NLC drop any foreseeable future funding programs from the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected to the NLC’s “delinquency” course of action;
the NLC open up a criminal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated resources.
But, instead of act about the report’s tips, the NLC – less than its former administration – selected to suppress it, mainly because it experienced carried out Together with the preceding stories into corruption it had commissioned.
GroundUp sent questions to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to send out the inquiries by email much too. But no response were acquired at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph
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