Leaked report exposes abuse of lottery funds compensated to minstrel team
Leaked report exposes abuse of lottery funds compensated to minstrel team
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Minstrels carry out in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the National Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no evidence that a museum at any time existed.
The investigators identified that the CTMCA didn't utilize the R5-million allocated to purchase or create a museum.
They also identified that the CTMCA only acquired land value R1.7-million, not R5-million as allocated.
They found the CTMCA utilized funds within the Lottery to acquire workshop gear from certainly one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Association (CTMCA) from the National Lotteries Fee (NLC) to build a museum to rejoice the city’s loaded minstrel historical past went astray. The museum was by no means designed.
The details of the abuse of a lot of rands of Lottery money for just a museum that hardly ever was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery resources allotted towards the CTMCA between 2003 and 2017.
The first part of the investigation, by law company Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which bundled funding for your museum. The accepted budget for that museum was a lot more than R12.8-million, with R5-million of that allotted for any building to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the constructing for that museum and whether or not the museum “in fact existed”.
The firm was also instructed to investigate
the purchase with Lottery money of two vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
numerous equipment “obtained to the production of the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators with the organisation. Stemmet was reappointed to be a director in Could 2021.
The investigation adopted substantial reporting by GroundUp in regards to the many rands of Lottery funding allocated towards the CTMCA (see below, listed here and here) and just how the cash in all probability aided finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The constructing on the correct was the intended web page in the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph
In response into a Parliamentary query, former NLC Commissioner Thabang Mampane listed grants to three CTMCA “jobs” - such as the museum - in between 2012 and 2015. All 3 initiatives were concluded, she told MPs.
Nevertheless the investigators identified no evidence that a museum experienced at any time existed.
In the beginning the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of your meant Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of images haphazardly hung on the walls, along with a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it had been “not able” to verify if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum were moved simply because they could no more find the money for the lease of R100,000 a month. He reported the CTMCA had bought property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were sold for a similar value. Schaapkraal is inside a peri-urban spot considerably from town.
Because of this, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following browsing the premises, which are in an industrial region, the investigators mentioned they doubted no matter if a suitable museum existed there. Pictures attached into the report show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, exhibited on tables and unfold out on the floor, without having explanation.
“You will find a negligible volume of items on the museum [that] by no means depict the in excess of one hundred-yr background from the Cape City Carnival, the investigators said, introducing that there was “no signage outside the house the premises indicating they housed a museum and … typically, the museum doesn't look being open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going the location of your museum to an alternate locale with no notifying the NLC.
The Schaapkraal assets, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million debt with the City of Cape City and was concerned its machines might be attached.
“Due to the legal battles as well as debts, the organisation experienced to maneuver its residence from 5 Crete Highway to steer clear of the sheriff from attaching the residence with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director of your CTMCA, instructed them that the two buses acquired with lottery cash were saved inside a secret spot “concealed through the Sheriff”. However the investigators claimed they have been not able to substantiate that any buses had ever been purchased.
Stemmet also confirmed the buses were concealed to halt them getting seized. But if the investigators questioned to generally be taken towards the location in which the buses had been saved, he instructed them that “the proprietor of the secret locale wasn't available to open up the premises for us”.
“The CTMCA couldn't give proof of payment for 2 autos that it allegedly acquired with grant funds,” the investigators documented.
Soeker also told them the Schaapkraal property were offered due to credit card debt.
“Mr Soeker spelled out that Based on his comprehending, due to the credit card debt owed to town of Cape Town, the CTMCA determined It could be finest to offer their [Schaapkraal] residence … and to also to hide the property of your CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and security, has Formerly advised GroundUp which the CTMCA “threw income absent” on litigation with the town.
“Each year like clockwork, as we strategy the end in the year, the CTMCA picks a lawful combat with the town, around permits or another thing. We by no means initiate it. They preserve throwing funds absent on vexatious litigation they drop and possess prices awarded in opposition to them. That is solely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the most crucial position gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, funds and functioning หวย ออก the CTMCA.” The investigators said they had been not able to Get in touch with Momberg.
Hats
All through their “investigation in loco” in the Primrose Park premises, the investigators “identified a lot of equipment, some in great affliction, some in bad issue plus some that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-internet site storage facility the place “instruments plus some equipment” had been kept.
“We requested him to consider us to the power but he was evasive to our request.”
Dependant on photographs and invoices in GroundUp’s possession, some, if not all, with the things look like tools which was illegally faraway from the CTMCA’s earlier premises. Stemmet is struggling with expenses for this removing.
According to the closing progress report submitted on the NLC through the CTMCA, the equipment was ordered from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter ended up administrators at time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the business is five Crete Road, Wetton, Cape Town, a similar address on which the museum was intended to be created and/or transformed,” they claimed.
An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.
As outlined by Dabishi Nthambeleni, the corporate has paid out R1.2-million for a deposit, that means R6.9-million remains to be owed, even though there's no payment day set for when this need to be compensated.
The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul Participate in’ associated with the purchase on the equipment of your museum workshop”, the investigators said inside the report.
“We find that it is extremely probable that CTMCA utilized the funding from the NLC to ‘refund’ certainly one of its principal directors with the assets at the next overpriced amount than the actual price and price of the house and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.
“In fact, an in depth report on how the funding of the NLC was applied, could be difficult because the CTMCA does not have any receipts, or proof of payments to substantiate the quantities spent on Every single product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered that the NLC had not conducted a website pay a visit to ahead of approving the grant. But this was not regular practice at some time plus they identified no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a next tranche of funding without needing to offer proof that it experienced made use of the initial tranche for its supposed intent.
Subsequent the appointment of a whole new board, commissioner and senior government workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected into the NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its past administration – selected to suppress it, as it had performed With all the past experiences into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e-mail way too. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph