Leaked report exposes abuse of lottery dollars compensated to minstrel team
Leaked report exposes abuse of lottery dollars compensated to minstrel team
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Minstrels complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has found no proof that a museum at any time existed.
The investigators observed which the CTMCA didn't utilize the R5-million allotted to acquire or develop a museum.
Additionally they observed which the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They found the CTMCA applied cash from the Lottery to buy workshop devices from one among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to arrange a museum to celebrate town’s abundant minstrel heritage went astray. The museum was by no means created.
The small print in the abuse of an incredible number of rands of Lottery funds for the museum that in no way was are exposed within an investigative report commissioned from the NLC in 2021.
The museum grant was part of more than R64-million in Lottery money allocated into the CTMCA in between 2003 and 2017.
The 1st part of the investigation, by law firm Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which provided funding for the museum. The permitted price range with the museum was over R12.eight-million, with R5-million of that allotted for your developing to deal with 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 “really existed”.
The agency was also instructed to analyze
the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
a variety of machines “purchased for that production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as being a director in Might 2021.
The investigation followed substantial reporting by GroundUp with regards to the numerous rands of Lottery funding allotted towards the CTMCA (see right here, here and right here) and the way in which the resources almost certainly served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The building on the right was the meant internet site in the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to your Parliamentary dilemma, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - such as the museum - involving 2012 and 2015. All three projects had been completed, she instructed MPs.
Although the investigators discovered no evidence that a museum experienced at any time existed.
At the beginning the museum was because of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp from the supposed Wetton museum shows a coffee store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung about the walls, as well as a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni mentioned it was “not ready” 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 now not find the money for the rent of R100,000 a month. He said the CTMCA had procured house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were sold for the same value. Schaapkraal is in a very peri-city place considerably from the city.
Therefore, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which might be in an industrial area, the investigators stated they doubted no matter whether a proper museum existed there. Shots connected to the report show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, with no clarification.
“There's a small degree of products with the museum [that] under no circumstances stand for the over 100-year history of the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating which they housed a museum and … typically, the museum doesn't look being open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going The placement on the museum to an alternative spot with out notifying the NLC.
The Schaapkraal assets, on which no museum was ever built. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to move from your rented Crete Road premises since it experienced operate up a R4-million debt with the City of Cape Town and was scared its products could well be attached.
“A result of the lawful battles and the debts, the organisation experienced to move its home from 5 Crete Street to stay away from the sheriff from attaching the house from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director with the CTMCA, advised them that the two buses acquired with lottery money were saved in a secret spot “concealed through the Sheriff”. However the investigators reported they had been unable to substantiate that any buses experienced at any time been bought.
Stemmet also verified the buses had been concealed to stop them being seized. But in the event the investigators requested to become taken into the position the place the buses had been saved, he explained to them that “the owner of The key location was not accessible to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for 2 motor vehicles that it allegedly obtained with grant dollars,” the investigators reported.
Soeker also informed them the Schaapkraal house had been marketed as a result of personal debt.
“Mr Soeker explained that In keeping with his comprehending, as a result of debt owed to town of Cape Town, the CTMCA made the decision It might be best to provide their [Schaapkraal] assets … and also to also to hide the property in the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and safety, has Beforehand told GroundUp the CTMCA “threw dollars absent” on litigation with town.
“Each and every year like clockwork, as we solution the top from the yr, the CTMCA picks a lawful fight with the City, above permits or something else. We under no circumstances initiate it. They continue to keep throwing revenue absent on vexatious litigation which they lose and have expenses awarded towards them. This can be entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for each of the admin, finances and functioning หวย รัฐบาล the CTMCA.” The investigators stated they had been not able to Call Momberg.
Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered various equipment, some in fantastic ailment, some in bad condition and some that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-web-site storage facility the place “instruments plus some equipment” have been held.
“We questioned him to choose us to the power but he was evasive to our ask for.”
Dependant on photos and invoices in GroundUp’s possession, some, Otherwise all, with the things look like products that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing charges for this elimination.
According to the closing development report submitted to the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter had been administrators at some time.
The investigators uncovered this “alarming”.
“From the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the organization is 5 Crete Highway, Wetton, Cape Town, precisely the same address on which the museum was intended to be created and/or transformed,” they claimed.
An audit by accountants Kopano Included, attached for the investigative report, recorded which the CTMCA was in the whole process of purchasing “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 amongst the administrators.
According to Dabishi Nthambeleni, the organization has paid R1.two-million being a deposit, that means R6.9-million remains owed, while there isn't a payment date established for when this should be paid out.
The Kopano audit as well as the shut hyperlink concerning the companies “reveal to us that there's ‘foul play’ involved with the acquisition of the machinery in the museum workshop”, the investigators claimed during the report.
“We discover that it's really possible that CTMCA made use of the funding of the NLC to ‘refund’ certainly one of its major directors for your house at a better overpriced fee than the actual cost and price of the assets and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant to the CTMCA were invested.
“In reality, an in depth report on how the funding from the NLC was made use of, will be not possible given that the CTMCA does not have any receipts, or proof of payments to substantiate the amounts expended on Every merchandise it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not carried out a site check out in advance of approving the grant. But this wasn't typical observe at some time they usually found no proof of negligence by NLC personnel.
At time, the NLC’s guidelines didn't call for funded organisations to submit proof of payment with interim reviews, they identified. This meant the CTMCA was capable of get a second tranche of funding while not having to supply evidence that it experienced employed the first tranche for its meant reason.
Following the appointment of a different board, commissioner and senior govt group, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni suggested that
the NLC decline any potential funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as opposed to act over the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it had done Along with the prior stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the questions by email as well. But no response were received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph