Leaked report exposes abuse of lottery income paid to minstrel group
Leaked report exposes abuse of lottery income paid to minstrel group
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Minstrels carry out in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has discovered no proof that a museum at any time existed.
The investigators found that the CTMCA did not make use of the R5-million allotted to buy or make a museum.
In addition they found that the CTMCA only purchased land value R1.seven-million, not R5-million as allotted.
They observed the CTMCA made use of resources within the Lottery to purchase workshop equipment from certainly one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Commission (NLC) to build a museum to celebrate town’s wealthy minstrel record went astray. The museum was under no circumstances produced.
The main points from the abuse of a lot of rands of Lottery funds for the museum that never was are uncovered within an investigative report commissioned via the NLC in 2021.
The museum grant was A part of a lot more than R64-million in Lottery cash allotted to your CTMCA concerning 2003 and 2017.
The first part of the investigation, by regulation business Dabishi Nthambeleni, was done involving 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 authorized budget for that museum was over R12.eight-million, with R5-million of that allocated for the building to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up for the museum and if the museum “essentially existed”.
The business was also instructed to investigate
the purchase with Lottery funds of two automobiles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
numerous machines “bought for the producing of your costumes and hats” for that minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors of your organisation. Stemmet was reappointed as being a director in May well 2021.
The investigation adopted in depth reporting by GroundUp in regards to the countless rands of Lottery funding allocated towards the CTMCA (see here, below and listed here) and just how the money possibly aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at enough time by Marius Fransman.
The developing on the best was the supposed web-site with the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to some Parliamentary concern, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “assignments” - including the museum - between 2012 and 2015. All a few assignments were done, she explained to MPs.
Nevertheless the investigators discovered no evidence that a museum had at any time existed.
In the beginning the museum was resulting from open in rented premises in Crete Highway, Wetton. A photo attained by GroundUp in the intended Wetton museum reveals a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within 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 had at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved since they could now not manage the rent of R100,000 a month. He said the CTMCA experienced purchased residence for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar price. Schaapkraal is in the peri-city region significantly from the town.
As a result, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following checking out the premises, which might be within an industrial spot, the investigators explained they doubted whether an appropriate museum existed there. Pics connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without explanation.
“You will find a minimum degree of things within the museum [that] by no means characterize the greater than one hundred-12 months record of the Cape Town Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't glance being open up to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by relocating the location of the museum to another area without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA had to move within the rented Crete Road premises as it experienced run up a R4-million financial debt with the town of Cape City and was frightened its products would be attached.
“A result of the lawful battles and the debts, the organisation had to maneuver its property from five Crete Highway to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director of your CTMCA, instructed them the two buses bought with lottery resources ended up stored in a top secret site “hidden within the Sheriff”. Although the investigators explained they were unable to substantiate that any buses had ever been acquired.
Stemmet also confirmed that the buses were concealed to stop them currently being seized. But in the event the investigators asked to get taken into the location wherever the buses were being saved, he told them that “the owner of the secret area was not available to open the premises for us”.
“The CTMCA couldn't provide evidence of payment for 2 cars that it allegedly ordered with grant dollars,” the investigators described.
Soeker also instructed them the Schaapkraal house had been bought as a result of financial debt.
“Mr Soeker defined that Based on his understanding, mainly because of the financial debt owed to town of Cape Town, the CTMCA resolved It might be finest to promote their [Schaapkraal] residence … also 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 security, has Earlier advised GroundUp that the CTMCA “threw income away” on litigation with the town.
“Each year like clockwork, as we solution the end with the year, the CTMCA picks a authorized struggle with the town, more than permits or something else. We never initiate it. They preserve throwing dollars absent on vexatious litigation that they get rid of and also have prices awarded towards them. This is certainly fully self-inflicted,” he reported.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial function players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for each of the admin, funds and managing ผล สลาก the CTMCA.” The investigators mentioned they had been unable to Speak to Momberg.
Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “discovered numerous equipment, some in great condition, some in lousy situation plus some that seemed rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-website storage facility where by “devices and a few machinery” ended up saved.
“We asked him to consider us to the ability but he was evasive to our request.”
Depending on images and invoices in GroundUp’s possession, some, if not all, from the items look like machines which was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing prices for this elimination.
Based on the last development report submitted on the NLC via the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization by which Stemmet, his wife and his daughter were directors at some time.
The investigators found this “alarming”.
“From your CIPC research of Martin-Conne Milliners and the invoices submitted, we Notice the next alarming getting: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporation is five Crete Highway, Wetton, Cape Town, the exact same tackle on which the museum was intended to be crafted and/or converted,” they reported.
An audit by accountants Kopano Included, connected to the investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the directors.
In keeping with Dabishi Nthambeleni, the organization has compensated R1.2-million like a deposit, indicating R6.nine-million is still owed, although there is not any payment day established for when this must be paid.
The Kopano audit and also the shut link in between the businesses “point out to us that there is ‘foul Perform’ linked to the acquisition on the machinery of your museum workshop”, the investigators claimed inside the report.
“We discover that it is remarkably possible that CTMCA employed the funding of the NLC to ‘refund’ considered one of its primary directors with the home at an increased overpriced rate than the actual price tag and price of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA had been spent.
“In reality, a detailed report on how the funding of the NLC was utilized, will be unattainable because the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities put in on Each and every item it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered which the NLC had not executed a website take a look at just before approving the grant. But this wasn't conventional apply at time they usually discovered no evidence of negligence by NLC personnel.
At enough time, the NLC’s procedures didn't require funded organisations to post evidence of payment with interim stories, they pointed out. This meant that the CTMCA was in a position to get a next tranche of funding while not having to give proof that it experienced applied the 1st tranche for its meant purpose.
Next the appointment of a different board, commissioner and senior government team, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni recommended that
the NLC decrease any upcoming funding programs with the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – beneath its earlier administration – chose to suppress it, since it had done Using the preceding experiences into corruption it had commissioned.
GroundUp sent questions to Stemmet and Soeker through SMS, and questioned for email addresses to deliver the thoughts by email also. But no reaction had been gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph
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