Leaked report exposes abuse of lottery money paid to minstrel group
Leaked report exposes abuse of lottery money paid to minstrel group
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Minstrels complete in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has observed no evidence that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allocated to purchase or build a museum.
In addition they observed the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA used funds within the Lottery to purchase workshop gear from among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to put in place a museum to celebrate the town’s rich minstrel historical past went astray. The museum was in no way established.
The details in the abuse of many rands of Lottery resources to get a museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which bundled funding for your museum. The permitted budget for your museum was a lot more than R12.8-million, with R5-million of that allocated for the constructing to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the purchase with Lottery funds of two cars – a 60-seater bus and a 23-seater bus – for R2.4-million; and
various devices “bought for that manufacturing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from 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 ongoing as two of a number of directors in the organisation. Stemmet was reappointed for a director in May perhaps 2021.
The investigation adopted extensive reporting by GroundUp with regards to the many rands of Lottery funding allotted on the CTMCA (see below, listed here and right here) and the way in which the resources in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The building on the appropriate was the supposed web-site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All a few initiatives were done, she explained to MPs.
But the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung on the walls, along with a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum had ever operated from these premises.
Stemmet advised the investigators the museum were moved simply because they could no more afford to pay for the rent of R100,000 a month. He mentioned the CTMCA had acquired residence for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same cost. Schaapkraal is inside a peri-urban area considerably from town.
Due to this fact, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after traveling to the premises, which might be in an industrial place, the investigators stated they doubted whether a suitable museum existed there. Photos attached to your report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, with no explanation.
“There exists a nominal number of goods within the museum [that] on no account stand for the much more than one hundred-yr background of the Cape City Carnival, the investigators explained, adding that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum won't search to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by shifting The placement of your museum to an alternative area without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA had to maneuver in the rented Crete Street premises since it had run up a R4-million personal debt with the City of Cape City and was frightened its machines could be attached.
“Because of the legal battles and also the debts, the organisation had to maneuver its assets from five Crete Street to stay away from the sheriff from attaching the residence of the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director of the CTMCA, told them which the two buses purchased with lottery money were stored inside of a key locale “hidden through the Sheriff”. But the investigators mentioned they ended up not able to substantiate that any buses experienced at any time been purchased.
Stemmet also confirmed that the buses had been hidden to halt them being seized. But when the investigators questioned to generally be taken into the put wherever the buses ended up stored, he told them that “the operator of The key place wasn't available to open up the premises for us”.
“The CTMCA could not deliver proof of payment for 2 autos that it allegedly purchased with grant dollars,” the investigators noted.
Soeker also explained to them the Schaapkraal home were bought because of the credit card debt.
“Mr Soeker explained that In keeping with his comprehending, due to personal debt owed to the City of Cape City, the CTMCA decided it would be greatest to promote their [Schaapkraal] home … and to also to hide the belongings with the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for safety and protection, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with town.
“Each and every year like clockwork, as we method the top from the calendar year, the CTMCA picks a legal combat with town, above permits or another thing. We in no way initiate it. They continue to keep throwing cash away on vexatious litigation which they lose and have charges awarded versus them. This really is totally self-inflicted,” he explained.
Soeker instructed the Dabishi Nthambeleni investigators that the main role gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, finances and running luckyvip77 the CTMCA.” The investigators stated they had been unable to contact Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered quite a few equipment, some in excellent affliction, some in poor affliction and some that looked rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” had been stored.
“We asked him to consider us to the facility but he was evasive to our ask for.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, on the things appear to be equipment which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing expenses for this removing.
Based on the remaining progress report submitted into the NLC with the CTMCA, the equipment was acquired from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were directors at time.
The investigators uncovered this “alarming”.
“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be constructed and/or transformed,” they described.
An audit by accountants Kopano Integrated, attached to the investigative report, recorded the CTMCA was in the 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 certainly one of the administrators.
Based on Dabishi Nthambeleni, the corporate has compensated R1.2-million like a deposit, this means R6.nine-million is still owed, however there is no payment date established for when this should be paid.
The Kopano audit along with the near url involving the businesses “reveal to us that there is ‘foul Perform’ involved in the acquisition of your equipment in the museum workshop”, the investigators stated within the report.
“We discover that it is highly possible that CTMCA employed the funding of the NLC to ‘refund’ amongst its major administrators to the property at a better overpriced rate than the actual selling price and value of the house and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA were spent.
“In fact, a detailed report on how the funding on the NLC was applied, could well be not possible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every single merchandise it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered which the NLC had not conducted a web page take a look at ahead of approving the grant. But this wasn't common practice at enough time and they observed no proof of negligence by NLC staff members.
At the time, the NLC’s policies didn't require funded organisations to submit proof of payment with interim studies, they identified. This intended which the CTMCA was able to receive a second tranche of funding without needing to give proof that it had employed the primary tranche for its meant function.
Adhering to the appointment of a whole new board, commissioner and senior government group, the NLC has tightened up on these along with other problems.
Dabishi Nthambeleni suggested that
the NLC drop any foreseeable future funding applications within the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected towards the NLC’s “delinquency” system;
the NLC open a felony circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, in lieu of act around the report’s suggestions, the NLC – beneath its past administration – selected to suppress it, mainly because it experienced done With all the earlier studies into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to send out the issues by e-mail as well. But no reaction had been obtained at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph