Leaked report exposes abuse of lottery cash paid out to minstrel team
Leaked report exposes abuse of lottery cash paid out to minstrel team
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Minstrels complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed that the CTMCA did not make use of the R5-million allotted to acquire or develop a museum.
In addition they uncovered the CTMCA only bought land really worth R1.7-million, not R5-million as allotted.
They identified the CTMCA used cash from your Lottery to get workshop tools from one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to set up a museum to rejoice the city’s abundant minstrel history went astray. The museum was under no circumstances produced.
The small print in the abuse of numerous rands of Lottery money for a museum that hardly ever was are unveiled within an investigative report commissioned because of the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery money allocated to the CTMCA amongst 2003 and 2017.
The 1st Element of the investigation, by legislation company Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding with the museum. The permitted price range with the museum was much more than R12.8-million, with R5-million of that allotted for any setting up to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a making for the museum and if the museum “basically existed”.
The company was also instructed to analyze
the purchase with Lottery funds of two cars – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
different machines “purchased for that producing on the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous directors with the organisation. Stemmet was reappointed to be a director in Could 2021.
The investigation followed extensive reporting by GroundUp regarding the countless rands of Lottery funding allotted on the CTMCA (see here, right here and below) and the best way the money probably served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The creating on the correct was the supposed site with the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - including the museum - between 2012 and 2015. All a few projects were completed, she informed MPs.
Though the investigators discovered no proof that a museum had at any time existed.
At the outset the museum was on account of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp with the intended Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of photos haphazardly hung around the partitions, as well as a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni mentioned it had been “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved simply because they could now not afford the rent of R100,000 a month. He explained the CTMCA experienced ordered house for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for the same price tag. Schaapkraal is in the peri-city place much from the town.
Consequently, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after going to the premises, which can be within an industrial location, the investigators mentioned they doubted irrespective of whether a correct museum existed there. Photos connected for the report display a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the ground, with no explanation.
“You will find a minimal amount of items in the museum [that] in no way characterize the more than a hundred-12 months heritage of your Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum isn't going to appear to generally be open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by transferring the location in the museum to an alternative spot without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to maneuver within the rented Crete Highway premises because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear could be hooked up.
“As a result of authorized battles plus the debts, the organisation had to maneuver its house from 5 Crete Street to steer clear of the sheriff from attaching the house in the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director from the CTMCA, explained to them that the two buses purchased with lottery funds ended up saved in a very top secret place “hidden through the Sheriff”. Although the investigators stated they had been unable to substantiate that any buses had ever been purchased.
Stemmet also confirmed the buses had been concealed to halt them being seized. But in the event the investigators requested for being taken to the place exactly where the buses had been stored, he informed them that “the owner of the secret place wasn't accessible to open up the premises for us”.
“The CTMCA could not present evidence of payment for two motor vehicles that it allegedly procured with grant dollars,” the investigators reported.
Soeker also informed them the Schaapkraal house had been bought as a result of financial debt.
“Mr Soeker discussed that As outlined by his comprehension, because of the credit card debt owed to the City of Cape Town, the CTMCA determined It will be best to offer their [Schaapkraal] home … also to also to cover the belongings from the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for basic safety and protection, has Formerly advised GroundUp the CTMCA “threw dollars absent” on litigation with the City.
“Each year like clockwork, as we approach the end from the calendar year, the CTMCA picks a authorized fight with town, about permits or something else. We by no means initiate it. They maintain throwing revenue away on vexatious litigation that they eliminate and have expenditures awarded towards them. This is fully self-inflicted,” he mentioned.
Soeker instructed the Dabishi Nthambeleni investigators that the main purpose players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who had been answerable for all the admin, funds and managing ผล สลาก the CTMCA.” The investigators stated they had been struggling to contact Momberg.
Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “discovered numerous devices, some in very good situation, some in negative ailment and several that looked rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-web site storage facility wherever “devices and a few machinery” were retained.
“We questioned him to get us to the ability but he was evasive to our ask for.”
According to photographs and invoices in GroundUp’s possession, some, Otherwise all, from the goods look like equipment which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with fees for this elimination.
Based on the ultimate progress report submitted for the NLC through the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter were directors at the time.
The investigators located this “alarming”.
“From the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Road, Wetton, Cape Town, the exact same tackle on which the museum was intended to be constructed and/or transformed,” they described.
An audit by accountants Kopano Incorporated, hooked up for the investigative report, recorded that the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the directors.
In line with Dabishi Nthambeleni, the business has paid R1.2-million being a deposit, this means R6.9-million remains to be owed, while there's no payment day established for when this should be paid out.
The Kopano audit plus the close url among the businesses “reveal to us that there is ‘foul Engage in’ associated with the purchase in the machinery from the museum workshop”, the investigators mentioned inside the report.
“We find that it's hugely probable that CTMCA used the funding with the NLC to ‘refund’ one of its key directors for that 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 expended.
“In reality, a detailed report on how the funding with the NLC was made use of, could be extremely hard given that the CTMCA doesn't have any receipts, or proof of payments to verify the amounts invested on Every single item it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified that the NLC had not performed a website stop by just before approving the grant. But this wasn't standard follow at the time and they located no proof of carelessness by NLC workers.
At time, the NLC’s rules did not need funded organisations to submit proof of payment with interim reviews, they pointed out. This meant which the CTMCA was in a position to receive a next tranche of funding without the need to deliver evidence that it had utilized the very first tranche for its supposed intent.
Next the appointment of a completely new board, commissioner and senior government group, the NLC has tightened up on these and also other problems.
Dabishi Nthambeleni recommended that
the NLC decrease any future funding apps in the CTMCA;
the CTMCA and any customers who were being associated with the grant be subjected into the NLC’s “delinquency” approach;
the NLC open up a criminal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated resources.
But, rather than act around the report’s recommendations, the NLC – beneath its earlier administration – chose to suppress it, as it experienced finished While using the past studies into corruption it had commissioned.
GroundUp despatched queries to Stemmet and Soeker via SMS, and questioned for e-mail addresses to send the issues by email far too. But no response were received at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph
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