Leaked report exposes abuse of lottery income paid out to minstrel team
Leaked report exposes abuse of lottery income paid out to minstrel team
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Minstrels complete in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the Nationwide Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has identified no evidence that a museum ever existed.
The investigators observed the CTMCA did not make use of the R5-million allotted to obtain or create a museum.
In addition they uncovered the CTMCA only acquired land worth R1.7-million, not R5-million as allotted.
They found the CTMCA utilised funds in the Lottery to invest in workshop machines from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to setup a museum to celebrate the city’s wealthy minstrel heritage went astray. The museum was by no means produced.
The small print with the abuse of countless rands of Lottery funds for just a museum that never was are unveiled within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery resources allotted towards the CTMCA involving 2003 and 2017.
The very first Element of the investigation, by law organization Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which included funding for that museum. The accredited finances for that museum was in excess of R12.eight-million, with R5-million of that allocated for the creating to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up for your museum and whether or not the museum “really existed”.
The organization was also instructed to investigate
the acquisition with Lottery funds of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
many equipment “ordered for that manufacturing of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some 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 various directors of your organisation. Stemmet was reappointed for a director in May perhaps 2021.
The investigation adopted intensive reporting by GroundUp in regards to the an incredible number of rands of Lottery funding allotted for the CTMCA (see below, in this article and in this article) and the way the resources most likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The constructing on the ideal was the meant site of the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All a few jobs had been done, she told MPs.
But the investigators discovered no evidence that a museum had at any time existed.
In the beginning the museum was due to open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp with the meant Wetton museum demonstrates a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the partitions, plus a product ship on its plinth inside a 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 had been moved since they could now not find the money for the rent of R100,000 per month. He said the CTMCA experienced procured property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for a similar value. Schaapkraal is in the peri-city place much from town.
Subsequently, the museum were moved to a brand new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after visiting the premises, which are within an industrial space, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Pictures attached into the report exhibit a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the ground, without any explanation.
“There's a nominal degree of items for the museum [that] by no means represent the much more than one hundred-year heritage from the Cape Town Carnival, the investigators said, incorporating that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum would not seem to be open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by shifting The placement of the museum to an alternative area without notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators which the CTMCA had to maneuver through the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with the City of Cape City and was scared its gear could well be connected.
“As a result of lawful battles plus the debts, the organisation experienced to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the property with the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them which the two buses purchased with lottery money were being stored in a very solution site “concealed within the Sheriff”. However the investigators stated they had been not able to confirm that any buses experienced at any time been bought.
Stemmet also verified which the buses were hidden to prevent them getting seized. But in the event the investigators asked to be taken into the put exactly where the buses had been stored, he advised them that “the proprietor of The key spot wasn't accessible to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for two automobiles that it allegedly acquired with grant income,” the investigators described.
Soeker also instructed them the Schaapkraal residence had been offered as a result of credit card debt.
“Mr Soeker defined that according to his knowing, mainly because of the credit card debt owed to the City of Cape Town, the CTMCA resolved It will be greatest to sell their [Schaapkraal] assets … and to also to hide the belongings from the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and security, has Earlier advised GroundUp which the CTMCA “threw funds away” on litigation with town.
“On a yearly basis like clockwork, as we strategy the tip of the yr, the CTMCA picks a authorized combat with town, over permits or another thing. We by no means initiate it. They keep throwing money absent on vexatious litigation that they shed and also have fees awarded against them. This really is solely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the key function gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were in charge of all the admin, finances and jogging หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators mentioned they were not able to Make contact with Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in superior issue, some in bad ailment and a few that seemed rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility in which “devices and many machinery” had been stored.
“We questioned him to take us to the power but he was evasive to our request.”
According to photos and invoices in GroundUp’s possession, some, Otherwise all, on the products look like tools which was illegally removed from the CTMCA’s previous premises. Stemmet is going through rates for this removal.
Based on the ultimate progress report submitted to your NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter had been directors at some time.
The investigators uncovered this “alarming”.
“In the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the business is five Crete Road, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be created and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, attached to your investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million as being a deposit, that means R6.nine-million remains to be owed, while there isn't a payment date established for when this have to be paid.
The Kopano audit and the near website link in between the businesses “point out to us that there is ‘foul play’ involved with the acquisition on the equipment from the museum workshop”, the investigators explained in the report.
“We find that it is really probable that CTMCA employed the funding of the NLC to ‘refund’ among its most important administrators for the home at an increased overpriced amount than the particular selling price and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to the CTMCA were invested.
“Actually, an in depth report on how the funding with the NLC was utilised, could be impossible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities put in on each merchandise it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not carried out a web page go to ahead of approving the grant. But this wasn't common exercise at some time plus they observed no evidence of negligence by NLC employees.
At some time, the NLC’s regulations didn't call for funded organisations to submit proof of payment with interim experiences, they identified. This meant which the CTMCA was ready to get a 2nd tranche of funding without having to offer evidence that it experienced utilised the very first tranche for its supposed goal.
Next the appointment of a whole new board, commissioner and senior govt crew, the NLC has tightened up on these along with other problems.
Dabishi Nthambeleni advisable that
the NLC decrease any upcoming funding applications from your CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected to the NLC’s “delinquency” method;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, as an alternative to act within the report’s tips, the NLC – underneath its earlier administration – selected to suppress it, because it experienced accomplished With all the past reports into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker by means of SMS, and questioned for email addresses to ship the thoughts by email way too. But no reaction were received at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph