Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels carry out in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA did not utilize the R5-million allotted to order or build a museum.
Additionally they uncovered the CTMCA only purchased land really worth R1.7-million, not R5-million as allotted.
They located the CTMCA employed funds within the Lottery to acquire workshop tools from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Association (CTMCA) through the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s abundant minstrel history went astray. The museum was in no way established.
The main points of your abuse of millions of rands of Lottery funds for a museum that by no means was are exposed in an investigative report commissioned via the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery funds allotted on the CTMCA among 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding for that museum. The authorized funds with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a creating for your museum and whether the museum “actually existed”.
The firm was also instructed to research
the purchase with Lottery resources of two vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
many devices “purchased to the production of the costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several administrators on the organisation. Stemmet was reappointed being a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp about the many rands of Lottery funding allocated to your CTMCA (see here, listed here and below) and just how the funds in all probability served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at time by Marius Fransman.
The building on the right was the supposed web page from the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to the Parliamentary problem, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “initiatives” - such as the museum - concerning 2012 and 2015. All a few jobs were done, she explained to MPs.
However the investigators located no proof that a museum experienced ever existed.
At the outset the museum was because of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp of the supposed Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of shots haphazardly hung over the walls, and a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni reported it was “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved because they could now not find the money for the rent of R100,000 per month. He reported the CTMCA had obtained property for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were marketed for a similar price. Schaapkraal is in the peri-urban spot significantly from the town.
Subsequently, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after viewing the premises, which are within an industrial region, the investigators stated they doubted whether or not an appropriate museum existed there. Photographs hooked up on the report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, displayed on tables and spread out on the floor, without any clarification.
“You will find there's nominal degree of products on the museum [that] by no means characterize the much more than a hundred-12 months historical past on the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum would not glance for being open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to another place without the need of notifying the NLC.
The Schaapkraal home, on which no museum was at any time crafted. Photo: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises because it had run up a R4-million financial debt with the town of Cape City and was scared its devices could be attached.
“As a result of authorized battles along with the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the house in the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director with the CTMCA, advised them that the two buses purchased with lottery funds were being stored in a top secret site “hidden with the Sheriff”. Nevertheless the investigators said they had been unable to verify that any buses experienced at any time been acquired.
Stemmet also verified which the buses were hidden to stop them staying seized. But in the event the investigators asked to become taken on the put exactly where the buses have been saved, he explained to them that “the operator of The key site was not available to open up the premises for us”.
“The CTMCA couldn't give proof of payment for two autos that it allegedly bought with grant cash,” the investigators reported.
Soeker also explained to them the Schaapkraal residence had been sold as a result of credit card debt.
“Mr Soeker described that In keeping with his being familiar with, mainly because of the financial debt owed to town of Cape Town, the CTMCA made a decision It will be very best to offer their [Schaapkraal] property … and also to also to cover the assets of your CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and safety, has Formerly explained to GroundUp that the CTMCA “threw dollars absent” on litigation with town.
“Each and every year like clockwork, as we tactic the tip with the 12 months, the CTMCA picks a legal struggle with the town, above permits or another thing. We hardly ever initiate it. They retain throwing dollars absent on vexatious litigation that they shed and possess costs awarded versus them. That is completely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial role players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and jogging สลาก กิน รัฐบาล the CTMCA.” The investigators claimed they were unable to Get hold of Momberg.
Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “found many machines, some in excellent problem, some in undesirable condition and some that seemed rusty and very previous”. Stemmet instructed the investigators that there was also an off-internet site storage facility wherever “instruments plus some equipment” ended up saved.
“We questioned him to take us to the facility but he was evasive to our ask for.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, from the items look like products which was illegally removed from the CTMCA’s earlier premises. Stemmet is facing fees for this removing.
According to the ultimate progress report submitted on the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter ended up administrators at enough time.
The investigators observed this “alarming”.
“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we note the following alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, a similar tackle on which the museum was intended to be crafted and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the process of obtaining “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.
Based on Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, indicating R6.9-million is still owed, although there is absolutely no payment date established for when this has to be compensated.
The Kopano audit and the shut backlink between the businesses “suggest to us that there's ‘foul Perform’ linked to the acquisition on the equipment of your museum workshop”, the investigators mentioned during the report.
“We discover that it's extremely probable that CTMCA made use of the funding of the NLC to ‘refund’ among its major directors to the residence at the next overpriced amount than the particular rate and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant for the CTMCA were put in.
“In fact, an in depth report on how the funding from the NLC was made use of, can be unattainable given that the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts used on Just about every item it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not conducted a website check out in advance of approving the grant. But this wasn't common follow at time and they discovered no proof of negligence by NLC employees.
At some time, the NLC’s policies did not have to have funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was in a position to get a next tranche of funding while not having to provide proof that it had made use of the initial tranche for its meant intent.
Subsequent the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni encouraged that
the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced completed Along with the prior studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to deliver the queries by e-mail also. But no response were been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph