Leaked report exposes abuse of lottery dollars compensated to minstrel team
Leaked report exposes abuse of lottery dollars compensated to minstrel team
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Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has identified no proof that a museum ever existed.
The investigators found which the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
They also found which the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA used cash from your Lottery to buy workshop equipment from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to arrange a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was under no circumstances created.
The details in the abuse of a lot of rands of Lottery resources for your museum that hardly ever was are revealed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery money allocated to your CTMCA amongst 2003 and 2017.
The very first Component of the investigation, by legislation agency Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which bundled funding for your museum. The permitted budget for the museum was much more than R12.eight-million, with R5-million of that allotted for any making to house the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a making for that museum and if the museum “actually existed”.
The business was also instructed to investigate
the purchase with Lottery cash of two vehicles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
several devices “purchased for that production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators in the organisation. Stemmet was reappointed for a director in Might 2021.
The investigation followed comprehensive reporting by GroundUp regarding the a lot of rands of Lottery funding allotted on the CTMCA (see below, below and listed here) and how the money possibly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.
The creating on the proper was the meant web-site in the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph
In response to your Parliamentary query, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - including the museum - amongst 2012 and 2015. All a few jobs were finished, she instructed MPs.
But the investigators located no evidence that a museum experienced at any time existed.
At the outset the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph received by GroundUp on the intended Wetton museum displays a coffee store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung around the walls, as well as a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni reported it had been “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved since they could not find the money for the rent of R100,000 per month. He claimed the CTMCA experienced obtained residence for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been marketed for a similar cost. Schaapkraal is in a very peri-city area much from the town.
Consequently, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial location, the investigators mentioned they doubted no matter if a suitable museum existed there. Images connected towards the report display a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, with no clarification.
“There's a negligible volume of items for the museum [that] in no way characterize the greater than one hundred-calendar year history on the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum won't glimpse to be open up to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by moving the location of your museum to another spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to move from the rented Crete Street premises because it had operate up a R4-million debt with the town of Cape City and was frightened its devices could be connected.
“Mainly because of the legal battles along with the debts, the organisation experienced to maneuver its assets from five Crete Highway to avoid the sheriff from attaching the home in the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director on the CTMCA, instructed them the two buses bought with lottery funds were saved in a very solution spot “hidden in the Sheriff”. But the investigators reported they ended up unable to verify that any buses had ever been acquired.
Stemmet also confirmed which the buses had been hidden to halt them getting seized. But in the event the investigators asked being taken for the position where the buses were being saved, he informed them that “the owner of The key spot was not available to open the premises for us”.
“The CTMCA couldn't give proof of payment for two motor vehicles that it allegedly purchased with grant cash,” the investigators documented.
Soeker also advised them the Schaapkraal residence had been offered as a result of credit card debt.
“Mr Soeker spelled out that In accordance with his comprehension, a result of the debt owed to the town of Cape City, the CTMCA decided It could be best to promote their [Schaapkraal] house … and also to also to cover the belongings on the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and stability, has Beforehand advised GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Each and every year like clockwork, as we tactic the tip on the yr, the CTMCA picks a lawful combat with the City, around permits or another thing. We never initiate it. They maintain throwing cash away on vexatious litigation which they lose and possess charges awarded from them. That is completely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the leading function gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of the many admin, finances and working สลาก กิน รัฐบาล the CTMCA.” The investigators said they were unable to contact Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered various machines, some in fantastic situation, some in terrible situation and several that seemed rusty and intensely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where “instruments and some machinery” were stored.
“We asked him to get us to the ability but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, if not all, of your merchandise seem like tools that was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with charges for this removing.
Based on the last development report submitted on the NLC from the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter ended up directors at enough time.
The investigators found this “alarming”.
“From your CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the company is five Crete Street, Wetton, Cape Town, the same address on which the museum was meant to be crafted and/or transformed,” they claimed.
An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the process of paying for “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
Based on Dabishi Nthambeleni, the corporation has paid R1.2-million as a deposit, that means R6.nine-million is still owed, however there isn't any payment day established for when this must be paid.
The Kopano audit along with the shut link in between the companies “show to us that there is ‘foul Perform’ associated with the purchase of the equipment with the museum workshop”, the investigators said in the report.
“We discover that it is highly possible that CTMCA employed the funding of the NLC to ‘refund’ amongst its key directors with the house at a higher overpriced rate than the actual price and worth of the property and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was unable to determine how the grant towards the CTMCA had been used.
“In fact, 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 evidence of payments to substantiate the quantities spent on Each and every merchandise it requested funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC had not conducted a site visit before approving the grant. But this wasn't normal observe at time and they observed no evidence of negligence by NLC employees.
At time, the NLC’s procedures did not call for funded organisations to post proof of payment with interim stories, they identified. This meant that the CTMCA was in the position to receive a second tranche of funding while not having to provide proof that it had utilized the initial tranche for its meant goal.
Adhering to the appointment of a whole new board, commissioner and senior government group, the NLC has tightened up on these together with other difficulties.
Dabishi Nthambeleni advisable that
the NLC decrease any long run funding apps from your CTMCA;
the CTMCA and any associates who were linked to the grant be subjected to your NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated money.
But, rather than act about the report’s recommendations, the NLC – beneath its former administration – chose to suppress it, because it had finished With all the past experiences into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to deliver the queries by e-mail also. But no response were been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph