Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated to minstrel team
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Minstrels carry out in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no proof that a museum at any time existed.
The investigators discovered the CTMCA didn't use the R5-million allotted to get or make a museum.
In addition they identified which the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA applied resources through the Lottery to purchase workshop equipment from amongst its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice the city’s prosperous minstrel heritage went astray. The museum was by no means established.
The small print on the abuse of an incredible number of rands of Lottery cash for the museum that by no means was are unveiled within an investigative report commissioned via the NLC in 2021.
The museum grant was part of more than R64-million in Lottery money allotted to the CTMCA between 2003 and 2017.
The primary Component of the investigation, by regulation organization Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which integrated funding for that museum. The accredited spending budget to the museum was more than R12.8-million, with R5-million of that allotted for just a creating to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the creating for that museum and if the museum “truly existed”.
The agency was also instructed to research
the purchase with Lottery funds of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
several devices “acquired to the manufacturing with the costumes and hats” for your 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 ongoing as two of numerous administrators from the organisation. Stemmet was reappointed for a director in May 2021.
The investigation followed intensive reporting by GroundUp in regards to the many rands of Lottery funding allotted to the CTMCA (see here, here and here) and the way the resources likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The creating on the proper was the meant internet site of the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to a Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - involving 2012 and 2015. All a few tasks had been concluded, she explained to MPs.
However the investigators located no proof that a museum experienced ever existed.
At the beginning the museum was because of open in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of the meant Wetton museum shows a espresso shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung on the partitions, as well as a model ship on its plinth within a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to verify if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved simply because they could no longer manage the rent of R100,000 a month. He stated the CTMCA experienced acquired assets for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar rate. Schaapkraal is in a peri-city area significantly from the city.
As a result, the museum had been moved to a brand new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after visiting the premises, which might be within an industrial region, the investigators mentioned they doubted irrespective of whether a suitable museum existed there. Images connected to your report show a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the floor, with no clarification.
“You will find there's minimal number of products for the museum [that] in no way depict the more than one hundred-12 months background on the Cape City Carnival, the investigators claimed, adding that there was “no signage exterior the premises indicating which they housed a museum and … normally, the museum isn't going to look to become open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by transferring the location in the museum to an alternate place without the need of notifying the NLC.
The Schaapkraal house, on which no museum was ever crafted. Photo: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA had to maneuver from the rented Crete Road premises as it had operate up a R4-million personal debt with the City of Cape City and was scared its gear would be hooked up.
“Mainly because of the authorized battles as well as the debts, the organisation experienced to maneuver its home from five Crete Highway to steer clear of the sheriff from attaching the assets on the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director on the CTMCA, told them which the two buses acquired with lottery funds ended up saved in the mystery locale “concealed from the Sheriff”. However the investigators reported they were being not able to substantiate that any buses experienced ever been purchased.
Stemmet also verified that the buses were hidden to halt them remaining seized. But once the investigators requested to be taken for the place wherever the buses were stored, he instructed them that “the owner of The key location was not available to open the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 motor vehicles that it allegedly acquired with grant dollars,” the investigators described.
Soeker also instructed them the Schaapkraal house had been marketed due to the debt.
“Mr Soeker stated that Based on his knowing, a result of the financial debt owed to town of Cape Town, the CTMCA determined it would be best to sell their [Schaapkraal] residence … and to also to hide the belongings on the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for security and protection, has Beforehand advised GroundUp the CTMCA “threw money away” on litigation with the City.
“Annually like clockwork, as we approach the tip with the 12 months, the CTMCA picks a authorized battle with the town, in excess of permits or something else. We in no way initiate it. They retain throwing income away on vexatious litigation which they reduce and possess prices awarded towards them. This really is completely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial purpose players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all of the admin, finances and operating ruay the CTMCA.” The investigators mentioned they were struggling to contact Momberg.
Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “discovered quite a few devices, some in very good affliction, some in lousy ailment plus some that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web page storage facility wherever “instruments and some equipment” had been kept.
“We requested him to take us to the power but he was evasive to our request.”
Dependant on images and invoices in GroundUp’s possession, some, if not all, with the items look like gear that was illegally removed from the CTMCA’s former premises. Stemmet is going through rates for this removal.
According to the last progress report submitted for the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter have been directors at some time.
The investigators located this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape City, precisely the same handle on which the museum was meant to be constructed and/or converted,” they documented.
An audit by accountants Kopano Included, connected to the investigative report, recorded that the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.
According to Dabishi Nthambeleni, the company has paid out R1.2-million to be a deposit, this means R6.nine-million remains to be owed, though there's no payment date established for when this should be compensated.
The Kopano audit plus the close connection amongst the businesses “show to us that there's ‘foul play’ involved with the acquisition on the equipment with the museum workshop”, the investigators said from the report.
“We discover that it is extremely possible that CTMCA employed the funding of your NLC to ‘refund’ one among its most important administrators with the property at a higher overpriced price than the actual cost and value of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant to your CTMCA had been used.
“The truth is, a detailed report on how the funding with the NLC was utilised, would be unachievable since the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities invested on each item it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC had not performed a web-site stop by prior to approving the grant. But this was not typical exercise at some time plus they observed no evidence of negligence by NLC workers.
At some time, the NLC’s regulations did not need funded organisations to post proof of payment with interim reviews, they identified. This meant the CTMCA was capable to receive a 2nd tranche of funding without needing to provide proof that it experienced employed the initial tranche for its supposed objective.
Pursuing the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these along with other challenges.
Dabishi Nthambeleni advised that
the NLC decrease any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a prison situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, as an alternative to act on the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had performed With all the past reports into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to mail the questions by email too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph