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 complete in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators located the CTMCA did not utilize the R5-million allotted to acquire or produce a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They identified the CTMCA used cash from the Lottery to buy workshop products from considered one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to put in place a museum to celebrate the city’s rich minstrel historical past went astray. The museum was never ever established.
The details in the abuse of a lot of rands of Lottery resources for a museum that by no means was are uncovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of greater than R64-million in Lottery funds allotted on the CTMCA among 2003 and 2017.
The very first Element of the investigation, by legislation firm Dabishi Nthambeleni, was executed among September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which included funding for that museum. The authorized finances for the museum was over R12.eight-million, with R5-million of that allotted for your building to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for your museum and whether the museum “actually existed”.
The firm was also instructed to analyze
the acquisition with Lottery money of two vehicles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various equipment “obtained for the producing from the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of several directors on the organisation. Stemmet was reappointed as a director in Could 2021.
The investigation followed considerable reporting by GroundUp with regards to the millions of rands of Lottery funding allotted to the CTMCA (see here, here and here) and the way the resources likely aided finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The making on the appropriate was the supposed web page on the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “projects” - including the museum - amongst 2012 and 2015. All a few projects had been accomplished, she instructed MPs.
But the investigators discovered no proof that a museum had at any time existed.
Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung within the partitions, and also a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum had been moved since they could no more afford to pay for the rent of R100,000 a month. He claimed the CTMCA experienced bought house for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is in a peri-urban area far from town.
As a result, 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 traveling to the premises, which might be in an industrial space, the investigators claimed they doubted no matter whether a proper museum existed there. Images attached on the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without having explanation.
“There's a small degree of items in the museum [that] by no means symbolize the a lot more than one hundred-yr background from the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to be open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location on the museum to an alternative area without notifying the NLC.
The Schaapkraal house, on which no museum was at any time crafted. Photo: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to move with the rented Crete Highway premises mainly because it had run up a R4-million personal debt with the town of Cape City and was frightened its products could be connected.
“Mainly because of the lawful battles along with the debts, the organisation had to move its house from 5 Crete Street to stay away from the sheriff from attaching the property of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director of your CTMCA, explained to them the two buses bought with lottery resources ended up stored within a magic formula location “concealed with the Sheriff”. Even so the investigators mentioned they were not able to confirm that any buses had at any time been bought.
Stemmet also verified which the buses had been concealed to halt them getting seized. But in the event the investigators asked to get taken to the area where by the buses had been stored, he instructed them that “the operator of The trick location was not available to open the premises for us”.
“The CTMCA could not offer proof of payment for 2 vehicles that it allegedly bought with grant cash,” the investigators noted.
Soeker also informed them the Schaapkraal home had been bought as a result of credit card debt.
“Mr Soeker discussed that As outlined by his knowledge, due to financial debt owed to town of Cape Town, the CTMCA decided It could be very best to offer their [Schaapkraal] home … and also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and security, has Formerly advised GroundUp which the CTMCA “threw revenue absent” on litigation with town.
“Each year like clockwork, as we strategy the tip on the 12 months, the CTMCA picks a authorized battle with the City, more than permits or something else. We by no means initiate it. They maintain throwing money absent on vexatious litigation they drop and have prices awarded from them. That is completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for all the admin, finances and jogging fox888 the CTMCA.” The investigators mentioned they were not able to Get in touch with Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “found quite a few machines, some in excellent ailment, some in poor affliction and some that looked rusty and very previous”. Stemmet instructed the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” had been stored.
“We asked him to consider 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, in the products look like devices that was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through costs for this removing.
According to the remaining progress report submitted into the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation during which Stemmet, his spouse and his daughter were directors at time.
The investigators uncovered this “alarming”.
“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the subsequent alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be constructed and/or transformed,” they described.
An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded that the CTMCA was in the whole 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 corporation of which Stemmet was considered one of the directors.
In keeping with Dabishi Nthambeleni, the organization has paid out R1.two-million as being a deposit, that means R6.nine-million remains owed, although there is not any payment day established for when this must be paid.
The Kopano audit as well as the near website link amongst the companies “reveal to us that there is ‘foul Perform’ associated with the purchase of your equipment on the museum workshop”, the investigators mentioned inside the report.
“We discover that it's extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its most important directors for that home at the next overpriced charge than the particular cost and worth of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant towards the CTMCA had been put in.
“In point of fact, an in depth report on how the funding of the NLC was employed, can be unachievable as the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts invested on Each and every item it asked for funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered which the NLC had not performed a site stop by in advance of approving the grant. But this was not typical apply at some time and so they uncovered no evidence of negligence by NLC workforce.
At time, the NLC’s regulations didn't demand funded organisations to post evidence of payment with interim experiences, they pointed out. This meant that the CTMCA was capable to get a 2nd tranche of funding without the need to deliver evidence that it experienced made use of the first tranche for its intended purpose.
Following the appointment of a brand new board, commissioner and senior executive workforce, the NLC has tightened up on these and other challenges.
Dabishi Nthambeleni proposed that
the NLC decrease any potential funding applications within the CTMCA;
the CTMCA and any associates who were involved with the grant be subjected towards the NLC’s “delinquency” system;
the NLC open a felony circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, rather then act around the report’s suggestions, the NLC – beneath its former administration – selected to suppress it, mainly because it experienced done With all the preceding studies into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to send out the inquiries by e-mail as well. But no reaction had been received at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph