Leaked report exposes abuse of lottery income paid to minstrel group
Leaked report exposes abuse of lottery income paid to minstrel group
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Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the National Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has uncovered no proof that a museum ever existed.
The investigators found that the CTMCA did not make use of the R5-million allotted to buy or develop a museum.
In addition they found which the CTMCA only acquired land well worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA utilized resources from the Lottery to purchase workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Fee (NLC) to put in place a museum to celebrate the town’s prosperous minstrel record went astray. The museum was under no circumstances established.
The main points of your abuse of millions of rands of Lottery cash to get a museum that under no circumstances was are unveiled within an investigative report commissioned with the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery funds allocated for the CTMCA concerning 2003 and 2017.
The main Portion of the investigation, by legislation agency Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which involved funding to the museum. The authorized spending plan for your museum was greater than R12.eight-million, with R5-million of that allotted for the creating to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for the museum and if the museum “really existed”.
The business was also instructed to investigate
the purchase with Lottery funds of two motor vehicles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
several equipment “purchased for your production with the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of administrators with the organisation. Stemmet was reappointed being a director in Could 2021.
The investigation adopted comprehensive reporting by GroundUp in regards to the countless rands of Lottery funding allocated to your CTMCA (see here, here and here) and how the funds possibly aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at the time by Marius Fransman.
The setting up on the ideal was the intended web site in the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 jobs were completed, she informed MPs.
Although the investigators found no evidence that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of your meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of shots haphazardly hung to the walls, along with a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni said it had been “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved as they could no longer afford to pay for the rent of R100,000 a month. He claimed the CTMCA experienced obtained residence for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for the same price. Schaapkraal is within a peri-urban space far from town.
Consequently, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after visiting the premises, that are within an industrial place, the investigators explained they doubted no matter whether a correct museum existed there. Shots connected to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the floor, without rationalization.
“There's a small amount of objects within the museum [that] on no account signify the in excess of one hundred-yr background from the Cape City Carnival, the investigators claimed, including that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum does not glimpse to generally be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by transferring The situation with the museum to an alternative locale with out notifying the NLC.
The Schaapkraal house, on which no museum was ever developed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver within the rented Crete Street premises because it had run up a R4-million personal debt with the City of Cape Town and was worried its products could be connected.
“Due to the authorized battles along with the debts, the organisation experienced to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the home of your organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director of the CTMCA, instructed them which the two buses purchased with lottery resources were being saved in the top secret locale “concealed from the Sheriff”. Nevertheless the investigators mentioned they have been unable to substantiate that any buses experienced at any time been bought.
Stemmet also confirmed that the buses had been concealed to prevent them remaining seized. But in the event the investigators questioned for being taken for the location exactly where the buses were stored, he explained to them that “the proprietor of the secret area was not available to open the premises for us”.
“The CTMCA couldn't present evidence of payment for 2 autos that it allegedly purchased with grant funds,” the investigators noted.
Soeker also instructed them the Schaapkraal home were bought due to the debt.
“Mr Soeker defined that Based on his knowledge, a result of the personal debt owed to the town of Cape Town, the CTMCA decided It will be finest to sell their [Schaapkraal] property … also to also to cover the assets of the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and safety, has Beforehand told GroundUp the CTMCA “threw dollars away” on litigation with the City.
“On a yearly basis like clockwork, as we solution the top with the calendar year, the CTMCA picks a authorized combat with the City, above permits or something else. We under no circumstances initiate it. They keep throwing income absent on vexatious litigation they reduce and also have fees awarded against them. This is completely self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of each of the admin, finances and jogging ผล สลาก the CTMCA.” The investigators reported they had been not able to Get in touch with Momberg.
Hats
Throughout their “investigation in loco” at the Primrose Park premises, the investigators “located many machines, some in excellent affliction, some in lousy condition and a few that looked rusty and extremely old”. Stemmet advised the investigators that there was also an off-web-site storage facility wherever “devices and a few equipment” were being held.
“We requested him to take us to the ability but he was evasive to our request.”
Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, from the goods appear to be tools which was illegally faraway from the CTMCA’s former premises. Stemmet is going through rates for this removing.
According to the last progress report submitted towards the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company by which Stemmet, his spouse and his daughter ended up administrators at the time.
The investigators found this “alarming”.
“Within the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the same address on which the museum was intended to be designed and/or transformed,” they noted.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the entire process of getting “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the directors.
In accordance with Dabishi Nthambeleni, the business has paid R1.two-million for a deposit, indicating R6.9-million is still owed, though there is no payment day set for when this need to be paid.
The Kopano audit as well as close backlink in between the companies “suggest to us that there is ‘foul Enjoy’ associated with the acquisition in the equipment of the museum workshop”, the investigators claimed in the report.
“We find that it is extremely probable that CTMCA utilised the funding of your NLC to ‘refund’ one of its principal directors for your house at a better overpriced charge than the actual rate and worth of the house and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was not able to determine how the grant for the CTMCA were invested.
“In point of fact, a detailed report on how the funding of the NLC was applied, will be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities used on Every single product it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not conducted a web site take a look at before approving the grant. But this wasn't standard observe at some time plus they found no proof of carelessness by NLC employees.
At enough time, the NLC’s regulations did not require funded organisations to submit proof of payment with interim experiences, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without the need to supply evidence that it had applied the first tranche for its meant intent.
Adhering to the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other issues.
Dabishi Nthambeleni advised that
the NLC decrease any long run funding apps with the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected to your NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as opposed to act on the report’s suggestions, the NLC – below its past administration – selected to suppress it, because it experienced done Along with the prior stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to send the inquiries by electronic mail as well. But no response had been acquired at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph