Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
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Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to obtain or establish a museum.
In addition they discovered which the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA utilised funds with the Lottery to purchase workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to setup a museum to celebrate town’s wealthy minstrel heritage went astray. The museum was in no way designed.
The small print in the abuse of a lot of rands of Lottery money for your museum that never was are uncovered within an investigative report commissioned through the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery funds allotted into the CTMCA concerning 2003 and 2017.
The initial part of the investigation, by legislation organization Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which provided funding to the museum. The permitted funds for that museum was much more than R12.eight-million, with R5-million of that allocated for a creating to deal with the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing for the museum and if the museum “essentially existed”.
The firm was also instructed to investigate
the purchase with Lottery cash of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
many machines “bought to the production on the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few directors of the organisation. Stemmet was reappointed to be a director in Could 2021.
The investigation followed substantial reporting by GroundUp in regards to the millions of rands of Lottery funding allocated to your CTMCA (see in this article, listed here and here) and the best way the money probably served finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at time by Marius Fransman.
The creating on the proper was the intended web page of the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response into a Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “tasks” - such as the museum - concerning 2012 and 2015. All a few assignments were concluded, she informed MPs.
However the investigators uncovered no evidence that a museum experienced ever existed.
At the beginning the museum was resulting from open in rented premises in Crete Highway, Wetton. A photo received by GroundUp of the intended Wetton museum demonstrates a espresso store with some musical devices and minstrel costumes and collages of photographs haphazardly hung over the partitions, and a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni reported it was “not able” to verify if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum had been moved mainly because they could no longer manage the rent of R100,000 per month. He mentioned the CTMCA had ordered home for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been sold for a similar value. Schaapkraal is inside a peri-urban area considerably from the town.
Due to this fact, the museum were moved to a new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after viewing the premises, that are in an industrial space, the investigators reported they doubted no matter whether an appropriate museum existed there. Images attached to the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without having clarification.
“There exists a minimal number of objects in the museum [that] in no way symbolize the greater than one hundred-year heritage of the Cape City Carnival, the investigators stated, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum would not seem to become open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by shifting The placement of your museum to an alternative site without the need of notifying the NLC.
The Schaapkraal house, on which no museum was ever constructed. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA had to maneuver from the rented Crete Highway premises as it had operate up a R4-million financial debt with town of Cape Town and was concerned its gear might be attached.
“As a result of lawful battles as well as debts, the organisation experienced to move its house from 5 Crete Street to avoid the sheriff from attaching the house from the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director in the CTMCA, advised them that the two buses purchased with lottery money had been saved inside of a mystery spot “hidden within the Sheriff”. Although the investigators explained they had been not able to substantiate that any buses had ever been acquired.
Stemmet also confirmed that the buses were concealed to stop them remaining seized. But once the investigators requested being taken towards the spot wherever the buses were stored, he advised them that “the proprietor of The key area was not accessible to open up the premises for us”.
“The CTMCA could not present evidence of payment for 2 autos that it allegedly bought with grant income,” the investigators noted.
Soeker also instructed them the Schaapkraal house had been marketed due to personal debt.
“Mr Soeker stated that In keeping with his knowing, because of the credit card debt owed to the town of Cape City, the CTMCA resolved It could be greatest to provide their [Schaapkraal] property … and to also to cover the belongings with the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for security and protection, has Beforehand instructed GroundUp that the CTMCA “threw income absent” on litigation with the City.
“On a yearly basis like clockwork, as we approach the end in the calendar year, the CTMCA picks a authorized battle with the City, in excess of permits or something else. We hardly ever initiate it. They hold throwing revenue away on vexatious litigation that they lose and also have charges awarded in opposition to them. This really is solely self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the leading role players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all of the admin, finances and working สลาก กิน the CTMCA.” The investigators stated they had been not able to Call Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “found many machines, some in excellent problem, some in negative problem and a few that looked rusty and intensely old”. Stemmet explained to the investigators that there was also an off-site storage facility where by “devices and a few equipment” ended up stored.
“We questioned him to choose us to the ability but he was evasive to our ask for.”
Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like tools which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with charges for this removal.
Based on the remaining development report submitted towards the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation during which Stemmet, his wife and his daughter were administrators at some time.
The investigators found this “alarming”.
“From the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Street, Wetton, Cape Town, precisely the same address on which the museum was intended to be built and/or converted,” they reported.
An audit by accountants Kopano Incorporated, hooked up for the investigative report, recorded which the CTMCA was in the whole process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.
In keeping with Dabishi Nthambeleni, the company has paid R1.two-million to be a deposit, meaning R6.nine-million remains owed, nevertheless there is not any payment day established for when this has to be paid.
The Kopano audit and the shut backlink amongst the companies “show to us that there's ‘foul Perform’ involved in the acquisition of the equipment of the museum workshop”, the investigators claimed inside the report.
“We discover that it's highly probable that CTMCA applied the funding of your NLC to ‘refund’ among its most important directors to the residence at an increased overpriced level than the particular selling price and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant to your CTMCA had been invested.
“In reality, an in depth report on how the funding from the NLC was used, might be extremely hard as 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 final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not executed a web page visit prior to approving the grant. But this wasn't regular follow at some time they usually discovered no evidence of negligence by NLC personnel.
At time, the NLC’s principles did not have to have funded organisations to post evidence of payment with interim reports, they identified. This meant which the CTMCA was able to receive a next tranche of funding while not having to supply evidence that it had made use of the primary tranche for its meant purpose.
Following the appointment of a completely new board, commissioner and senior executive staff, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni proposed that
the NLC drop any foreseeable future funding purposes from the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected to your NLC’s “delinquency” procedure;
the NLC open up a prison circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated money.
But, as an alternative to act over the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, because it had performed While using the former studies into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker by means of SMS, and questioned for email addresses to deliver the issues by e-mail way too. But no reaction were received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph