Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the Countrywide Lotteries Fee for the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has found no proof that a museum at any time existed.
The investigators found that the CTMCA did not use the R5-million allotted to order or make a museum.
Additionally they identified which the CTMCA only acquired land worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA employed cash within the Lottery to invest in workshop equipment from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) via the Countrywide Lotteries Commission (NLC) to setup a museum to celebrate the city’s prosperous minstrel historical past went astray. The museum was never developed.
The details with the abuse of an incredible number of rands of Lottery funds for your museum that in no way was are exposed within an investigative report commissioned with the NLC in 2021.
The museum grant was Portion of more than R64-million in Lottery money allotted towards the CTMCA amongst 2003 and 2017.
The main Section of the investigation, by legislation business Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which incorporated funding to the museum. The permitted finances for that museum was a lot more than R12.8-million, with R5-million of that allotted for your making to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for the museum and if the museum “truly existed”.
The firm was also instructed to research
the acquisition with Lottery money of two cars – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
a variety of machines “purchased for your production in the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director with 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 various directors with the organisation. Stemmet was reappointed as a director in Could 2021.
The investigation adopted extensive reporting by GroundUp about the numerous rands of Lottery funding allocated for the CTMCA (see right here, listed here and right here) and the way in which the funds possibly served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at the time by Marius Fransman.
The developing on the correct was the supposed web page on the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction into a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “projects” - such as the museum - in between 2012 and 2015. All a few tasks were completed, she explained to MPs.
But the investigators located no evidence that a museum had at any time existed.
At the outset the museum was due to open in rented premises in Crete Road, Wetton. A photograph received by GroundUp of the supposed Wetton museum reveals a coffee store with some musical instruments and minstrel costumes and collages of pics haphazardly hung around the walls, plus a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved mainly because they could now not pay for the rent of R100,000 a month. He reported the CTMCA had acquired house for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been bought for a similar price tag. Schaapkraal is in the peri-urban area considerably from the town.
Due to this fact, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following visiting the premises, that are within an industrial space, the investigators reported they doubted whether a suitable museum existed there. Photographs hooked up into the report show a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the floor, without having rationalization.
“You will find a negligible volume of merchandise at the museum [that] by no means symbolize the a lot more than one hundred-12 months historical past in the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage outdoors the premises indicating they housed a museum and … usually, the museum isn't going to appear to get open up to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by transferring The placement of your museum to an alternative location without having notifying the NLC.
The Schaapkraal home, on which no museum was at any time built. Image: Raymond Joseph
Buses
Stemmet instructed the investigators the CTMCA had to maneuver in the rented Crete Highway premises as it had operate up a R4-million financial debt with the City of Cape Town and was scared its devices could well be connected.
“Due to authorized battles and also the debts, the organisation experienced to maneuver its house from five Crete Road to stay away from the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director on the CTMCA, explained to them which the two buses acquired with lottery funds had been stored within a mystery site “hidden through the Sheriff”. But the investigators stated they were not able to substantiate that any buses had at any time been purchased.
Stemmet also confirmed the buses had been concealed to prevent them getting seized. But once the investigators questioned for being taken for the place where by the buses ended up saved, he advised them that “the owner of The key site was not available to open up the premises for us”.
“The CTMCA couldn't supply evidence of payment for two motor vehicles that it allegedly obtained with grant revenue,” the investigators reported.
Soeker also informed them the Schaapkraal residence were offered due to the debt.
“Mr Soeker described that As outlined by his comprehension, due to the financial debt owed to town of Cape City, the CTMCA decided It might be finest to provide their [Schaapkraal] property … also to also to hide the assets with the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and safety, has Earlier advised GroundUp which the CTMCA “threw money away” on litigation with the town.
“Every year like clockwork, as we solution the top from the year, the CTMCA picks a authorized battle with the town, about permits or something else. We never ever initiate it. They maintain throwing dollars away on vexatious litigation they reduce and possess expenditures awarded towards them. This is totally self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the key role players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of every one of the admin, finances and operating หวย รัฐบาล the CTMCA.” The investigators stated they had been unable to Call Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “identified several equipment, some in very good issue, some in negative problem and several that looked rusty and intensely outdated”. Stemmet told the investigators that there was also an off-web-site storage facility wherever “instruments and some machinery” were being stored.
“We requested him to acquire us to the power but he was evasive to our ask for.”
Determined by photos and invoices in GroundUp’s possession, some, if not all, from the goods look like products that was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with charges for this removing.
According to the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was bought from Martin-Conne Milliners, an organization in which Stemmet, his spouse and his daughter ended up directors at some time.
The investigators located this “alarming”.
“From your CIPC look for of Martin-Conne Milliners along with the invoices submitted, we note the next alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is five Crete Highway, Wetton, Cape City, exactly the same handle on which the museum was meant to be crafted and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, attached to the investigative report, recorded the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the directors.
In accordance with Dabishi Nthambeleni, the corporation has paid R1.2-million for a deposit, that means R6.nine-million is still owed, however there isn't any payment day established for when this must be paid out.
The Kopano audit as well as shut hyperlink amongst the companies “reveal to us that there is ‘foul Engage in’ involved with the purchase with the machinery of the museum workshop”, the investigators reported from the report.
“We find that it is very probable that CTMCA utilised the funding of the NLC to ‘refund’ considered one of its primary directors with the property at an increased overpriced rate than the actual value and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were expended.
“The truth is, an in depth report on how the funding with the NLC was made use of, would be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on Every product it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located which the NLC had not executed a web site stop by just before approving the grant. But this wasn't standard follow at some time and they identified no proof of carelessness by NLC employees.
At the time, the NLC’s policies didn't require funded organisations to post evidence of payment with interim reports, they pointed out. This intended which the CTMCA was capable of receive a second tranche of funding without needing to give proof that it had employed the primary tranche for its meant objective.
Following the appointment of a completely new board, commissioner and senior government team, the NLC has tightened up on these and other difficulties.
Dabishi Nthambeleni suggested that
the NLC drop any long term funding apps from the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected to the NLC’s “delinquency” method;
the NLC open a legal scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, rather then act over the report’s tips, the NLC – underneath its preceding administration – chose to suppress it, mainly because it had carried out Using the previous stories into corruption it had commissioned.
GroundUp despatched questions to Stemmet and Soeker by means of SMS, and asked for e mail addresses to send the issues by email way too. But no reaction had been acquired at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph
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