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 carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has identified no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't make use of the R5-million allocated to purchase or create a museum.
They also found the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilised funds within the Lottery to get workshop gear from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to create a museum to rejoice the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print with the abuse of an incredible number of rands of Lottery money to get a museum that under no circumstances was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery cash allotted towards the CTMCA involving 2003 and 2017.
The main part of the investigation, by legislation firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding for that museum. The authorized funds with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the making for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the purchase with Lottery funds of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “obtained with the production of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted legal 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 wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.
The investigation adopted intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated for the CTMCA (see right here, right here and below) and the best way the resources most likely aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at some time by Marius Fransman.
The building on the proper was the supposed web site on the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “jobs” - including the museum - involving 2012 and 2015. All a few tasks had been done, she told MPs.
Although the investigators found no proof that a museum experienced at any time existed.
In the beginning the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of the meant Wetton museum reveals a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the partitions, plus a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it was “not able” 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 the rent of R100,000 a month. He claimed the CTMCA experienced obtained residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for the same cost. Schaapkraal is within a peri-urban location significantly from the town.
Therefore, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, which can be within an industrial place, the investigators mentioned they doubted no matter whether a proper museum existed there. Pics attached to your report present a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the floor, without rationalization.
“There is a minimum volume of merchandise at the museum [that] in no way symbolize the a lot more than one hundred-yr background from the Cape Town Carnival, the investigators reported, introducing that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum does not glance to get open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to another place without the need of 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 maneuver within the rented Crete Highway premises because it had operate up a R4-million debt with town of Cape City and was worried its equipment would be hooked up.
“Due to the lawful battles as well as debts, the organisation experienced to move its assets from 5 Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses purchased with lottery funds ended up saved within a top secret area “concealed from the Sheriff”. Although the investigators said they had been unable to verify that any buses had ever been purchased.
Stemmet also confirmed the buses had been hidden to stop them getting seized. But if the investigators requested for being taken to the area where the buses have been saved, he told them that “the owner of The key site wasn't available to open the premises for us”.
“The CTMCA could not offer proof of payment for two autos that it allegedly ordered with grant money,” the investigators reported.
Soeker also informed them the Schaapkraal home had been bought due to personal debt.
“Mr Soeker stated that according to his understanding, due to the personal debt owed to the town of Cape City, the CTMCA made a decision It might be best to offer their [Schaapkraal] home … also to also to hide the property of your CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for security and stability, has previously advised GroundUp the CTMCA “threw money away” on litigation with the City.
“Each and every year like clockwork, as we solution the top of the year, the CTMCA picks a legal fight with the City, over permits or something else. We by no means initiate it. They preserve throwing funds away on vexatious litigation which they reduce and also have charges awarded in opposition to them. This can be completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the principle part gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing cat888 the CTMCA.” The investigators explained they had been struggling to Speak to Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “located quite a few equipment, some in superior situation, some in terrible condition and several that looked rusty and very previous”. Stemmet advised the investigators that there was also an off-web site storage facility the place “instruments and several machinery” have been retained.
“We questioned him to get us to the facility but he was evasive to our request.”
Based on shots and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like tools that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with expenses for this removing.
According to the closing progress report submitted on the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were being administrators at enough time.
The investigators found this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Road, Wetton, Cape City, the exact same address on which the museum was intended to be built and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, connected into the investigative report, recorded which the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the administrators.
In accordance with Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, although there isn't any payment day established for when this have to be paid.
The Kopano audit plus the close url in between the companies “suggest to us that there is ‘foul Engage in’ linked to the acquisition of the machinery in the museum workshop”, the investigators claimed within the report.
“We find that it is very probable that CTMCA employed the funding on the NLC to ‘refund’ considered one of its most important administrators to the home at a greater overpriced price than the particular rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been expended.
“In fact, an in depth report on how the funding in the NLC was used, might be not possible given that the CTMCA does not have any receipts, or proof of payments to verify the quantities spent on Every single merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not done a website pay a visit to in advance of approving the grant. But this was not regular practice at the time and they uncovered no evidence of negligence by NLC workforce.
At enough time, the NLC’s principles didn't call for funded organisations to submit evidence of payment with interim reviews, they identified. This intended the CTMCA was able to get a next tranche of funding without needing to deliver proof that it had applied the very first tranche for its meant purpose.
Subsequent the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and various challenges.
Dabishi Nthambeleni suggested that
the NLC decline any foreseeable future funding apps through the CTMCA;
the CTMCA and any customers who had been associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act on the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it had performed Using the past reports into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to send the concerns by email as well. But no response were received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph