Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has found no evidence that a museum at any time existed.
The investigators found that the CTMCA didn't utilize the R5-million allotted to acquire or build a museum.
In addition they uncovered which the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They observed the CTMCA applied money in the Lottery to invest in workshop devices from considered one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to set up a museum to rejoice town’s abundant minstrel historical past went astray. The museum was never ever created.
The details with the abuse of countless rands of Lottery funds to get a museum that never was are uncovered in an investigative report commissioned by the NLC in 2021.
The museum grant was Portion of a lot more than R64-million in Lottery money allocated into the CTMCA amongst 2003 and 2017.
The very first Element of the investigation, by legislation business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which included funding to the museum. The authorised spending budget to the museum was in excess of R12.eight-million, with R5-million of that allotted for just a setting up to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether the museum “actually existed”.
The business was also instructed to research
the purchase with Lottery resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous equipment “bought with the manufacturing 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 Could 2021.
The investigation followed intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated for the CTMCA (see listed here, listed here and right here) and the way the resources likely aided finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the supposed web page in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph
In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been accomplished, she advised MPs.
Although the investigators uncovered no evidence that a museum experienced ever existed.
To start with the museum was on account of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, plus a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to verify if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer find the money for the hire of R100,000 per month. He said the CTMCA had obtained residence for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for the same price tag. Schaapkraal is in the peri-urban location much from the city.
Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after checking out the premises, which can be within an industrial location, the investigators said they doubted whether a correct museum existed there. Photos attached into the report present 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 rationalization.
“There is a minimum volume of goods for the museum [that] on no account stand for the much more than a hundred-12 months historical past in the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum doesn't glimpse being open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by going the location with the museum to another place devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear could be attached.
“Due to the lawful battles plus the debts, the organisation had to maneuver its assets from five Crete Road to stay away from the sheriff from attaching the assets with the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director of the CTMCA, told them which the two buses purchased with lottery funds have been stored in a very secret area “hidden from your Sheriff”. Nevertheless the investigators stated they ended up not able to substantiate that any buses had at any time been acquired.
Stemmet also verified the buses were hidden to halt them getting seized. But when the investigators requested to be taken to the area in which the buses were being stored, he instructed them that “the owner of the secret site wasn't accessible to open the premises for us”.
“The CTMCA couldn't present evidence of payment for two autos that it allegedly obtained with grant funds,” the investigators documented.
Soeker also told them the Schaapkraal residence were sold as a result of debt.
“Mr Soeker discussed that As outlined by his comprehending, mainly because of the debt owed to the City of Cape Town, the CTMCA determined It might be ideal to offer their [Schaapkraal] residence … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and security, has Beforehand instructed GroundUp that the CTMCA “threw money absent” on litigation with the City.
“Every year like clockwork, as we tactic the end of your yr, the CTMCA picks a lawful fight with the town, over permits or something else. We never initiate it. They hold throwing money away on vexatious litigation they reduce and have fees awarded from them. This is completely self-inflicted,” he explained.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial role gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who had been in control of each of the admin, finances and functioning ผล หวย หุ้น the CTMCA.” The investigators reported they were struggling to contact Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “identified many equipment, some in superior affliction, some in undesirable problem and some that appeared rusty and extremely aged”. Stemmet advised the investigators that there was also an off-site storage facility wherever “instruments and several equipment” had been saved.
“We asked him to just take us to the power but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, of the products appear to be products that was illegally faraway from the CTMCA’s past premises. Stemmet is going through expenses for this removing.
Based on the final development report submitted towards the NLC via the CTMCA, the machinery was procured from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter ended up administrators at the time.
The investigators identified this “alarming”.
“Within the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, a similar tackle on which the museum was meant to be developed and/or converted,” they claimed.
An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
In keeping with Dabishi Nthambeleni, the business has compensated R1.2-million like a deposit, this means R6.9-million continues to be owed, while there's no payment date set for when this need to be compensated.
The Kopano audit and the close hyperlink among the companies “show to us that there is ‘foul play’ involved in the acquisition with the machinery in the museum workshop”, the investigators stated within the report.
“We discover that it is extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors with the house at the next overpriced fee than the particular value and price of the property and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant on the CTMCA were used.
“In fact, a detailed report on how the funding on the NLC was applied, could well be not possible since the CTMCA does not have any receipts, or proof of payments to substantiate the quantities expended on Each individual product it requested funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered the NLC had not done a web-site check out just before approving the grant. But this wasn't common practice at enough time and they observed 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 in the position to get a next tranche of funding without having to offer proof that it had utilized the primary tranche for its meant function.
Adhering to the appointment of a different board, commissioner and senior government crew, the NLC has tightened up on these and also other troubles.
Dabishi Nthambeleni advised that
the NLC decline any upcoming funding apps from your CTMCA;
the CTMCA and any users who ended up involved in the grant be subjected to your NLC’s “delinquency” method;
the NLC open up a criminal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated funds.
But, as an alternative to act over the report’s recommendations, the NLC – below its preceding administration – selected to suppress it, since it experienced finished Using the prior reviews into corruption it had commissioned.
GroundUp despatched questions to Stemmet and Soeker via SMS, and questioned for e mail addresses to ship the queries by email too. But no reaction had been received at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph