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 accomplish in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators identified that the CTMCA didn't use the R5-million allotted to purchase or establish a museum.
They also located which the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of cash through the Lottery to get workshop equipment from one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Fee (NLC) to set up a museum to rejoice the town’s abundant minstrel heritage went astray. The museum was in no way designed.
The details from the abuse of millions of rands of Lottery cash to get a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Portion of much more than R64-million in Lottery money allocated to the CTMCA among 2003 and 2017.
The first Portion of the investigation, by legislation business Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which included funding to the museum. The permitted spending plan to the museum was over R12.eight-million, with R5-million of that allotted for your constructing to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a setting up to the museum and whether the museum “actually existed”.
The business was also instructed to investigate
the purchase with Lottery money of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
different devices “acquired with the production of the costumes and hats” with the minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed as a director in May 2021.
The investigation followed in depth reporting by GroundUp regarding the millions of rands of Lottery funding allocated for the CTMCA (see right here, here and below) and the way the money probably aided finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.
The developing on the proper was the intended internet site in the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - including the museum - between 2012 and 2015. All three assignments were finished, she informed MPs.
Although the investigators uncovered no evidence that a museum experienced ever existed.
To start with the museum was because of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp with the meant Wetton museum demonstrates a espresso store with some musical devices and minstrel costumes and collages of images haphazardly hung around the partitions, and a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved as they could no more find the money for the lease of R100,000 a month. He mentioned the CTMCA experienced obtained property for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for a similar selling price. Schaapkraal is in the peri-city area much from town.
Subsequently, the museum had been moved to a different place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after going to the premises, which are within an industrial space, the investigators stated they doubted irrespective of whether a correct museum existed there. Images connected for the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without any explanation.
“There is a small level of objects in the museum [that] under no circumstances symbolize the more than one hundred-12 months record on the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating which they housed a museum and … frequently, the museum doesn't seem to get open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by shifting the location from the museum to another locale devoid of notifying the NLC.
The Schaapkraal residence, on which no museum was at any time constructed. Picture: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to maneuver from the rented Crete Road premises since it had run up a R4-million credit card debt with town of Cape City and was afraid its gear can be connected.
“Due to the legal battles and also the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the house on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director of your CTMCA, told them which the two buses acquired with lottery cash have been stored within a magic formula spot “hidden in the Sheriff”. Even so the investigators explained they have been not able to verify that any buses experienced ever been purchased.
Stemmet also verified the buses were concealed to prevent them currently being seized. But once the investigators requested to generally be taken on the place in which the buses were being saved, he told them that “the owner of The trick location was not available to open up the premises for us”.
“The CTMCA couldn't provide evidence of payment for 2 motor vehicles that it allegedly ordered with grant income,” the investigators documented.
Soeker also advised them the Schaapkraal home were marketed because of the personal debt.
“Mr Soeker stated that As outlined by his understanding, mainly because of the financial debt owed to the City of Cape City, the CTMCA made a decision It might be very best to provide their [Schaapkraal] house … also to also to hide the assets on the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and protection, has previously instructed GroundUp the CTMCA “threw cash away” on litigation with the City.
“Every year like clockwork, as we strategy the top of your yr, the CTMCA picks a authorized battle with the City, more than permits or another thing. We never initiate it. They continue to keep throwing dollars away on vexatious litigation which they reduce and have costs awarded in opposition to them. This can be solely self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the principle job gamers on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, funds and functioning cat888 the CTMCA.” The investigators reported they had been not able to Get hold of Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “found several machines, some in excellent issue, some in terrible ailment plus some that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-web site storage facility in which “devices and many machinery” had been held.
“We requested him to consider us to the power but he was evasive to our request.”
Dependant on images and invoices in GroundUp’s possession, some, Otherwise all, of your objects look like tools which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with prices for this removal.
Based on the closing development report submitted to the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter had been directors at the time.
The investigators identified this “alarming”.
“Within the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be developed and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the whole process of acquiring “machinery, 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.
As outlined by Dabishi Nthambeleni, the organization has paid R1.2-million like a deposit, this means R6.9-million continues to be owed, however there is no payment day set for when this should be paid.
The Kopano audit and also the shut connection among the businesses “reveal to us that there is ‘foul Enjoy’ associated with the acquisition from the machinery of the museum workshop”, the investigators claimed while in the report.
“We discover that it's very possible that CTMCA utilized the funding on the NLC to ‘refund’ among its key administrators for that property at a greater overpriced fee than the actual value and worth of the house and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant to your CTMCA had been put in.
“Actually, a detailed report on how the funding with the NLC was applied, might be unachievable given that the CTMCA does not have any receipts, or evidence of payments to verify the quantities expended on Each and every merchandise it asked for funding for. The interim report and last report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not performed a web-site go to ahead of approving the grant. But this was not common practice at time and so they identified no evidence of carelessness by NLC workforce.
At enough time, the NLC’s policies did not call for funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was able to receive a next tranche of funding while not having to supply evidence that it experienced utilised the very first tranche for its meant intent.
Adhering to the appointment of a brand new board, commissioner and senior government workforce, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni advisable that
the NLC decrease any upcoming funding programs through the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated resources.
But, rather than act to the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, as it had finished Together with the former reviews into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the thoughts by email as well. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph