Leaked report exposes abuse of lottery income paid out to minstrel team
Leaked report exposes abuse of lottery income paid out to minstrel team
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Minstrels execute in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Countrywide Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has uncovered no proof that a museum at any time existed.
The investigators identified that the CTMCA did not utilize the R5-million allocated to acquire or create a museum.
In addition they discovered which the CTMCA only purchased land worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA used funds from your Lottery to acquire workshop gear from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Fee (NLC) to build a museum to rejoice the town’s prosperous minstrel historical past went astray. The museum was hardly ever made.
The small print of the abuse of countless rands of Lottery cash to get a museum that hardly ever was are uncovered within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of more than R64-million in Lottery funds allocated to your CTMCA concerning 2003 and 2017.
The very first A part of the investigation, by law company Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which integrated funding for your museum. The accepted price range for the museum was greater than R12.eight-million, with R5-million of that allocated for just a setting up to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the making to the museum and whether or not the museum “truly existed”.
The firm was also instructed to research
the purchase with Lottery money of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
many equipment “bought for that manufacturing of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several administrators on the organisation. Stemmet was reappointed as a director in May well 2021.
The investigation adopted in depth reporting by GroundUp regarding the many rands of Lottery funding allocated into the CTMCA (see in this article, listed here and here) and the way in which the cash most likely served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.
The developing on the proper was the supposed web-site of your minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All three projects were concluded, she advised MPs.
But the investigators found no evidence that a museum experienced ever existed.
At the outset the museum was on account of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp in the supposed Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, in addition to a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni mentioned it was “not in a position” to substantiate if a museum experienced at any time operated from these premises.
Stemmet explained to the investigators the museum were moved since they could no longer pay for the hire of R100,000 per month. He explained the CTMCA had purchased residence for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were offered for the same value. Schaapkraal is within a peri-city spot far from the town.
Because of this, the museum were moved to a whole new location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after browsing the premises, that are in an industrial place, the investigators stated they doubted whether or not an appropriate museum existed there. Photographs hooked up to the report display a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the floor, with no rationalization.
“You will find there's negligible number of goods with the museum [that] by no means signify the greater than a hundred-year history with the Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating which they housed a museum and … usually, the museum isn't going to look to become open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by transferring The placement with the museum to an alternate spot without notifying the NLC.
The Schaapkraal property, on which no museum was at any time created. Image: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move through the rented Crete Road premises mainly because it had operate up a R4-million debt with the town of Cape City and was concerned its gear could well be attached.
“Mainly because of the legal battles along with the debts, the organisation experienced to maneuver its assets from 5 Crete Road to avoid the sheriff from attaching the house with the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director of your CTMCA, explained to them which the two buses purchased with lottery cash have been stored in a magic formula location “concealed through the Sheriff”. Although the investigators explained they had been not able to confirm that any buses experienced ever been purchased.
Stemmet also verified the buses were hidden to prevent them being seized. But if the investigators questioned for being taken into the spot where by the buses had been stored, he explained to them that “the owner of the secret area wasn't available to open the premises for us”.
“The CTMCA could not give evidence of payment for 2 automobiles that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also told them the Schaapkraal property were bought as a result of credit card debt.
“Mr Soeker discussed that As outlined by his knowledge, due to credit card debt owed to the City of Cape Town, the CTMCA decided It could be greatest to offer their [Schaapkraal] assets … also to also to hide the assets of your CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for basic safety and stability, has Earlier advised GroundUp which the CTMCA “threw cash absent” on litigation with the City.
“Yearly like clockwork, as we method the top in the calendar year, the CTMCA picks a legal battle with the City, about permits or something else. We hardly ever initiate it. They maintain throwing funds away on vexatious litigation they get rid of and possess costs awarded towards them. This is certainly solely self-inflicted,” he said.
Soeker told the Dabishi Nthambeleni investigators that the key position players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for each of the admin, finances and functioning ผล หวย หุ้น the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “discovered numerous devices, some in very good condition, some in lousy problem plus some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “instruments plus some machinery” were being stored.
“We requested him to choose us to the facility but he was evasive to our ask for.”
Depending on images and invoices in GroundUp’s possession, some, if not all, on the merchandise look like machines which was illegally removed from the CTMCA’s past premises. Stemmet is struggling with costs for this removing.
Based on the ultimate progress report submitted to the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter were administrators at the time.
The investigators found this “alarming”.
“Within the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Be aware the next alarming getting: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the company is 5 Crete Road, Wetton, Cape City, the identical tackle on which the museum was meant to be constructed and/or converted,” they described.
An audit by accountants Kopano Included, hooked up to your investigative report, recorded the CTMCA was in the process of obtaining “machinery, plant and inventory” 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 among the administrators.
In keeping with Dabishi Nthambeleni, the organization has paid out R1.two-million to be a deposit, which means R6.9-million continues to be owed, even though there is no payment day established for when this should be paid.
The Kopano audit along with the near website link among the companies “indicate to us that there's ‘foul Engage in’ associated with the acquisition on the machinery of your museum workshop”, the investigators explained inside the report.
“We discover that it is remarkably probable that CTMCA made use of the funding with the NLC to ‘refund’ one among its major directors for your property at a higher overpriced amount than the actual selling price and price of the property and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant into the CTMCA were used.
“In point of fact, an in depth report on how the funding with the NLC was made use of, could well be unachievable given that the CTMCA does not have any receipts, or proof of payments to substantiate the amounts used on Just about every item it asked for funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not carried out a web page check out prior to approving the grant. But this was not conventional practice at time plus they uncovered no proof of carelessness by NLC workers.
At time, the NLC’s procedures didn't require funded organisations to post evidence of payment with interim stories, they pointed out. This meant which the CTMCA was able to get a 2nd tranche of funding while not having to present proof that it had made use of the 1st tranche for its meant purpose.
Next the appointment of a different board, commissioner and senior executive workforce, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni proposed that
the NLC decline any long run funding applications through the CTMCA;
the CTMCA and any users who were associated with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a prison circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, instead of act around the report’s recommendations, the NLC – less than its former administration – chose to suppress it, as it experienced accomplished With all the prior experiences into corruption it had commissioned.
GroundUp despatched queries to Stemmet and Soeker by using SMS, and requested for electronic mail addresses to deliver the thoughts by email far too. But no reaction had been acquired at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph
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