Leaked report exposes abuse of lottery funds paid out to minstrel team
Leaked report exposes abuse of lottery funds paid out to minstrel team
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Minstrels perform in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-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 discovered the CTMCA didn't use the R5-million allocated to obtain or create a museum.
Additionally they found that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA employed money with the Lottery to invest in workshop equipment from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to set up a museum to rejoice the town’s prosperous minstrel background went astray. The museum was hardly ever produced.
The small print in the abuse of many rands of Lottery funds for the museum that by no means was are disclosed within an investigative report commissioned from the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery cash allotted for the CTMCA concerning 2003 and 2017.
The first Portion of the investigation, by legislation firm Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which provided funding for your museum. The authorized finances with the museum was greater than R12.8-million, with R5-million of that allotted for a constructing to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for the museum and whether or not the museum “actually existed”.
The business was also instructed to investigate
the acquisition with Lottery money of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
various machines “purchased for your production with the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director with 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 continued as two of quite a few directors of the organisation. Stemmet was reappointed for a director in Could 2021.
The investigation adopted comprehensive reporting by GroundUp with regards to the an incredible number of rands of Lottery funding allotted to the CTMCA (see listed here, in this article and right here) and the best way the cash most likely helped finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The constructing on the appropriate was the intended web-site on the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Image: Raymond Joseph
In response to some Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 projects had been completed, she instructed MPs.
Nevertheless the investigators uncovered no proof that a museum had at any time existed.
Initially the museum was resulting from open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp on the intended Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, and a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not ready” to verify if a museum had at any time operated from these premises.
Stemmet advised the investigators the museum had been moved since they could now not find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced acquired property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same rate. Schaapkraal is within a peri-city area much from the town.
As a result, the museum had been moved to a whole new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after traveling to the premises, which are within an industrial space, the investigators reported they doubted whether or not a proper museum existed there. Photos hooked up on the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, shown on tables and spread out on the floor, with no clarification.
“There is a small level of merchandise on the museum [that] on no account symbolize the much more than 100-year historical past with the Cape City Carnival, the investigators said, including that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum isn't going to glance being open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement from the museum to another site devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time created. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA experienced to maneuver from your rented Crete Highway premises since it experienced operate up a R4-million debt with the town of Cape City and was frightened its devices could be connected.
“Because of the authorized battles and also the debts, the organisation had to move its house from five Crete Street to steer clear of the sheriff from attaching the property from the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director in the CTMCA, advised them the two buses bought with lottery resources had been stored in the secret locale “concealed through the Sheriff”. Even so the investigators reported they were not able to verify that any buses had at any time been purchased.
Stemmet also verified that the buses were hidden to prevent them currently being seized. But once the investigators questioned being taken on the spot where the buses ended up stored, he told them that “the operator of The key locale was not accessible to open the premises for us”.
“The CTMCA could not present evidence of payment for 2 motor vehicles that it allegedly bought with grant funds,” the investigators documented.
Soeker also instructed them the Schaapkraal residence were marketed as a result of personal debt.
“Mr Soeker explained that according to his knowledge, due to the debt owed to the town of Cape City, the CTMCA made a decision It could be most effective to provide their [Schaapkraal] assets … and also to also to hide the property in the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and protection, has Formerly told GroundUp the CTMCA “threw revenue away” on litigation with the City.
“Every year like clockwork, as we strategy the top on the year, the CTMCA picks a lawful fight with the town, over permits or something else. We in no way initiate it. They retain throwing dollars absent on vexatious litigation they get rid of and possess prices awarded versus them. This is solely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the key function gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for many of the admin, finances and running ตรวจ หวย ล่าสุด the CTMCA.” The investigators claimed they had been unable to contact Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered a lot of equipment, some in excellent ailment, some in negative issue and many that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-site storage facility where “devices plus some equipment” have been held.
“We asked him to take us to the power but he was evasive to our request.”
Depending on photos and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like gear which was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removal.
Based on the remaining progress report submitted for the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter had been directors at the time.
The investigators identified this “alarming”.
“Through the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the company is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, connected into the investigative report, recorded that the CTMCA was in the whole process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the directors.
In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million as a deposit, which means R6.9-million is still owed, although there is absolutely no payment date set for when this should be compensated.
The Kopano audit as well as near url among the companies “point out to us that there is ‘foul play’ involved with the purchase with the machinery with the museum workshop”, the investigators mentioned in the report.
“We find that it's highly probable that CTMCA made use of the funding in the NLC to ‘refund’ amongst its principal directors for that assets at a greater overpriced fee than the particular selling price and price of the assets and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been invested.
“In fact, a detailed report on how the funding of your NLC was made use of, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every product it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not performed a web page pay a visit to right before approving the grant. But this was not normal exercise at some time they usually discovered no evidence of negligence by NLC staff.
At time, the NLC’s policies did not call for funded organisations to submit proof of payment with interim reports, they identified. This intended the CTMCA was capable to receive a next tranche of funding without the need to present proof that it experienced applied the primary tranche for its intended intent.
Pursuing the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these as well as other difficulties.
Dabishi Nthambeleni suggested that
the NLC decrease any future funding programs with the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open a criminal case 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 past administration – chose to suppress it, as it experienced accomplished With all the previous experiences into corruption it had commissioned.
GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for electronic mail addresses to deliver the issues by email way too. But no reaction were obtained at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph
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