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 carry out in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant with the Countrywide Lotteries Commission for the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has uncovered no evidence that a museum ever existed.
The investigators found which the CTMCA did not utilize the R5-million allotted to obtain or establish a museum.
They also observed that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied resources in the Lottery to acquire workshop equipment from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to setup a museum to rejoice town’s loaded minstrel heritage went astray. The museum was hardly ever created.
The details in the abuse of an incredible number of rands of Lottery money for any museum that under no circumstances was are uncovered within an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of over R64-million in Lottery funds allocated to the CTMCA involving 2003 and 2017.
The very first Element of the investigation, by law business Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding for your museum. The accredited spending plan for your museum was in excess of R12.eight-million, with R5-million of that allocated for just a creating to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for your museum and whether or not the museum “truly existed”.
The agency was also instructed to investigate
the purchase with Lottery funds of two autos – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
several equipment “purchased to the production of the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of directors on the organisation. Stemmet was reappointed as a director in May perhaps 2021.
The investigation followed considerable reporting by GroundUp with regards to the millions of rands of Lottery funding allotted into the CTMCA (see below, right here and below) and the best way the resources most likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.
The building on the correct was the supposed web site on the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction into a Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “projects” - including the museum - involving 2012 and 2015. All 3 jobs had been done, she advised MPs.
But the investigators identified no evidence that a museum experienced ever existed.
At first the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of the supposed Wetton museum reveals a espresso shop with some musical devices and minstrel costumes and collages of images haphazardly hung about the walls, and a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it had been “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet advised the investigators the museum were moved because they could not afford the lease of R100,000 per month. He explained the CTMCA had acquired home for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were marketed for a similar value. Schaapkraal is inside of a peri-city space far from town.
Because of this, the museum had been moved to a new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following checking out the premises, which might be in an industrial spot, the investigators explained they doubted whether a proper museum existed there. Pictures hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the floor, without clarification.
“There exists a minimum level of things in the museum [that] on no account characterize the over a hundred-calendar year history in the Cape City Carnival, the investigators explained, adding that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum won't glance for being open up to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving The situation of the museum to an alternate area without notifying the NLC.
The Schaapkraal home, on which no museum was at any time created. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver from the rented Crete Road premises because it experienced run up a R4-million financial debt with town of Cape Town and was afraid its gear would be attached.
“Because of the lawful battles as well as debts, the organisation had to maneuver its assets from five Crete Highway to stay away from the sheriff from attaching the house of your organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director on the CTMCA, advised them the two buses purchased with lottery money have been saved in a very solution area “concealed through the Sheriff”. Although the investigators mentioned they ended up not able to confirm that any buses had ever been bought.
Stemmet also confirmed the buses had been hidden to prevent them staying seized. But in the event the investigators questioned to be taken towards the spot the place the buses have been stored, he told them that “the operator of The trick spot was not available to open up the premises for us”.
“The CTMCA couldn't give proof of payment for two motor vehicles that it allegedly purchased with grant dollars,” the investigators documented.
Soeker also informed them the Schaapkraal assets had been bought as a result of financial debt.
“Mr Soeker described that according to his understanding, because of the debt owed to the town of Cape Town, the CTMCA decided It could be best to offer their [Schaapkraal] property … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for protection and security, has Formerly told GroundUp the CTMCA “threw money away” on litigation with the town.
“Annually like clockwork, as we strategy the end in the yr, the CTMCA picks a lawful struggle with town, above permits or something else. We never initiate it. They hold throwing money absent on vexatious litigation which they drop and have expenses awarded against them. This is often solely self-inflicted,” he claimed.
Soeker advised the Dabishi Nthambeleni investigators that the primary job players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for each of the admin, finances and managing ตรวจ the CTMCA.” The investigators claimed they were struggling to Make contact with Momberg.
Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “observed numerous devices, some in fantastic ailment, some in bad problem and several that looked rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web-site storage facility the place “devices and many equipment” ended up held.
“We asked him to just take us to the facility but he was evasive to our request.”
Dependant on pictures and invoices in GroundUp’s possession, some, if not all, with the items appear to be tools which was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing rates for this removal.
According to the last progress report submitted towards the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were administrators at some time.
The investigators observed this “alarming”.
“From your CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape Town, precisely the same handle on which the museum was meant to be constructed and/or converted,” they documented.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the process of getting “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.
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 need to be paid.
The Kopano audit as well as close backlink in between the businesses “suggest to us that there is ‘foul Engage in’ linked to the acquisition from the machinery with the museum workshop”, the investigators said within the report.
“We find that it is extremely probable that CTMCA utilized the funding from the NLC to ‘refund’ among its principal directors for the assets at an increased overpriced fee than the actual price and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant for the CTMCA were invested.
“In point of fact, a detailed report on how the funding with the NLC was employed, could well be extremely hard as the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every single merchandise it asked for funding for. The interim report and remaining report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not conducted a website pay a visit to just before approving the grant. But this was not standard observe at some time plus they identified no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not involve funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a 2nd tranche of funding without having to give evidence that it had employed the main tranche for its intended goal.
Following the appointment of a completely new board, commissioner and senior govt staff, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni suggested that
the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected for the NLC’s “delinquency” process;
the NLC open up a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, as opposed to act around the report’s suggestions, the NLC – beneath its prior administration – selected to suppress it, since it experienced accomplished Together with the prior experiences into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the concerns by e-mail way too. But no reaction were gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph