Leaked report exposes abuse of lottery dollars compensated to minstrel team
Leaked report exposes abuse of lottery dollars compensated to minstrel team
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Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has identified no proof that a museum at any time existed.
The investigators found which the CTMCA did not utilize the R5-million allotted to buy or build a museum.
Additionally they identified that the CTMCA only acquired land truly worth R1.7-million, not R5-million as allocated.
They observed the CTMCA employed resources with the Lottery to purchase workshop gear from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) from the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate town’s wealthy minstrel background went astray. The museum was by no means produced.
The details in the abuse of many rands of Lottery resources for a museum that hardly ever was are unveiled within an investigative report commissioned by the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery funds allocated towards the CTMCA in between 2003 and 2017.
The first Portion of the investigation, by regulation firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which bundled funding with the museum. The authorised finances for the museum was much more than R12.eight-million, with R5-million of that allocated for a constructing to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a creating to the museum and if the museum “essentially existed”.
The organization was also instructed to analyze
the purchase with Lottery resources of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
a variety of machines “purchased for that production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At enough time, convicted prison 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 wife Zainonesa and daughter Raziah continued as two of many administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted substantial reporting by GroundUp regarding the a lot of rands of Lottery funding allocated to your CTMCA (see in this article, in this article and below) and the way the funds probably served finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.
The developing on the correct was the meant web site with the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to the Parliamentary question, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - including the museum - concerning 2012 and 2015. All 3 tasks were accomplished, she explained to MPs.
Although the investigators found no proof that a museum experienced at any time existed.
At the beginning the museum was on account of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of the meant Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung around the partitions, and also a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni said it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum were moved mainly because they could not afford to pay for the rent of R100,000 a month. He explained the CTMCA experienced procured property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for the same value. Schaapkraal is in the peri-urban location significantly from the town.
Subsequently, the museum were moved to a different area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after traveling to the premises, which can be in an industrial space, the investigators said they doubted no matter whether a suitable museum existed there. Photographs attached to your report exhibit a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the ground, without explanation.
“There exists a negligible quantity of things for the museum [that] on no account represent the greater than 100-calendar year record with the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum isn't going to search to get open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by moving The placement of the museum to an alternate locale with no notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises because it had operate up a R4-million personal debt with town of Cape City and was concerned its machines would be hooked up.
“Because of the lawful battles and the debts, the organisation experienced to move its assets from five Crete Road to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director with the CTMCA, informed them which the two buses bought with lottery cash were saved within a magic formula locale “hidden from the Sheriff”. Although the investigators mentioned they have been unable to confirm that any buses had at any time been acquired.
Stemmet also confirmed the buses were concealed to halt them getting seized. But in the event the investigators questioned for being taken to the put exactly where the buses have been saved, he explained to them that “the operator of The key locale wasn't accessible to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for two motor vehicles that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also instructed them the Schaapkraal home were sold due to personal debt.
“Mr Soeker discussed that As outlined by his knowing, due to the financial debt owed to the town of Cape Town, the CTMCA resolved It might be most effective to market their [Schaapkraal] property … also to also to hide the belongings on the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and protection, has previously advised GroundUp which the CTMCA “threw dollars away” on litigation with the town.
“Every year like clockwork, as we technique the top from the yr, the CTMCA picks a lawful combat with the town, in excess of permits or something else. We in no way initiate it. They hold throwing dollars away on vexatious litigation that they lose and possess costs awarded against them. This really is fully self-inflicted,” he explained.
Soeker advised the Dabishi Nthambeleni investigators that the most crucial part players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of the many admin, finances and working lottovip the CTMCA.” The investigators claimed they had been not able to contact Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified quite a few devices, some in superior ailment, some in bad issue and some that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-website storage facility in which “instruments and a few equipment” ended up retained.
“We asked him to take us to the ability but he was evasive to our request.”
According to shots and invoices in GroundUp’s possession, some, if not all, of your objects appear to be devices that was illegally removed from the CTMCA’s past premises. Stemmet is going through rates for this removal.
According to the remaining progress report submitted on the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter were being directors at time.
The investigators observed this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the business is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was intended to be crafted and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, hooked up on the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million like a deposit, that means R6.9-million is still owed, even though there's no payment day set for when this must be paid out.
The Kopano audit and the near link among the businesses “indicate to us that there is ‘foul Participate in’ associated with the acquisition of the machinery of your museum workshop”, the investigators stated during the report.
“We find that it is very probable that CTMCA utilised the funding with the NLC to ‘refund’ one of its main directors with the assets at an increased overpriced fee than the actual cost and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant towards the CTMCA were invested.
“In point of fact, a detailed report on how the funding of your NLC was utilised, would be difficult 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 from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not performed a website pay a visit to ahead of approving the grant. But this wasn't normal apply at the time they usually found no proof of negligence by NLC workforce.
At time, the NLC’s guidelines didn't need funded organisations to post evidence of payment with interim studies, they identified. This intended that the CTMCA was in the position to receive a next tranche of funding without needing to present evidence that it experienced employed the 1st tranche for its supposed purpose.
Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any potential funding applications in the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – under its preceding administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by email too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph