Leaked report exposes abuse of lottery money paid to minstrel group
Leaked report exposes abuse of lottery money paid to minstrel group
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Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant from the Countrywide Lotteries Commission for the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has uncovered no proof that a museum at any time existed.
The investigators uncovered the CTMCA did not make use of the R5-million allocated to get or build a museum.
Additionally they located the CTMCA only bought land well worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA employed cash from the Lottery to buy workshop equipment from certainly one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the town’s prosperous minstrel heritage went astray. The museum was hardly ever made.
The small print in the abuse of countless rands of Lottery funds for a museum that under no circumstances was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery money allotted into the CTMCA among 2003 and 2017.
The 1st A part of the investigation, by regulation firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which provided funding for that museum. The permitted price range with the museum was a lot more than R12.8-million, with R5-million of that allocated to get a developing to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up for that museum and whether the museum “in fact existed”.
The company was also instructed to investigate
the purchase with Lottery cash of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
many equipment “acquired for your manufacturing of your costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various administrators from the organisation. Stemmet was reappointed being a director in May 2021.
The investigation followed considerable reporting by GroundUp in regards to the countless rands of Lottery funding allotted to the CTMCA (see in this article, listed here and here) and the way the funds probably helped finance the ANC’s 2014 election campaign in the Western Cape, led by at the time by Marius Fransman.
The making on the appropriate was the supposed web page in the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to a Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three projects were accomplished, she told MPs.
Nevertheless the investigators located no proof that a museum experienced at any time existed.
Initially the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp on the intended Wetton museum reveals a coffee store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung to the partitions, and a model ship on its plinth within a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to verify if a museum had ever operated from these premises.
Stemmet told the investigators the museum had been moved since they could now not find the money for the lease of R100,000 per month. He mentioned the CTMCA experienced acquired property for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and were bought for a similar value. Schaapkraal is within a peri-city region much from town.
Due to this fact, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial place, the investigators said they doubted regardless of whether a proper museum existed there. Shots hooked up on the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, without having clarification.
“You will find a minimum quantity of merchandise on the museum [that] by no means stand for the in excess of a hundred-yr background of your Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … usually, the museum isn't going to glimpse to become open to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by moving The situation in the museum to another area without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever created. Photo: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to maneuver from your rented Crete Road premises mainly because it experienced run up a R4-million financial debt with the City of Cape Town and was worried its gear could well be hooked up.
“A result of the lawful battles and the debts, the organisation had to move its home from 5 Crete Street to steer clear of the sheriff from attaching the house in the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director of the CTMCA, instructed them that the two buses purchased with lottery funds were being stored inside a top secret spot “concealed within the Sheriff”. Although the investigators stated they were being not able to confirm that any buses had at any time been bought.
Stemmet also verified which the buses had been hidden to prevent them being seized. But if the investigators questioned to become taken to your location the place the buses were being saved, he instructed them that “the proprietor of The key place wasn't available to open the premises for us”.
“The CTMCA couldn't give proof of payment for two vehicles that it allegedly purchased with grant revenue,” the investigators described.
Soeker also advised them the Schaapkraal assets had been bought due to the debt.
“Mr Soeker defined that In accordance with his comprehending, due to the financial debt owed to town of Cape Town, the CTMCA resolved It will be ideal to market their [Schaapkraal] home … also to also to cover the belongings of your CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for protection and protection, has Earlier explained to GroundUp that the CTMCA “threw cash absent” on litigation with the City.
“Every year like clockwork, as we technique the tip of the year, the CTMCA picks a legal combat with the town, more than permits or something else. We under no circumstances initiate it. They maintain throwing cash away on vexatious litigation which they reduce and also have fees awarded towards them. This really is totally self-inflicted,” he stated.
Soeker told the Dabishi Nthambeleni investigators that the most crucial function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for many of the admin, funds and jogging ตรวจ หวย ล่าสุด the CTMCA.” The investigators reported they had been not able to Make contact with Momberg.
Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “found a lot of machines, some in superior situation, some in terrible situation and several that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where by “devices and many equipment” had been kept.
“We questioned him to get us to the facility but he was evasive to our ask for.”
According to pics and invoices in GroundUp’s possession, some, if not all, with the things seem like machines which was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing rates for this removal.
According to the ultimate progress report submitted for the NLC with the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter were directors at enough time.
The investigators located this “alarming”.
“From your CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be crafted and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was among the directors.
As outlined by Dabishi Nthambeleni, the corporation has paid out R1.2-million as being a deposit, meaning R6.nine-million remains to be owed, while there isn't a payment date established for when this should be compensated.
The Kopano audit as well as the shut hyperlink involving the businesses “reveal to us that there's ‘foul play’ associated with the acquisition of your machinery from the museum workshop”, the investigators explained during the report.
“We discover that it's really possible that CTMCA made use of the funding of your NLC to ‘refund’ one of its primary administrators with the residence at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.
“Actually, an in depth report on how the funding in the NLC was made use of, can be not possible as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts expended on Every merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not executed a site go to prior to approving the grant. But this was not regular apply at the time and they found no proof of negligence by NLC staff.
At time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim stories, they pointed out. This intended the CTMCA was capable of get a second tranche of funding without having to present proof that it had utilized the main tranche for its intended function.
Following the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni advisable that
the NLC decrease any long run funding apps within the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, instead of act over the report’s suggestions, the NLC – under its former administration – chose to suppress it, since it experienced accomplished Using the past reports into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and asked for email addresses to ship the inquiries by electronic mail too. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph