Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
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Minstrels perform in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't use the R5-million allocated to obtain or establish a museum.
Additionally they located the CTMCA only bought land worthy of R1.7-million, not R5-million as allocated.
They discovered the CTMCA used cash with the Lottery to purchase workshop tools from certainly one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Fee (NLC) to put in place a museum to celebrate town’s abundant minstrel heritage went astray. The museum was in no way created.
The main points of the abuse of millions of rands of Lottery funds for any museum that by no means was are uncovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery funds allotted to the CTMCA concerning 2003 and 2017.
The initial Portion of the investigation, by law organization Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding for your museum. The approved price range with the museum was over R12.eight-million, with R5-million of that allocated for a setting up to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a developing for your museum and whether or not the museum “basically existed”.
The organization was also instructed to research
the acquisition with Lottery cash of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various devices “purchased for that manufacturing on the costumes and hats” for the minstrels carnival, for R5.4-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 wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp with regards to the many rands of Lottery funding allotted on the CTMCA (see below, below and listed here) and the way in which the funds probably aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The developing on the right was the intended site on the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph
In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All three tasks had been accomplished, she instructed MPs.
Though the investigators found no evidence that a museum experienced ever existed.
To start with the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, and a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni reported it was “not ready” to confirm if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum had been moved as they could now not pay for the lease of R100,000 a month. He explained the CTMCA experienced procured property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is in a peri-city space considerably from the town.
Therefore, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after browsing the premises, that happen to be within an industrial spot, the investigators stated they doubted whether or not an appropriate museum existed there. Pictures connected to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the ground, without having rationalization.
“There is a minimum volume of goods for the museum [that] on no account stand for the much more than a hundred-12 months background from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating which they housed a museum and … typically, the museum does not search being open to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The placement of your museum to an alternate location without the need of notifying the NLC.
The Schaapkraal assets, on which no museum was at any time crafted. Picture: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to move with the rented Crete Road premises because it experienced operate up a R4-million credit card debt with the town of Cape Town and was concerned its devices could well be connected.
“Due to legal battles and the debts, the organisation had to move its assets from 5 Crete Highway to avoid the sheriff from attaching the assets with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director of the CTMCA, informed them that the two buses acquired with lottery resources were saved inside a magic formula spot “hidden with the Sheriff”. However the investigators said they have been unable to confirm that any buses experienced ever been acquired.
Stemmet also confirmed that the buses had been concealed to halt them staying seized. But when the investigators asked to be taken to your location the place the buses were being stored, he informed them that “the proprietor of The key locale wasn't accessible to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for two autos that it allegedly acquired with grant revenue,” the investigators reported.
Soeker also explained to them the Schaapkraal property had been sold due to the financial debt.
“Mr Soeker spelled out that In line with his knowledge, mainly because of the debt owed to the City of Cape City, the CTMCA made a decision It could be very best to promote their [Schaapkraal] residence … and to also to hide the property from the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously explained to GroundUp that the CTMCA “threw income absent” on litigation with the City.
“Annually like clockwork, as we strategy the end from the yr, the CTMCA picks a legal battle with the City, over permits or something else. We under no circumstances initiate it. They retain throwing dollars away on vexatious litigation that they shed and also have costs awarded against them. This is fully self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the principle function players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and working เช ค หวย the CTMCA.” The investigators explained they had been unable to Call Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “discovered several devices, some in fantastic situation, some in undesirable situation and many that looked rusty and extremely old”. Stemmet informed the investigators that there was also an off-web site storage facility wherever “instruments and a few machinery” were saved.
“We requested him to just take us to the facility but he was evasive to our request.”
According to pics and invoices in GroundUp’s possession, some, Otherwise all, on the items seem like equipment that was illegally removed from the CTMCA’s past premises. Stemmet is facing fees for this removing.
In accordance with the final progress report submitted to your NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter have been administrators at the time.
The investigators observed this “alarming”.
“In the CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the business is five Crete Street, Wetton, Cape Town, precisely the same tackle on which the museum was meant to be created and/or converted,” they documented.
An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded that the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the directors.
In accordance with Dabishi Nthambeleni, the corporation has paid out R1.two-million like a deposit, meaning R6.9-million remains to be owed, though there isn't a payment day established for when this must be paid.
The Kopano audit as well as the near url involving the businesses “point out to us that there's ‘foul Engage in’ involved with the purchase from the equipment of your museum workshop”, the investigators claimed from the report.
“We find that it's remarkably probable that CTMCA used the funding with the NLC to ‘refund’ one among its principal administrators for your assets at a better overpriced rate than the actual price and worth of the residence and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant towards the CTMCA had been expended.
“In point of fact, a detailed report on how the funding from the NLC was utilised, might be impossible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities expended on Just about every merchandise it requested funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC had not executed a internet site pay a visit to prior to approving the grant. But this wasn't normal practice at enough time and they located no proof of negligence by NLC staff members.
At the time, the NLC’s regulations didn't demand funded organisations to post evidence of payment with interim experiences, they pointed out. This meant that the CTMCA was in the position to get a next tranche of funding without having to supply proof that it had employed the primary tranche for its meant reason.
Pursuing the appointment of a completely new board, commissioner and senior govt staff, the NLC has tightened up on these together with other difficulties.
Dabishi Nthambeleni advisable that
the NLC decline any long term funding purposes with the CTMCA;
the CTMCA and any associates who were being involved with the grant be subjected to the NLC’s “delinquency” course of action;
the NLC open a felony case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the process of recovering the misappropriated cash.
But, rather than act within the report’s suggestions, the NLC – less than its previous administration – chose to suppress it, as it had completed Along with the former experiences into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker by means of SMS, and requested for e-mail addresses to send the questions by electronic mail much too. But no response were been given at time of publication.
The minstrel “museum” in Crete Road, Wetton. Picture: Raymond Joseph