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 carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant with the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no evidence that a museum at any time existed.
The investigators uncovered the CTMCA didn't make use of the R5-million allocated to purchase or build a museum.
Additionally they discovered that the CTMCA only purchased land value R1.7-million, not R5-million as allotted.
They observed the CTMCA employed cash within the Lottery to buy workshop products from amongst its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape City Minstrel Carnival Association (CTMCA) through the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s abundant minstrel record went astray. The museum was under no circumstances produced.
The details with the abuse of millions of rands of Lottery money for the museum that under no circumstances was are uncovered in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery cash allotted for the CTMCA between 2003 and 2017.
The very first Component of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for your museum. The authorized funds for the museum was much more than R12.eight-million, with R5-million of that allotted for the making to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the setting up for the museum and whether the museum “actually existed”.
The business was also instructed to analyze
the acquisition with Lottery money of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
a variety of machines “procured to the manufacturing of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous administrators of your organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted extensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated for the CTMCA (see listed here, in this article and in this article) and just how the cash in all probability assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at the time by Marius Fransman.
The building on the right was the intended website of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to your Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All three tasks had been concluded, she explained to MPs.
Nevertheless the investigators observed no evidence that a museum experienced at any time existed.
In the beginning the museum was because of open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp in the intended Wetton museum demonstrates a coffee store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung within the walls, plus a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum were moved because they could no more pay for the lease of R100,000 per month. He stated the CTMCA had procured residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar cost. Schaapkraal is in the peri-city place considerably from town.
Because of this, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, which happen to be within an industrial place, the investigators said they doubted regardless of whether a correct museum existed there. Images attached to the report show a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without any explanation.
“There is a minimal amount of merchandise with the museum [that] in no way stand for the over one hundred-12 months record of your Cape Town Carnival, the investigators reported, including that there was “no signage outdoors the premises indicating they housed a museum and … usually, the museum would not search to get open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by relocating the location of the museum to another place without the need of notifying the NLC.
The Schaapkraal assets, on which no museum was at any time crafted. Image: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA had to maneuver with the rented Crete Street premises because it experienced run up a R4-million personal debt with the town of Cape City and was concerned its equipment could well be attached.
“As a result of authorized battles as well as the debts, the organisation experienced to move its assets from five Crete Road to avoid the sheriff from attaching the house from the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director with the CTMCA, explained to them which the two buses bought with lottery resources were saved in a secret location “concealed from the Sheriff”. Even so the investigators claimed they ended up unable to substantiate that any buses had at any time been bought.
Stemmet also confirmed the buses had been concealed to prevent them currently being seized. But when the investigators requested being taken for the put exactly where the buses had been stored, he informed them that “the proprietor of The key site wasn't accessible to open up the premises for us”.
“The CTMCA could not give evidence of payment for two autos that it allegedly procured with grant income,” the investigators claimed.
Soeker also advised them the Schaapkraal residence were offered because of the personal debt.
“Mr Soeker stated that In line with his comprehension, due to credit card debt owed to the City of Cape City, the CTMCA made the decision it would be best to offer their [Schaapkraal] home … and also to also to cover the belongings on the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and security, has previously advised GroundUp which the CTMCA “threw dollars absent” on litigation with the town.
“Every year like clockwork, as we approach the end in the yr, the CTMCA picks a legal combat with the town, about permits or another thing. We never ever initiate it. They continue to keep throwing revenue absent on vexatious litigation they drop and possess charges awarded towards them. This is entirely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of many of the admin, funds and operating ตรวจ the CTMCA.” The investigators reported they had been not able to contact Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified a lot of devices, some in fantastic condition, some in poor issue plus some that appeared rusty and intensely outdated”. Stemmet explained to the investigators that there was also an off-site storage facility where “devices and a few equipment” have been stored.
“We questioned him to get us to the facility but he was evasive to our request.”
Dependant on images and invoices in GroundUp’s possession, some, Otherwise all, from the goods look like products which was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing rates for this removing.
According to the final progress report submitted towards the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company by which Stemmet, his spouse and his daughter ended up administrators at enough time.
The investigators located this “alarming”.
“Through the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be crafted and/or converted,” they documented.
An audit by accountants Kopano Integrated, hooked up to the investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the administrators.
According to Dabishi Nthambeleni, the company has compensated R1.two-million like a deposit, that means R6.9-million continues to be owed, although there isn't a payment date established for when this needs to be paid out.
The Kopano audit and also the shut backlink among the businesses “reveal to us that there's ‘foul Participate in’ involved with the acquisition on the equipment with the museum workshop”, the investigators said inside the report.
“We find that it's remarkably possible that CTMCA utilized the funding from the NLC to ‘refund’ one among its most important administrators for that assets at the next overpriced amount than the particular price tag and worth of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant to your CTMCA had been put in.
“Actually, a detailed report on how the funding of the NLC was used, could well be difficult since the CTMCA does not have any receipts, or proof of payments to confirm the quantities spent on Every single product it requested funding for. The interim report and final report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not done a website check out prior to approving the grant. But this was not common exercise at some time they usually found no evidence of carelessness by NLC workers.
At some time, the NLC’s rules didn't have to have funded organisations to submit evidence of payment with interim stories, they pointed out. This intended the CTMCA was in the position to receive a next tranche of funding without the need to present proof that it experienced utilised the first tranche for its supposed objective.
Next the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni proposed that
the NLC decline any foreseeable future funding apps within the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, in lieu of act over the report’s suggestions, the NLC – under its past administration – chose to suppress it, mainly because it had done with the past reviews into corruption it had commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to ship the inquiries by electronic mail as well. But no response had been acquired at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph