Leaked report exposes abuse of lottery dollars paid out to minstrel group
Leaked report exposes abuse of lottery dollars paid out to minstrel group
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Minstrels perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has identified no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
They also found which the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA applied money from the Lottery to invest in workshop products 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 Affiliation (CTMCA) via the National Lotteries Commission (NLC) to put in place a museum to celebrate the town’s abundant minstrel record went astray. The museum was by no means designed.
The small print on the abuse of a lot of rands of Lottery cash for the museum that never ever was are discovered in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery funds allocated to the CTMCA in between 2003 and 2017.
The very first Component of the investigation, by regulation organization Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding with the museum. The authorized finances for the museum was greater than R12.8-million, with R5-million of that allocated for a constructing to deal with the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building for that museum and whether or not the museum “in fact existed”.
The agency was also instructed to investigate
the acquisition with Lottery cash of two vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
various equipment “purchased to the production with the costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of many administrators of the organisation. Stemmet was reappointed to be a director in May perhaps 2021.
The investigation adopted considerable reporting by GroundUp concerning the a lot of rands of Lottery funding allotted for the CTMCA (see below, in this article and here) and the way in which the money most likely assisted finance the ANC’s 2014 election campaign in the Western Cape, led by at the time by Marius Fransman.
The building on the proper was the meant web page with the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “jobs” - including the museum - in between 2012 and 2015. All a few projects had been finished, she informed MPs.
However the investigators observed no evidence that a museum experienced at any time existed.
In the beginning the museum was resulting from open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of the supposed Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, and a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to verify if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum were moved mainly because they could now not find the money for the rent of R100,000 per month. He explained the CTMCA had purchased house for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were bought for a similar cost. Schaapkraal is in the peri-city space far from town.
As a result, the museum were moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after traveling to the premises, which are within an industrial location, the investigators stated they doubted no matter whether a suitable museum existed there. Images attached to the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without clarification.
“There's a minimal quantity of goods in the museum [that] under no circumstances represent the a lot more than one hundred-year historical past on the Cape Town Carnival, the investigators explained, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum isn't going to seem to get open to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by transferring The placement on the museum to an alternative location with out notifying the NLC.
The Schaapkraal property, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to move from the rented Crete Street premises mainly because it had operate up a R4-million personal debt with the City of Cape Town and was fearful its machines will be connected.
“Due to the legal battles as well as the debts, the organisation had to maneuver its residence from 5 Crete Street to avoid the sheriff from attaching the home on the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director of the CTMCA, advised them the two buses acquired with lottery funds had been saved inside a key area “hidden in the Sheriff”. Even so the investigators explained they had been not able to confirm that any buses experienced ever been acquired.
Stemmet also verified the buses were hidden to stop them being seized. But if the investigators asked to get taken towards the place where by the buses have been saved, he advised them that “the operator of the secret site wasn't available to open the premises for us”.
“The CTMCA couldn't provide evidence of payment for 2 autos that it allegedly acquired with grant dollars,” the investigators described.
Soeker also instructed them the Schaapkraal residence had been sold due to the debt.
“Mr Soeker defined that As outlined by his being familiar with, a result of the debt owed to the town of Cape Town, the CTMCA resolved It could be very best to market their [Schaapkraal] assets … also to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for basic safety and security, has Earlier told GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Yearly like clockwork, as we approach the top in the yr, the CTMCA picks a legal battle with the town, about permits or another thing. We in no way initiate it. They hold throwing income away on vexatious litigation which they reduce and possess expenditures awarded versus them. This is often entirely self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of the many admin, funds and working หวย the CTMCA.” The investigators mentioned they were struggling to Get hold of Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “discovered several devices, some in fantastic condition, some in bad situation and some that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-site storage facility wherever “instruments plus some machinery” ended up stored.
“We requested him to choose us to the facility but he was evasive to our request.”
Based on images and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like equipment that was illegally faraway from the CTMCA’s previous premises. Stemmet is facing fees for this removing.
In accordance with the last progress report submitted on the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization by which Stemmet, his wife and his daughter were being administrators at the time.
The investigators found this “alarming”.
“Within the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Street, Wetton, Cape City, the identical tackle on which the museum was meant to be crafted and/or converted,” they noted.
An audit by accountants Kopano Incorporated, attached for the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.
As outlined by Dabishi Nthambeleni, the corporate has paid out R1.two-million for a deposit, that means R6.9-million remains to be owed, although there isn't any payment day set for when this need to be paid.
The Kopano audit as well as near connection in between the companies “suggest to us that there is ‘foul Engage in’ linked to the acquisition of the machinery on the museum workshop”, the investigators reported within the report.
“We find that it's highly possible that CTMCA made use of the funding of the NLC to ‘refund’ certainly one of its principal directors with the residence at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was used, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities put in on Each and every product it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC had not carried out a web-site go to in advance of approving the grant. But this wasn't conventional exercise at enough time plus they observed no proof of negligence by NLC workers.
At the time, the NLC’s procedures didn't demand funded organisations to post proof of payment with interim reports, they identified. This meant the CTMCA was capable of get a second tranche of funding without having to present evidence that it had applied the initial tranche for its meant intent.
Subsequent the appointment of a new board, commissioner and senior government crew, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni encouraged that
the NLC decrease any upcoming funding purposes within the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act about the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, as it had finished With all the past reports into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the issues by e mail much too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph