Leaked report exposes abuse of lottery funds paid out to minstrel group
Leaked report exposes abuse of lottery funds paid out to minstrel group
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Minstrels carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not use the R5-million allotted to buy or build a museum.
In addition they uncovered the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA utilised funds within the Lottery to get workshop gear from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print on the abuse of a lot of rands of Lottery cash for your museum that under no circumstances was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.
The initial part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding for that museum. The approved price range for that museum was more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether 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
many machines “procured to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors on the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation followed in depth reporting by GroundUp with regard to the millions of rands of Lottery funding allotted to your CTMCA (see in this article, below and below) and the best way the funds probably served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The constructing on the proper was the intended website with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photo: Raymond Joseph
In response to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.
However the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum reveals a espresso shop with some musical devices and minstrel costumes and collages of pics haphazardly hung within the partitions, plus a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He mentioned the CTMCA experienced bought home for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for a similar selling price. Schaapkraal is within a peri-city place far from the city.
Consequently, the museum were moved to a fresh place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after going to the premises, that happen to be in an industrial place, the investigators explained they doubted no matter if a correct museum existed there. Shots attached on the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.
“You will find a negligible amount of products on the museum [that] by no means depict the in excess of one hundred-yr history of the Cape City Carnival, the investigators explained, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum would not seem to become open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location in the museum to another location with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver within the rented Crete Road premises because it had operate up a R4-million debt with the City of Cape City and was afraid its equipment could be attached.
“Because of the legal battles and the debts, the organisation experienced to move its property from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director on the CTMCA, told them the two buses bought with lottery cash were stored inside of a key locale “hidden with the Sheriff”. However the investigators claimed they were unable to confirm that any buses had ever been bought.
Stemmet also confirmed that the buses had been concealed to halt them being seized. But when the investigators asked to become taken for the spot in which the buses had been stored, he explained to them that “the proprietor of The key place wasn't available to open up the premises for us”.
“The CTMCA could not provide evidence of payment for two motor vehicles that it allegedly acquired with grant funds,” the investigators described.
Soeker also instructed them the Schaapkraal assets were marketed due to the financial debt.
“Mr Soeker described that In line with his knowledge, due to financial debt owed to the City of Cape City, the CTMCA made the decision it would be most effective to market their [Schaapkraal] property … and also to also to cover the property of your CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.
“Annually like clockwork, as we solution the top of the year, the CTMCA picks a legal fight with town, around permits or another thing. We hardly ever initiate it. They keep throwing revenue absent on vexatious litigation that they shed and possess expenditures awarded from them. That is completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for each of the admin, funds and functioning hihuay the CTMCA.” The investigators mentioned they were not able to Get in touch with Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered a lot of machines, some in fantastic situation, some in undesirable condition and several that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “devices and some equipment” were kept.
“We asked him to take us to the power but he was evasive to our ask for.”
Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, in the things appear to be machines which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing fees for this removal.
In accordance with the last development report submitted for the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter ended up administrators at the time.
The investigators identified this “alarming”.
“Within the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, a similar tackle on which the museum was intended to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected for the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the administrators.
In line with Dabishi Nthambeleni, the company has paid out R1.two-million as a deposit, that means R6.nine-million is still owed, even though there is no payment date set for when this has to be paid out.
The Kopano audit plus the near backlink concerning the businesses “suggest to us that there's ‘foul Enjoy’ involved with the purchase from the equipment of your museum workshop”, the investigators claimed from the report.
“We find that it's hugely probable that CTMCA made use of the funding on the NLC to ‘refund’ among its main administrators for the house at a higher overpriced amount than the particular value and price of the property and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant on the CTMCA were used.
“In reality, a detailed report on how the funding in the NLC was applied, could well be impossible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every single merchandise it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not carried out a web page go to in advance of approving the grant. But this wasn't conventional apply at time and so they uncovered no proof of carelessness by NLC employees.
At the time, the NLC’s guidelines didn't demand funded organisations to post evidence of payment with interim reviews, they identified. This meant which the CTMCA was able to get a second tranche of funding without having to offer evidence that it had used the 1st tranche for its intended goal.
Next the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these and also other troubles.
Dabishi Nthambeleni advisable that
the NLC decrease any potential funding applications with the CTMCA;
the CTMCA and any associates who were involved in the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open up a criminal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, instead of act over the report’s suggestions, the NLC – underneath its prior administration – selected to suppress it, as it experienced finished While using the previous reviews into corruption it had commissioned.
GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for e-mail addresses to mail the thoughts by electronic mail much too. But no reaction were obtained at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph