Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels accomplish in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the National Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA did not utilize the R5-million allocated to obtain or establish a museum.
In addition they uncovered the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied money from the Lottery to acquire workshop tools from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel historical past went astray. The museum was hardly ever created.
The details of the abuse of countless rands of Lottery money to get a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allotted on the CTMCA among 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which bundled funding for your museum. The permitted budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for your setting up to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a constructing to the museum and whether the museum “actually existed”.
The business was also instructed to research
the purchase with Lottery resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “bought for that manufacturing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director on 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 many administrators in the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted in depth reporting by GroundUp concerning the a lot of rands of Lottery funding allotted to the CTMCA (see right here, listed here and below) and how the resources probably served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.
The making on the appropriate was the intended website from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to the Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “assignments” - such as the museum - among 2012 and 2015. All a few projects had been concluded, she informed MPs.
Nevertheless the investigators uncovered no proof that a museum experienced ever existed.
At the beginning the museum was as a consequence of open in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp in the intended Wetton museum displays a coffee store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the walls, and also a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.
Stemmet advised the investigators the museum were moved mainly because they could not afford to pay for the rent of R100,000 per month. He stated the CTMCA experienced ordered residence for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for a similar cost. Schaapkraal is in a very peri-city region significantly from town.
Due to this fact, the museum had been moved to a completely new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial space, the investigators said they doubted regardless of whether a correct museum existed there. Images attached to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, without any explanation.
“You will find a minimum quantity of goods at the museum [that] by no means signify the in excess of 100-yr heritage of the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … generally, the museum doesn't glimpse for being open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternate site with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Photo: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA had to move through the rented Crete Street premises since it had run up a R4-million debt with the City of Cape City and was fearful its machines might be connected.
“Due to authorized battles as well as the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director of your CTMCA, advised them which the two buses bought with lottery money were being stored in the top secret area “concealed within the Sheriff”. Nevertheless the investigators claimed they were not able to confirm that any buses experienced at any time been acquired.
Stemmet also verified the buses had been hidden to stop them becoming seized. But when the investigators asked to be taken to the put where by the buses were being stored, he informed them that “the operator of The key place wasn't available to open up the premises for us”.
“The CTMCA could not deliver proof of payment for 2 autos that it allegedly purchased with grant income,” the investigators noted.
Soeker also instructed them the Schaapkraal home had been bought because of the credit card debt.
“Mr Soeker explained that In line with his understanding, a result of the personal debt owed to town of Cape City, the CTMCA resolved it would be best to promote their [Schaapkraal] home … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously told GroundUp which the CTMCA “threw funds absent” on litigation with the town.
“Yearly like clockwork, as we approach the tip of the 12 months, the CTMCA picks a legal battle with town, more than permits or another thing. We by no means initiate it. They retain throwing cash away on vexatious litigation they reduce and have expenses awarded in opposition to them. This is often entirely self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the leading purpose gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of all of the admin, funds and jogging ruay the CTMCA.” The investigators stated they had been unable to Make contact with Momberg.
Hats
Through their “investigation in loco” for the Primrose Park premises, the investigators “uncovered a lot of devices, some in very good problem, some in negative situation and some that appeared rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web site storage facility where “devices and some machinery” were being held.
“We questioned him to get us to the ability but he was evasive to our ask for.”
According to photographs and invoices in GroundUp’s possession, some, Otherwise all, on the goods seem like gear which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with fees for this elimination.
Based on the closing progress report submitted on the NLC because of the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were administrators at time.
The investigators located this “alarming”.
“From your CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Observe the following alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the organization is 5 Crete Highway, Wetton, Cape Town, the same deal with on which the museum was meant to be created and/or transformed,” they noted.
An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.two-million to be a deposit, this means R6.nine-million continues to be owed, though there isn't any payment day set for when this needs to be paid out.
The Kopano audit and also the near hyperlink involving the businesses “show to us that there's ‘foul Perform’ involved with the acquisition from the machinery with the museum workshop”, the investigators stated while in the report.
“We discover that it is remarkably possible that CTMCA utilized the funding with the NLC to ‘refund’ certainly one of its principal directors to the assets at a higher overpriced price than the actual selling price and value of the house and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant into the CTMCA had been invested.
“In reality, an in depth report on how the funding on the NLC was utilized, could well be difficult because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities invested on Each individual item it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not conducted a website go to prior to approving the grant. But this was not standard practice at some time plus they located no evidence of carelessness by NLC staff.
At the time, the NLC’s rules didn't call for funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was capable of get a next tranche of funding while not having to supply evidence that it experienced utilized the 1st tranche for its supposed objective.
Adhering to the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni recommended that
the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, rather then act about the report’s tips, the NLC – below its past administration – chose to suppress it, because it had finished With all the past reports into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the issues by e mail far too. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph