Leaked report exposes abuse of lottery revenue compensated to minstrel team
Leaked report exposes abuse of lottery revenue compensated to minstrel team
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Minstrels complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to acquire or produce a museum.
Additionally they observed which the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They uncovered the CTMCA applied funds with the Lottery to purchase workshop equipment from amongst its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to create a museum to celebrate the town’s loaded minstrel history went astray. The museum was under no circumstances created.
The details on the abuse of a lot of rands of Lottery cash for the museum that hardly ever was are exposed within an investigative report commissioned through the NLC in 2021.
The museum grant was part of in excess of R64-million in Lottery resources allotted towards the CTMCA among 2003 and 2017.
The primary Section of the investigation, by law company Dabishi Nthambeleni, was performed between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which integrated funding for the museum. The permitted finances for your museum was greater than R12.eight-million, with R5-million of that allocated for any creating to house the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a developing for the museum and whether or not the museum “truly existed”.
The firm was also instructed to research
the purchase with Lottery resources of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various devices “acquired with the manufacturing on the costumes and hats” for that minstrels carnival, for R5.four-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 quite a few administrators with the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation followed substantial reporting by GroundUp with regards to the numerous rands of Lottery funding allotted to the CTMCA (see listed here, listed here and below) and how the cash in all probability aided finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.
The making on the ideal was the meant web-site on the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - concerning 2012 and 2015. All 3 tasks were done, she advised MPs.
Nevertheless the investigators identified no evidence that a museum experienced at any time existed.
At the outset the museum was due to open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of the meant Wetton museum reveals a espresso store with some musical instruments and minstrel costumes and collages of shots haphazardly hung over the partitions, and also a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum were moved given that they could now not pay for the lease of R100,000 per month. He claimed the CTMCA experienced purchased home for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for the same cost. Schaapkraal is within a peri-urban location much from the city.
Consequently, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after checking out the premises, which can be within an industrial spot, the investigators stated they doubted whether or not a suitable museum existed there. Pictures attached for the report clearly show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and spread out on the floor, without having rationalization.
“There is a minimal volume of things in the museum [that] on no account stand for the over 100-calendar year heritage from the Cape City Carnival, the investigators stated, including that there was “no signage exterior the premises indicating they housed a museum and … typically, the museum would not look to become open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting The placement on the museum to an alternate site without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver in the rented Crete Street premises as it had run up a R4-million financial debt with the town of Cape Town and was scared its tools can be connected.
“Due to the lawful battles and the debts, the organisation experienced to maneuver its house from 5 Crete Street to stay away from the sheriff from attaching the home of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of your CTMCA, instructed them which the two buses purchased with lottery resources had been saved in a solution location “hidden within the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses had ever been purchased.
Stemmet also confirmed the buses had been hidden to prevent them currently being seized. But if the investigators requested to get taken on the area the place the buses ended up stored, he told them that “the operator of The key place wasn't available to open up the premises for us”.
“The CTMCA could not offer evidence of payment for two cars that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also advised them the Schaapkraal property had been marketed because of the credit card debt.
“Mr Soeker defined that In keeping with his knowing, mainly because of the debt owed to the town of Cape Town, the CTMCA made a decision It will be most effective to sell their [Schaapkraal] property … and to also to cover the belongings of your CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and security, has Beforehand explained to GroundUp the CTMCA “threw funds away” on litigation with the City.
“Each and every year like clockwork, as we solution the top of your calendar year, the CTMCA picks a authorized struggle with the town, over permits or another thing. We by no means initiate it. They continue to keep throwing funds absent on vexatious litigation which they drop and also have costs awarded in opposition to them. This is completely self-inflicted,” he explained.
Soeker instructed the Dabishi Nthambeleni investigators that the main function players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of all the admin, funds and jogging lottovip the CTMCA.” The investigators reported they were struggling to contact Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “located quite a few machines, some in great condition, some in lousy affliction and several that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-website storage facility where by “instruments plus some machinery” ended up stored.
“We questioned him to consider us to the ability but he was evasive to our ask for.”
According to images and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like machines which was illegally removed from the CTMCA’s preceding premises. Stemmet is experiencing rates for this removing.
In accordance with the remaining development report submitted to your NLC via the CTMCA, the equipment was purchased from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter were being administrators at time.
The investigators discovered this “alarming”.
“From the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, exactly the same tackle on which the museum was meant to be built and/or converted,” they described.
An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the entire process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the directors.
In accordance with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, meaning R6.nine-million is still owed, while there is not any payment date established for when this should be paid out.
The Kopano audit and also the near hyperlink amongst the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase in the machinery with the museum workshop”, the investigators reported within the report.
“We find that it's really possible that CTMCA made use of the funding of your NLC to ‘refund’ one of its main administrators for that house at a greater overpriced price than the particular price tag and value of the assets and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities spent on Every single product it asked for funding for. The interim report and remaining report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not done a site visit prior to approving the grant. But this was not conventional exercise at time and they uncovered no proof of negligence by NLC staff members.
At time, the NLC’s rules didn't need funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a next tranche of funding without needing to present evidence that it experienced employed the 1st tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni encouraged that
the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, rather than act around the report’s recommendations, the NLC – less than its earlier administration – chose to suppress it, mainly because it experienced completed Using the former reviews into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the thoughts by e-mail also. But no response had been gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph