Leaked report exposes abuse of lottery funds paid to minstrel group
Leaked report exposes abuse of lottery funds paid to minstrel group
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Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant through the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered 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 make a museum.
Additionally they located the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They located the CTMCA utilised funds from the Lottery to acquire workshop tools from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the town’s loaded minstrel background went astray. The museum was under no circumstances produced.
The small print on the abuse of millions of rands of Lottery funds for any museum that never ever was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was Section of greater than R64-million in Lottery money allocated to your CTMCA between 2003 and 2017.
The very first Section of the investigation, by legislation agency Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which incorporated funding for your museum. The authorised budget for that museum was in excess of R12.eight-million, with R5-million of that allotted for any making to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing to the museum and whether the museum “basically existed”.
The agency was also instructed to investigate
the acquisition with Lottery money of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
different devices “bought for that producing in the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director with 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 continued as two of quite a few administrators with the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation adopted substantial reporting by GroundUp regarding the numerous rands of Lottery funding allocated for the CTMCA (see below, here and below) and just how the resources most likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at the time by Marius Fransman.
The building on the best was the intended web site of your minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph
In reaction into a Parliamentary question, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All 3 initiatives were completed, she told MPs.
Though the investigators located no proof that a museum had at any time existed.
At the beginning the museum was on account of open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp in the intended Wetton museum displays a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung to the partitions, plus a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to verify if a museum had ever operated from these premises.
Stemmet advised the investigators the museum had been moved because they could no longer afford the hire of R100,000 per month. He claimed the CTMCA had bought home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were marketed for the same cost. Schaapkraal is within a peri-urban place much from town.
Due to this fact, the museum had been moved to a new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after visiting the premises, which are in an industrial location, the investigators reported they doubted no matter if a proper museum existed there. Photos connected to your report show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and spread out on the floor, without rationalization.
“There is a negligible number of objects at the museum [that] under no circumstances symbolize the more than 100-12 months heritage with the Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not seem to get open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going The placement in the museum to another site with no notifying the NLC.
The Schaapkraal house, on which no museum was at any time developed. Image: 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 town of Cape City and was concerned its products can be attached.
“As a result of legal battles as well as debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director with the CTMCA, informed them the two buses acquired with lottery funds have been saved inside of a key site “concealed from the Sheriff”. Even so the investigators reported they were not able to substantiate that any buses experienced at any time been purchased.
Stemmet also confirmed that the buses had been concealed to prevent them staying seized. But if the investigators requested for being taken towards the location exactly where the buses were saved, he informed them that “the operator of The trick locale wasn't accessible to open the premises for us”.
“The CTMCA couldn't supply evidence of payment for two cars that it allegedly obtained with grant revenue,” the investigators documented.
Soeker also explained to them the Schaapkraal home were bought due to the credit card debt.
“Mr Soeker explained that In line with his understanding, as a result of credit card debt owed to the town of Cape Town, the CTMCA resolved It could be best to market their [Schaapkraal] residence … also 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 basic safety and protection, has Beforehand explained to GroundUp the CTMCA “threw money away” on litigation with the town.
“Each year like clockwork, as we technique the tip from the 12 months, the CTMCA picks a authorized fight with the City, above permits or something else. We in no way initiate it. They maintain throwing funds away on vexatious litigation that they shed and possess charges awarded against them. This really is fully self-inflicted,” he stated.
Soeker instructed the Dabishi Nthambeleni investigators that the key job players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all the admin, funds and operating ผล หวย ลาว the CTMCA.” The investigators said they had been unable to Speak to Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “identified a lot of equipment, some in excellent affliction, some in lousy ailment and a few that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-site storage facility the place “instruments and some machinery” were being saved.
“We requested him to get us to the power but he was evasive to our request.”
Depending on photos and invoices in GroundUp’s possession, some, if not all, of your products look like tools which was illegally faraway from the CTMCA’s prior premises. Stemmet is facing rates for this removal.
According to the ultimate progress report submitted to your NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter ended up administrators at time.
The investigators discovered this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we note the subsequent alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape City, precisely the same address on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Integrated, hooked up towards the 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, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.
According to Dabishi Nthambeleni, the business has paid R1.two-million as being a deposit, which means R6.nine-million remains to be owed, while there isn't any payment date established for when this have to be compensated.
The Kopano audit as well as the close hyperlink between the companies “point out to us that there's ‘foul Perform’ involved with the purchase in the equipment in the museum workshop”, the investigators stated from the report.
“We find that it is remarkably possible that CTMCA used the funding of the NLC to ‘refund’ among its key administrators for that residence at the next overpriced level than the actual price and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.
“In fact, an in depth report on how the funding from the NLC was applied, could be unachievable because the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every merchandise it requested funding for. The interim report and ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not performed a web site stop by before approving the grant. But this wasn't conventional observe at enough time plus they identified no evidence of carelessness by NLC personnel.
At the time, the NLC’s rules did not demand funded organisations to post proof of payment with interim stories, they pointed out. This intended the CTMCA was able to receive a 2nd tranche of funding without having to give evidence that it experienced utilized the primary tranche for its supposed purpose.
Subsequent the appointment of a whole new board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advised that
the NLC decline any potential funding applications from the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, in lieu of act around the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it experienced carried out Along with the previous reviews into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for e-mail addresses to ship the issues by e mail too. But no reaction were acquired at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph