Leaked report exposes abuse of lottery money paid to minstrel group
Leaked report exposes abuse of lottery money paid to minstrel group
Blog Article
Minstrels conduct in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has located no evidence that a museum at any time existed.
The investigators located that the CTMCA didn't make use of the R5-million allotted to order or develop a museum.
In addition they observed that the CTMCA only purchased land well worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA used resources through the Lottery to invest in workshop gear from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape City Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Commission (NLC) to set up a museum to celebrate the city’s rich minstrel heritage went astray. The museum was never ever produced.
The main points of your abuse of millions of rands of Lottery funds for the museum that by no means was are revealed within an investigative report commissioned by the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery money allocated for the CTMCA involving 2003 and 2017.
The 1st A part of the investigation, by law business Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding with the museum. The approved spending plan for your museum was more than R12.eight-million, with R5-million of that allotted for your developing to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing with the museum and if the museum “in fact existed”.
The company was also instructed to research
the acquisition with Lottery funds of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
many devices “bought for your production in the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted in depth reporting by GroundUp concerning the countless rands of Lottery funding allocated into the CTMCA (see in this article, below and here) and the way the resources probably assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.
The setting up on the right was the intended website of your minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to your Parliamentary issue, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “tasks” - including the museum - amongst 2012 and 2015. All a few initiatives had been done, she explained to MPs.
Even so the investigators identified no evidence that a museum had ever existed.
At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp with the supposed Wetton museum demonstrates a coffee shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung about the partitions, plus a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it had been “not able” to confirm if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved simply because they could not manage the rent of R100,000 per month. He said the CTMCA experienced procured assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been bought for the same value. Schaapkraal is inside a peri-city location far from town.
Because of this, the museum were moved to a brand new site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after browsing the premises, which are within an industrial area, the investigators explained they doubted no matter if a correct museum existed there. Pictures hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and spread out on the floor, without rationalization.
“There's a nominal number of items in the museum [that] by no means symbolize the in excess of one hundred-yr historical past in the Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating which they housed a museum and … normally, the museum isn't going to seem for being open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going The situation in the museum to another area with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time created. Image: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to maneuver from your rented Crete Street premises mainly because it experienced operate up a R4-million personal debt with town of Cape City and was worried its equipment could be attached.
“Because of the legal battles and also the debts, the organisation experienced to move its home from 5 Crete Highway to stay away from the sheriff from attaching the home from the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses acquired with lottery money were being stored in the magic formula site “concealed from your Sheriff”. But the investigators reported they ended up unable to verify that any buses had ever been purchased.
Stemmet also verified which the buses were concealed to stop them currently being seized. But if the investigators questioned to generally be taken to the location wherever the buses had been stored, he informed them that “the owner of The trick locale wasn't available to open the premises for us”.
“The CTMCA couldn't deliver evidence of payment for two autos that it allegedly obtained with grant income,” the investigators described.
Soeker also advised them the Schaapkraal house had been bought as a result of financial debt.
“Mr Soeker spelled out that Based on his comprehending, due to the debt owed to the town of Cape City, the CTMCA made the decision it would be best to offer their [Schaapkraal] property … also to also to hide the assets on the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for safety and safety, has Beforehand explained to GroundUp that the CTMCA “threw income away” on litigation with the town.
“Every year like clockwork, as we strategy the tip with the year, the CTMCA picks a legal fight with the City, above permits or something else. We never initiate it. They hold throwing income away on vexatious litigation that they reduce and possess charges awarded in opposition to them. This is often solely self-inflicted,” he mentioned.
Soeker told the Dabishi Nthambeleni investigators that the most crucial purpose players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and working ตรวจ the CTMCA.” The investigators reported they had been not able to Call Momberg.
Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “identified many machines, some in great situation, some in terrible affliction and many that seemed rusty and very previous”. Stemmet informed the investigators that there was also an off-site storage facility exactly where “instruments and some equipment” had been kept.
“We questioned him to just take us to the power but he was evasive to our request.”
Based upon pics and invoices in GroundUp’s possession, some, if not all, with the products seem like tools which was illegally faraway from the CTMCA’s past premises. Stemmet is dealing with rates for this removal.
Based on the remaining development report submitted towards the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter had been administrators at some time.
The investigators observed this “alarming”.
“Within the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Street, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be created and/or transformed,” they noted.
An audit by accountants Kopano Included, attached on the investigative report, recorded the CTMCA was in the process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the directors.
As outlined by Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, meaning R6.nine-million remains to be owed, however there is absolutely no payment date set for when this have to be paid.
The Kopano audit plus the close backlink in between the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase on the equipment of your museum workshop”, the investigators mentioned from the report.
“We discover that it's really possible that CTMCA used the funding of the NLC to ‘refund’ certainly one of its principal directors for the assets at the next overpriced level than the particular value and value of the assets and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, can be not possible as being the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not performed a internet site take a look at right before approving the grant. But this wasn't common follow at the time they usually uncovered no proof of negligence by NLC employees.
At some time, the NLC’s policies didn't call for funded organisations to submit evidence of payment with interim reports, they pointed out. This intended that the CTMCA was in the position to receive a 2nd tranche of funding without needing to deliver proof that it had made use of the initial tranche for its supposed purpose.
Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any upcoming funding purposes from the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act over the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it had performed Using the preceding stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the inquiries by e mail far too. But no reaction had been received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph