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 complete in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the National Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has uncovered no proof that a museum at any time existed.
The investigators uncovered the CTMCA didn't make use of the R5-million allocated to acquire or build a museum.
They also discovered which the CTMCA only purchased land worthy of R1.7-million, not R5-million as allocated.
They identified the CTMCA employed funds within the Lottery to invest in workshop machines from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to set up a museum to rejoice the town’s abundant minstrel heritage went astray. The museum was never ever established.
The small print of your abuse of an incredible number of rands of Lottery cash for a museum that never ever was are unveiled within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of in excess of R64-million in Lottery resources allotted to your CTMCA between 2003 and 2017.
The main Component of the investigation, by law firm Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which bundled funding for the museum. The accredited funds for your museum was much more than R12.8-million, with R5-million of that allocated to get a constructing to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for the museum and whether or not the museum “basically existed”.
The business was also instructed to analyze
the purchase with Lottery cash of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous devices “procured for the manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At some 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 wife Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation followed extensive reporting by GroundUp regarding the countless rands of Lottery funding allotted towards the CTMCA (see below, listed here and listed here) and just how the cash possibly assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The creating on the best was the supposed internet site in the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph
In response to the Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “initiatives” - including the museum - among 2012 and 2015. All three tasks had been concluded, she told MPs.
Though the investigators found no proof that a museum had at any time existed.
In the beginning the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp in the meant Wetton museum reveals a coffee store with some musical instruments and minstrel costumes and collages of pictures haphazardly hung around the walls, and also a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni reported it was “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved since they could no longer manage the lease of R100,000 per month. He said the CTMCA had acquired residence for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been bought for the same cost. Schaapkraal is inside a peri-urban region far from the city.
As a result, the museum had been moved to a brand new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after traveling to the premises, which are in an industrial area, the investigators stated they doubted regardless of whether an appropriate museum existed there. Photos hooked up towards the report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, exhibited on tables and distribute out on the floor, without rationalization.
“You will find a negligible volume of goods on the museum [that] under no circumstances represent the a lot more than 100-12 months history with the Cape City Carnival, the investigators reported, introducing that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum will not appear to be open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by transferring the location of your museum to an alternative site with no notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Image: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to move with the rented Crete Highway premises because it had operate up a R4-million personal debt with town of Cape City and was concerned its devices might be connected.
“Due to authorized battles along with the debts, the organisation had to move its house from 5 Crete Road to avoid the sheriff from attaching the property of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director from the CTMCA, told them which the two buses bought with lottery resources have been saved inside a top secret site “hidden with the Sheriff”. Even so the investigators mentioned they have been unable to verify that any buses experienced at any time been acquired.
Stemmet also confirmed which the buses had been hidden to stop them currently being seized. But if the investigators questioned to be taken for the place exactly where the buses have been stored, he explained to them that “the proprietor of The key place wasn't accessible to open the premises for us”.
“The CTMCA couldn't offer proof of payment for 2 vehicles that it allegedly purchased with grant funds,” the investigators described.
Soeker also explained to them the Schaapkraal assets were sold due to the credit card debt.
“Mr Soeker explained that according to his knowing, mainly because of the debt owed to town of Cape City, the CTMCA made a decision it would be very best to promote their [Schaapkraal] assets … and also to also to cover the property with the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for protection and stability, has previously instructed GroundUp that the CTMCA “threw money away” on litigation with the City.
“Each year like clockwork, as we strategy the end in the yr, the CTMCA picks a legal fight with the town, about permits or something else. We hardly ever initiate it. They preserve throwing dollars absent on vexatious litigation they get rid of and have expenses awarded towards them. This can be completely self-inflicted,” he stated.
Soeker informed the Dabishi Nthambeleni investigators that the principle function gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for all the admin, funds and working หุ้น ชอง 9 the CTMCA.” The investigators mentioned they were struggling to Get hold of Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “identified various machines, some in excellent condition, some in negative affliction and some that looked rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-web site storage facility wherever “devices and some machinery” have been stored.
“We questioned him to acquire us to the ability but he was evasive to our request.”
Determined by photographs and invoices in GroundUp’s possession, some, Otherwise all, on the products look like tools which was illegally removed from the CTMCA’s past premises. Stemmet is going through rates for this removal.
According to the closing progress report submitted for the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter were being administrators at time.
The investigators observed this “alarming”.
“Within the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the business is five Crete Street, Wetton, Cape City, the identical handle on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the administrators.
In accordance with Dabishi Nthambeleni, the corporate has paid out R1.two-million for a deposit, indicating R6.9-million continues to be owed, although there's no payment day established for when this has to be paid.
The Kopano audit as well as near hyperlink between the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition of the machinery with the museum workshop”, the investigators said while in the report.
“We discover that it is hugely possible that CTMCA made use of the funding from the NLC to ‘refund’ one of its major administrators for that residence at the next overpriced price than the actual value and worth of the property and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant on the CTMCA had been used.
“The truth is, an in depth report on how the funding in the NLC was utilized, might be difficult because the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities put in on Every single product it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified which the NLC experienced not done a web site stop by before approving the grant. But this was not standard practice at some time and they found no evidence of carelessness by NLC employees.
At some time, the NLC’s procedures did not demand funded organisations to post proof of payment with interim experiences, they pointed out. This intended which the CTMCA was in the position to receive a next tranche of funding while not having to supply proof that it had employed the very first tranche for its meant purpose.
Pursuing the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these and also other challenges.
Dabishi Nthambeleni suggested that
the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who were involved in the grant be subjected towards the NLC’s “delinquency” method;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, as opposed to act around the report’s tips, the NLC – below its previous administration – selected to suppress it, mainly because it had finished Along with the earlier stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker by means of SMS, and questioned for email addresses to ship the concerns by e-mail way too. But no reaction were been given at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph