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 conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant by the Countrywide Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has discovered no evidence that a museum at any time existed.
The investigators identified which the CTMCA didn't use the R5-million allotted to buy or create a museum.
In addition they discovered that the CTMCA only purchased land truly worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA employed cash from the Lottery to invest in workshop equipment from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to set up a museum to celebrate town’s prosperous minstrel history went astray. The museum was hardly ever designed.
The details of the abuse of many rands of Lottery funds for the museum that never was are uncovered in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of a lot more than R64-million in Lottery cash allotted for the CTMCA between 2003 and 2017.
The primary Component of the investigation, by legislation company Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which bundled funding to the museum. The authorized budget for that museum was a lot more than R12.eight-million, with R5-million of that allocated for the developing to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the building to the museum and if the museum “really existed”.
The company was also instructed to investigate
the purchase with Lottery money of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of devices “obtained for the producing with the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director of 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 continued as two of a number of administrators in the organisation. Stemmet was reappointed being a director in Might 2021.
The investigation followed in depth reporting by GroundUp concerning the an incredible number of rands of Lottery funding allotted for the CTMCA (see in this article, here and listed here) and just how the resources probably helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The making on the ideal was the intended web site of the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “assignments” - such as the museum - amongst 2012 and 2015. All a few initiatives had been completed, she explained to MPs.
But the investigators found no evidence that a museum had at any time existed.
At first the museum was on account of open up in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp from the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of photos haphazardly hung to the partitions, and also a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it was “not ready” to verify if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum were moved since they could no longer manage the rent of R100,000 a month. He reported the CTMCA had acquired assets for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for a similar cost. Schaapkraal is within a peri-urban location much from the city.
Therefore, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, that are within an industrial location, the investigators said they doubted whether or not a suitable museum existed there. Pictures connected to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.
“You will find there's minimal level of objects for the museum [that] on no account stand for the greater than 100-calendar year record with the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … typically, the museum does not glance to get open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by shifting The situation of the museum to an alternate locale without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to maneuver with the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear will be attached.
“Because of the lawful battles as well as debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director on the CTMCA, told them the two buses acquired with lottery money were being stored in the secret area “concealed from the Sheriff”. Nevertheless the investigators claimed they ended up not able to verify that any buses experienced ever been bought.
Stemmet also confirmed the buses had been hidden to prevent them being seized. But if the investigators questioned to get taken into the place wherever the buses were being saved, he explained to them that “the operator of The key site was not available to open the premises for us”.
“The CTMCA couldn't present proof of payment for 2 autos that it allegedly bought with grant revenue,” the investigators described.
Soeker also instructed them the Schaapkraal assets had been marketed as a result of credit card debt.
“Mr Soeker discussed that Based on his comprehending, due to financial debt owed to town of Cape Town, the CTMCA determined it would be most effective to provide their [Schaapkraal] house … also to also to cover the assets from the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for protection and protection, has Beforehand told GroundUp that the CTMCA “threw funds absent” on litigation with town.
“Each year like clockwork, as we technique the tip of the 12 months, the CTMCA picks a lawful struggle with the City, above permits or something else. We under no circumstances initiate it. They maintain throwing income absent on vexatious litigation that they drop and have costs awarded versus them. This is fully self-inflicted,” he mentioned.
Soeker told the Dabishi Nthambeleni investigators that the leading position players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of each of the admin, finances and running หวย ลาว ย้อน หลัง the CTMCA.” The investigators said they had been not able to Get hold of Momberg.
Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “found many machines, some in very good issue, some in undesirable issue and a few that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-internet site storage facility in which “devices and several equipment” were being saved.
“We requested him to consider us to the power but he was evasive to our request.”
Based on shots and invoices in GroundUp’s possession, some, if not all, on the items appear to be devices which was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with prices for this removing.
In accordance with the final development report submitted to the NLC through the CTMCA, the machinery was acquired from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter ended up directors at time.
The investigators identified this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Street, Wetton, Cape City, precisely the same tackle on which the museum was meant to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, connected into the investigative report, recorded which the CTMCA was in the process of acquiring “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 for a deposit, indicating R6.9-million is still owed, even though there is absolutely no payment date established for when this needs to be paid out.
The Kopano audit and also the close connection involving the companies “reveal to us that there's ‘foul Perform’ linked to the purchase on the equipment of your museum workshop”, the investigators mentioned during the report.
“We discover that it is hugely possible that CTMCA applied the funding of the NLC to ‘refund’ one among its key administrators with the property at a greater overpriced price than the actual cost and value of the property and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant on the CTMCA had been spent.
“In reality, an in depth report on how the funding on the NLC was employed, would be impossible as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Every product 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 had not executed a website check out in advance of approving the grant. But this wasn't conventional observe at some time they usually observed no evidence of negligence by NLC workforce.
At enough time, the NLC’s policies did not have to have funded organisations to submit evidence of payment with interim studies, they pointed out. This intended that the CTMCA was capable of get a second tranche of funding without having to present proof that it had utilized the 1st tranche for its intended reason.
Following the appointment of a completely new board, commissioner and senior executive staff, the NLC has tightened up on these along with other challenges.
Dabishi Nthambeleni suggested that
the NLC decline any foreseeable future funding programs through the CTMCA;
the CTMCA and any customers who were being involved with the grant be subjected into the NLC’s “delinquency” system;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated funds.
But, instead of act over the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, because it experienced completed with the past reports into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for email addresses to send the issues by electronic mail too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph