Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
Blog Article
Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has discovered no evidence that a museum ever existed.
The investigators located which the CTMCA didn't make use of the R5-million allotted to obtain or build a museum.
They also identified which the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They observed the CTMCA employed money in the Lottery to invest in workshop machines from amongst its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to build a museum to rejoice town’s wealthy minstrel historical past went astray. The museum was in no way made.
The details on the abuse of an incredible number of rands of Lottery resources for the museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery cash allotted towards the CTMCA involving 2003 and 2017.
The very first A part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which involved funding for that museum. The accredited budget for that museum was a lot more than R12.eight-million, with R5-million of that allotted for your setting up to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up with the museum and if the museum “basically existed”.
The organization was also instructed to analyze
the purchase with Lottery money of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
different equipment “ordered with the producing on the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your 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 Could 2021.
The investigation followed extensive reporting by GroundUp with regards to the a lot of rands of Lottery funding allotted on the CTMCA (see here, listed here and right here) and the best way the money possibly helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.
The making on the right was the intended website of your minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary concern, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All a few assignments had been finished, she advised MPs.
Even so the investigators found no evidence that a museum experienced at any time existed.
In the beginning the museum was resulting from open in rented premises in Crete Highway, Wetton. A photo attained by GroundUp with the meant Wetton museum shows a espresso store with some musical instruments and minstrel costumes and collages of photos haphazardly hung within the walls, and a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni reported it was “not able” to verify if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum were moved since they could no longer afford to pay for the lease of R100,000 per month. He claimed the CTMCA had bought home for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for the same rate. Schaapkraal is within a peri-city spot far from the city.
Due to this fact, the museum had been moved to a different spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after visiting the premises, which might be within an industrial region, the investigators reported they doubted irrespective of whether a proper museum existed there. Photographs attached towards the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, shown on tables and spread out on the ground, without any clarification.
“You will find a small number of things at the museum [that] on no account symbolize the greater than one hundred-year historical past of the Cape City Carnival, the investigators claimed, introducing that there was “no signage outside the premises indicating that they housed a museum and … frequently, the museum doesn't glance to become open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by transferring the location on the museum to an alternative spot without notifying the NLC.
The Schaapkraal home, on which no museum was ever built. Image: Raymond Joseph
Buses
Stemmet instructed the investigators the CTMCA had to move from the rented Crete Road premises mainly because it had operate up a R4-million personal debt with the town of Cape Town and was worried its machines can be attached.
“Due to the legal battles as well as debts, the organisation experienced to maneuver its residence from five Crete Highway to steer clear of the sheriff from attaching the property from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of the CTMCA, explained to them the two buses acquired with lottery money were stored within a key area “hidden from the Sheriff”. However the investigators reported they have been not able to verify that any buses experienced at any time been bought.
Stemmet also confirmed the buses were concealed to halt them getting seized. But when the investigators requested to become taken towards the put in which the buses ended up saved, he advised them that “the owner of The key locale wasn't accessible to open up the premises for us”.
“The CTMCA could not supply evidence of payment for 2 vehicles that it allegedly acquired with grant funds,” the investigators described.
Soeker also instructed them the Schaapkraal house had been offered due to the debt.
“Mr Soeker defined that according to his comprehending, as a result of debt owed to town of Cape Town, the CTMCA resolved It could be very best to provide their [Schaapkraal] house … and to also to hide the assets with the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for protection and safety, has Earlier told GroundUp the CTMCA “threw cash absent” on litigation with the City.
“On a yearly basis like clockwork, as we strategy the tip of the yr, the CTMCA picks a authorized battle with town, about permits or another thing. We never initiate it. They continue to keep throwing revenue absent on vexatious litigation that they lose and have charges awarded from them. That is totally self-inflicted,” he stated.
Soeker instructed the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of many of the admin, funds and managing lottovip the CTMCA.” The investigators reported they had been not able to contact Momberg.
Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “identified a lot of equipment, some in good condition, some in poor situation and some that appeared rusty and very old”. Stemmet told the investigators that there was also an off-website storage facility where by “instruments and a few machinery” ended up held.
“We questioned him to acquire us to the facility but he was evasive to our request.”
Based on photographs and invoices in GroundUp’s possession, some, Otherwise all, of your things seem like devices that was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing charges for this removing.
In accordance with the remaining development report submitted to the NLC from the CTMCA, the machinery was purchased from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter ended up directors at some time.
The investigators uncovered this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Take note the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Highway, Wetton, Cape City, the exact same handle on which the museum was intended to be created and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded which the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was considered one of the administrators.
According to Dabishi Nthambeleni, the organization has compensated R1.two-million being a deposit, which means R6.9-million is still owed, though there's no payment date established for when this has to be paid.
The Kopano audit as well as close connection concerning the companies “suggest to us that there is ‘foul Enjoy’ involved in the acquisition from the equipment from the museum workshop”, the investigators reported while in the report.
“We discover that it's extremely probable that CTMCA applied the funding of the NLC to ‘refund’ among its key directors to the residence at the next overpriced level than the particular selling price and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been used.
“In point of fact, an in depth report on how the funding in the NLC was utilized, could well be unachievable given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts used on Every single product it requested funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not carried out a website check out before approving the grant. But this wasn't normal follow at enough time plus they uncovered no proof of negligence by NLC personnel.
At enough time, the NLC’s policies did not need funded organisations to submit evidence of payment with interim experiences, they pointed out. This intended the CTMCA was in the position to receive a next tranche of funding while not having to give proof that it experienced utilised the very first tranche for its meant function.
Following the appointment of a completely new board, commissioner and senior executive staff, the NLC has tightened up on these along with other issues.
Dabishi Nthambeleni suggested that
the NLC decrease any long run funding purposes in the CTMCA;
the CTMCA and any members who were involved in the grant be subjected for the NLC’s “delinquency” approach;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated resources.
But, rather then act within the report’s recommendations, the NLC – underneath its earlier administration – selected to suppress it, as it experienced carried out While using the preceding experiences into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and questioned for email addresses to send out the concerns by e-mail much too. But no reaction had been obtained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph