Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
Blog Article
Minstrels conduct in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant with the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not make use of the R5-million allocated to purchase or produce a museum.
They also uncovered the CTMCA only purchased land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of resources from your Lottery to get workshop equipment from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Commission (NLC) to put in place a museum to rejoice town’s abundant minstrel background went astray. The museum was hardly ever made.
The main points of the abuse of numerous rands of Lottery money for any museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery cash allocated to your CTMCA among 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which bundled funding for your museum. The accredited spending plan for the museum was over R12.8-million, with R5-million of that allocated to get a creating to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing for your museum and whether the museum “basically existed”.
The organization was also instructed to research
the acquisition with Lottery money of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of machines “acquired for the production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director with 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 many administrators with the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation followed in depth reporting by GroundUp about the millions of rands of Lottery funding allotted to your CTMCA (see below, below and listed here) and the way in which the resources likely aided finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The building on the appropriate was the supposed web-site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.
But the investigators discovered no evidence that a museum experienced ever existed.
To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of the meant Wetton museum displays a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung to the walls, in addition to a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer manage the lease of R100,000 a month. He claimed the CTMCA experienced procured assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for the same value. Schaapkraal is within a peri-urban area far from town.
Due to this fact, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be within an industrial spot, the investigators said they doubted irrespective of whether a correct museum existed there. Pics attached on the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the ground, without having rationalization.
“There is a minimum level of objects with the museum [that] under no circumstances depict the in excess of one hundred-year record of your Cape Town Carnival, the investigators stated, introducing that there was “no signage exterior the premises indicating that they housed a museum and … commonly, the museum will not look being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by relocating The situation in the museum to an alternate location without notifying the NLC.
The Schaapkraal home, on which no museum was ever developed. Image: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA experienced to move from the rented Crete Highway premises as it experienced operate up a R4-million personal debt with the City of Cape City and was afraid its machines could well be hooked up.
“Mainly because of the authorized battles as well as debts, the organisation had to move its house from 5 Crete Road to avoid the sheriff from attaching the residence of your organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director from the CTMCA, told them the two buses bought with lottery cash ended up saved inside of a mystery place “hidden from the Sheriff”. But the investigators said they ended up unable to verify that any buses had ever been bought.
Stemmet also confirmed that the buses were concealed to halt them remaining seized. But in the event the investigators questioned being taken into the put wherever the buses ended up stored, he told them that “the operator of The key location wasn't available to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 automobiles that it allegedly procured with grant income,” the investigators reported.
Soeker also instructed them the Schaapkraal property had been marketed because of the financial debt.
“Mr Soeker stated that As outlined by his understanding, a result of the personal debt owed to town of Cape City, the CTMCA resolved it would be very best to promote their [Schaapkraal] home … and to also to cover the belongings with the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw funds absent” on litigation with the town.
“Each year like clockwork, as we approach the tip of the 12 months, the CTMCA picks a lawful battle with the town, over permits or something else. We never initiate it. They hold throwing revenue away on vexatious litigation that they eliminate and possess expenses awarded in opposition to them. This is often entirely self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the principle purpose gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for many of the admin, funds and managing ruay the CTMCA.” The investigators said they were struggling to contact Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “discovered numerous equipment, some in very good problem, some in poor condition plus some that seemed rusty and intensely previous”. Stemmet told the investigators that there was also an off-web-site storage facility in which “devices and some machinery” were being stored.
“We requested him to take us to the ability but he was evasive to our ask for.”
Dependant on pictures and invoices in GroundUp’s possession, some, if not all, on the goods look like equipment that was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with expenses for this removal.
According to the remaining progress report submitted into the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company where Stemmet, his spouse and his daughter had been directors at some time.
The investigators discovered this “alarming”.
“Through the CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Street, Wetton, Cape Town, exactly the same address on which the museum was meant to be designed and/or converted,” they noted.
An audit by accountants Kopano Incorporated, hooked up on the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
According to Dabishi Nthambeleni, the corporate has compensated R1.2-million like a deposit, this means R6.9-million continues to be owed, while there isn't any payment date set for when this have to be paid out.
The Kopano audit as well as shut link between the companies “indicate to us that there's ‘foul Participate in’ linked to the purchase in the machinery of the museum workshop”, the investigators reported during the report.
“We find that it's remarkably probable that CTMCA used the funding with the NLC to ‘refund’ one among its primary administrators for your assets at a greater overpriced level than the actual selling price and value of the house and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA were spent.
“Actually, an in depth report on how the funding with the NLC was used, could be extremely hard as being the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities used on each product it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered the NLC had not executed a internet site pay a visit to before approving the grant. But this wasn't regular observe at time they usually identified no proof of carelessness by NLC staff.
At some time, the NLC’s guidelines did not involve funded organisations to submit proof of payment with interim studies, they identified. This intended the CTMCA was able to receive a second tranche of funding without needing to give proof that it had employed the primary tranche for its meant function.
Pursuing the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these along with other concerns.
Dabishi Nthambeleni suggested that
the NLC drop any long run funding programs from the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected for the NLC’s “delinquency” process;
the NLC open a prison case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, rather than act within the report’s suggestions, the NLC – underneath its former administration – selected to suppress it, as it experienced carried out Together with the preceding stories into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to send out the inquiries by e-mail as well. But no reaction had been received at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph