Leaked report exposes abuse of lottery cash compensated to minstrel team
Leaked report exposes abuse of lottery cash compensated to minstrel team
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Minstrels complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has uncovered no proof that a museum ever existed.
The investigators uncovered that the CTMCA did not make use of the R5-million allotted to purchase or make a museum.
In addition they found that the CTMCA only bought land value R1.seven-million, not R5-million as allocated.
They located the CTMCA applied cash within the Lottery to invest in workshop equipment from certainly one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted into the Cape Town Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Fee (NLC) to build a museum to celebrate the town’s wealthy minstrel record went astray. The museum was under no circumstances produced.
The main points from the abuse of a lot of rands of Lottery funds for the museum that never was are uncovered in an investigative report commissioned because of the NLC in 2021.
The museum grant was part of over R64-million in Lottery money allocated towards the CTMCA among 2003 and 2017.
The primary Section of the investigation, by legislation company Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which included funding for that museum. The accredited price range with the museum was in excess of R12.8-million, with R5-million of that allocated for just a creating to deal with the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the creating for that museum and whether or not the museum “really existed”.
The agency was also instructed to research
the purchase with Lottery cash of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
many equipment “ordered for that production in the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted felony 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 spouse Zainonesa and daughter Raziah continued as two of quite a few directors of the organisation. Stemmet was reappointed for a director in Could 2021.
The investigation adopted substantial reporting by GroundUp regarding the millions of rands of Lottery funding allocated on the CTMCA (see in this article, right here and below) and just how the funds most likely assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The constructing on the appropriate was the intended internet site in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph
In response to the Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - such as the museum - amongst 2012 and 2015. All three tasks were concluded, she informed MPs.
Even so the investigators discovered no evidence that a museum experienced at any time existed.
To start with the museum was due to open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the meant Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of pics haphazardly hung on the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it had been “not in a position” to confirm if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum were moved since they could not find the money for the hire of R100,000 per month. He reported the CTMCA had acquired assets for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were offered for the same selling price. Schaapkraal is in the peri-urban area significantly from the city.
Subsequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, which happen to be within an industrial region, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Photos hooked up to your report clearly show a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without any explanation.
“You will find a nominal quantity of goods on the museum [that] in no way depict the greater than one hundred-calendar year background with the Cape City Carnival, the investigators stated, including that there was “no signage exterior the premises indicating which they housed a museum and … generally, the museum doesn't search to get open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation of your museum to an alternate spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to move from the rented Crete Street premises because it had operate up a R4-million financial debt with town of Cape City and was scared its equipment can be hooked up.
“As a result of authorized battles and the debts, the organisation had to move its home from 5 Crete Street to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director of the CTMCA, told them which the two buses acquired with lottery cash have been stored inside a magic formula location “concealed through the Sheriff”. Even so the investigators stated they were unable to confirm that any buses had at any time been bought.
Stemmet also verified that the buses were concealed to stop them remaining seized. But once the investigators requested to become taken to your location the place the buses were being stored, he advised them that “the proprietor of The trick locale wasn't available to open up the premises for us”.
“The CTMCA couldn't provide proof of payment for two vehicles that it allegedly bought with grant funds,” the investigators documented.
Soeker also advised them the Schaapkraal house had been sold due to personal debt.
“Mr Soeker spelled out that As outlined by his knowledge, due to financial debt owed to town of Cape Town, the CTMCA resolved It could be very best to offer their [Schaapkraal] home … and also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously advised GroundUp the CTMCA “threw dollars absent” on litigation with town.
“Each year like clockwork, as we strategy the end in the yr, the CTMCA picks a legal fight with town, over permits or another thing. We hardly ever initiate it. They continue to keep throwing dollars away on vexatious litigation that they reduce and also have fees awarded against them. This is fully self-inflicted,” he stated.
Soeker explained to the Dabishi Nthambeleni investigators that the principle function players on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of many of the admin, funds and operating ผล หวย the CTMCA.” The investigators mentioned they were unable to Call Momberg.
Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “located numerous machines, some in very good ailment, some in poor issue and many that appeared rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility where “devices plus some equipment” have been held.
“We asked him to take us to the power but he was evasive to our request.”
Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, in the products look like equipment which was illegally removed from the CTMCA’s former premises. Stemmet is dealing with costs for this removing.
Based on the last progress report submitted into the NLC through the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter were being directors at time.
The investigators observed this “alarming”.
“From your CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape Town, the identical tackle on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Included, connected into the investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was certainly one of the administrators.
Based on Dabishi Nthambeleni, the corporate has compensated R1.two-million as a deposit, that means R6.9-million remains to be owed, while there isn't any payment date established for when this needs to be paid out.
The Kopano audit plus the near url among the companies “suggest to us that there is ‘foul play’ involved in the acquisition on the machinery in the museum workshop”, the investigators mentioned within the report.
“We discover that it is remarkably probable that CTMCA made use of the funding in the NLC to ‘refund’ one of its major administrators for the house at the next overpriced rate than the actual value and worth of the residence and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to the CTMCA had been invested.
“In fact, a detailed report on how the funding of the NLC was used, could well be impossible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts expended on Every single item it asked for funding for. The interim report and last report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC had not executed a web site stop by prior to approving the grant. But this was not typical observe at the time and they identified no proof of negligence by NLC personnel.
At enough time, the NLC’s procedures didn't involve funded organisations to post proof of payment with interim studies, they pointed out. This intended the CTMCA was in the position to receive a second tranche of funding without having to deliver evidence that it had made use of the 1st tranche for its intended purpose.
Pursuing the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these along with other challenges.
Dabishi Nthambeleni advisable that
the NLC drop any long term funding apps within the CTMCA;
the CTMCA and any members who have been involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, instead of act on the report’s tips, the NLC – underneath its earlier administration – chose to suppress it, mainly because it had carried out with the past reviews into corruption it experienced commissioned.
GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for email addresses to ship the questions by e-mail far too. But no reaction had been acquired at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph
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