Leaked report exposes abuse of lottery revenue paid out to minstrel team
Leaked report exposes abuse of lottery revenue paid out to minstrel team
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Minstrels carry out in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Countrywide Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has identified no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to order or make a museum.
Additionally they observed the CTMCA only acquired land well worth R1.7-million, not R5-million as allotted.
They found the CTMCA applied cash within the Lottery to buy workshop gear from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was by no means developed.
The small print on the abuse of a lot of rands of Lottery cash for the museum that under no circumstances was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery resources allocated into the CTMCA involving 2003 and 2017.
The initial part of the investigation, by legislation firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for that museum. The authorized funds with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making for that museum and if the museum “truly existed”.
The firm was also instructed to analyze
the purchase with Lottery funds of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “obtained for the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp in regards to the a lot of rands of Lottery funding allotted on the CTMCA (see listed here, listed here and right here) and the way the resources in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the supposed web page in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph
In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - such as the museum - in between 2012 and 2015. All 3 assignments 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 received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, as well as a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer find the money for the hire of R100,000 per month. He reported the CTMCA experienced bought house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-urban space considerably from town.
Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial space, the investigators explained they doubted regardless of whether an appropriate museum existed there. Photographs hooked up towards the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having explanation.
“There's a nominal number of merchandise within the museum [that] on no account represent the more than a hundred-12 months historical past in the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not appear being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni mentioned, by transferring The placement from the museum to an alternate place without notifying the NLC.
The Schaapkraal residence, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to move from the rented Crete Street premises as it experienced operate up a R4-million personal debt with town of Cape City and was frightened its tools will be attached.
“A result of the authorized battles along with the debts, the organisation had to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery money were being stored inside of a key locale “hidden through the Sheriff”. But the investigators explained they were being not able to confirm that any buses had ever been bought.
Stemmet also confirmed that the buses were concealed to halt them becoming seized. But when the investigators asked to become taken for the area the place the buses have been stored, he told them that “the operator of The key place wasn't accessible to open the premises for us”.
“The CTMCA couldn't supply proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators noted.
Soeker also explained to them the Schaapkraal house were sold as a result of debt.
“Mr Soeker discussed that Based on his being familiar with, as a result of credit card debt owed to town of Cape City, the CTMCA resolved it would be very best to market their [Schaapkraal] house … and also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for basic safety and protection, has Formerly told GroundUp which the CTMCA “threw dollars away” on litigation with town.
“Annually like clockwork, as we technique the end with the year, the CTMCA picks a legal fight with the City, more than permits or something else. We by no means initiate it. They preserve throwing funds away on vexatious litigation which they reduce and possess expenditures awarded from them. That is totally self-inflicted,” he stated.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial position players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of all of the admin, funds and running ตรวจ สลากกินแบ่ง รัฐบาล the CTMCA.” The investigators reported they were unable to Get in touch with Momberg.
Hats
During their “investigation in loco” within the Primrose Park premises, the investigators “located several equipment, some in excellent condition, some in undesirable condition and several that appeared rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-website storage facility the place “devices plus some equipment” were stored.
“We asked him to get us to the ability but he was evasive to our request.”
Determined by pics and invoices in GroundUp’s possession, some, if not all, in the objects seem like gear that was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through expenses for this removal.
In accordance with the ultimate progress report submitted into the NLC because of the CTMCA, the machinery was ordered from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter were being directors at enough time.
The investigators found this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Street, Wetton, Cape City, the exact same tackle on which the museum was meant to be created and/or converted,” they noted.
An audit by accountants Kopano Incorporated, hooked up into the investigative report, recorded the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the directors.
In keeping with Dabishi Nthambeleni, the business 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 need to be compensated.
The Kopano audit and the close hyperlink among the companies “show to us that there is ‘foul Perform’ involved in the purchase of your equipment on the museum workshop”, the investigators explained inside the report.
“We find that it's very probable that CTMCA made use of the funding on the NLC to ‘refund’ among its main administrators for your assets at a greater overpriced level than the actual rate and value of the residence and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant for the CTMCA had been expended.
“In reality, a detailed report on how the funding in the NLC was applied, would be unattainable since the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on each product it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC had not conducted a site stop by in advance of approving the grant. But this was not typical follow at some time plus they found no evidence of carelessness by NLC workers.
At enough time, the NLC’s guidelines did not involve funded organisations to submit proof of payment with interim studies, they identified. This intended which the CTMCA was in a position to receive a 2nd tranche of funding while not having to deliver evidence that it experienced made use of the very first tranche for its intended objective.
Subsequent the appointment of a fresh board, commissioner and senior government group, the NLC has tightened up on these along with other problems.
Dabishi Nthambeleni suggested that
the NLC drop any long run funding programs in the CTMCA;
the CTMCA and any users who have been involved in the grant be subjected into the NLC’s “delinquency” approach;
the NLC open up a legal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, rather then act around the report’s suggestions, the NLC – underneath its former administration – selected to suppress it, as it had carried out Together with the past experiences into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker through SMS, and requested for email addresses to send the questions by electronic mail much too. But no reaction had been been given at enough time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph