Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the National Lotteries Commission for the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no evidence that a museum at any time existed.
The investigators located that the CTMCA didn't use the R5-million allotted to order or build a museum.
Additionally they uncovered that the CTMCA only purchased land worth R1.7-million, not R5-million as allotted.
They found the CTMCA applied cash in the Lottery to acquire workshop equipment from certainly one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Fee (NLC) to build a museum to celebrate town’s abundant minstrel background went astray. The museum was in no way produced.
The small print in the abuse of countless rands of Lottery cash for a museum that under no circumstances was are exposed within an investigative report commissioned by the NLC in 2021.
The museum grant was Component of greater than R64-million in Lottery money allocated for the CTMCA concerning 2003 and 2017.
The first part of the investigation, by regulation firm Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which bundled funding with the museum. The approved spending budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for the creating to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the creating for your museum and whether or not the museum “in fact existed”.
The company was also instructed to investigate
the purchase with Lottery resources of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
numerous equipment “bought for that manufacturing of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed like a director in May well 2021.
The investigation followed considerable reporting by GroundUp with regards to the countless rands of Lottery funding allocated to the CTMCA (see here, right here and in this article) and how the money probably aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The setting up on the ideal was the intended web page of your minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to your Parliamentary question, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - such as the museum - among 2012 and 2015. All a few initiatives had been accomplished, she informed MPs.
However the investigators identified no evidence that a museum had ever existed.
In the beginning the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo received by GroundUp on the meant Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of pics haphazardly hung over the partitions, as well as a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni said it was “not ready” to verify if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved because they could no more find the money for the lease of R100,000 per month. He reported the CTMCA had bought residence for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been offered for the same selling price. Schaapkraal is in the peri-urban place considerably from town.
Because of this, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after viewing the premises, which happen to be within an industrial location, the investigators stated they doubted no matter whether a proper museum existed there. Pics attached into the report demonstrate a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and spread out on the floor, without having explanation.
“There exists a negligible volume of items in the museum [that] under no circumstances signify the much more than a hundred-year history from the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the premises indicating they housed a museum and … normally, the museum will not search for being open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by relocating the location of your museum to an alternate location devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever crafted. Photo: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to maneuver from the rented Crete Road premises since it had run up a R4-million financial debt with the City of Cape Town and was fearful its gear can be connected.
“Due to authorized battles plus the debts, the organisation experienced to move its home from 5 Crete Street to stay away from the sheriff from attaching the house from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of your CTMCA, told them which the two buses purchased with lottery funds were being saved inside of a mystery area “concealed with the Sheriff”. Though the investigators mentioned they were not able to substantiate that any buses had at any time been acquired.
Stemmet also confirmed that the buses had been hidden to prevent them remaining seized. But once the investigators requested to generally be taken towards the area where by the buses had been stored, he advised them that “the proprietor of the secret location was not available to open the premises for us”.
“The CTMCA couldn't present proof of payment for 2 cars that it allegedly ordered with grant money,” the investigators claimed.
Soeker also told them the Schaapkraal residence had been sold because of the personal debt.
“Mr Soeker spelled out that according to his knowledge, due to financial debt owed to town of Cape Town, the CTMCA made a decision It might be best to offer their [Schaapkraal] home … also to also to hide the assets with the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and safety, has Earlier informed GroundUp the CTMCA “threw cash away” on litigation with the town.
“On a yearly basis like clockwork, as we strategy the tip of the year, the CTMCA picks a lawful fight with the City, in excess of permits or something else. We never ever initiate it. They retain throwing revenue absent on vexatious litigation they get rid of and also have expenses awarded towards them. That is completely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the leading purpose gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for all the admin, finances and functioning ตรวจ สลาก the CTMCA.” The investigators stated they were struggling to Get in touch with Momberg.
Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “observed many machines, some in fantastic condition, some in terrible condition and several that seemed rusty and very aged”. Stemmet told the investigators that there was also an off-website storage facility where “devices and several machinery” were being retained.
“We asked him to choose us to the power but he was evasive to our ask for.”
Based upon pics and invoices in GroundUp’s possession, some, if not all, from the merchandise seem like products which was illegally removed from the CTMCA’s previous premises. Stemmet is facing prices for this removing.
According to the closing development report submitted into the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were being administrators at time.
The investigators observed this “alarming”.
“From the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape City, precisely the same address on which the museum was intended to be built and/or converted,” they reported.
An audit by accountants Kopano Integrated, connected for the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the administrators.
According to Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, meaning R6.nine-million remains owed, although there is absolutely no payment date established for when this need to be paid.
The Kopano audit and also the shut website link between the companies “indicate to us that there's ‘foul play’ linked to the acquisition on the equipment from the museum workshop”, the investigators reported from the report.
“We find that it is remarkably possible that CTMCA utilized the funding from the NLC to ‘refund’ considered one of its key administrators for that assets at a greater overpriced charge than the actual cost and value of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to determine how the grant on the CTMCA had been used.
“In point of fact, a detailed report on how the funding in the NLC was utilised, could be extremely hard as being the CTMCA does not have any receipts, or evidence of payments to verify the amounts used on Just about every product it requested funding for. The interim report and remaining report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not done a site pay a visit to ahead of approving the grant. But this was not common follow at time and they found no proof of negligence by NLC workers.
At some time, the NLC’s regulations did not require funded organisations to post evidence of payment with interim stories, they pointed out. This meant the CTMCA was capable to get a second tranche of funding without having to provide proof that it experienced utilised the very first tranche for its meant intent.
Subsequent the appointment of a different board, commissioner and senior executive staff, the NLC has tightened up on these and also other challenges.
Dabishi Nthambeleni recommended that
the NLC decline any potential funding programs through the CTMCA;
the CTMCA and any customers who have been involved with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act to the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, as it experienced carried out with the preceding reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for email addresses to deliver the queries by e-mail far too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph