Leaked report exposes abuse of lottery funds paid to minstrel group
Leaked report exposes abuse of lottery funds paid to minstrel group
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Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has located no proof that a museum ever existed.
The investigators observed that the CTMCA did not utilize the R5-million allocated to obtain or create a museum.
They also identified the CTMCA only acquired land well worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA employed cash from your Lottery to invest in workshop gear from considered one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate the city’s abundant minstrel background went astray. The museum was never produced.
The small print on the abuse of millions of rands of Lottery resources for your museum that under no circumstances was are discovered within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery funds allocated for the CTMCA in between 2003 and 2017.
The 1st Element of the investigation, by regulation business Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which bundled funding with the museum. The authorized funds for the museum was a lot more than R12.8-million, with R5-million of that allocated for any constructing to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a creating for your museum and whether or not the museum “essentially existed”.
The company was also instructed to investigate
the acquisition with Lottery cash of two vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different devices “purchased for your manufacturing with the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted felony 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 ongoing as two of various directors from the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation adopted in depth reporting by GroundUp with regard to the millions of rands of Lottery funding allocated for the CTMCA (see listed here, here and here) and how the cash most likely aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at enough time by Marius Fransman.
The creating on the right was the supposed site of your minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to your Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “tasks” - such as the museum - between 2012 and 2015. All three initiatives were accomplished, she instructed MPs.
Nevertheless the investigators uncovered no proof that a museum had at any time existed.
At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp with the supposed Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of shots haphazardly hung within the walls, plus a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum were moved since they could now not find the money for the hire of R100,000 a month. He stated the CTMCA experienced obtained property for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were bought for a similar price tag. Schaapkraal is in a very peri-city region much from the city.
Therefore, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, which happen to be in an industrial location, the investigators said they doubted whether or not an appropriate museum existed there. Photographs attached on the report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the floor, without any rationalization.
“There exists a minimal number of objects on the museum [that] on no account characterize the in excess of a hundred-year historical past with the Cape Town Carnival, the investigators reported, including that there was “no signage outdoors the premises indicating that they housed a museum and … normally, the museum does not look to be open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The placement from the museum to an alternative place devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time created. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA had to maneuver with the rented Crete Highway premises as it had operate up a R4-million financial debt with the City of Cape City and was fearful its machines might be connected.
“A result of the legal battles and also the debts, the organisation experienced to maneuver its house from five Crete Road to stay away from the sheriff from attaching the property on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director in the CTMCA, instructed them the two buses bought with lottery funds had been stored in the secret location “concealed within the Sheriff”. Even so the investigators reported they were not able to verify that any buses had at any time been purchased.
Stemmet also confirmed which the buses had been hidden to stop them currently being seized. But in the event the investigators questioned to generally be taken to your area exactly where the buses were being saved, he advised them that “the proprietor of The key site wasn't available to open up the premises for us”.
“The CTMCA could not supply proof of payment for 2 motor vehicles that it allegedly procured with grant money,” the investigators reported.
Soeker also told them the Schaapkraal assets had been bought as a result of debt.
“Mr Soeker spelled out that according to his knowledge, a result of the personal debt owed to the City of Cape Town, the CTMCA made a decision It will be best to market their [Schaapkraal] residence … and also to also to cover the property on the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and security, has previously explained to GroundUp which the CTMCA “threw income away” on litigation with town.
“Annually like clockwork, as we technique the end with the yr, the CTMCA picks a lawful battle with town, above permits or another thing. We hardly ever initiate it. They hold throwing money away on vexatious litigation which they shed and also have prices awarded towards them. This is certainly entirely self-inflicted,” he mentioned.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial role players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of all of the admin, finances and functioning ผล สลาก the CTMCA.” The investigators explained they were not able to Call Momberg.
Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “discovered many machines, some in good ailment, some in lousy affliction and several that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web-site storage facility the place “devices and several equipment” had been saved.
“We asked him to acquire us to the facility but he was evasive to our request.”
Based upon photos and invoices in GroundUp’s possession, some, if not all, on the merchandise look like gear that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing prices for this removing.
In accordance with the closing development report submitted for the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization in which Stemmet, his spouse and his daughter have been directors at enough time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we note the following alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is 5 Crete Highway, Wetton, Cape Town, a similar address on which the museum was intended to be built and/or transformed,” they reported.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded the CTMCA was in the entire process of obtaining “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the directors.
Based on Dabishi Nthambeleni, the business has paid R1.2-million as a deposit, meaning R6.nine-million continues to be owed, even though there isn't a payment date established for when this must be compensated.
The Kopano audit along with the close backlink amongst the businesses “point out to us that there is ‘foul Engage in’ involved in the purchase of your machinery on the museum workshop”, the investigators stated while in the report.
“We discover that it's really possible that CTMCA employed the funding on the NLC to ‘refund’ amongst its main administrators with the assets at the next overpriced rate than the particular price tag and value of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant towards the CTMCA were put in.
“In reality, an in depth report on how the funding from the NLC was made use of, can be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities invested on each merchandise it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not conducted a web-site go to ahead of approving the grant. But this was not common exercise at enough time plus they observed no proof of negligence by NLC staff.
At time, the NLC’s policies did not have to have funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was capable of receive a 2nd tranche of funding while not having to give proof that it experienced employed the very first tranche for its meant objective.
Pursuing the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni encouraged that
the NLC drop any potential funding apps with the CTMCA;
the CTMCA and any users who had been associated with the grant be subjected for the NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, instead of act over the report’s recommendations, the NLC – less than its former administration – selected to suppress it, as it experienced carried out with the earlier stories into corruption it experienced commissioned.
GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to send the inquiries by electronic mail too. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph