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 carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA utilized cash from your Lottery to invest in workshop gear from among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to setup a museum to rejoice town’s prosperous minstrel history went astray. The museum was never established.
The main points of the abuse of millions of rands of Lottery money for your museum that never was are exposed in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of over R64-million in Lottery funds allotted for the CTMCA in between 2003 and 2017.
The very first Element of the investigation, by legislation firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The authorised spending budget to the museum was more than R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the making for that museum and if the museum “in fact existed”.
The agency was also instructed to investigate
the acquisition with Lottery cash of two cars – a 60-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “procured to the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous administrators of your organisation. Stemmet was reappointed as being a director in May well 2021.
The investigation adopted extensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated on the CTMCA (see listed here, listed here and listed here) and the best way the funds most likely served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The building on the ideal was the intended website of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In response into a Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All three tasks had been concluded, she explained to MPs.
However the investigators located no proof that a museum had ever existed.
To start with the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of the meant Wetton museum demonstrates a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, along with a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni said it had been “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum were moved given that they could now not pay for the lease of R100,000 per month. He said the CTMCA had obtained residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for a similar price. Schaapkraal is inside a peri-urban region far from the city.
Consequently, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which might be in an industrial space, the investigators explained they doubted no matter whether a proper museum existed there. Pics attached to your 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 clarification.
“You will find a negligible quantity of objects for the museum [that] on no account stand for the more than a hundred-calendar year heritage with the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … typically, the museum doesn't glimpse being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by shifting The situation from the museum to an alternate location with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to move from your rented Crete Street premises as it had run up a R4-million financial debt with the City of Cape Town and was concerned its machines would be hooked up.
“Due to the legal battles as well as debts, the organisation experienced to maneuver its property from 5 Crete Highway to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director with the CTMCA, instructed them that the two buses acquired with lottery resources ended up stored in the magic formula area “concealed with the Sheriff”. Although the investigators stated they were being unable to confirm that any buses had at any time been bought.
Stemmet also confirmed the buses had been hidden to stop them becoming seized. But when the investigators asked to be taken towards the location exactly where the buses were saved, he advised them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA couldn't offer evidence of payment for two cars that it allegedly obtained with grant money,” the investigators described.
Soeker also told them the Schaapkraal residence were sold as a result of personal debt.
“Mr Soeker described that Based on his knowledge, because of the financial debt owed to the town of Cape Town, the CTMCA made the decision It could be finest to provide their [Schaapkraal] assets … also to also to cover the property in the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for basic safety and security, has Beforehand instructed GroundUp the CTMCA “threw money absent” on litigation with the City.
“On a yearly basis like clockwork, as we tactic the end of your yr, the CTMCA picks a lawful fight with the town, over permits or something else. We hardly ever initiate it. They preserve throwing revenue absent on vexatious litigation that they get rid of and possess costs awarded towards them. This is certainly solely self-inflicted,” he stated.
Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of many of the admin, funds and managing หวย วัน นี้ the CTMCA.” The investigators stated they had been unable to Make contact with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “observed a lot of devices, some in excellent situation, some in bad ailment and many that looked rusty and intensely old”. Stemmet explained to the investigators that there was also an off-web-site storage facility in which “devices and a few machinery” were being stored.
“We questioned him to take us to the ability but he was evasive to our ask for.”
Based on photographs and invoices in GroundUp’s possession, some, if not all, with the items appear to be gear that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing prices for this elimination.
Based on the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was procured from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter were being directors at the time.
The investigators uncovered this “alarming”.
“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be built and/or converted,” they noted.
An audit by accountants Kopano Incorporated, connected on the investigative report, recorded the CTMCA was in the entire process of getting “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.
In keeping with Dabishi Nthambeleni, the corporate has paid out R1.two-million being a deposit, which means R6.nine-million continues to be owed, though there is not any payment date established for when this should be paid out.
The Kopano audit and the close backlink in between the companies “point out to us that there's ‘foul play’ associated with the purchase on the equipment of your museum workshop”, the investigators said within the report.
“We find that it's highly possible that CTMCA made use of the funding of your NLC to ‘refund’ one of its main administrators to the home at a greater overpriced rate than the particular value and value of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant on the CTMCA were spent.
“In fact, a detailed report on how the funding on the NLC was made use of, could 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 last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC experienced not executed a internet site pay a visit to before approving the grant. But this wasn't regular exercise at time plus they discovered no proof of carelessness by NLC staff.
At some time, the NLC’s guidelines didn't involve funded organisations to submit proof of payment with interim studies, they identified. This intended which the CTMCA was able to receive a second tranche of funding without needing to give evidence that it experienced utilised the main tranche for its supposed intent.
Next the appointment of a new board, commissioner and senior govt workforce, the NLC has tightened up on these and various challenges.
Dabishi Nthambeleni encouraged that
the NLC decrease any long term funding purposes through the CTMCA;
the CTMCA and any members who were being associated with the grant be subjected to the NLC’s “delinquency” course of action;
the NLC open a legal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, in lieu of act around the report’s suggestions, the NLC – beneath its former administration – selected to suppress it, mainly because it experienced carried out With all 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 issues by e-mail also. But no reaction were obtained at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph