Leaked report exposes abuse of lottery income paid to minstrel group
Leaked report exposes abuse of lottery income paid to minstrel group
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Minstrels conduct in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no proof that a museum at any time existed.
The investigators discovered the CTMCA didn't make use of the R5-million allotted to acquire or build a museum.
They also observed which the CTMCA only acquired land really worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA employed money within the Lottery to buy workshop equipment from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to set up a museum to celebrate the town’s rich minstrel historical past went astray. The museum was by no means designed.
The main points of your abuse of a lot of rands of Lottery funds to get a museum that never ever was are disclosed in an investigative report commissioned via the NLC in 2021.
The museum grant was part of a lot more than R64-million in Lottery resources allocated to your CTMCA in between 2003 and 2017.
The main A part of the investigation, by regulation organization Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for that museum. The authorised funds to the museum was greater than R12.8-million, with R5-million of that allotted to get a setting up to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing with the museum and if the museum “essentially existed”.
The organization was also instructed to analyze
the acquisition with Lottery cash of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
numerous equipment “obtained for the manufacturing on the costumes and hats” for 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 on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various administrators in the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted intensive reporting by GroundUp with regard to the many rands of Lottery funding allocated to your CTMCA (see below, in this article and in this article) and the way the money most likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.
The creating on the right was the intended internet site from the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to some Parliamentary concern, former NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - including the museum - involving 2012 and 2015. All a few assignments had been concluded, she informed MPs.
However the investigators identified no evidence that a museum experienced ever existed.
At the beginning the museum was due to open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp with the supposed Wetton museum demonstrates a coffee shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung over the partitions, in addition to a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to confirm if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum had been moved given that they could no longer afford to pay for the lease of R100,000 per month. He explained the CTMCA experienced ordered house for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been offered for a similar selling price. Schaapkraal is inside of a peri-urban place considerably from the city.
Due to this fact, the museum were moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after viewing the premises, that happen to be in an industrial location, the investigators explained they doubted whether an appropriate museum existed there. Photos hooked up towards the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the floor, without having clarification.
“There's a minimal number of things at the museum [that] under no circumstances represent the a lot more than a hundred-calendar year history of the Cape City Carnival, the investigators said, adding that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum does not appear for being open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni noted, by transferring The placement of the museum to an alternate area without having notifying the NLC.
The Schaapkraal residence, on which no museum was ever designed. Photograph: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to move with the rented Crete Road premises since it experienced operate up a R4-million financial debt with the town of Cape Town and was worried its gear might be attached.
“Mainly because of the lawful battles and also the debts, the organisation had to maneuver its assets from five Crete Road to avoid the sheriff from attaching the home from the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director on the CTMCA, advised them that the two buses acquired with lottery money have been stored in a solution location “concealed in the Sheriff”. Nevertheless the investigators said they have been not able to confirm that any buses had at any time been acquired.
Stemmet also confirmed which the buses were hidden to halt them becoming seized. But in the event the investigators asked to become taken to your area in which the buses were being saved, he advised them that “the operator of The key locale was not accessible to open the premises for us”.
“The CTMCA couldn't provide evidence of payment for two motor vehicles that it allegedly ordered with grant cash,” the investigators claimed.
Soeker also informed them the Schaapkraal residence were offered as a result of credit card debt.
“Mr Soeker described that Based on his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA made a decision It could be most effective to promote their [Schaapkraal] house … and to also to cover the assets in the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and security, has Formerly told GroundUp the CTMCA “threw money away” on litigation with the town.
“Every year like clockwork, as we tactic the top on the calendar year, the CTMCA picks a legal battle with town, above permits or something else. We under no circumstances initiate it. They keep throwing cash absent on vexatious litigation which they shed and also have charges awarded in opposition to them. This is certainly fully self-inflicted,” he claimed.
Soeker instructed the Dabishi Nthambeleni investigators that the leading position players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of many of the admin, finances and operating หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators explained they were unable to Call Momberg.
Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “discovered quite a few devices, some in superior problem, some in terrible affliction and many that seemed rusty and very outdated”. Stemmet advised the investigators that there was also an off-web-site storage facility where “devices plus some equipment” had been kept.
“We requested him to consider us to the power but he was evasive to our request.”
Based on pics and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be products which was illegally faraway from the CTMCA’s previous premises. Stemmet is struggling with fees for this elimination.
Based on the closing development report submitted towards the NLC through the CTMCA, the machinery was ordered from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter ended up directors at time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the subsequent alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Street, Wetton, Cape City, the same tackle on which the museum was meant to be developed and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the whole process of getting “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the administrators.
Based on Dabishi Nthambeleni, the business has paid out R1.2-million as being a deposit, which means R6.9-million continues to be owed, however there is no payment day established for when this have to be paid out.
The Kopano audit plus the near website link in between the businesses “indicate to us that there's ‘foul Perform’ linked to the purchase of your machinery of your museum workshop”, the investigators claimed within the report.
“We find that it's extremely possible that CTMCA utilised the funding of the NLC to ‘refund’ considered one of its primary directors for that property at a greater overpriced fee than the particular rate and price of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were put in.
“Actually, a detailed report on how the funding of your NLC was utilised, will be not possible given that the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts put in on Every merchandise it asked for funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not executed a website check out prior to approving the grant. But this was not regular practice at the time they usually found no proof of carelessness by NLC staff members.
At enough time, the NLC’s regulations did not call for funded organisations to submit evidence of payment with interim experiences, they pointed out. This intended the CTMCA was capable to receive a 2nd tranche of funding without needing to deliver proof that it experienced utilized the first tranche for its meant reason.
Subsequent the appointment of a completely new board, commissioner and senior government workforce, the NLC has tightened up on these along with other issues.
Dabishi Nthambeleni suggested that
the NLC decrease any long run funding applications from your CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, as an alternative to act about the report’s recommendations, the NLC – less than its past administration – chose to suppress it, mainly because it had carried out With all the prior experiences into corruption it had commissioned.
GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for e-mail addresses to send out the thoughts by email also. But no response had been received at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph