Leaked report exposes abuse of lottery funds paid out to minstrel team
Leaked report exposes abuse of lottery funds paid out to minstrel team
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Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no evidence that a museum ever existed.
The investigators observed that the CTMCA didn't use the R5-million allotted to purchase or make a museum.
In addition they found that the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA used resources through the Lottery to buy workshop equipment from considered one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Fee (NLC) to arrange a museum to rejoice the town’s abundant minstrel heritage went astray. The museum was hardly ever designed.
The details of your abuse of countless rands of Lottery resources for a museum that hardly ever was are unveiled within an investigative report commissioned via the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery funds allocated towards the CTMCA among 2003 and 2017.
The main Element of the investigation, by legislation firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which included funding to the museum. The accepted spending budget with the museum was a lot more than R12.8-million, with R5-million of that allotted for a developing to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the creating for the museum and whether the museum “in fact existed”.
The organization was also instructed to analyze
the acquisition with Lottery money of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
different machines “bought for the manufacturing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few directors on the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted comprehensive reporting by GroundUp in regards to the many rands of Lottery funding allotted to the CTMCA (see here, here and listed here) and how the cash likely assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The building on the appropriate was the supposed web-site in the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In response to some Parliamentary problem, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “assignments” - including the museum - concerning 2012 and 2015. All a few projects were done, she instructed MPs.
But the investigators observed no proof that a museum experienced at any time existed.
In the beginning the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the meant Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of photographs haphazardly hung on the walls, and also a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not ready” to verify if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum were moved simply because they could no more afford to pay for the lease of R100,000 a month. He said the CTMCA experienced obtained property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been bought for the same price. Schaapkraal is inside of a peri-urban space far from the city.
Subsequently, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after browsing the premises, that are in an industrial space, the investigators said they doubted irrespective of whether a proper museum existed there. Pictures hooked up into the report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the floor, with no explanation.
“There's a minimal level of items within the museum [that] under no circumstances symbolize the greater than one hundred-calendar year background of the Cape Town Carnival, the investigators claimed, adding that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum does not appear being open to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by transferring The situation of the museum to another place with no notifying the NLC.
The Schaapkraal residence, on which no museum was ever constructed. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver from your rented Crete Highway premises because it had run up a R4-million personal debt with the City of Cape Town and was frightened its devices can be hooked up.
“As a result of authorized battles as well as debts, the organisation had to maneuver its home from 5 Crete Road to stay away from the sheriff from attaching the residence of your organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of the CTMCA, advised them that the two buses acquired with lottery money had been stored inside a magic formula location “concealed through the Sheriff”. Though the investigators explained they ended up unable to confirm that any buses experienced at any time been bought.
Stemmet also verified which the buses were hidden to prevent them being seized. But if the investigators asked to be taken for the area wherever the buses were being saved, he explained to them that “the operator of The key spot was not accessible to open the premises for us”.
“The CTMCA could not provide evidence of payment for 2 motor vehicles that it allegedly procured with grant revenue,” the investigators reported.
Soeker also told them the Schaapkraal property were bought due to personal debt.
“Mr Soeker explained that Based on his comprehending, because of the personal debt owed to the City of Cape Town, the CTMCA decided It might be most effective to promote their [Schaapkraal] house … also to also to hide the property with the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and safety, has previously explained to GroundUp which the CTMCA “threw revenue absent” on litigation with the town.
“Each and every year like clockwork, as we tactic the tip with the yr, the CTMCA picks a legal fight with town, more than permits or another thing. We in no way initiate it. They retain throwing dollars absent on vexatious litigation which they get rid of and have expenses awarded against them. This is certainly solely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of all of the admin, finances and jogging เช ค หวย the CTMCA.” The investigators mentioned they were unable to Make contact with Momberg.
Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “uncovered many devices, some in fantastic condition, some in poor problem and a few that looked rusty and extremely outdated”. Stemmet told the investigators that there was also an off-web-site storage facility where by “instruments and many equipment” have been stored.
“We questioned him to acquire us to the power but he was evasive to our request.”
Determined by images and invoices in GroundUp’s possession, some, if not all, with the goods seem like products which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with prices for this removal.
Based on the last development report submitted to the NLC via the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter had been administrators at some time.
The investigators discovered this “alarming”.
“From your CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the subsequent alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape Town, the identical address on which the museum was intended to be crafted and/or converted,” they documented.
An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the entire process of buying “machinery, plant and stock” valued at R8.1-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 R1.2-million being a deposit, indicating R6.9-million is still owed, nevertheless there isn't any payment day set for when this should be paid out.
The Kopano audit along with the shut url in between the businesses “suggest to us that there is ‘foul Engage in’ linked to the purchase with the machinery from the museum workshop”, the investigators explained in the report.
“We find that it's extremely probable that CTMCA utilised the funding with the NLC to ‘refund’ one of its primary directors for your home at a better overpriced amount than the particular selling price and worth of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant to the CTMCA were invested.
“In point of fact, an in depth report on how the funding from the NLC was made use of, will be not possible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Just about every product it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not executed a web page go to just before approving the grant. But this was not standard apply at the time they usually located no evidence of carelessness by NLC staff members.
At time, the NLC’s guidelines didn't call for funded organisations to submit proof of payment with interim reviews, they identified. This meant the CTMCA was in a position to get a second tranche of funding while not having to supply evidence that it experienced utilized the 1st tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni recommended that
the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any customers who ended up associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – beneath its former administration – chose to suppress it, because it experienced done Together with the former reports into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and requested for e mail addresses to send out the issues by electronic mail much too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph