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 accomplish in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Nationwide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators identified the CTMCA did not make use of the R5-million allocated to order or establish a museum.
They also uncovered which the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA applied cash with the Lottery to invest in workshop machines from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to set up a museum to celebrate town’s prosperous minstrel heritage went astray. The museum was never ever created.
The details in the abuse of a lot of rands of Lottery resources for just a museum that never was are exposed within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of more than R64-million in Lottery funds allocated into the CTMCA involving 2003 and 2017.
The very first Component of the investigation, by legislation agency Dabishi Nthambeleni, was executed among September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which included funding to the museum. The authorized finances for your museum was in excess of R12.8-million, with R5-million of that allotted for just a constructing to house the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing for your museum and whether or not the museum “in fact existed”.
The agency was also instructed to analyze
the purchase with Lottery money of two vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
several machines “acquired to the manufacturing with 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 of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few directors of your organisation. Stemmet was reappointed for a director in Could 2021.
The investigation adopted extensive reporting by GroundUp regarding the numerous rands of Lottery funding allotted towards the CTMCA (see below, right here and below) and how the resources most likely served finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.
The building on the best was the intended internet site with the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to some Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “projects” - including the museum - in between 2012 and 2015. All a few tasks were concluded, she informed MPs.
Nevertheless the investigators discovered no evidence that a museum experienced at any time existed.
In the beginning the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp on the intended Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the partitions, and also a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum had been moved since they could no more afford the rent of R100,000 a month. He claimed the CTMCA experienced obtained property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for the same value. Schaapkraal is inside of a peri-city area far from the city.
Consequently, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after visiting the premises, that are within an industrial location, the investigators said they doubted regardless of whether an appropriate museum existed there. Photographs hooked up for the report show a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the ground, without rationalization.
“There's a minimum number of items in the museum [that] by no means depict the in excess of a hundred-12 months historical past on the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating they housed a museum and … normally, the museum will not search to get open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The situation in the museum to an alternative site devoid of notifying the NLC.
The Schaapkraal house, on which no museum was at any time created. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver in the rented Crete Street premises as it experienced operate up a R4-million financial debt with the town of Cape Town and was fearful its gear could well be attached.
“Due to legal battles as well as the debts, the organisation had to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the home from the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director from the CTMCA, informed them which the two buses purchased with lottery resources ended up stored inside of a mystery area “concealed within the Sheriff”. Although the investigators claimed they were being unable to substantiate that any buses experienced ever been acquired.
Stemmet also confirmed which the buses had been concealed to halt them staying seized. But when the investigators requested being taken towards the area where by the buses were being saved, he informed them that “the operator of The trick location wasn't accessible to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for 2 motor vehicles that it allegedly purchased with grant revenue,” the investigators reported.
Soeker also explained to them the Schaapkraal house had been marketed as a result of debt.
“Mr Soeker defined that In line with his being familiar with, as a result of financial debt owed to the City of Cape Town, the CTMCA decided It could be very best to sell their [Schaapkraal] residence … also to also to cover the assets of your CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for safety and security, has previously informed GroundUp the CTMCA “threw dollars absent” on litigation with town.
“Each year like clockwork, as we strategy the tip on the yr, the CTMCA picks a legal fight with the City, above permits or something else. We never initiate it. They maintain throwing dollars away on vexatious litigation they drop and have fees awarded towards them. That is solely self-inflicted,” he explained.
Soeker informed the Dabishi Nthambeleni investigators that the leading role players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for all of the admin, finances and running ผล หวย the CTMCA.” The investigators said they had been unable to Speak to Momberg.
Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “discovered many machines, some in superior condition, some in undesirable situation and a few that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-web-site storage facility the place “instruments and a few equipment” ended up held.
“We asked him to just take us to the facility but he was evasive to our request.”
Based on images and invoices in GroundUp’s possession, some, if not all, of your things seem like machines that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing expenses for this removing.
In accordance with the final progress report submitted to your NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter had been directors at some time.
The investigators located this “alarming”.
“From your CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape City, the exact same address on which the museum was intended to be created and/or transformed,” they described.
An audit by accountants Kopano Included, hooked up towards the investigative report, recorded the CTMCA was in the entire process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the administrators.
As outlined by Dabishi Nthambeleni, the corporate has paid out R1.two-million being a deposit, that means R6.nine-million continues to be owed, although there isn't any payment day established for when this have to be compensated.
The Kopano audit as well as the shut hyperlink involving the businesses “show to us that there is ‘foul Enjoy’ involved in the purchase from the machinery on the museum workshop”, the investigators claimed in the report.
“We discover that it's really possible that CTMCA used the funding in the NLC to ‘refund’ one among its major directors for your home at a greater overpriced price than the particular selling price and value of the home and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant to your CTMCA had been used.
“The truth is, a detailed report on how the funding with the NLC was employed, could well be extremely hard as the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities spent on Every single item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC experienced not conducted a internet site take a look at right before approving the grant. But this wasn't common follow at time and so they discovered no proof of negligence by NLC workers.
At some time, the NLC’s regulations did not need funded organisations to post proof of payment with interim experiences, they pointed out. This intended the CTMCA was capable of get a second tranche of funding without the need to give evidence that it had made use of the initial tranche for its supposed function.
Next the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni advised that
the NLC decline any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, as opposed to act around the report’s tips, the NLC – below its previous administration – chose to suppress it, mainly because it had performed With all the past reports into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to mail the thoughts by electronic mail as well. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph