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 two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators identified that the CTMCA didn't make use of the R5-million allotted to order or make a museum.
They also observed the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allocated.
They found the CTMCA applied money in the Lottery to invest in workshop tools from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to build a museum to rejoice town’s loaded minstrel history went astray. The museum was never ever made.
The main points of your abuse of millions of rands of Lottery resources for your museum that hardly ever was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of more than R64-million in Lottery cash allocated to your CTMCA among 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding with the museum. The authorized finances with the museum was more than R12.eight-million, with R5-million of that allotted for a developing to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a creating for your museum and whether the museum “basically existed”.
The organization was also instructed to investigate
the acquisition with Lottery money of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
different equipment “obtained for the production of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators with the organisation. Stemmet was reappointed as a director in Might 2021.
The investigation followed substantial reporting by GroundUp concerning the countless rands of Lottery funding allocated into the CTMCA (see in this article, in this article and below) and the best way the funds probably aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The developing on the ideal was the supposed web page in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few jobs were completed, she told MPs.
Nevertheless the investigators located no proof that a museum had at any time existed.
At the beginning the museum was due to open up in rented premises in Crete Street, Wetton. A photo received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, as well as a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni said it had been “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved as they could now not pay for the lease of R100,000 a month. He explained the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for the same value. Schaapkraal is in the peri-urban region far from town.
Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after viewing the premises, which might be in an industrial place, the investigators mentioned they doubted whether a suitable museum existed there. Photos connected to your report display a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the ground, with no explanation.
“There's a nominal volume of goods for the museum [that] on no account characterize the much more than one hundred-yr background of the Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum isn't going to search to generally be open to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by transferring the location of your museum to an alternate area without having notifying the NLC.
The Schaapkraal residence, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to move with the rented Crete Street premises mainly because it experienced run up a R4-million financial debt with the City of Cape City and was worried its machines could well be connected.
“A result of the legal battles and also the debts, the organisation experienced to move its assets from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources had been saved in a key site “concealed in the Sheriff”. Although the investigators said they had been unable to confirm that any buses had at any time been acquired.
Stemmet also verified the buses had been hidden to stop them being seized. But when the investigators questioned to generally be taken into the position wherever the buses have been stored, he explained to them that “the proprietor of the secret locale was not accessible to open the premises for us”.
“The CTMCA couldn't give proof of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also informed them the Schaapkraal residence were offered as a result of debt.
“Mr Soeker described that according to his knowing, mainly because of the debt owed to the City of Cape City, the CTMCA decided it would be very best to promote their [Schaapkraal] home … and to also to cover the belongings on the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously explained to GroundUp the CTMCA “threw funds absent” on litigation with the City.
“Every year like clockwork, as we method the end in the yr, the CTMCA picks a authorized battle with the City, more than permits or another thing. We never initiate it. They keep throwing money absent on vexatious litigation they shed and possess expenditures awarded in opposition to them. That is completely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all the admin, finances and jogging ผล หวย ลาว วัน นี้ the CTMCA.” The investigators reported they had been unable to Call Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered quite a few equipment, some in excellent ailment, some in poor affliction and some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility in which “instruments and several machinery” have been held.
“We requested him to just take us to the ability but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like tools which was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this elimination.
According to the closing progress report submitted on the NLC from the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter were being directors at time.
The investigators observed this “alarming”.
“From the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape City, the same handle on which the museum was meant to be created and/or converted,” they reported.
An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the directors.
As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as a deposit, that means R6.nine-million remains owed, although there isn't a payment day established for when this needs to be paid.
The Kopano audit and also the close website link among the companies “reveal to us that there is ‘foul Perform’ involved in the acquisition of your equipment in the museum workshop”, the investigators mentioned within the report.
“We discover that it is extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors for that home at the next overpriced charge than the particular cost and worth of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA were used.
“In reality, a detailed report on how the funding in the NLC was utilised, could well be impossible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every single merchandise it requested funding for. The interim report and final report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified that the NLC experienced not performed a website visit right before approving the grant. But this was not standard exercise at the time plus they discovered no proof of carelessness by NLC staff.
At enough time, the NLC’s guidelines did not have to have 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 had utilised the main tranche for its supposed intent.
Next the appointment of a completely new board, commissioner and senior govt staff, the NLC has tightened up on these and various difficulties.
Dabishi Nthambeleni encouraged that
the NLC decline any future 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, rather then 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 queries to Stemmet and Soeker by way of SMS, and asked for email addresses to mail the thoughts by e mail way too. But no response were acquired at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph