Leaked report exposes abuse of lottery money paid to minstrel group
Leaked report exposes abuse of lottery money paid to minstrel group
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Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to obtain or establish a museum.
In addition they uncovered which the CTMCA only purchased land value R1.7-million, not R5-million as allotted.
They observed the CTMCA applied money in the Lottery to purchase workshop machines from amongst its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to build a museum to rejoice the city’s prosperous minstrel record went astray. The museum was in no way designed.
The main points of the abuse of countless rands of Lottery money for any museum that never ever was are discovered within an investigative report commissioned with the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery money allocated into the CTMCA involving 2003 and 2017.
The primary Portion of the investigation, by regulation organization Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which involved funding for your museum. The permitted spending budget to the museum was more than R12.8-million, with R5-million of that allocated for any making to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building for the museum and whether the museum “actually existed”.
The firm was also instructed to analyze
the acquisition with Lottery money of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
different equipment “ordered to the producing of the costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director from 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 continued as two of numerous directors from the organisation. Stemmet was reappointed like a director in Might 2021.
The investigation adopted in depth reporting by GroundUp with regards to the a lot of rands of Lottery funding allotted for the CTMCA (see in this article, listed here and in this article) and the way in which the cash most likely served finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.
The developing on the right was the supposed web site on the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph
In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “tasks” - such as the museum - concerning 2012 and 2015. All three assignments were done, she told MPs.
Even so the investigators discovered no evidence that a museum experienced at any time existed.
At the outset the museum was because of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp of the meant Wetton museum reveals a espresso shop with some musical devices and minstrel costumes and collages of pics haphazardly hung about the walls, in addition to a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved simply because they could now not afford to pay for the rent of R100,000 a month. He reported the CTMCA had acquired assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar cost. Schaapkraal is inside of a peri-urban spot considerably from town.
Because of this, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after browsing the premises, which might be in an industrial space, the investigators explained they doubted no matter whether a proper museum existed there. Pics attached on the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without having rationalization.
“There's a nominal degree of items in the museum [that] by no means symbolize the in excess of one hundred-yr background from the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to be open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by going the location with the museum to another area without notifying the NLC.
The Schaapkraal home, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to move through the rented Crete Street premises as it had run up a R4-million financial debt with the City of Cape Town and was frightened its gear will be attached.
“As a result of legal battles and the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery resources had been saved in a solution location “hidden with the Sheriff”. However the investigators explained they were being not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified which the buses were concealed to prevent them staying seized. But in the event the investigators requested being taken to your put where by the buses were being saved, he advised them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA couldn't present proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators noted.
Soeker also explained to them the Schaapkraal house were sold as a result of debt.
“Mr Soeker discussed that Based on his knowledge, because of the credit card debt owed to the town of Cape City, the CTMCA resolved It will be very best to promote their [Schaapkraal] home … and to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and security, has Beforehand explained to GroundUp the CTMCA “threw funds absent” on litigation with the town.
“Yearly like clockwork, as we method the top of your year, the CTMCA picks a authorized battle with the town, above permits or something else. We by no means initiate it. They keep throwing dollars away on vexatious litigation that they reduce and possess costs awarded from them. This really is totally self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for many of the admin, finances and operating ตรวจ the CTMCA.” The investigators claimed they had been unable to Speak to Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “found several devices, some in excellent issue, some in terrible affliction and several that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “instruments plus some equipment” have been held.
“We asked him to consider us to the power but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, Otherwise all, of the merchandise appear to be machines that was illegally removed from the CTMCA’s previous premises. Stemmet is facing rates for this elimination.
In accordance with the ultimate development report submitted into the NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter were being administrators at the time.
The investigators identified this “alarming”.
“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Highway, Wetton, Cape Town, the identical tackle on which the museum was meant to be constructed and/or converted,” they described.
An audit by accountants Kopano Included, attached for the investigative report, recorded which the CTMCA was in the process of buying “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the administrators.
Based on Dabishi Nthambeleni, the organization has compensated R1.two-million being a deposit, that means R6.9-million is still owed, nevertheless there's no payment day established for when this has to be compensated.
The Kopano audit as well as close link concerning the companies “suggest to us that there is ‘foul play’ involved with the acquisition from the equipment from the museum workshop”, the investigators said while in the report.
“We discover that it's highly probable that CTMCA utilized the funding in the NLC to ‘refund’ one among its key administrators for that house at a better overpriced charge than the actual price and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, will be impossible as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts put in on Each individual item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not executed a web-site stop by right before approving the grant. But this wasn't conventional exercise at enough time and so they discovered no proof of negligence by NLC employees.
At enough time, the NLC’s principles didn't have to have funded organisations to submit proof of payment with interim reports, they pointed out. This intended that the CTMCA was in the position to receive a 2nd tranche of funding without having to give evidence that it had utilised the very first tranche for its meant reason.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni encouraged that
the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, instead of act over the report’s recommendations, the NLC – less than its prior administration – selected to suppress it, mainly because it had accomplished with the earlier stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the inquiries by e mail way too. But no response had been received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph