Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
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Minstrels execute in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no proof that a museum at any time existed.
The investigators located the CTMCA did not use the R5-million allocated to obtain or create a museum.
In addition they located that the CTMCA only purchased land truly worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA utilized resources through the Lottery to buy workshop gear from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to set up a museum to celebrate the town’s prosperous minstrel heritage went astray. The museum was in no way produced.
The main points from the abuse of millions of rands of Lottery money for your museum that never was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was Component of a lot more than R64-million in Lottery money allotted to your CTMCA concerning 2003 and 2017.
The very first Section of the investigation, by regulation business Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which involved funding with the museum. The approved spending plan for the museum was much more than R12.8-million, with R5-million of that allotted to get a making to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the setting up for your museum and whether the museum “essentially existed”.
The firm was also instructed to analyze
the purchase with Lottery resources of two cars – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of equipment “ordered with the manufacturing of your costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director in the 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 administrators with the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed comprehensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted to your CTMCA (see right here, below and here) and just how the funds in all probability served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at enough time by Marius Fransman.
The building on the proper was the supposed web site in the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “projects” - such as the museum - amongst 2012 and 2015. All three assignments had been done, she explained to MPs.
Nevertheless the investigators uncovered no proof that a museum experienced ever existed.
In the beginning the museum was due to open up in rented premises in Crete Highway, Wetton. A photo received by GroundUp from the meant Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of images haphazardly hung over the partitions, and a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni claimed it had been “not in a position” to confirm if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved mainly because they could not afford the lease of R100,000 a month. He claimed the CTMCA experienced acquired assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same price tag. Schaapkraal is inside of a peri-city area much from the town.
As a result, the museum were moved to a new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after checking out the premises, that happen to be in an industrial region, the investigators reported they doubted whether or not an appropriate museum existed there. Images attached to your report present a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the floor, without rationalization.
“There exists a small quantity of objects within the museum [that] in no way symbolize the much more than a hundred-calendar year record of the Cape City Carnival, the investigators claimed, including that there was “no signage outdoors the premises indicating which they housed a museum and … generally, the museum doesn't search being open up to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni observed, by going The situation of your museum to an alternate location without the need of notifying the NLC.
The Schaapkraal house, on which no museum was at any time created. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver with the rented Crete Highway premises since it experienced operate up a R4-million personal debt with the City of Cape Town and was frightened its tools can be connected.
“Mainly because of the lawful battles as well as debts, the organisation experienced to move its property from five Crete Street to stay away from the sheriff from attaching the residence of the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director on the CTMCA, instructed them which the two buses acquired with lottery money ended up saved in a secret place “concealed from the Sheriff”. However the investigators stated they ended up not able to confirm that any buses experienced ever been bought.
Stemmet also verified the buses had been hidden to stop them getting seized. But if the investigators asked to generally be taken to the place where the buses ended up stored, he informed them that “the proprietor of The key locale wasn't accessible to open up the premises for us”.
“The CTMCA could not offer proof of payment for two motor vehicles that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also explained to them the Schaapkraal property were bought due to personal debt.
“Mr Soeker discussed that In line with his comprehending, due to credit card debt owed to the town of Cape City, the CTMCA decided it would be best to sell their [Schaapkraal] property … and also to also to hide the belongings on the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for safety and protection, has previously instructed GroundUp that the CTMCA “threw dollars absent” on litigation with town.
“Annually like clockwork, as we strategy the tip of your yr, the CTMCA picks a authorized battle with the City, over permits or another thing. We by no means initiate it. They keep throwing dollars away on vexatious litigation which they eliminate and also have fees awarded in opposition to them. This really is entirely self-inflicted,” he said.
Soeker told the Dabishi Nthambeleni investigators that the primary role players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of the many admin, funds and operating หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators said they had been struggling to Call Momberg.
Hats
Through their “investigation in loco” with the Primrose Park premises, the investigators “found a lot of machines, some in fantastic problem, some in terrible condition and many that appeared rusty and intensely aged”. Stemmet told the investigators that there was also an off-web site storage facility wherever “devices and a few machinery” had been retained.
“We requested him to acquire us to the ability but he was evasive to our request.”
According to photographs and invoices in GroundUp’s possession, some, if not all, with the products look like products which was illegally removed from the CTMCA’s prior premises. Stemmet is dealing with rates for this removal.
In accordance with the final progress report submitted to your NLC from the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter ended up administrators at enough time.
The investigators observed this “alarming”.
“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Street, Wetton, Cape City, the same tackle on which the museum was meant to be designed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded that the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.
Based on Dabishi Nthambeleni, the business has paid out R1.two-million being a deposit, indicating R6.9-million is still owed, although there is absolutely no payment date set for when this must be compensated.
The Kopano audit as well as near website link in between the businesses “suggest to us that there is ‘foul Enjoy’ involved in the purchase of the machinery of your museum workshop”, the investigators mentioned during the report.
“We discover that it is extremely possible that CTMCA utilized the funding with the NLC to ‘refund’ among its key administrators for the home at an increased overpriced level than the particular price tag and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant to your CTMCA had been invested.
“In fact, an in depth report on how the funding with the NLC was utilised, will be unattainable as the CTMCA does not have any receipts, or proof of payments to verify the quantities invested on each merchandise it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified which the NLC experienced not conducted a web site take a look at prior to approving the grant. But this was not regular follow at enough time plus they observed no proof of carelessness by NLC workers.
At the time, the NLC’s guidelines did not demand funded organisations to submit evidence of payment with interim stories, they pointed out. This intended that the CTMCA was ready to receive a next tranche of funding without needing to provide proof that it experienced utilized the main tranche for its intended function.
Subsequent the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni encouraged that
the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, in lieu of act around the report’s tips, the NLC – under its past administration – selected to suppress it, because it experienced completed With all the former reviews into corruption it had commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to send the inquiries by e mail much too. But no reaction were gained at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph