Leaked report exposes abuse of lottery funds paid to minstrel group
Leaked report exposes abuse of lottery funds paid to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators uncovered which the CTMCA did not make use of the R5-million allotted to acquire or make a museum.
Additionally they located that the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of money within the Lottery to purchase workshop tools from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape City Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances established.
The main points of the abuse of countless rands of Lottery funds for a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery funds allotted for the CTMCA between 2003 and 2017.
The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for that museum. The approved price range to the museum was much more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for the museum and whether or not the museum “essentially existed”.
The organization was also instructed to investigate
the acquisition with Lottery money of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
several machines “ordered for your producing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director of 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 administrators of the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see right here, right here and here) and just how the cash possibly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.
The making on the best was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.
But the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung around the partitions, along with a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni reported it had been “not ready” to confirm if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum were moved given that they could now not pay for the rent 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 a similar price tag. Schaapkraal is in a very peri-urban location much from the city.
Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, that are within an industrial region, the investigators reported they doubted no matter if a correct museum existed there. Pics attached on the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the floor, with no explanation.
“There exists a small degree of merchandise at the museum [that] in no way represent the more than a hundred-12 months historical past in the Cape Town Carnival, the investigators claimed, incorporating that there was “no signage outside the house the premises indicating they housed a museum and … frequently, the museum doesn't glance for being open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by shifting The situation on the museum to another spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time created. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises because it experienced operate up a R4-million personal debt with town of Cape City and was worried its equipment will be attached.
“A result of the authorized battles along with the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the home of the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director of your CTMCA, advised them which the two buses bought with lottery cash were stored in a very magic formula site “concealed in the Sheriff”. Though the investigators stated they have been unable to verify that any buses had ever been purchased.
Stemmet also confirmed that the buses had been concealed to halt them remaining seized. But in the event the investigators questioned to generally be taken into the put where by the buses were being stored, he informed them that “the operator of The key area wasn't available to open up the premises for us”.
“The CTMCA could not offer evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also advised them the Schaapkraal assets had been marketed due to financial debt.
“Mr Soeker spelled out that In line with his understanding, as a result of credit card debt owed to the town of Cape City, the CTMCA resolved It will be best to sell their [Schaapkraal] home … and to also to cover the belongings on the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw income away” on litigation with the town.
“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a authorized struggle with the City, about permits or something else. We under no circumstances initiate it. They maintain throwing dollars absent on vexatious litigation that they get rid of and possess expenses awarded in opposition to them. This is often entirely self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the most crucial role gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and working hihuay the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “discovered many equipment, some in superior affliction, some in terrible issue and a few that appeared rusty and very old”. Stemmet instructed the investigators that there was also an off-web site storage facility where “instruments plus some machinery” ended up stored.
“We requested him to choose us to the facility but he was evasive to our request.”
Dependant on pictures and invoices in GroundUp’s possession, some, if not all, with the items appear to be gear that was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.
Based on the ultimate progress report submitted towards the NLC from the CTMCA, the machinery was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were being administrators at the time.
The investigators uncovered this “alarming”.
“With the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Road, Wetton, Cape Town, a similar address on which the museum was intended to be developed and/or converted,” they documented.
An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of paying for “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 one among the directors.
Based on Dabishi Nthambeleni, the company has compensated R1.2-million as a deposit, indicating R6.9-million continues to be owed, nevertheless there's no payment date set for when this need to be compensated.
The Kopano audit and the close hyperlink among the companies “show to us that there is ‘foul play’ involved in the acquisition with the equipment in the museum workshop”, the investigators mentioned inside the report.
“We discover that it is extremely possible that CTMCA utilised the funding in the NLC to ‘refund’ certainly one of its most important directors with the house at a higher overpriced amount than the actual price tag and price of the home and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant into the CTMCA were spent.
“Actually, an in depth report on how the funding with the NLC was used, will be extremely hard as being the CTMCA doesn't have any receipts, or proof of payments to verify the amounts spent on Every item it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC had not conducted a web page take a look at ahead of approving the grant. But this was not typical follow at some time and so they uncovered no evidence of carelessness by NLC employees.
At enough time, the NLC’s procedures did not call for funded organisations to post evidence of payment with interim reviews, they pointed out. This intended which the CTMCA was able to receive a second tranche of funding without needing to give evidence that it experienced utilised the main tranche for its supposed reason.
Next the appointment of a completely new board, commissioner and senior govt staff, the NLC has tightened up on these and various challenges.
Dabishi Nthambeleni encouraged that
the NLC decrease any long term funding purposes with the CTMCA;
the CTMCA and any associates who were being involved with the grant be subjected towards the NLC’s “delinquency” system;
the NLC open a felony circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the process of recovering the misappropriated cash.
But, rather than act within the report’s suggestions, the NLC – underneath its previous administration – chose to suppress it, as it had completed Along with the former experiences into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker by means of SMS, and requested for e-mail addresses to deliver the concerns by electronic mail much too. But no reaction had been been given at enough time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph