Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated to minstrel team
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Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the National Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no proof that a museum at any time existed.
The investigators uncovered that the CTMCA did not utilize the R5-million allocated to acquire or produce a museum.
Additionally they found the CTMCA only bought land well worth R1.seven-million, not R5-million as allotted.
They found the CTMCA utilized cash with the Lottery to get workshop gear from among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to create a museum to rejoice town’s rich minstrel historical past went astray. The museum was never developed.
The small print with the abuse of many rands of Lottery resources for a museum that by no means was are uncovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery funds allotted for the CTMCA in between 2003 and 2017.
The first Component of the investigation, by law business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which bundled funding for your museum. The authorised price range for that museum was greater than R12.8-million, with R5-million of that allocated for any making to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the making for that museum and if the museum “in fact existed”.
The agency was also instructed to research
the purchase with Lottery cash of two autos – a 60-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “ordered to the manufacturing on the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors with the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp in regards to the many rands of Lottery funding allotted into the CTMCA (see here, here and here) and the way the resources likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.
The constructing on the correct was the meant internet site from the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All 3 initiatives were done, she told MPs.
Nevertheless the investigators observed no evidence that a museum had ever existed.
To start with the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp of your intended Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung within the walls, in addition to a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could not find the money for the hire of R100,000 a month. He mentioned the CTMCA had ordered assets for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-urban region far from the city.
Consequently, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be in an industrial space, the investigators explained they doubted no matter whether a proper museum existed there. Images attached on the report show 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 explanation.
“There's a nominal number of merchandise at the museum [that] by no means symbolize the a lot more than one hundred-yr background from the Cape City Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum isn't going to search being open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement in the museum to an alternative site without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to move from your rented Crete Street premises since it had run up a R4-million financial debt with the City of Cape City and was afraid its equipment could be attached.
“Because of the legal battles as well as debts, the organisation experienced to move its assets from 5 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 your CTMCA, advised them that the two buses bought with lottery resources had been saved in a mystery 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 questioned being taken to your position where by the buses ended up stored, he informed them that “the operator of The key area was not accessible to open the premises for us”.
“The CTMCA couldn't give proof of payment for two vehicles that it allegedly procured with grant income,” the investigators reported.
Soeker also instructed them the Schaapkraal property had been bought due to the credit card debt.
“Mr Soeker defined that In keeping with his knowing, mainly because of the debt owed to the City of Cape Town, the CTMCA determined It might be ideal to offer their [Schaapkraal] residence … also to also to cover the property in the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously 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 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 instructed the Dabishi Nthambeleni investigators that the most crucial role gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in command of the many admin, finances and operating หวย ไทยรัฐ the CTMCA.” The investigators explained they were struggling to Call Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “identified several machines, some in good condition, some in lousy problem plus some that looked rusty and very outdated”. Stemmet told the investigators that there was also an off-web site storage facility wherever “devices plus some equipment” were stored.
“We asked him to get us to the facility but he was evasive to our request.”
Depending on photographs and invoices in GroundUp’s possession, some, if not all, of the items look like devices that was illegally removed from the CTMCA’s former premises. Stemmet is struggling with fees for this removal.
In accordance with the ultimate progress report submitted to your NLC through the CTMCA, the equipment was obtained from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter had been administrators at some time.
The investigators identified this “alarming”.
“With the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape Town, the identical deal with on which the museum was intended to be built and/or transformed,” they described.
An audit by accountants Kopano Integrated, attached to 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 considered one of the directors.
As outlined by Dabishi Nthambeleni, the organization has compensated R1.two-million as being a deposit, indicating R6.nine-million is still owed, even though there is not any payment date set for when this has to be paid out.
The Kopano audit along with the near backlink concerning the businesses “suggest to us that there's ‘foul Enjoy’ involved with the purchase in the machinery of your museum workshop”, the investigators reported from the report.
“We find that it is remarkably probable that CTMCA used the funding of your NLC to ‘refund’ considered one of its principal administrators to the assets at a better overpriced rate than the actual rate and value of the house and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant to the CTMCA had been put in.
“In point of fact, an in depth report on how the funding of the NLC was employed, might be unachievable as the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts invested on Each and every item it requested funding for. The interim report and remaining report with the CTMCA only attach 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 some time, the NLC’s guidelines did not involve 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 while not having to present evidence that it experienced applied the first tranche for its supposed purpose.
Following the appointment of a brand new board, commissioner and senior executive team, the NLC has tightened up on these and other issues.
Dabishi Nthambeleni recommended that
the NLC decrease any potential funding applications within the CTMCA;
the CTMCA and any customers who were linked to the grant be subjected for the NLC’s “delinquency” process;
the NLC open a prison case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, rather then act over the report’s tips, the NLC – underneath its earlier administration – chose to suppress it, mainly because it had carried out with the former studies into corruption it experienced commissioned.
GroundUp sent thoughts to Stemmet and Soeker through SMS, and questioned for e-mail addresses to send out the concerns by e mail too. But no response had been gained at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph