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 two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the National Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has observed no proof that a museum ever existed.
The investigators observed which the CTMCA did not utilize the R5-million allotted to order or develop a museum.
In addition they identified which the CTMCA only acquired land value R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of cash through the Lottery to get workshop machines from amongst its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to the Cape City Minstrel Carnival Association (CTMCA) by the National Lotteries Fee (NLC) to create a museum to celebrate the town’s wealthy minstrel history went astray. The museum was never established.
The small print from the abuse of millions of rands of Lottery money for your museum that in no way was are disclosed in an investigative report commissioned with the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery funds allocated for the CTMCA involving 2003 and 2017.
The first A part of the investigation, by law business Dabishi Nthambeleni, was executed involving September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which incorporated funding for your museum. The authorized spending budget for your museum was over R12.eight-million, with R5-million of that allotted for a building to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a creating for your museum and if the museum “actually existed”.
The company was also instructed to investigate
the acquisition with Lottery resources of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
several machines “procured to the manufacturing in the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on 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 of your organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation followed in depth reporting by GroundUp about the an incredible number of rands of Lottery funding allotted to the CTMCA (see right here, listed here and below) and just how the resources almost certainly helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at the time by Marius Fransman.
The developing on the correct was the intended web page on the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to the Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “projects” - including the museum - concerning 2012 and 2015. All three tasks were concluded, she informed MPs.
Nevertheless the investigators discovered no evidence that a museum had at any time existed.
At the beginning the museum was on account of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp from the supposed Wetton museum reveals a coffee shop with a few musical devices and minstrel costumes and collages of photographs haphazardly hung within the partitions, plus a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni stated it was “not ready” to verify if a museum had at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved given that they could not afford the hire of R100,000 per month. He explained the CTMCA experienced obtained property for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for a similar price. Schaapkraal is in a very peri-city region significantly from town.
Because of this, the museum were moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial region, the investigators mentioned they doubted no matter if a suitable museum existed there. Photographs attached to the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without explanation.
“You will find there's nominal amount of goods in the museum [that] under no circumstances represent the a lot more than a hundred-year background with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum will not glance being open up to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by relocating the location of the museum to another spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA had to maneuver in the rented Crete Street premises because it had operate up a R4-million personal debt with the City of Cape Town and was fearful its gear can be hooked up.
“Because of the authorized battles plus the debts, the organisation experienced to maneuver its assets from five Crete Highway to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director of your CTMCA, explained to them the two buses bought with lottery funds were being saved within a magic formula location “concealed from your Sheriff”. But the investigators reported they have been not able to confirm that any buses experienced at any time been acquired.
Stemmet also confirmed that the buses were hidden to halt them remaining seized. But if the investigators asked to generally be taken on the place where by the buses have been saved, he instructed them that “the proprietor of The trick location was not available to open up the premises for us”.
“The CTMCA could not present proof of payment for two motor vehicles that it allegedly procured with grant dollars,” the investigators documented.
Soeker also informed them the Schaapkraal assets were bought because of the credit card debt.
“Mr Soeker described that Based on his knowledge, a result of the credit card debt owed to the City of Cape City, the CTMCA resolved It will be finest to market their [Schaapkraal] home … and to also to cover the property in the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for basic safety and security, has Formerly explained to GroundUp that the CTMCA “threw income away” on litigation with the City.
“On a yearly basis like clockwork, as we technique the top in the calendar year, the CTMCA picks a legal battle with the town, in excess of permits or another thing. We by no means initiate it. They retain throwing money absent on vexatious litigation that they lose and possess costs awarded versus them. This is often solely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the principle purpose players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of every one of the admin, funds and operating สลาก กิน รัฐบาล the CTMCA.” The investigators reported they were unable to Call Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “identified many equipment, some in great issue, some in lousy condition and a few that looked rusty and extremely previous”. Stemmet advised the investigators that there was also an off-internet site storage facility the place “instruments and a few machinery” were saved.
“We questioned him to just take us to the ability but he was evasive to our request.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your goods appear to be machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing fees for this removing.
According to the closing development report submitted for the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter had been directors at time.
The investigators located this “alarming”.
“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape Town, a similar tackle on which the museum was intended to be designed and/or converted,” they described.
An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the process of getting “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.
In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million like a deposit, indicating R6.nine-million remains to be owed, while there is no payment day established for when this have to be paid out.
The Kopano audit as well as the close link concerning the businesses “show to us that there's ‘foul Engage in’ associated with the acquisition in the equipment on the museum workshop”, the investigators stated during the report.
“We find that it is really probable that CTMCA applied the funding of the NLC to ‘refund’ considered one of its main directors to the assets at a higher overpriced charge than the actual selling price and price of the assets and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been invested.
“In fact, a detailed report on how the funding of the NLC was made use of, could well be difficult as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Every product it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not performed a web page pay a visit to right before approving the grant. But this wasn't regular exercise at some time they usually discovered no evidence of negligence by NLC staff.
At time, the NLC’s regulations didn't call for funded organisations to submit proof of payment with interim reviews, they pointed out. This intended the CTMCA was capable to receive a next tranche of funding without the need to present proof that it experienced applied the 1st tranche for its intended purpose.
Pursuing the appointment of a whole new board, commissioner and senior govt crew, the NLC has tightened up on these along with other challenges.
Dabishi Nthambeleni advised that
the NLC drop any long term funding apps from the CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected to the NLC’s “delinquency” method;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as an alternative to act within the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it experienced performed Along with the earlier reports into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for email addresses to ship the questions by e-mail much too. But no response had been gained at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph
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