Leaked report exposes abuse of lottery income paid to minstrel group
Leaked report exposes abuse of lottery income paid to minstrel group
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Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum ever existed.
The investigators identified the CTMCA did not use the R5-million allocated to purchase or develop a museum.
They also discovered that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They observed the CTMCA applied money in the Lottery to purchase workshop devices from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel background went astray. The museum was under no circumstances created.
The details of the abuse of countless rands of Lottery funds to get a museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was part of much more than R64-million in Lottery cash allocated into the CTMCA amongst 2003 and 2017.
The very first part of the investigation, by legislation business Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The accredited spending plan for the museum was a lot more than R12.eight-million, with R5-million of that allocated for the making to accommodate the museum.
Examine 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 “basically existed”.
The business was also instructed to research
the purchase with Lottery resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous equipment “obtained for the production of 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 on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous directors with the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed substantial reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated for the CTMCA (see listed here, right here and right here) and the way in which the funds likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The constructing on the proper was the meant web site of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - such as the museum - between 2012 and 2015. All three tasks had been finished, she advised MPs.
Although the investigators uncovered no evidence that a museum experienced ever existed.
To start with the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of your intended Wetton museum exhibits a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung over the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it was “not in a position” to substantiate if a museum experienced at any time operated from these premises.
Stemmet explained to the investigators the museum were moved because they could not find the money for the hire of R100,000 per month. He stated the CTMCA had acquired residence for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for the same price tag. Schaapkraal is in the peri-urban location much from the city.
Consequently, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after browsing the premises, that happen to be in an industrial place, the investigators mentioned they doubted regardless of whether an appropriate museum existed there. Photographs connected towards the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having explanation.
“There exists a small degree of items in the museum [that] in no way symbolize the a lot more than 100-year history of your Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating that they housed a museum and … generally, the museum would not seem to become open up to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by relocating The situation from the museum to an alternate location with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced run up a R4-million financial debt with the town of Cape Town and was afraid its gear could be attached.
“Due to the lawful battles plus the debts, the organisation had to maneuver its house from 5 Crete Highway to avoid the sheriff from attaching the property with the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources have been saved in a mystery location “hidden through the Sheriff”. Though the investigators stated they have been not able to verify that any buses experienced 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 wherever the buses ended up stored, he told them that “the operator of The key location was not available to open the premises for us”.
“The CTMCA could not offer proof of payment for two automobiles that it allegedly obtained with grant income,” the investigators described.
Soeker also instructed them the Schaapkraal residence were offered due to the debt.
“Mr Soeker defined that Based on his comprehending, because of the personal debt owed to the town of Cape Town, the CTMCA made a decision It might be best to market their [Schaapkraal] property … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and safety, has Earlier explained to GroundUp that the CTMCA “threw cash away” on litigation with the town.
“Annually like clockwork, as we approach the end from the yr, the CTMCA picks a legal fight with the City, more than permits or something else. We by no means initiate it. They maintain throwing cash absent on vexatious litigation they get rid of and have expenses awarded versus them. This is often fully self-inflicted,” he explained.
Soeker informed the Dabishi Nthambeleni investigators that the main purpose players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and jogging ผล สลาก the CTMCA.” The investigators reported they were unable to Call Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “found a lot of machines, some in very good condition, some in undesirable condition and several that seemed rusty and intensely old”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “devices and some machinery” were stored.
“We asked him to consider us to the facility but he was evasive to our ask for.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, with the objects seem like gear which was illegally removed from the CTMCA’s prior premises. Stemmet is facing prices for this elimination.
In accordance with the closing progress report submitted to your NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter had been directors at enough time.
The investigators found this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be constructed and/or transformed,” they claimed.
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 a detailed corporation of which Stemmet was considered one of the administrators.
According to Dabishi Nthambeleni, the corporation has paid R1.2-million for a deposit, which means R6.9-million remains to be owed, though there is no payment day established for when this has to be paid.
The Kopano audit along with the near link concerning the businesses “indicate to us that there's ‘foul Enjoy’ associated with the acquisition on the equipment in the museum workshop”, the investigators reported while in the report.
“We discover that it's really possible that CTMCA utilised the funding on the NLC to ‘refund’ one of its primary administrators for that house at a better overpriced charge than the actual price and price of the assets and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were invested.
“In fact, an in depth report on how the funding on the NLC was utilized, could well be extremely hard because the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts expended on each item it requested funding for. The interim report and closing report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not carried out a internet site stop by before approving the grant. But this wasn't conventional observe at enough time plus they identified no proof of carelessness by NLC workers.
At some time, the NLC’s regulations did not involve funded organisations to post proof of payment with interim experiences, 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 experienced employed the 1st tranche for its intended objective.
Pursuing the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act over the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, mainly because it experienced completed While using the prior studies into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by e-mail also. But no response were been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph