Leaked report exposes abuse of lottery dollars paid out to minstrel group
Leaked report exposes abuse of lottery dollars paid out to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators discovered that the CTMCA did not use the R5-million allotted to obtain or produce a museum.
Additionally they identified that the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA employed funds within the Lottery to get workshop products from amongst its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Commission (NLC) to put in place a museum to rejoice town’s prosperous minstrel history went astray. The museum was by no means created.
The small print in the abuse of countless rands of Lottery funds for your museum that never ever was are disclosed within an investigative report commissioned via the NLC in 2021.
The museum grant was A part of over R64-million in Lottery funds allotted on the CTMCA among 2003 and 2017.
The primary Section of the investigation, by legislation firm Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which provided funding to the museum. The accredited funds for the museum was much more than R12.8-million, with R5-million of that allotted for a constructing to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a developing to the museum and if the museum “basically existed”.
The agency was also instructed to investigate
the acquisition with Lottery resources of two vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
several machines “procured to the producing in the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few directors of your organisation. Stemmet was reappointed being a director in May 2021.
The investigation followed considerable reporting by GroundUp with regard to the countless rands of Lottery funding allocated for the CTMCA (see in this article, below and in this article) and the way the resources probably served finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the proper was the meant web-site in the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph
In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “projects” - including the museum - concerning 2012 and 2015. All three initiatives were finished, she instructed MPs.
But the investigators discovered no proof that a museum had at any time existed.
In the beginning the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of the meant Wetton museum shows a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, along with a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum had been moved because they could no more pay for the lease of R100,000 per month. He stated the CTMCA experienced procured home for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been sold for the same selling price. Schaapkraal is in a peri-urban location significantly from the town.
Subsequently, the museum were moved to a brand new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after browsing the premises, which happen to be within an industrial spot, the investigators explained they doubted no matter whether a correct museum existed there. Pictures hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the ground, without any clarification.
“There is a nominal amount of things with the museum [that] on no account symbolize the in excess of a hundred-year heritage of the Cape City Carnival, the investigators stated, incorporating that there was “no signage exterior the premises indicating they housed a museum and … normally, the museum won't glance to be open up to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by moving the location from the museum to an alternate spot without notifying the NLC.
The Schaapkraal home, on which no museum was ever created. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA had to maneuver from the rented Crete Street premises because it had operate up a R4-million financial debt with town of Cape City and was concerned its gear could well be attached.
“Due to the legal battles along with the debts, the organisation experienced to maneuver its residence from five Crete Highway to avoid the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses purchased with lottery money ended up saved in a secret location “concealed from the Sheriff”. Although the investigators said they have been unable to verify that any buses had ever been acquired.
Stemmet also confirmed which the buses were hidden to halt them being seized. But in the event the investigators requested to generally be taken for the position where the buses have been stored, he instructed them that “the operator of the secret location wasn't accessible to open up the premises for us”.
“The CTMCA could not give proof of payment for two vehicles that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also instructed them the Schaapkraal residence had been sold because of the debt.
“Mr Soeker explained that In line with his comprehension, a result of the financial debt owed to the town of Cape City, the CTMCA made the decision It will be ideal to promote their [Schaapkraal] house … and also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for safety and security, has previously told GroundUp that the CTMCA “threw cash away” on litigation with the City.
“Each and every year like clockwork, as we tactic the tip in the yr, the CTMCA picks a lawful combat with the City, more than permits or another thing. We never initiate it. They continue to keep throwing dollars away on vexatious litigation which they drop and possess expenses awarded from them. This can be fully self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the primary purpose gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for all of the admin, finances and managing ตรวจ หวย ลาว the CTMCA.” The investigators reported they had been unable to Get hold of Momberg.
Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “observed numerous machines, some in very good ailment, some in poor affliction plus some that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility wherever “instruments and some equipment” ended up retained.
“We requested him to get us to the power but he was evasive to our ask for.”
Determined by photographs and invoices in GroundUp’s possession, some, if not all, on the products look like tools which was illegally removed from the CTMCA’s past premises. Stemmet is experiencing costs for this elimination.
Based on the closing development report submitted to the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business through which Stemmet, his spouse and his daughter ended up administrators at enough time.
The investigators observed this “alarming”.
“With the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape City, the exact same address on which the museum was meant to be developed and/or transformed,” they noted.
An audit by accountants Kopano Included, attached to your investigative report, recorded which the CTMCA was in the process of acquiring “equipment, plant and inventory” 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 R1.2-million as being a deposit, which means R6.9-million is still owed, although there's no payment date established for when this have to be paid.
The Kopano audit as well as the close connection among the businesses “point out to us that there is ‘foul Enjoy’ involved in the acquisition from the machinery of your museum workshop”, the investigators explained in the report.
“We find that it is extremely probable that CTMCA employed the funding with the NLC to ‘refund’ certainly one of its major administrators for that residence at the next overpriced price than the particular price and value of the property and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA were expended.
“The truth is, an in depth report on how the funding from the NLC was used, could well be difficult as being the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts put in on each item it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC experienced not executed a website check out in advance of approving the grant. But this wasn't conventional practice at time and so they located no evidence of negligence by NLC employees.
At some time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim studies, they identified. This intended that the CTMCA was able to get a second tranche of funding without the need to present proof that it experienced employed the main tranche for its meant purpose.
Next the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni encouraged that
the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any customers who have been involved with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated cash.
But, as an alternative to act within the report’s recommendations, the NLC – underneath its preceding administration – selected to suppress it, because it experienced performed Using the previous reviews into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by means of SMS, and questioned for email addresses to deliver the inquiries by electronic mail too. But no response were received at the time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph