Leaked report exposes abuse of lottery cash compensated to minstrel team
Leaked report exposes abuse of lottery cash compensated to minstrel team
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Minstrels complete in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators located that the CTMCA did not make use of the R5-million allocated to acquire or make a museum.
They also identified that the CTMCA only purchased land value R1.seven-million, not R5-million as allotted.
They identified the CTMCA used funds through the Lottery to get workshop equipment from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate town’s loaded minstrel historical past went astray. The museum was never made.
The small print of the abuse of many rands of Lottery funds for your museum that by no means was are unveiled in an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of greater than R64-million in Lottery resources allocated towards the CTMCA concerning 2003 and 2017.
The primary A part of the investigation, by legislation firm 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 creating for the museum and whether or not the museum “basically existed”.
The organization was also instructed to investigate
the acquisition with Lottery money of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of machines “acquired for the production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see right here, here and in this article) and just how the cash almost certainly 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 correct was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 initiatives were done, she told MPs.
However the investigators identified no proof that a museum had at any time existed.
At the beginning the museum was due to open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the supposed Wetton museum reveals a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung within the partitions, plus a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved as they could now not pay for the lease 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 the same price tag. Schaapkraal is in the peri-urban location much from the city.
As a result, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which happen to be in an industrial space, the investigators explained they doubted regardless of whether an appropriate museum existed there. Photographs hooked up to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the ground, without explanation.
“You will find there's minimum number of objects on the museum [that] under no circumstances symbolize the over a hundred-12 months historical past on the Cape Town Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … generally, the museum does not glimpse being open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by relocating The placement from the museum to an alternate place with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time constructed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to maneuver in the rented Crete Road premises as it had operate up a R4-million credit card debt with the town of Cape Town and was afraid its machines might be attached.
“Due to the authorized battles and the debts, the organisation had to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the assets with the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director with the CTMCA, instructed them the two buses acquired with lottery money were being stored in the top secret area “hidden within the Sheriff”. Nevertheless the investigators claimed they were being not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified the buses had been hidden to halt them being seized. But when the investigators questioned being taken to your position wherever the buses have been stored, he explained to them that “the proprietor of the secret locale was not accessible to open the premises for us”.
“The CTMCA couldn't give evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.
Soeker also informed them the Schaapkraal residence were offered as a result of personal debt.
“Mr Soeker described that according to his comprehension, mainly because of the debt owed to the City of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] house … and also to also to hide the belongings with the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for safety and stability, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with the town.
“Yearly like clockwork, as we method the tip from the 12 months, the CTMCA picks a legal battle with town, more than permits or another thing. We by no means initiate it. They hold throwing money away on vexatious litigation that they eliminate and possess costs awarded towards them. This is certainly solely self-inflicted,” he said.
Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and operating hihuay the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “found numerous equipment, some in very good problem, some in poor condition and many that looked rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “devices plus some machinery” ended up kept.
“We requested him to acquire us to the facility but he was evasive to our request.”
Based upon shots and invoices in GroundUp’s possession, some, if not all, from the objects seem like devices which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with charges for this removing.
In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a corporation wherein Stemmet, his wife and his daughter were 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 locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be designed and/or transformed,” they claimed.
An audit by accountants Kopano Included, hooked up to the investigative report, recorded that the CTMCA was in the whole process of purchasing “equipment, plant and inventory” 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.
According to Dabishi Nthambeleni, the corporation has paid out R1.2-million for a deposit, that means R6.nine-million continues to be owed, though there is not any payment date established for when this should be paid out.
The Kopano audit and the close backlink in between the companies “point out to us that there's ‘foul play’ involved in the purchase in the machinery on the museum workshop”, the investigators claimed in the report.
“We discover that it's remarkably possible that CTMCA utilised the funding on the NLC to ‘refund’ considered one of its key directors for the property at the next overpriced fee than the actual rate and worth of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant to the CTMCA were spent.
“Actually, an in depth report on how the funding from the NLC was made use of, could be unachievable as the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on each item it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered that the NLC experienced not done a web page visit right before approving the grant. But this wasn't common apply at the time they usually located no evidence of carelessness by NLC staff.
At some time, the NLC’s regulations did not have to have funded organisations to submit proof of payment with interim experiences, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding without needing to present evidence that it had utilized the 1st tranche for its supposed purpose.
Subsequent the appointment of a different board, commissioner and senior government staff, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni advised that
the NLC decline any long term funding applications within the CTMCA;
the CTMCA and any users who have been associated with the grant be subjected to the NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – underneath its prior administration – chose to suppress it, since it experienced carried out Along with the former reviews into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e-mail also. But no response were been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph