Leaked report exposes abuse of lottery cash paid to minstrel group
Leaked report exposes abuse of lottery cash paid to minstrel group
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Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum ever existed.
The investigators identified that the CTMCA did not use the R5-million allocated to get or create a museum.
They also located which the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They located the CTMCA applied resources through the Lottery to invest in workshop equipment from certainly one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s loaded minstrel historical past went astray. The museum was never ever developed.
The details of your abuse of an incredible number of rands of Lottery cash for your museum that never was are revealed in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery funds allotted towards the CTMCA in between 2003 and 2017.
The very first part of the investigation, by law agency Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which included funding with the museum. The accredited spending budget to the museum was more than R12.8-million, with R5-million of that allocated for the setting up to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up with the museum and whether or not the museum “essentially existed”.
The agency was also instructed to research
the acquisition with Lottery resources of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
a variety of devices “acquired to the production of your costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few administrators in the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp with regard to the millions of rands of Lottery funding allotted towards the CTMCA (see listed here, listed here and listed here) and the best way the money possibly assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The creating on the proper was the meant web site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In response to your Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - including the museum - between 2012 and 2015. All three tasks had been concluded, she explained to MPs.
However the investigators identified no proof that a museum had at any time existed.
Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the partitions, as well as a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved mainly because they could not afford to pay for the rent of R100,000 per month. He said the CTMCA had bought home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been bought for the same rate. Schaapkraal is in a peri-city region considerably from the town.
Subsequently, the museum were moved to a whole new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after browsing the premises, that happen to be within an industrial spot, the investigators stated they doubted whether or not a suitable museum existed there. Shots attached to your report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and unfold out on the floor, without any rationalization.
“There is a negligible amount of items within the museum [that] by no means stand for the much more than 100-calendar year history with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating which they housed a museum and … usually, the museum will not seem to generally be open up to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going The placement of the museum to an alternate location without notifying the NLC.
The Schaapkraal house, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver in the rented Crete Street premises since it had run up a R4-million financial debt with the City of Cape Town and was frightened its tools can be connected.
“Due to authorized battles along with the debts, the organisation had to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses acquired with lottery funds have been saved within a top secret place “concealed from the Sheriff”. Although the investigators said they have been not able to substantiate that any buses experienced at any time been purchased.
Stemmet also verified the buses were hidden to prevent them currently being seized. But if the investigators requested to generally be taken to the location exactly where the buses had been saved, he explained to them that “the proprietor of the secret place wasn't available to open the premises for us”.
“The CTMCA couldn't give proof of payment for 2 cars that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also advised them the Schaapkraal property had been sold as a result of debt.
“Mr Soeker explained that In keeping with his comprehension, because of the credit card debt owed to town of Cape Town, the CTMCA made a decision It will be very best to market their [Schaapkraal] residence … also to also to cover the property with the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for security and security, has Beforehand explained to GroundUp the CTMCA “threw funds absent” on litigation with town.
“Each year like clockwork, as we tactic the end in the yr, the CTMCA picks a lawful struggle with the town, more than permits or another thing. We hardly ever initiate it. They continue to keep throwing income away on vexatious litigation which they get rid of and possess charges awarded towards them. This is fully self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the most crucial purpose gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of the many admin, funds and functioning ตรวจ สลาก the CTMCA.” The investigators stated they had been not able to contact Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “observed various devices, some in fantastic affliction, some in terrible issue and several that looked rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web-site storage facility the place “instruments and a few equipment” have been stored.
“We questioned him to consider us to the power but he was evasive to our ask for.”
Based upon pictures and invoices in GroundUp’s possession, some, if not all, with the products appear to be products which was illegally faraway from the CTMCA’s past premises. Stemmet is facing expenses for this elimination.
In accordance with the closing development report submitted on the NLC because of the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter were administrators at time.
The investigators discovered this “alarming”.
“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape Town, the same deal with on which the museum was intended to be designed and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the administrators.
As outlined by Dabishi Nthambeleni, the corporate has paid R1.two-million being a deposit, which means R6.nine-million continues to be owed, though there is no payment date established for when this has to be compensated.
The Kopano audit plus the close link concerning the companies “suggest to us that there is ‘foul Enjoy’ associated with the acquisition in the equipment from the museum workshop”, the investigators explained in the report.
“We find that it is very possible that CTMCA used the funding from the NLC to ‘refund’ one of its major administrators with the property at a greater overpriced amount than the particular value and worth of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant for the CTMCA were invested.
“Actually, a detailed report on how the funding from the NLC was used, would be extremely hard since the CTMCA does not have any receipts, or evidence of payments to confirm the quantities spent on Every merchandise it requested funding for. The interim report and last report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not carried out a web-site stop by prior to approving the grant. But this was not normal exercise at some time plus they uncovered no proof of carelessness by NLC staff.
At enough time, the NLC’s procedures didn't involve funded organisations to submit evidence of payment with interim studies, they pointed out. This meant the CTMCA was in the position to receive a next tranche of funding while not having to give evidence that it had used the main tranche for its meant purpose.
Next the appointment of a new board, commissioner and senior government group, the NLC has tightened up on these along with other difficulties.
Dabishi Nthambeleni advised that
the NLC decrease any upcoming funding applications from the CTMCA;
the CTMCA and any members who had been involved in the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated funds.
But, rather than act over the report’s tips, the NLC – beneath its earlier administration – selected to suppress it, because it experienced performed Along with the prior stories into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and requested for e mail addresses to mail the concerns by e-mail much too. But no reaction were been given at time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph