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 Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the Countrywide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has found no proof that a museum at any time existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to acquire or establish a museum.
In addition they uncovered the CTMCA only acquired land truly worth R1.7-million, not R5-million as allotted.
They found the CTMCA made use of funds within the Lottery to buy workshop equipment from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s prosperous minstrel background went astray. The museum was never ever designed.
The small print of your abuse of millions of rands of Lottery funds for a museum that under no circumstances was are disclosed in an investigative report commissioned with the NLC in 2021.
The museum grant was Section of more than R64-million in Lottery resources allotted into the CTMCA concerning 2003 and 2017.
The initial Component of the investigation, by regulation firm Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which integrated funding to the museum. The accredited budget for your museum was in excess of R12.8-million, with R5-million of that allocated for just a making to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a making for the museum and whether or not the museum “really existed”.
The company was also instructed to investigate
the acquisition with Lottery cash of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “bought with the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of 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 ongoing as two of several directors on the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed substantial reporting by GroundUp concerning the numerous rands of Lottery funding allocated towards the CTMCA (see right here, right here and here) and the way the cash in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the ideal was the intended site with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary query, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few projects were completed, she informed MPs.
Although the investigators uncovered no evidence that a museum had ever existed.
In the beginning the museum was on account of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the partitions, and also a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni explained it absolutely was “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet advised the investigators the museum were moved given that they could now not pay for the lease of R100,000 a month. He claimed the CTMCA experienced procured property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been bought for a similar price. Schaapkraal is inside a peri-city space considerably from town.
Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter whether a proper museum existed there. Pics hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.
“You will find a negligible amount of products on the museum [that] by no means depict the a lot more than one hundred-yr history of the Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum does not glance for being open up to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by moving The placement in the museum to an alternative site without notifying the NLC.
The Schaapkraal residence, on which no museum was ever developed. Image: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver from the rented Crete Street premises because it experienced operate up a R4-million credit card debt with the town of Cape City and was worried its products might be hooked up.
“As a result of legal battles along with the debts, the organisation had to move its assets from 5 Crete Highway to steer clear of the sheriff from attaching the house in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses bought with lottery resources have been stored in a very secret place “concealed within the Sheriff”. But the investigators claimed they had been not able to confirm that any buses had at any time been purchased.
Stemmet also verified which the buses were concealed to stop them remaining seized. But when the investigators asked to be taken on the spot in which the buses were being saved, he told them that “the owner of The trick location wasn't accessible to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 autos that it allegedly purchased with grant funds,” the investigators claimed.
Soeker also explained to them the Schaapkraal assets were offered as a result of personal debt.
“Mr Soeker stated that In keeping with his comprehending, mainly because of the credit card debt owed to the City of Cape City, the CTMCA made the decision it would be finest to sell their [Schaapkraal] assets … and to also to hide the assets with the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and safety, has Beforehand told GroundUp that the CTMCA “threw income away” on litigation with the town.
“Every year like clockwork, as we technique the tip on the calendar year, the CTMCA picks a authorized combat with town, over permits or another thing. We never initiate it. They keep throwing revenue away on vexatious litigation which they eliminate and have prices awarded from them. This can be entirely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial job players on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of the many admin, funds and managing เช ค หวย the CTMCA.” The investigators claimed they were struggling to contact Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “observed a lot of devices, some in very good issue, some in undesirable problem and a few that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-web-site storage facility in which “devices and a few equipment” had been saved.
“We asked him to acquire us to the facility but he was evasive to our request.”
Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, of your products seem like devices which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with expenses for this removal.
Based on the ultimate progress report submitted for the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter ended up directors at some time.
The investigators uncovered this “alarming”.
“Through the CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Highway, Wetton, Cape Town, precisely the same handle on which the museum was meant to be constructed and/or converted,” they documented.
An audit by accountants Kopano Included, hooked up into the investigative report, recorded that the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.
As outlined by Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, which means R6.nine-million is still owed, nevertheless there is not any payment date established for when this should be paid out.
The Kopano audit and the near connection in between the companies “suggest to us that there's ‘foul Perform’ associated with the purchase with the equipment of your museum workshop”, the investigators stated inside the report.
“We find that it is very probable that CTMCA utilized the funding from the NLC to ‘refund’ among its principal directors for the assets at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA were invested.
“In point of fact, a detailed report on how the funding of your NLC was employed, could well be unattainable given that the CTMCA does not have any receipts, or proof of payments to confirm the amounts put in on Each individual item it requested funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not performed a web site pay a visit to ahead of approving the grant. But this was not standard practice at enough time and so they identified no proof of negligence by NLC workers.
At some time, the NLC’s policies did not have to have funded organisations to submit proof of payment with interim experiences, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding while not having to provide proof that it had made use of the very first tranche for its meant reason.
Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these and other issues.
Dabishi Nthambeleni advised 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 for the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – beneath its former administration – chose to suppress it, since it experienced done Together with the former reviews into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for e mail addresses to send out the thoughts by electronic mail much too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph