Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
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Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the Countrywide Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators found that the CTMCA did not make use of the R5-million allotted to purchase or create a museum.
In addition they found which the CTMCA only acquired land worth R1.7-million, not R5-million as allotted.
They observed the CTMCA made use of money from your Lottery to invest in workshop devices from one among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Association (CTMCA) via the Countrywide Lotteries Commission (NLC) to create a museum to celebrate town’s loaded minstrel heritage went astray. The museum was by no means made.
The main points from the abuse of numerous rands of Lottery funds for the museum that in no way was are exposed within an investigative report commissioned by the NLC in 2021.
The museum grant was part of over R64-million in Lottery money allotted for the CTMCA in between 2003 and 2017.
The first part of the investigation, by regulation organization Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which integrated funding for your museum. The approved spending plan for the museum was a lot more than R12.eight-million, with R5-million of that allotted for your making to deal with the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a building with the museum and whether the museum “in fact existed”.
The company was also instructed to research
the acquisition with Lottery money of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
many machines “obtained to the manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators on the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation adopted substantial reporting by GroundUp with regard to the many rands of Lottery funding allocated towards the CTMCA (see listed here, here and right here) and the best way the money most likely aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The setting up on the right was the supposed website with the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph
In response into a Parliamentary issue, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - in between 2012 and 2015. All a few initiatives had been completed, she told MPs.
However the investigators found no proof that a museum had at any time existed.
At the beginning the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp from the intended Wetton museum displays a coffee shop with a few musical devices and minstrel costumes and collages of images haphazardly hung to the partitions, plus a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni explained it had been “not ready” to substantiate if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum were moved as they could not manage the hire of R100,000 a month. He stated the CTMCA experienced obtained home for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were marketed for a similar value. Schaapkraal is inside of a peri-urban location significantly from the town.
As a result, the museum had been moved to a whole new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial location, the investigators claimed they doubted no matter whether a suitable museum existed there. Pics attached on the report clearly show a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, shown on tables and unfold out on the ground, without any explanation.
“You will find there's nominal amount of things on the museum [that] on no account symbolize the much more than 100-year background on the Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating they housed a museum and … usually, the museum does not glimpse being open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by relocating The placement in the museum to an alternative area devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time crafted. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA experienced to move from the rented Crete Highway premises as it experienced run up a R4-million personal debt with the City of Cape Town and was afraid its tools could well be connected.
“Because of the lawful battles as well as debts, the organisation had to move its house from 5 Crete Road to stay away from the sheriff from attaching the residence of your organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director on the CTMCA, instructed them which the two buses acquired with lottery money have been stored inside a key spot “hidden in the Sheriff”. Even so the investigators explained they had been not able to verify that any buses experienced ever been purchased.
Stemmet also verified which the buses had been hidden to halt them currently being seized. But if the investigators questioned to generally be taken towards the area wherever the buses were being saved, he instructed them that “the operator of The key spot was not available to open up the premises for us”.
“The CTMCA couldn't give evidence of payment for two motor vehicles that it allegedly purchased with grant revenue,” the investigators documented.
Soeker also advised them the Schaapkraal home were offered because of the credit card debt.
“Mr Soeker spelled out that according to his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA determined It could be best to offer their [Schaapkraal] property … and to also to hide the belongings of the CTMCA to avoid the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for safety and security, has Formerly instructed GroundUp the CTMCA “threw dollars absent” on litigation with the town.
“Annually like clockwork, as we tactic the tip from the year, the CTMCA picks a lawful battle with the City, more than permits or another thing. We hardly ever initiate it. They hold throwing income away on vexatious litigation they lose and also have prices awarded towards them. This is certainly entirely self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the primary part players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for the many admin, finances and working หวย รัฐบาล the CTMCA.” The investigators reported they had been unable to Make contact with Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “found numerous equipment, some in superior ailment, some in terrible affliction and several that looked rusty and intensely previous”. Stemmet advised the investigators that there was also an off-internet site storage facility in which “instruments and a few equipment” have been kept.
“We questioned him to acquire us to the facility but he was evasive to our ask for.”
Depending on shots and invoices in GroundUp’s possession, some, if not all, with the objects look like products which was illegally removed from the CTMCA’s past premises. Stemmet is going through charges for this elimination.
In accordance with the remaining development report submitted towards the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter had been administrators at the time.
The investigators found this “alarming”.
“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the following alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Road, Wetton, Cape Town, exactly the same handle on which the museum was intended to be crafted and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded that the CTMCA was in the whole process of getting “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.
Based on Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, meaning R6.9-million remains owed, while there is absolutely no payment date set for when this must be paid out.
The Kopano audit and the near connection among the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase in the machinery on the museum workshop”, the investigators reported within the report.
“We find that it is highly probable that CTMCA used the funding from the NLC to ‘refund’ among its principal directors for the property at a greater overpriced charge than the actual price tag and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were put in.
“In fact, an in depth report on how the funding on the NLC was utilized, could well be difficult because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Each and every product it asked for funding for. The interim report and final report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not performed a internet site visit prior to approving the grant. But this was not standard practice at some time plus they observed no proof of negligence by NLC staff.
At the time, the NLC’s guidelines didn't call for funded organisations to post proof of payment with interim reports, they identified. This meant that the CTMCA was ready to receive a next tranche of funding while not having to supply evidence that it experienced employed the first tranche for its meant purpose.
Adhering to the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni advised that
the NLC decrease any long run funding apps with the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, instead of act on the report’s tips, the NLC – below its former administration – chose to suppress it, since it experienced completed with the earlier stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker by means of SMS, and questioned for email addresses to deliver the queries by e-mail way too. But no response had been obtained at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph