Leaked report exposes abuse of lottery dollars compensated to minstrel team
Leaked report exposes abuse of lottery dollars compensated to minstrel team
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Minstrels perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee to the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no evidence that a museum ever existed.
The investigators identified the CTMCA did not use the R5-million allocated to purchase or develop a museum.
They also discovered that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They observed the CTMCA utilised money from the Lottery to acquire workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s abundant minstrel history went astray. The museum was never ever made.
The main points of your abuse of an incredible number of rands of Lottery cash for any museum that never was are discovered within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of greater than R64-million in Lottery cash allotted to the CTMCA concerning 2003 and 2017.
The initial Section of the investigation, by legislation business Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding to the museum. The permitted spending plan for your museum was over R12.eight-million, with R5-million of that allotted for a making to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the making for that museum and if the museum “in fact existed”.
The agency was also instructed to investigate
the purchase with Lottery cash of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
various machines “ordered for the manufacturing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few administrators of the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation followed intensive reporting by GroundUp with regard to the countless rands of Lottery funding allotted to your CTMCA (see here, right here and right here) and the way in which the money in all probability aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The developing on the correct was the supposed site from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph
In response to a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “assignments” - such as the museum - among 2012 and 2015. All a few projects had been done, she instructed MPs.
Although the investigators identified no evidence that a museum experienced at any time existed.
In the beginning the museum was due to open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp with the supposed Wetton museum exhibits a coffee shop with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung within the walls, along with a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni claimed it was “not ready” to verify if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved given that they could now not pay for the lease of R100,000 per month. He reported the CTMCA experienced bought house for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar value. Schaapkraal is in a very peri-city place considerably from town.
As a result, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after viewing the premises, which are within an industrial spot, the investigators explained they doubted no matter if a correct museum existed there. Photos connected towards the report display a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and spread out on the floor, without having explanation.
“You will find a minimal number of items in the museum [that] under no circumstances represent the a lot more than a hundred-calendar year record of your Cape City Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … frequently, the museum would not glimpse to generally be open up to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by transferring The placement from the museum to another spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time constructed. Picture: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to move with the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with town of Cape City and was worried its equipment could be attached.
“A result of the authorized battles as well as the debts, the organisation had to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director of the CTMCA, informed them the two buses bought with lottery cash have been stored inside of a mystery area “concealed through the Sheriff”. Though the investigators mentioned they ended up unable to substantiate that any buses experienced ever been purchased.
Stemmet also confirmed that the buses were concealed to prevent them currently being seized. But once the investigators questioned to get taken on the put in which the buses were stored, he explained to them that “the owner of the secret area was not accessible to open up the premises for us”.
“The CTMCA could not supply proof of payment for two autos that it allegedly acquired with grant income,” the investigators documented.
Soeker also advised them the Schaapkraal home were offered due to the financial debt.
“Mr Soeker discussed that Based on his knowing, a result of the financial debt owed to the town of Cape Town, the CTMCA determined It might be greatest to sell their [Schaapkraal] residence … and to also to hide the property from the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for safety and protection, has previously informed GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Annually like clockwork, as we method the end on the yr, the CTMCA picks a legal fight with town, about permits or something else. We never ever initiate it. They retain throwing income away on vexatious litigation they get rid of and also have expenses awarded towards them. This is fully self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the main position gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of many of the admin, funds and functioning หวย ลาว วัน นี้ the CTMCA.” The investigators explained they were struggling to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered various equipment, some in superior ailment, some in lousy ailment and many that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web-site storage facility the place “devices and a few equipment” were retained.
“We asked him to just take us to the power but he was evasive to our request.”
Determined by photos and invoices in GroundUp’s possession, some, if not all, on the goods look like gear that was illegally removed from the CTMCA’s prior premises. Stemmet is going through prices for this elimination.
Based on the ultimate progress report submitted for the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company in which Stemmet, his spouse and his daughter had been administrators at enough time.
The investigators identified this “alarming”.
“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be crafted 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 paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the directors.
In accordance with Dabishi Nthambeleni, the organization has paid R1.two-million as being a deposit, meaning R6.nine-million is still owed, though there is not any payment day established for when this has to be compensated.
The Kopano audit as well as the shut hyperlink involving the businesses “show to us that there is ‘foul Enjoy’ involved in the purchase on the equipment from the museum workshop”, the investigators explained from the report.
“We discover that it's remarkably possible that CTMCA made use of the funding of the NLC to ‘refund’ among its principal directors for the property at the next overpriced level than the actual value and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA were spent.
“The truth is, a detailed report on how the funding on the NLC was utilized, might be not possible as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts put in on each item it requested funding for. The interim report and ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC had not carried out a internet site take a look at right before approving the grant. But this wasn't common apply at the time they usually observed no evidence of carelessness by NLC personnel.
At time, the NLC’s rules didn't need funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to present proof that it had utilised the first tranche for its intended function.
Next the appointment of a brand new board, commissioner and senior executive crew, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni suggested that
the NLC decline any future funding applications from the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act about the report’s tips, the NLC – beneath its former administration – chose to suppress it, because it had finished With all the past reports into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the issues by e mail way too. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph