Leaked report exposes abuse of lottery funds paid to minstrel group
Leaked report exposes abuse of lottery funds paid to minstrel group
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Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the National Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has identified no proof that a museum ever existed.
The investigators observed the CTMCA didn't utilize the R5-million allotted to purchase or make a museum.
Additionally they located the CTMCA only bought land really worth R1.7-million, not R5-million as allotted.
They discovered the CTMCA utilized resources from your Lottery to invest in workshop gear from amongst its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel record went astray. The museum was under no circumstances established.
The small print of the abuse of millions of rands of Lottery resources for your museum that under no circumstances was are uncovered within an investigative report commissioned with the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery resources allotted for the CTMCA among 2003 and 2017.
The 1st Portion of the investigation, by regulation business Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding for the museum. The accredited spending plan for that museum was in excess of R12.8-million, with R5-million of that allotted to get a setting up to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing for your museum and whether or not the museum “truly existed”.
The business was also instructed to research
the acquisition with Lottery cash of two cars – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of equipment “acquired with the manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators of the organisation. Stemmet was reappointed for a director in Could 2021.
The investigation adopted intensive reporting by GroundUp with regard to the countless rands of Lottery funding allotted to your CTMCA (see here, here and in this article) and just how the cash almost certainly assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.
The making on the ideal was the meant web-site with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - including the museum - involving 2012 and 2015. All 3 assignments had been done, she told MPs.
Nevertheless the investigators located no proof that a museum experienced at any time existed.
To start with the museum was because of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp from the intended Wetton museum displays a espresso store with some musical devices and minstrel costumes and collages of images haphazardly hung within the walls, as well as a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum had been moved given that they could no longer manage the lease of R100,000 per month. He explained the CTMCA experienced purchased home for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and were bought for the same selling price. Schaapkraal is inside a peri-city place significantly from the town.
Due to this fact, the museum had been moved to a different spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after checking out the premises, which happen to be in an industrial space, the investigators explained they doubted regardless of whether a suitable museum existed there. Pics connected to your report clearly show a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed to your wall, shown on tables and unfold out on the floor, without having rationalization.
“There is a nominal quantity of things with the museum [that] in no way signify the much more than 100-12 months record on the Cape City Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating they housed a museum and … usually, the museum isn't going to glance to become open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by transferring the location in the museum to an alternative place without the need of notifying the NLC.
The Schaapkraal house, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA had to maneuver from your rented Crete Street premises as it had operate up a R4-million financial debt with the City of Cape City and was concerned its products can be hooked up.
“Due to legal battles as well as debts, the organisation had to maneuver its property from 5 Crete Road to stay away from the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director of your CTMCA, told them that the two buses bought with lottery cash ended up saved inside of a magic formula spot “hidden through the Sheriff”. However the investigators said they were not able to verify that any buses had ever been bought.
Stemmet also verified the buses were hidden to halt them being seized. But when the investigators questioned for being taken towards the place where the buses ended up stored, he instructed them that “the owner of the secret site wasn't accessible to open up the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 vehicles that it allegedly bought with grant income,” the investigators claimed.
Soeker also explained to them the Schaapkraal assets were bought because of the financial debt.
“Mr Soeker spelled out that As outlined by his being familiar with, because of the personal debt owed to the town of Cape Town, the CTMCA determined It will be finest to promote their [Schaapkraal] assets … and to also to hide the property of the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and safety, has Earlier informed GroundUp the CTMCA “threw cash away” on litigation with the town.
“Each year like clockwork, as we solution the tip with the yr, the CTMCA picks a legal battle with the City, above permits or something else. We under no circumstances initiate it. They preserve throwing dollars absent on vexatious litigation they drop and have fees awarded in opposition to them. This is often solely self-inflicted,” he reported.
Soeker explained to the Dabishi Nthambeleni investigators that the main job players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been in control of every one of the admin, finances and managing ตา ว จ หวย the CTMCA.” The investigators claimed they were not able to Make contact with Momberg.
Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located numerous machines, some in excellent ailment, some in terrible situation and several that appeared rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-site storage facility in which “instruments and a few machinery” were stored.
“We asked him to take us to the power but he was evasive to our request.”
Based upon pics and invoices in GroundUp’s possession, some, if not all, in the objects appear to be equipment that was illegally removed from the CTMCA’s prior premises. Stemmet is facing costs for this removing.
According to the closing progress report submitted into the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter were being administrators at the time.
The investigators identified this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we note the following alarming obtaining: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape City, the same handle on which the museum was meant to be developed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
According to Dabishi Nthambeleni, the corporate has paid out R1.two-million to be a deposit, meaning R6.nine-million is still owed, even though there is no payment day set for when this have to be compensated.
The Kopano audit as well as near website link in between the companies “suggest to us that there is ‘foul play’ involved with the purchase with the equipment on the museum workshop”, the investigators said from the report.
“We find that it is hugely possible that CTMCA employed the funding of the NLC to ‘refund’ one of its major directors to the residence at a higher overpriced charge than the particular selling price and price of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to the CTMCA were expended.
“Actually, a detailed report on how the funding from the NLC was applied, might be impossible as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities invested on Every product it requested funding for. The interim report and closing report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC had not executed a website check out in advance of approving the grant. But this wasn't typical observe at some time they usually found no proof of carelessness by NLC employees.
At the time, the NLC’s guidelines didn't require funded organisations to post proof of payment with interim reports, they identified. This intended the CTMCA was in the position to get a second tranche of funding without the need to present proof that it experienced utilised the initial tranche for its supposed function.
Subsequent the appointment of a brand new board, commissioner and senior government group, the NLC has tightened up on these as well as other challenges.
Dabishi Nthambeleni advised that
the NLC decrease any long term funding programs with the CTMCA;
the CTMCA and any members who have been involved with the grant be subjected to your 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 start out the whole process of recovering the misappropriated resources.
But, rather than act over the report’s tips, the NLC – under its former administration – chose to suppress it, mainly because it had done While using the preceding reports into corruption it had commissioned.
GroundUp despatched concerns to Stemmet and Soeker by means of SMS, and questioned for e-mail addresses to ship the thoughts by email also. But no response had been acquired at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph