Leaked report exposes abuse of lottery money compensated to minstrel team
Leaked report exposes abuse of lottery money compensated to minstrel team
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Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the Nationwide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no proof that a museum at any time existed.
The investigators found the CTMCA didn't use the R5-million allocated to acquire or build a museum.
Additionally they found which the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allocated.
They observed the CTMCA used resources from the Lottery to acquire workshop products from one among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to put in place a museum to rejoice the city’s rich minstrel record went astray. The museum was never established.
The main points with the abuse of an incredible number of rands of Lottery funds to get a museum that under no circumstances was are revealed within an investigative report commissioned with the NLC in 2021.
The museum grant was Component of over R64-million in Lottery funds allotted on the CTMCA amongst 2003 and 2017.
The initial A part of the investigation, by legislation agency Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which included funding with the museum. The accredited price range for your museum was over R12.8-million, with R5-million of that allocated for just a developing to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for the museum and whether the museum “really existed”.
The organization was also instructed to research
the acquisition with Lottery money of two cars – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
several machines “acquired for that producing of the costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various directors from the organisation. Stemmet was reappointed as being a director in Might 2021.
The investigation adopted intensive reporting by GroundUp with regards to the a lot of rands of Lottery funding allocated to the CTMCA (see in this article, below and here) and the way in which the cash possibly aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The creating on the ideal was the supposed web site with the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to the Parliamentary question, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - such as the museum - among 2012 and 2015. All a few projects had been completed, she told MPs.
Nevertheless the investigators discovered no evidence that a museum experienced ever existed.
At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp on the meant Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung about the walls, plus a design ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni said it had been “not able” to confirm if a museum had ever operated from these premises.
Stemmet advised the investigators the museum had been moved simply because they could no more afford the rent of R100,000 a month. He mentioned the CTMCA had purchased assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for the same price. Schaapkraal is in a peri-urban area much from town.
As a result, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, which can be in an industrial spot, the investigators claimed they doubted no matter whether an appropriate museum existed there. Shots hooked up to your report exhibit a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without any explanation.
“You will find a small amount of goods within the museum [that] on no account characterize the much more than 100-calendar year heritage of your Cape Town Carnival, the investigators reported, including that there was “no signage outside the premises indicating that they housed a museum and … commonly, the museum doesn't glance to be open to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by moving the location in the museum to another location with no notifying the NLC.
The Schaapkraal property, on which no museum was at any time crafted. Picture: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA had to maneuver with the rented Crete Street premises because it experienced run up a R4-million financial debt with the City of Cape City and was worried its tools will be hooked up.
“Because of the lawful battles plus the debts, the organisation had to move its residence from 5 Crete Street to steer clear of the sheriff from attaching the property from the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director in the CTMCA, explained to them that the two buses bought with lottery money have been saved inside a solution site “concealed from the Sheriff”. Although the investigators claimed they were being not able to verify that any buses had at any time been purchased.
Stemmet also confirmed which the buses had been hidden to prevent them being seized. But in the event the investigators requested to become taken to the area where by the buses had been stored, he instructed them that “the owner of The trick place was not available to open up the premises for us”.
“The CTMCA couldn't deliver proof of payment for two autos that it allegedly procured with grant cash,” the investigators noted.
Soeker also informed them the Schaapkraal home were marketed due to the debt.
“Mr Soeker defined that In line with his knowledge, mainly because of the credit card debt owed to town of Cape Town, the CTMCA resolved It might be most effective to promote their [Schaapkraal] assets … and to also to hide the assets with the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for safety and protection, has previously explained to GroundUp that the CTMCA “threw dollars absent” on litigation with town.
“Every year like clockwork, as we technique the top from the year, the CTMCA picks a legal fight with town, around permits or another thing. We hardly ever initiate it. They continue to keep throwing revenue away on vexatious litigation they drop and also have expenditures awarded from them. That is completely self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the most crucial part gamers on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all the admin, finances and managing หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators mentioned they were not able to Call Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “uncovered many machines, some in very good affliction, some in lousy ailment plus some that appeared rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “devices and many equipment” have been retained.
“We questioned him to acquire us to the ability but he was evasive to our ask for.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, in the objects look like devices which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing fees for this elimination.
In accordance with the last progress report submitted towards the NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter ended up administrators at enough time.
The investigators located this “alarming”.
“With the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the organization is five Crete Highway, Wetton, Cape Town, exactly the same tackle on which the museum was intended to be designed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the whole process of getting “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the directors.
According to Dabishi Nthambeleni, the business has paid out R1.two-million for a deposit, meaning R6.nine-million remains to be owed, even though there is not any payment day set for when this should be compensated.
The Kopano audit and the near website link between the businesses “indicate to us that there's ‘foul Engage in’ linked to the purchase of the machinery of your museum workshop”, the investigators mentioned during the report.
“We find that it is hugely probable that CTMCA applied the funding of the NLC to ‘refund’ among its key administrators for the home at a greater overpriced fee than the particular selling price and worth of the home and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA had been used.
“Actually, an in depth report on how the funding with the NLC was employed, could be not possible given that the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended on Each and every product it requested funding for. The interim report and remaining report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not done a internet site take a look at before approving the grant. But this was not standard practice at some time plus they uncovered no evidence of negligence by NLC workers.
At some time, the NLC’s procedures did not need funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in the position to receive a next tranche of funding without needing to offer evidence that it experienced applied the initial tranche for its supposed function.
Subsequent the appointment of a fresh board, commissioner and senior executive group, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni proposed that
the NLC decline any upcoming funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, instead of act about the report’s suggestions, the NLC – below its prior administration – selected to suppress it, as it experienced carried out with the former reviews into corruption it had commissioned.
GroundUp despatched issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the thoughts by email too. But no response were received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph