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 right into a R27.3-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has uncovered no proof that a museum ever existed.
The investigators found which the CTMCA did not utilize the R5-million allocated to order or create a museum.
Additionally they uncovered which the CTMCA only acquired land truly worth R1.7-million, not R5-million as allocated.
They identified the CTMCA utilised cash within the Lottery to purchase workshop products from amongst its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) via the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s loaded minstrel record went astray. The museum was never made.
The main points of your abuse of millions of rands of Lottery money for just a museum that by no means was are unveiled within an investigative report commissioned from the NLC in 2021.
The museum grant was Portion of in excess of R64-million in Lottery cash allocated to the CTMCA concerning 2003 and 2017.
The 1st Section of the investigation, by legislation agency Dabishi Nthambeleni, was executed among September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which involved funding to the museum. The permitted spending plan for your museum was more than R12.eight-million, with R5-million of that allocated for a setting up to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing for your museum and whether or not the museum “really existed”.
The business was also instructed to investigate
the purchase with Lottery cash of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of devices “acquired for that production from the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director with 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 on the organisation. Stemmet was reappointed as a director in May perhaps 2021.
The investigation followed considerable reporting by GroundUp concerning the a lot of rands of Lottery funding allotted towards the CTMCA (see here, in this article and below) and the best way the funds almost certainly helped finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The developing on the appropriate was the intended website of the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Image: Raymond Joseph
In reaction to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “initiatives” - including the museum - in between 2012 and 2015. All a few projects had been finished, she advised MPs.
Although the investigators found no evidence that a museum had at any time existed.
At the outset the museum was resulting from open up in rented premises in Crete Street, Wetton. A photograph received by GroundUp on the meant Wetton museum exhibits a coffee store with a few musical devices and minstrel costumes and collages of pics haphazardly hung around the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni claimed it absolutely was “not able” to verify if a museum had ever operated from these premises.
Stemmet informed the investigators the museum were moved mainly because they could not afford to pay for the rent of R100,000 per month. He said the CTMCA experienced purchased residence for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were sold for the same selling price. Schaapkraal is inside a peri-urban place much from town.
Subsequently, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after browsing the premises, which happen to be within an industrial spot, the investigators explained they doubted whether an appropriate museum existed there. Shots hooked up to your report exhibit a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the floor, without any rationalization.
“There's a minimum level of things in the museum [that] on no account stand for the in excess of a hundred-12 months history of your Cape City Carnival, the investigators explained, adding that there was “no signage exterior the premises indicating they housed a museum and … generally, the museum will not glance to generally be open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by relocating the location from the museum to an alternative locale devoid of notifying the NLC.
The Schaapkraal house, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA had to maneuver within the rented Crete Street premises mainly because it experienced run up a R4-million financial debt with the town of Cape City and was worried its tools might be attached.
“Mainly because of the lawful battles and also the debts, the organisation had to move its house from five Crete Highway to avoid the sheriff from attaching the property in the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of your CTMCA, explained to them the two buses purchased with lottery funds were saved within a magic formula location “concealed from your Sheriff”. Even so the investigators stated they ended up unable to verify that any buses experienced ever been purchased.
Stemmet also verified the buses were concealed to halt them currently being seized. But once the investigators questioned for being taken on the place the place the buses were stored, he informed them that “the proprietor of The key spot wasn't available to open the premises for us”.
“The CTMCA couldn't give evidence of payment for 2 motor vehicles that it allegedly obtained with grant income,” the investigators reported.
Soeker also instructed them the Schaapkraal assets were marketed as a result of financial debt.
“Mr Soeker described that In keeping with his understanding, due to credit card debt owed to town of Cape Town, the CTMCA made a decision it would be most effective to promote their [Schaapkraal] residence … and to also to hide the assets of the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for basic safety and security, has previously instructed GroundUp that the CTMCA “threw income absent” on litigation with town.
“Each and every year like clockwork, as we tactic the top of the yr, the CTMCA picks a authorized combat with the City, above permits or something else. We under no circumstances initiate it. They continue to keep throwing dollars away on vexatious litigation that they get rid of and have costs awarded against them. This can be solely self-inflicted,” he explained.
Soeker advised the Dabishi Nthambeleni investigators that the leading part gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of each of the admin, finances and functioning ผล หวย หุ้น the CTMCA.” The investigators explained they were unable to Get in touch with Momberg.
Hats
All through their “investigation in loco” within the Primrose Park premises, the investigators “identified quite a few devices, some in superior affliction, some in bad ailment and several that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility in which “instruments and some equipment” were being held.
“We asked him to take us to the power but he was evasive to our request.”
Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like products which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing fees for this removal.
Based on the remaining progress report submitted on the NLC from the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter ended up directors at time.
The investigators located this “alarming”.
“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we note the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Highway, Wetton, Cape Town, the exact same deal with on which the museum was meant to be built and/or converted,” they claimed.
An audit by accountants Kopano Integrated, hooked up for 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 amongst the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, meaning R6.nine-million remains owed, nevertheless there's no payment date established for when this need to be paid out.
The Kopano audit and also the shut website link in between the businesses “show to us that there's ‘foul Enjoy’ involved in the acquisition from the machinery with the museum workshop”, the investigators stated in the report.
“We find that it is remarkably possible that CTMCA utilized the funding on the NLC to ‘refund’ amongst its principal directors to the house at an increased overpriced amount than the particular selling price and worth of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant into the CTMCA were used.
“In point of fact, a detailed report on how the funding of the NLC was used, would be impossible as being the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Every single product it requested funding for. The interim report and remaining report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not conducted a web site check out right before approving the grant. But this wasn't standard practice at the time they usually uncovered no proof of carelessness by NLC personnel.
At time, the NLC’s policies did not need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without having to present evidence that it had applied the primary tranche for its intended intent.
Adhering to the appointment of a fresh board, commissioner and senior executive staff, the NLC has tightened up on these together with other difficulties.
Dabishi Nthambeleni suggested that
the NLC decrease any long run funding applications from your CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act on the report’s suggestions, the NLC – beneath its prior administration – selected to suppress it, as it had completed with the preceding reports into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send the queries by e mail far too. But no response had been acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph