Leaked report exposes abuse of lottery income paid out to minstrel group
Leaked report exposes abuse of lottery income paid out to minstrel group
Blog Article
Minstrels perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or produce a museum.
Additionally they discovered which the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They found the CTMCA utilized money from your Lottery to acquire workshop equipment from among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to create a museum to rejoice the town’s loaded minstrel history went astray. The museum was never ever established.
The main points of your abuse of millions of rands of Lottery funds for a museum that never was are revealed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery funds allotted for the CTMCA in between 2003 and 2017.
The main Portion of the investigation, by regulation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The authorized finances with the museum was more than R12.8-million, with R5-million of that allotted for a developing to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing to the museum and whether the museum “actually existed”.
The business was also instructed to research
the purchase with Lottery cash of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many machines “purchased to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors in the organisation. Stemmet was reappointed being a director in May perhaps 2021.
The investigation adopted considerable reporting by GroundUp with regards to the many rands of Lottery funding allotted to your CTMCA (see below, below and listed here) and the way in which the funds likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The building on the ideal was the supposed web page in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - such as the museum - involving 2012 and 2015. All a few projects were completed, she informed MPs.
Even so the investigators located no proof that a museum had at any time existed.
At first the museum was because of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung about the partitions, and also a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved as they could no longer manage the lease of R100,000 per month. He claimed the CTMCA experienced procured property for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were marketed for the same price tag. Schaapkraal is in the peri-urban region far from town.
Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following viewing the premises, which might be in an industrial place, the investigators mentioned they doubted whether or not a suitable museum existed there. Pictures connected to your report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed for the wall, displayed on tables and unfold out on the ground, without any rationalization.
“There exists a minimal volume of products with the museum [that] in no way symbolize the much more than 100-yr historical past of your Cape City Carnival, the investigators said, adding that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum will not seem to get open to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by shifting the location of your museum to an alternate area devoid of notifying the NLC.
The Schaapkraal assets, on which no museum was at any time built. Photo: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to maneuver in the rented Crete Street premises as it experienced operate up a R4-million credit card debt with the town of Cape Town and was scared its products could be attached.
“As a result of lawful battles as well as debts, the organisation had to move its home from five Crete Street to stay away from the sheriff from attaching the property of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of the CTMCA, advised them that the two buses purchased with lottery funds have been saved in the key area “hidden from the Sheriff”. But the investigators claimed they were unable to confirm that any buses experienced at any time been acquired.
Stemmet also verified the buses had been concealed to halt them remaining seized. But in the event the investigators requested for being taken for the spot exactly where the buses were saved, he advised them that “the owner of The trick area wasn't available to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 vehicles that it allegedly acquired with grant cash,” the investigators described.
Soeker also informed them the Schaapkraal residence were sold due to the personal debt.
“Mr Soeker defined that In keeping with his knowing, due to personal debt owed to town of Cape City, the CTMCA resolved It will be most effective to provide their [Schaapkraal] assets … also to also to hide the assets of your CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for protection and protection, has previously explained to GroundUp the CTMCA “threw cash absent” on litigation with the City.
“Every year like clockwork, as we tactic the end on the year, the CTMCA picks a authorized combat with the City, in excess of permits or another thing. We in no way initiate it. They retain throwing money away on vexatious litigation that they get rid of and possess costs awarded towards them. That is fully self-inflicted,” he reported.
Soeker explained to the Dabishi Nthambeleni investigators that the primary function gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of all the admin, funds and working หวย the CTMCA.” The investigators claimed they were not able to Speak to Momberg.
Hats
For the duration of their “investigation in loco” with the Primrose Park premises, the investigators “located several machines, some in superior affliction, some in negative condition and many that looked rusty and very aged”. Stemmet advised the investigators that there was also an off-site storage facility the place “devices and a few machinery” were being stored.
“We requested him to acquire us to the power but he was evasive to our request.”
Depending on images and invoices in GroundUp’s possession, some, Otherwise all, with the merchandise look like equipment which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with rates for this removing.
Based on the ultimate progress report submitted to the NLC by the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter were administrators at the time.
The investigators discovered this “alarming”.
“From your CIPC research of Martin-Conne Milliners as well as invoices submitted, we note the following alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Highway, Wetton, Cape City, the exact same deal with on which the museum was intended to be built and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, hooked up for the investigative report, recorded that the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.
According to Dabishi Nthambeleni, the business has compensated R1.two-million as being a deposit, indicating R6.nine-million remains owed, although there isn't a payment day established for when this need to be compensated.
The Kopano audit as well as shut connection between the businesses “point out to us that there is ‘foul Perform’ involved in the acquisition on the machinery of the museum workshop”, the investigators said during the report.
“We find that it's hugely probable that CTMCA made use of the funding on the NLC to ‘refund’ among its main directors with the house at the next overpriced fee than the particular cost and worth of the assets and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant to the CTMCA had been invested.
“Actually, an in depth report on how the funding with the NLC was made use of, would be unattainable since the CTMCA does not have any receipts, or proof of payments to substantiate the quantities put in on Every single merchandise it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC had not done a internet site pay a visit to before approving the grant. But this was not standard exercise at the time plus they found no evidence of carelessness by NLC employees.
At time, the NLC’s procedures did not demand funded organisations to post evidence of payment with interim experiences, they identified. This intended which the CTMCA was in a position to receive a second tranche of funding without needing to give evidence that it had utilised the 1st tranche for its meant function.
Pursuing the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these along with other problems.
Dabishi Nthambeleni suggested that
the NLC drop any foreseeable future funding programs within the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected towards the NLC’s “delinquency” system;
the NLC open a felony circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated funds.
But, as an alternative to act over the report’s recommendations, the NLC – below its preceding administration – chose to suppress it, since it had performed While using the previous reports into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker through SMS, and asked for email addresses to mail the issues by e-mail as well. But no reaction had been received at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph