Leaked report exposes abuse of lottery dollars paid out to minstrel team
Leaked report exposes abuse of lottery dollars paid out to minstrel team
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Minstrels execute in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators observed that the CTMCA didn't use the R5-million allotted to get or build a museum.
In addition they identified the CTMCA only acquired land well worth R1.7-million, not R5-million as allotted.
They located the CTMCA utilised funds in the Lottery to purchase workshop tools from among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the city’s wealthy minstrel history went astray. The museum was under no circumstances established.
The main points in the abuse of numerous rands of Lottery resources for any museum that by no means was are exposed within an investigative report commissioned with the NLC in 2021.
The museum grant was Portion of a lot more than R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.
The very first Element of the investigation, by legislation company Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which involved funding with the museum. The authorized budget for the museum was over R12.eight-million, with R5-million of that allotted for the constructing to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the developing for that museum and whether or not the museum “really existed”.
The business was also instructed to research
the purchase with Lottery funds of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
several equipment “purchased with the producing of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous directors of the organisation. Stemmet was reappointed like a director in May 2021.
The investigation followed extensive reporting by GroundUp concerning the countless rands of Lottery funding allocated to the CTMCA (see right here, here and right here) and the best way the resources possibly helped finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.
The creating on the proper was the supposed web-site of your minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary question, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “projects” - including the museum - concerning 2012 and 2015. All a few projects had been finished, she explained to MPs.
Although the investigators found no evidence that a museum had at any time existed.
Initially the museum was because of open up in rented premises in Crete Street, Wetton. A photo received by GroundUp from the intended Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of images haphazardly hung around the walls, in addition to a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni said it had been “not able” to verify if a museum had ever operated from these premises.
Stemmet advised the investigators the museum were moved simply because they could no more find the money for the lease of R100,000 a month. He reported the CTMCA had bought property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were marketed for the same price. Schaapkraal is in the peri-urban place far from town.
As a result, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after checking out the premises, which can be in an industrial location, the investigators reported they doubted irrespective of whether a suitable museum existed there. Shots hooked up for the report exhibit a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the floor, with no rationalization.
“There is a small volume of things on the museum [that] in no way characterize the greater than one hundred-12 months heritage with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating which they housed a museum and … frequently, the museum does not glimpse to generally be open up to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by transferring The placement in the museum to another site without having notifying the NLC.
The Schaapkraal residence, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with the town of Cape Town and was concerned its products can be connected.
“Due to authorized battles as well as the debts, the organisation had to maneuver its home from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director with the CTMCA, informed them the two buses acquired with lottery money were stored in a mystery location “hidden with the Sheriff”. However the investigators claimed they were being not able to confirm that any buses had at any time been acquired.
Stemmet also confirmed that the buses had been hidden to halt them remaining seized. But when the investigators questioned to be taken towards the area where by the buses were being saved, he explained to them that “the proprietor of The key spot was not accessible to open the premises for us”.
“The CTMCA could not offer evidence of payment for 2 motor vehicles that it allegedly ordered with grant funds,” the investigators reported.
Soeker also advised them the Schaapkraal property had been bought because of the credit card debt.
“Mr Soeker explained that As outlined by his comprehending, due to personal debt owed to the City of Cape City, the CTMCA determined It could be best to promote their [Schaapkraal] residence … also to also to cover the belongings on the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for security and security, has previously informed GroundUp that the CTMCA “threw income away” on litigation with the City.
“Yearly like clockwork, as we strategy the end of the calendar year, the CTMCA picks a legal struggle with the town, above permits or another thing. We under no circumstances initiate it. They keep throwing cash absent on vexatious litigation they drop and possess costs awarded versus them. This is often completely self-inflicted,” he stated.
Soeker told the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of many of the admin, finances and managing หวย ไทยรัฐ the CTMCA.” The investigators said they were struggling to Get in touch with Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “observed numerous machines, some in fantastic condition, some in negative affliction and a few that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “instruments and a few machinery” have been held.
“We requested him to acquire us to the ability but he was evasive to our request.”
According to images and invoices in GroundUp’s possession, some, if not all, of the objects appear to be products which was illegally removed from the CTMCA’s preceding premises. Stemmet is going through costs for this removing.
According to the ultimate development report submitted towards the NLC via the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter had been directors at time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Highway, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, attached towards 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, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the administrators.
Based on Dabishi Nthambeleni, the organization has paid R1.two-million being a deposit, that means R6.9-million remains owed, while there is absolutely no payment date set for when this must be paid out.
The Kopano audit and the near connection among the businesses “suggest to us that there is ‘foul Perform’ involved with the acquisition of your machinery from the museum workshop”, the investigators explained from the report.
“We discover that it is very probable that CTMCA employed the funding on the NLC to ‘refund’ one among its major directors for your property at a higher overpriced level than the actual cost and price of the house and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.
“In fact, an in depth report on how the funding of the NLC was utilised, would be extremely hard as the CTMCA does not have any receipts, or proof of payments to substantiate the quantities spent on Every single product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not conducted a website pay a visit to just before approving the grant. But this was not regular practice at some time plus they located no evidence of carelessness by NLC personnel.
At the time, the NLC’s procedures did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to give evidence that it experienced employed the 1st tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni encouraged that
the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had finished With all the past reports into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by electronic mail much too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph