Leaked report exposes abuse of lottery income paid to minstrel group
Leaked report exposes abuse of lottery income paid to minstrel group
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Minstrels carry out in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the Countrywide Lotteries Fee 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 observed the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they observed the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA employed funds with the Lottery to get workshop equipment from amongst its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape Town Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was by no means developed.
The small print on the abuse of an incredible number of rands of Lottery cash for the museum that never ever was are unveiled in an investigative report commissioned from the NLC in 2021.
The museum grant was part of more than R64-million in Lottery cash allocated to your CTMCA amongst 2003 and 2017.
The very first Element of the investigation, by legislation business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which included funding to the museum. The authorised spending budget to the museum was in excess of R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze 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 resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “bought with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see right here, right here and here) and the way the resources in all probability assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the ideal was the intended web page on the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph
In response to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were done, she explained to MPs.
However the investigators identified no proof that a museum experienced at any time existed.
At the beginning the museum was due to 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 photos haphazardly hung over the walls, and a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum had been moved simply because they could no longer afford the rent of R100,000 a month. He claimed the CTMCA had obtained assets for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were offered for the same rate. Schaapkraal is inside a peri-city spot considerably from town.
Therefore, the museum were moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial space, the investigators claimed they doubted irrespective of whether a suitable museum existed there. Images attached for the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the floor, without any explanation.
“There exists a small degree of items in the museum [that] by no means symbolize the a lot more than one hundred-year history of your Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum won't seem to become open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location on the museum to another place devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its tools will be attached.
“Because of the lawful battles as well as debts, the organisation experienced to move its residence from 5 Crete Highway to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director from the CTMCA, instructed them that the two buses purchased with lottery resources were stored inside of a magic formula site “concealed in the Sheriff”. Even so the investigators reported they were unable to confirm that any buses had at any time been acquired.
Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators asked to become taken towards the location exactly where the buses were saved, he advised them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA couldn't offer evidence of payment for two motor vehicles that it allegedly acquired with grant money,” the investigators described.
Soeker also informed them the Schaapkraal residence were offered as a result of debt.
“Mr Soeker discussed that according to his comprehension, due to the debt owed to the City of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] residence … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and stability, has Earlier informed GroundUp which the CTMCA “threw income away” on litigation with the town.
“Each and every year like clockwork, as we method the top from the calendar year, the CTMCA picks a legal combat with town, in excess of permits or another thing. We in no way initiate it. They continue to keep throwing funds absent on vexatious litigation which they lose and have expenditures awarded versus them. This can be fully self-inflicted,” he claimed.
Soeker told the Dabishi Nthambeleni investigators that the primary part players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and operating ตรวจ หวย ย้อน หลัง the CTMCA.” The investigators explained they were not able to Call Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “identified several machines, some in great condition, some in bad ailment and many that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and several equipment” were retained.
“We asked him to just take us to the power but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like machines which was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with expenses for this elimination.
Based on the last progress report submitted towards the NLC from the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were directors at some time.
The investigators discovered this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Road, Wetton, Cape City, the same handle on which the museum was meant to be created and/or converted,” they noted.
An audit by accountants Kopano Incorporated, connected on the investigative report, recorded the CTMCA was in the process of paying for “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
Based on Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, that means R6.nine-million is still owed, however there isn't any payment date set for when this need to be compensated.
The Kopano audit as well as the near url concerning the businesses “suggest to us that there's ‘foul Participate in’ linked to the acquisition with the equipment on the museum workshop”, the investigators explained while in the report.
“We find that it's remarkably probable that CTMCA utilized the funding of the NLC to ‘refund’ amongst its key directors with the house at a higher overpriced amount than the actual selling price and worth of the assets and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to your CTMCA had been spent.
“In fact, a detailed report on how the funding on the NLC was made use of, can be unattainable because the CTMCA does not have any receipts, or evidence of payments to verify the amounts used on each merchandise it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC had not conducted a web site go to prior to approving the grant. But this wasn't common follow at enough time and so they observed no evidence of negligence by NLC workers.
At time, the NLC’s guidelines didn't call for funded organisations to submit evidence of payment with interim reviews, they pointed out. This intended that the CTMCA was capable to receive a second tranche of funding without needing to supply evidence that it experienced made use of the first tranche for its supposed goal.
Next the appointment of a whole new board, commissioner and senior govt staff, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni proposed that
the NLC decline any long term funding programs from your CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a prison situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, as an alternative to act on the report’s recommendations, the NLC – underneath its earlier administration – selected to suppress it, 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 email addresses to ship the inquiries by e mail far too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph