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 complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allotted to get or develop a museum.
They also discovered which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They found the CTMCA applied money from the Lottery to acquire workshop tools from certainly one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s prosperous minstrel heritage went astray. The museum was by no means developed.
The small print in 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 by the NLC in 2021.
The museum grant was part of much more than R64-million in Lottery cash allocated on the CTMCA among 2003 and 2017.
The first Component of the investigation, by law agency Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which integrated funding for that museum. The approved spending budget to the museum was greater than R12.8-million, with R5-million of that allocated for any building to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the setting up with the museum and whether or not the museum “really existed”.
The organization was also instructed to analyze
the acquisition with Lottery cash of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
a variety of machines “ordered for the manufacturing of the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various administrators from the organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation adopted substantial reporting by GroundUp in regards to the many rands of Lottery funding allocated for the CTMCA (see right here, in this article and here) and just how the money possibly served finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.
The building on the correct was the intended internet site on the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph
In response to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - amongst 2012 and 2015. All a few jobs had been finished, she advised MPs.
However the investigators located no evidence that a museum experienced at any time existed.
At the beginning the museum was on account of open up in rented premises in Crete Road, Wetton. A photo received by GroundUp with the supposed Wetton museum displays a espresso store with a few musical instruments and minstrel costumes and collages of photos haphazardly hung about the walls, and a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni said it was “not in a position” to confirm if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved simply because they could no longer afford the rent of R100,000 per month. He mentioned the CTMCA had obtained residence for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been sold for a similar selling price. Schaapkraal is inside a peri-city region much from town.
Because of this, the museum were moved to a new place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after going to the premises, which can be in an industrial area, the investigators reported they doubted whether or not an appropriate museum existed there. Photographs hooked up to your report demonstrate a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and spread out on the ground, with no explanation.
“You will find a minimum degree of objects within the museum [that] on no account represent the over 100-year background from the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to search to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by transferring The situation in the museum to another location with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver with the rented Crete Highway premises mainly because it experienced run up a R4-million financial debt with the town of Cape Town and was afraid its gear could be hooked up.
“Due to the lawful battles plus the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery funds have been saved inside a solution location “hidden through the Sheriff”. However the investigators explained they ended up not able to substantiate that any buses experienced at any time been purchased.
Stemmet also confirmed the buses had been hidden to stop them becoming seized. But when the investigators asked to be taken to the location where the buses had been stored, he instructed them that “the operator of The key site wasn't available to open the premises for us”.
“The CTMCA could not give evidence of payment for two motor vehicles that it allegedly bought with grant dollars,” the investigators documented.
Soeker also informed them the Schaapkraal assets had been bought due to personal debt.
“Mr Soeker explained that In accordance with his knowing, due to debt owed to the town of Cape Town, the CTMCA made a decision it would be greatest to offer their [Schaapkraal] property … and to also to cover the belongings from the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for safety and security, has Beforehand instructed GroundUp the CTMCA “threw funds away” on litigation with town.
“Each year like clockwork, as we tactic the top of the yr, the CTMCA picks a legal fight with town, about permits or another thing. We in no way initiate it. They hold throwing funds absent on vexatious litigation that they shed and possess charges awarded towards them. That is completely self-inflicted,” he reported.
Soeker told the Dabishi Nthambeleni investigators that the leading function players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of all the admin, finances and managing fox888 the CTMCA.” The investigators explained they were unable to Get hold of Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “discovered a lot of equipment, some in superior condition, some in undesirable ailment and a few that looked rusty and intensely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where by “devices and several equipment” had been retained.
“We requested him to consider us to the power but he was evasive to our request.”
Based on photos and invoices in GroundUp’s possession, some, if not all, of your things appear to be devices that was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing costs for this elimination.
Based on the remaining development report submitted into the NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were being administrators at time.
The investigators found this “alarming”.
“Within the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the following alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the business is five Crete Highway, Wetton, Cape City, precisely the same handle on which the museum was meant to be built and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the directors.
Based on Dabishi Nthambeleni, the company has compensated R1.2-million to be a deposit, indicating R6.9-million remains to be owed, even though there isn't any payment day established for when this has to be compensated.
The Kopano audit as well as the near link amongst the businesses “indicate to us that there is ‘foul Engage in’ involved with the acquisition of your equipment of the museum workshop”, the investigators mentioned while in the report.
“We find that it is very probable that CTMCA utilized the funding from the NLC to ‘refund’ among its principal directors with the residence at an increased overpriced charge than the actual selling price and worth of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, will be unachievable because the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every item it requested funding for. The interim report and last report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not conducted a website go to prior to approving the grant. But this was not conventional exercise at enough time and they found no proof of negligence by NLC staff members.
At time, the NLC’s guidelines didn't need funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was ready to receive a 2nd tranche of funding without having to supply evidence that it experienced used the initial tranche for its meant intent.
Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding purposes within the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a criminal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it experienced completed While using the prior studies into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to mail the thoughts by electronic mail much too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph