Leaked report exposes abuse of lottery revenue compensated to minstrel team
Leaked report exposes abuse of lottery revenue compensated to minstrel team
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Minstrels execute in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no evidence that a museum at any time existed.
The investigators observed the CTMCA did not use the R5-million allotted to acquire or produce a museum.
In addition they found which the CTMCA only bought land value R1.7-million, not R5-million as allotted.
They located the CTMCA made use of cash with the Lottery to acquire workshop products from among its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Fee (NLC) to create a museum to rejoice the town’s loaded minstrel history went astray. The museum was never ever made.
The main points of your abuse of millions of rands of Lottery resources for just a museum that hardly ever was are revealed within an investigative report commissioned because of the NLC in 2021.
The museum grant was A part of a lot more than R64-million in Lottery resources allotted to your CTMCA concerning 2003 and 2017.
The very first A part of the investigation, by law firm Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which incorporated funding for the museum. The approved spending plan for your museum was over R12.eight-million, with R5-million of that allocated to get a developing to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the building for that museum and if the museum “actually existed”.
The organization was also instructed to analyze
the purchase with Lottery funds of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of equipment “acquired for the production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director with 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 various administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.
The investigation followed intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see right here, here and here) and just how the cash possibly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The setting up on the best was the supposed web-site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - including the museum - involving 2012 and 2015. All a few projects were completed, she informed MPs.
Even so the investigators observed no proof that a museum had ever existed.
At first the museum was because of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of your intended Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung to the walls, along with a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to confirm if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum had been moved simply because they could now not pay for the lease of R100,000 a month. He said the CTMCA had purchased assets for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been sold for the same price tag. Schaapkraal is inside of a peri-city area far from the city.
Due to this fact, the museum were moved to a completely new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after viewing the premises, that are within an industrial place, the investigators claimed they doubted whether a suitable museum existed there. Images attached to your report exhibit a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the ground, with no explanation.
“There exists a minimal volume of merchandise at the museum [that] in no way depict the in excess of one hundred-yr historical past in the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum does not look to be open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating the location on the museum to another area without the need of notifying the NLC.
The Schaapkraal assets, on which no museum was ever created. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA had to move in the rented Crete Street premises mainly because it had run up a R4-million financial debt with the town of Cape City and was scared its products can be connected.
“As a result of lawful battles along with the debts, the organisation experienced to maneuver its property from 5 Crete Road to steer clear of the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director of the CTMCA, advised them which the two buses bought with lottery money were saved in a very magic formula place “concealed from the Sheriff”. But the investigators mentioned they were unable to substantiate that any buses had at any time been purchased.
Stemmet also confirmed which the buses were hidden to prevent them being seized. But when the investigators asked to get taken into the place exactly where the buses had been stored, he instructed them that “the proprietor of the secret location wasn't available to open the premises for us”.
“The CTMCA couldn't present proof of payment for 2 autos that it allegedly bought with grant revenue,” the investigators described.
Soeker also advised them the Schaapkraal home were sold as a result of personal debt.
“Mr Soeker discussed that As outlined by his comprehending, due to debt owed to the City of Cape Town, the CTMCA resolved it would be very best to promote their [Schaapkraal] home … and to also to hide the belongings of the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and safety, has Formerly informed GroundUp which the CTMCA “threw dollars away” on litigation with the City.
“Every year like clockwork, as we tactic the end of your 12 months, the CTMCA picks a lawful battle with town, more than permits or another thing. We by no means initiate it. They retain throwing cash away on vexatious litigation they reduce and have fees awarded versus them. This really is completely self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the principle role players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of many of the admin, funds and functioning ruay the CTMCA.” The investigators mentioned they had been not able to Get hold of Momberg.
Hats
All through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered various equipment, some in fantastic affliction, some in terrible problem and some that appeared rusty and very aged”. Stemmet advised the investigators that there was also an off-site storage facility wherever “instruments and many machinery” have been kept.
“We requested him to take us to the ability but he was evasive to our ask for.”
Determined by shots and invoices in GroundUp’s possession, some, if not all, from the objects look like machines which was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with expenses for this removal.
According to the final progress report submitted to the NLC by the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter were being directors at the time.
The investigators observed this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Be aware the next alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, precisely the same handle on which the museum was intended to be developed and/or converted,” they documented.
An audit by accountants Kopano Included, hooked up to the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the administrators.
According to Dabishi Nthambeleni, the company has compensated R1.2-million as a deposit, this means R6.nine-million continues to be owed, although there's no payment date established for when this must be compensated.
The Kopano audit as well as near link involving the companies “suggest to us that there's ‘foul Perform’ linked to the purchase of your machinery with the museum workshop”, the investigators said inside the report.
“We find that it is hugely probable that CTMCA applied the funding from the NLC to ‘refund’ certainly one of its key administrators with the assets at a greater overpriced fee than the actual price tag and value of the property and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant into the CTMCA were put in.
“Actually, a detailed report on how the funding of the NLC was applied, can be unattainable given that the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended on Every merchandise 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 executed a web-site stop by right before approving the grant. But this wasn't typical follow at time they usually observed no evidence of carelessness by NLC personnel.
At the time, the NLC’s rules didn't demand funded organisations to submit evidence of payment with interim reviews, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without the need to give proof that it had made use of the primary tranche for its supposed goal.
Pursuing the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any users who have been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, as opposed to act on the report’s suggestions, the NLC – below its previous administration – chose to suppress it, mainly because it had finished Together with the previous studies into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to mail the questions by email also. But no reaction had been gained at enough time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph