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 perform in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has located no evidence that a museum ever existed.
The investigators located the CTMCA did not use the R5-million allotted to acquire or establish a museum.
In addition they observed which the CTMCA only bought land worth R1.7-million, not R5-million as allotted.
They found the CTMCA applied resources in the Lottery to invest in workshop products from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to put in place a museum to rejoice the town’s wealthy minstrel history went astray. The museum was never developed.
The details from the abuse of an incredible number of rands of Lottery cash for your museum that never was are exposed in 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 amongst 2003 and 2017.
The primary Portion of the investigation, by law firm Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which integrated funding for the museum. The accredited budget for the museum was more than R12.eight-million, with R5-million of that allotted for any developing to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a building for that museum and whether the museum “actually existed”.
The agency was also instructed to analyze
the purchase with Lottery cash of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
various machines “acquired for that production of your costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted comprehensive reporting by GroundUp with regard to the millions of rands of Lottery funding allotted to your CTMCA (see below, in this article and in this article) and the way the resources in all probability helped finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.
The constructing on the ideal was the meant web page from the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Photo: Raymond Joseph
In response into a Parliamentary concern, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “assignments” - including the museum - involving 2012 and 2015. All a few tasks had been accomplished, she instructed MPs.
Although the investigators observed no proof that a museum experienced at any time existed.
At the beginning the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp in the meant Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung about the partitions, along with a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it absolutely was “not able” to substantiate if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved mainly because they could no longer find the money for the lease of R100,000 per month. He explained the CTMCA had bought property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is in the peri-city location far from the town.
Therefore, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after checking out the premises, which are in an industrial place, the investigators reported they doubted regardless of whether a correct museum existed there. Images connected on the report exhibit a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the ground, without having clarification.
“There's a negligible number of things within the museum [that] in no way depict the more than 100-yr historical past of your Cape Town Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating that they housed a museum and … usually, the museum does not glance to become open up to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going The situation of the museum to another spot devoid of notifying the NLC.
The Schaapkraal property, on which no museum was at any time created. Photograph: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA experienced to move within the rented Crete Street premises since it had run up a R4-million debt with the City of Cape City and was concerned its devices could well be attached.
“A result of the legal battles plus the debts, the organisation had to maneuver its house from 5 Crete Highway to stay away from the sheriff from attaching the home on the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director on the CTMCA, instructed them the two buses bought with lottery resources were saved in a very solution spot “hidden in the Sheriff”. Nevertheless the investigators mentioned they have been not able to confirm that any buses experienced at any time been acquired.
Stemmet also confirmed which the buses had been concealed to prevent them being seized. But if the investigators questioned to generally be taken to your place where the buses have been stored, he instructed them that “the operator of The trick locale wasn't available to open the premises for us”.
“The CTMCA could not supply proof of payment for two vehicles that it allegedly obtained with grant cash,” the investigators noted.
Soeker also informed them the Schaapkraal property were sold due to credit card debt.
“Mr Soeker discussed that In line with his comprehension, a result of the financial debt owed to the town of Cape City, the CTMCA determined It could be very best to offer their [Schaapkraal] property … and to also to hide the assets on the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for safety and security, has previously informed GroundUp that the CTMCA “threw cash absent” on litigation with the town.
“On a yearly basis like clockwork, as we approach the end of the calendar year, the CTMCA picks a authorized fight with the town, above permits or something else. We under no circumstances initiate it. They hold throwing money absent on vexatious litigation which they reduce and possess expenses awarded from them. This really is fully self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the leading role gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for all of the admin, finances and managing hihuay the CTMCA.” The investigators explained they were struggling to Get in touch with Momberg.
Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “located quite a few devices, some in very good affliction, some in terrible affliction plus some that appeared rusty and very previous”. Stemmet told the investigators that there was also an off-site storage facility where “devices and many machinery” have been stored.
“We questioned him to acquire us to the power but he was evasive to our request.”
Based on images and invoices in GroundUp’s possession, some, if not all, with the objects look like products that was illegally removed from the CTMCA’s former premises. Stemmet is dealing with fees for this removing.
In accordance with the final progress report submitted for the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were being administrators at enough time.
The investigators located this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporation is 5 Crete Highway, Wetton, Cape Town, the identical deal with on which the museum was meant to be created and/or converted,” they reported.
An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of obtaining “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the administrators.
In keeping with Dabishi Nthambeleni, the company has compensated R1.2-million being a deposit, which means R6.nine-million remains to be owed, however there isn't a payment date set for when this should be paid out.
The Kopano audit as well as the close connection amongst the businesses “reveal to us that there's ‘foul Perform’ involved with the acquisition in the equipment of the museum workshop”, the investigators claimed in the report.
“We find that it is hugely possible that CTMCA utilized the funding on the NLC to ‘refund’ certainly one of its most important administrators for the home at the next overpriced rate than the actual selling price and price of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant to your CTMCA had been spent.
“In reality, an in depth report on how the funding on the NLC was employed, will be unattainable as the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities invested on each merchandise it asked for funding for. The interim report and final report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not executed a website check out right before approving the grant. But this wasn't standard practice at the time and they found no proof of carelessness by NLC staff members.
At enough time, the NLC’s policies did not require funded organisations to post evidence of payment with interim studies, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without needing to offer evidence that it had made use of the 1st tranche for its meant intent.
Adhering to the appointment of a new board, commissioner and senior government workforce, the NLC has tightened up on these and various troubles.
Dabishi Nthambeleni proposed that
the NLC decline any foreseeable future funding apps within the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected to the NLC’s “delinquency” process;
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 cash.
But, as opposed to act around the report’s suggestions, the NLC – under its former administration – chose to suppress it, since it had performed With all the former reviews into corruption it had commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to send the concerns by e-mail way too. But no response had been gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph