Leaked report exposes abuse of lottery funds paid out to minstrel group
Leaked report exposes abuse of lottery funds paid out to minstrel group
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Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no evidence that a museum ever existed.
The investigators uncovered which the CTMCA didn't use the R5-million allotted to get or produce a museum.
In addition they discovered the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They observed the CTMCA used funds within the Lottery to acquire workshop products from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Fee (NLC) to create a museum to rejoice the town’s rich minstrel historical past went astray. The museum was never produced.
The small print on the abuse of many rands of Lottery resources for a museum that never was are revealed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.
The very first Element of the investigation, by law business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which included funding with the museum. The approved spending budget with the museum was a lot more than R12.8-million, with R5-million of that allotted for any developing to accommodate the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a setting up for your museum and whether or not the museum “in fact existed”.
The organization was also instructed to research
the acquisition with Lottery money of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
a variety of machines “purchased for that production on the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators of the organisation. Stemmet was reappointed for a director in May 2021.
The investigation followed comprehensive reporting by GroundUp in regards to the many rands of Lottery funding allotted into the CTMCA (see here, in this article and in this article) and just how the cash possibly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.
The creating on the proper was the meant internet site from the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All a few projects had been accomplished, she informed MPs.
However the investigators discovered no evidence that a museum had at any time existed.
At the outset the museum was as a result of open up in rented premises in Crete Street, Wetton. A photograph received by GroundUp with the supposed Wetton museum exhibits a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung over the walls, along with a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum were moved since they could now not find the money for the hire of R100,000 a month. He explained the CTMCA had ordered home for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been bought for a similar rate. Schaapkraal is within a peri-urban place significantly from town.
Due to this fact, the museum had been moved to a completely new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after viewing the premises, which might be in an industrial spot, the investigators stated they doubted no matter whether a suitable museum existed there. Photos hooked up for the report display a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the floor, without having rationalization.
“There's a small quantity of goods with the museum [that] on no account depict the greater than 100-12 months record from the Cape Town Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum will not appear to become open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by relocating The placement in the museum to an alternative locale devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA had to maneuver with the rented Crete Street premises because it had run up a R4-million personal debt with town of Cape City and was frightened its products might be hooked up.
“Because of the legal battles as well as the debts, the organisation had to move its property from five Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses acquired with lottery money were stored inside of a mystery location “hidden through the Sheriff”. However the investigators explained they were being not able to confirm that any buses had ever been bought.
Stemmet also confirmed that the buses had been hidden to stop them becoming seized. But once the investigators requested being taken into the put where the buses were saved, he instructed them that “the operator of The key area was not available to open up the premises for us”.
“The CTMCA couldn't deliver evidence of payment for two autos that it allegedly procured with grant cash,” the investigators documented.
Soeker also instructed them the Schaapkraal property were sold because of the personal debt.
“Mr Soeker discussed that In line with his knowing, because of the personal debt owed to the City of Cape Town, the CTMCA resolved it would be ideal to sell their [Schaapkraal] home … also to also to cover the property of your CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for security and safety, has Beforehand told GroundUp which the CTMCA “threw money absent” on litigation with the town.
“Each and every year like clockwork, as we strategy the top of your yr, the CTMCA picks a lawful battle with town, in excess of permits or another thing. We under no circumstances initiate it. They preserve throwing money away on vexatious litigation they reduce and have expenditures awarded against them. This can be fully self-inflicted,” he said.
Soeker informed the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who ended up answerable for all the admin, funds and jogging ผล หวย ลาว วัน นี้ the CTMCA.” The investigators mentioned they had been not able to Call Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “identified several machines, some in excellent situation, some in poor condition plus some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-site storage facility where by “instruments plus some machinery” ended up kept.
“We requested him to take us to the ability but he was evasive to our ask for.”
Based on images and invoices in GroundUp’s possession, some, Otherwise all, of the products seem like devices that was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removal.
According to the ultimate development report submitted to the NLC through the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter had been directors at the time.
The investigators found this “alarming”.
“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, the same tackle on which the museum was meant to be developed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, connected into the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.
In accordance with Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, meaning R6.nine-million continues to be owed, although there is absolutely no payment date established for when this have to be paid.
The Kopano audit and the near hyperlink concerning the companies “point out to us that there is ‘foul Enjoy’ involved in the acquisition from the machinery of your museum workshop”, the investigators explained during the report.
“We discover that it is extremely probable that CTMCA utilised the funding in the NLC to ‘refund’ one among its key administrators for the house at an increased overpriced level than the actual price and value of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant into the CTMCA were used.
“In reality, an in depth report on how the funding of the NLC was made use of, can be unachievable as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every single item it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC experienced not performed a web-site go to ahead of approving the grant. But this was not typical exercise at enough time they usually discovered no evidence of negligence by NLC staff.
At time, the NLC’s regulations did not demand funded organisations to submit evidence of payment with interim experiences, they identified. This meant which the CTMCA was ready to receive a second tranche of funding without needing to supply evidence that it experienced utilised the very first tranche for its supposed objective.
Next the appointment of a completely new board, commissioner and senior executive workforce, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni advisable that
the NLC drop any future funding programs through the CTMCA;
the CTMCA and any customers who were being associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a prison circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, in lieu of act about the report’s suggestions, the NLC – under its past administration – chose to suppress it, mainly because it experienced completed With all the previous studies into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by using SMS, and asked for e-mail addresses to send out the questions by e-mail way too. But no reaction were gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph