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 perform in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has observed no proof that a museum ever existed.
The investigators discovered which the CTMCA did not make use of the R5-million allocated to acquire or make a museum.
Additionally they found which the CTMCA only purchased land worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA employed cash from the Lottery to get workshop equipment from one among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to set up a museum to celebrate the town’s prosperous minstrel heritage went astray. The museum was never ever made.
The small print of your abuse of numerous rands of Lottery funds for just a museum that under no circumstances was are revealed within an investigative report commissioned via the NLC in 2021.
The museum grant was Component of a lot more than R64-million in Lottery money allotted into the CTMCA concerning 2003 and 2017.
The very first Section of the investigation, by legislation company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding to the museum. The authorized price range for the museum was in excess of R12.8-million, with R5-million of that allocated for any building to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for that museum and if the museum “actually existed”.
The organization was also instructed to research
the acquisition with Lottery resources of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of equipment “procured for your production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators on the organisation. Stemmet was reappointed as a director in Might 2021.
The investigation followed comprehensive reporting by GroundUp with regards to the countless rands of Lottery funding allotted into the CTMCA (see in this article, listed here and listed here) and the way in which the money almost certainly served finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.
The making on the proper was the supposed internet site of your minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to some Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - including the museum - concerning 2012 and 2015. All a few initiatives had been completed, she told MPs.
Even so the investigators observed no proof that a museum experienced at any time existed.
Initially the museum was because of open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of your meant Wetton museum exhibits a coffee shop with a few musical devices and minstrel costumes and collages of shots haphazardly hung about the walls, and also a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni explained it was “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved given that they could not pay for the hire of R100,000 a month. He mentioned the CTMCA experienced obtained assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same rate. Schaapkraal is inside a peri-urban place considerably from the city.
Due to this fact, the museum were moved to a new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after browsing the premises, that are within an industrial area, the investigators mentioned they doubted no matter whether a correct museum existed there. Images attached to your report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the floor, without any explanation.
“You will find a negligible level of items at the museum [that] under no circumstances stand for the much more than 100-calendar year historical past from the Cape Town Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum will not seem to be open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by relocating The placement with the museum to an alternative location without notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Picture: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA experienced to move within the rented Crete Highway premises because it had operate up a R4-million debt with the City of Cape Town and was scared its equipment can be hooked up.
“Due to the authorized battles along with the debts, the organisation experienced to move its residence from 5 Crete Street to steer clear of the sheriff from attaching the assets with the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director of your CTMCA, informed them the two buses bought with lottery money have been stored within a solution locale “concealed within the Sheriff”. However the investigators stated they had been not able to verify that any buses had at any time been bought.
Stemmet also verified which the buses had been concealed to prevent them becoming seized. But once the investigators requested to be taken into the put wherever the buses have been stored, he instructed them that “the operator of the secret area wasn't available to open the premises for us”.
“The CTMCA could not supply proof of payment for 2 cars that it allegedly purchased with grant cash,” the investigators noted.
Soeker also informed them the Schaapkraal property were marketed as a result of credit card debt.
“Mr Soeker described that according to his knowing, as a result of financial debt owed to town of Cape City, the CTMCA made the decision it would be greatest to offer their [Schaapkraal] house … and also to also to cover the belongings of your CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for safety and security, has previously informed GroundUp that the CTMCA “threw money absent” on litigation with the City.
“Annually like clockwork, as we strategy the tip in the year, the CTMCA picks a lawful battle with the City, around permits or another thing. We hardly ever initiate it. They keep throwing funds away on vexatious litigation that they lose and possess costs awarded against them. This is fully self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the principle job gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of every one of the admin, finances and managing ruay the CTMCA.” The investigators claimed they were unable to Get hold of Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “located quite a few machines, some in great situation, some in bad situation and some that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-web-site storage facility in which “devices and many machinery” ended up kept.
“We requested him to take us to the power but he was evasive to our request.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your things look like tools which was illegally faraway from the CTMCA’s prior premises. Stemmet is experiencing rates for this removing.
In accordance with the remaining development report submitted to your NLC via the CTMCA, the equipment was acquired from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were administrators at some time.
The investigators observed this “alarming”.
“From the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Observe the next alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Road, Wetton, Cape City, the identical tackle on which the museum was meant to be constructed and/or converted,” they described.
An audit by accountants Kopano Included, attached on the investigative report, recorded which the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.
In line with Dabishi Nthambeleni, the business has paid out R1.2-million as being a deposit, this means R6.9-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 close connection among the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase with the equipment from the museum workshop”, the investigators explained in the report.
“We find that it is extremely probable that CTMCA utilised the funding of your NLC to ‘refund’ certainly one of its major directors for your home at a greater overpriced rate than the particular selling price and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA had been used.
“The truth is, a detailed report on how the funding on the NLC was employed, could well be difficult as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts invested on Just about every product it asked for funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC experienced not performed a site go to just before approving the grant. But this was not regular apply at the time they usually uncovered no proof of negligence by NLC employees.
At some time, the NLC’s regulations did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was capable to receive a 2nd tranche of funding while not having to deliver proof that it experienced made use of the very first tranche for its intended function.
Following the appointment of a different board, commissioner and senior executive staff, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni advised that
the NLC decline any potential funding apps within the CTMCA;
the CTMCA and any members who were being involved with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, as an alternative to act about the report’s suggestions, the NLC – less than its prior administration – selected to suppress it, as it experienced carried out While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker by using SMS, and requested for e mail addresses to ship the inquiries by e mail much too. But no reaction were received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph