Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

Blog Article

Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant with the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has located no proof that a museum at any time existed.
The investigators uncovered the CTMCA didn't utilize the R5-million allotted to purchase or establish a museum.
They also uncovered that the CTMCA only acquired land well worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed resources from your Lottery to purchase workshop tools from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to setup a museum to celebrate the city’s loaded minstrel historical past went astray. The museum was by no means produced.

The details from the abuse of countless rands of Lottery resources for your museum that never ever was are discovered within an investigative report commissioned because of the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery money allocated to the CTMCA among 2003 and 2017.

The 1st Section of the investigation, by regulation organization Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which integrated funding for the museum. The permitted spending budget to the museum was over R12.eight-million, with R5-million of that allotted for any making to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the developing for the museum and whether or not the museum “truly existed”.

The organization was also instructed to analyze

the acquisition with Lottery cash of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many equipment “obtained for the production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted legal 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 a number of administrators on the organisation. Stemmet was reappointed to be a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated on the CTMCA (see in this article, below and listed here) and how the money likely assisted finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.



The making on the appropriate was the supposed web site from the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to some Parliamentary question, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “jobs” - such as the museum - amongst 2012 and 2015. All three assignments had been completed, she informed MPs.

Even so the investigators uncovered no evidence that a museum had ever existed.

At the beginning the museum was on account of open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum demonstrates a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung on the walls, plus a model ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni said it had been “not able” to confirm if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum had been moved because they could now not pay for the rent of R100,000 per month. He explained the CTMCA had bought home for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been offered for the same rate. Schaapkraal is within a peri-urban place much from the city.

Subsequently, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after browsing the premises, which might be within an industrial location, the investigators claimed they doubted no matter whether an appropriate museum existed there. Pics connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the floor, without having clarification.

“You will find a negligible amount of objects on the museum [that] by no means stand for the in excess of one hundred-year record in the Cape City Carnival, the investigators said, including that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum will not glance to generally be open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by transferring The placement on the museum to an alternative area with out notifying the NLC.



The Schaapkraal property, on which no museum was ever developed. Image: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA had to move from the rented Crete Street premises mainly because it had operate up a R4-million financial debt with the City of Cape Town and was concerned its equipment can be hooked up.

“As a result of lawful battles and the debts, the organisation had to maneuver its assets from five Crete Highway to avoid the sheriff from attaching the home in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses bought with lottery funds were saved inside of a solution location “concealed through the Sheriff”. Although the investigators mentioned they were being unable to substantiate that any buses had at any time been purchased.

Stemmet also verified the buses had been concealed to halt them remaining seized. But if the investigators asked for being taken to the spot the place the buses were being saved, he told them that “the proprietor of The key spot was not available to open up the premises for us”.

“The CTMCA couldn't deliver evidence of payment for two autos that it allegedly acquired with grant revenue,” the investigators described.

Soeker also advised them the Schaapkraal residence had been bought as a result of financial debt.

“Mr Soeker discussed that As outlined by his comprehension, due to the debt owed to the City of Cape Town, the CTMCA decided It could be best to promote their [Schaapkraal] assets … and to also to hide the assets of your CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for safety and security, has previously instructed GroundUp which the CTMCA “threw revenue away” on litigation with town.

“Each year like clockwork, as we strategy the tip on the 12 months, the CTMCA picks a legal fight with town, above permits or something else. We under no circumstances initiate it. They hold throwing funds away on vexatious litigation they drop and possess expenditures awarded towards them. This is often fully self-inflicted,” he said.

Soeker explained to the Dabishi Nthambeleni investigators that the principle role players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of the many admin, funds and jogging ผล หวย ลาว วัน นี้ the CTMCA.” The investigators said they had been struggling to Make contact with Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “found quite a few devices, some in fantastic ailment, some in bad condition and some that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility where “devices plus some equipment” were saved.

“We requested him to consider us to the power but he was evasive to our ask for.”

Based upon photographs and invoices in GroundUp’s possession, some, if not all, from the products look like tools which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing fees for this removing.

According to the closing development report submitted to your NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter ended up directors at time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Road, Wetton, Cape Town, precisely the same address on which the museum was meant to be developed and/or transformed,” they noted.

An audit by accountants Kopano Integrated, attached to your investigative report, recorded which the CTMCA was in the process of getting “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 certainly one of the directors.

In keeping with Dabishi Nthambeleni, the company has compensated R1.two-million for a deposit, this means R6.nine-million remains owed, while there is no payment date established for when this need to be paid.

The Kopano audit and also the near website link in between the businesses “indicate to us that there's ‘foul Perform’ involved with the acquisition in the equipment from the museum workshop”, the investigators explained in the report.

“We find that it is very probable that CTMCA applied the funding with the NLC to ‘refund’ one of its principal directors for the property at a higher overpriced price than the particular rate and worth of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was unable to establish how the grant to the CTMCA had been spent.

“The truth is, a detailed report on how the funding on the NLC was utilized, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Each and every merchandise it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC experienced not conducted a website go to just before approving the grant. But this was not regular practice at the time they usually observed no evidence of negligence by NLC workers.

At time, the NLC’s principles did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without the need to present proof that it had made use of the main tranche for its intended reason.

Following the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni advisable that

the NLC decrease any upcoming funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated cash.
But, in lieu of act to the report’s recommendations, the NLC – less than its past administration – chose to suppress it, mainly because it experienced accomplished With all the previous studies into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to mail the concerns by e mail far too. But no reaction had been acquired at time of publication.



The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph