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 complete in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators found which the CTMCA did not use the R5-million allocated to purchase or build a museum.
In addition they observed the CTMCA only acquired land well worth R1.7-million, not R5-million as allotted.
They identified the CTMCA employed resources with the Lottery to purchase workshop tools from among its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Commission (NLC) to put in place a museum to celebrate the city’s wealthy minstrel background went astray. The museum was never ever developed.

The details with the abuse of an incredible number of rands of Lottery money for a museum that hardly ever was are exposed in an investigative report commissioned from the NLC in 2021.

The museum grant was Section of over R64-million in Lottery cash allotted on the CTMCA in between 2003 and 2017.

The primary part of the investigation, by regulation agency Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which integrated funding to the museum. The accredited finances with the museum was more than R12.8-million, with R5-million of that allocated to get a building to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a developing with the museum and whether the museum “basically existed”.

The company was also instructed to analyze

the acquisition with Lottery cash of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
various equipment “obtained for that producing in the costumes and hats” for your minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several administrators in the organisation. Stemmet was reappointed to be a director in May perhaps 2021.

The investigation followed extensive reporting by GroundUp concerning the numerous rands of Lottery funding allotted to your CTMCA (see right here, listed here and in this article) and the way the resources probably served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.



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

In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “initiatives” - such as the museum - among 2012 and 2015. All 3 assignments had been accomplished, she told MPs.

But the investigators located no evidence that a museum experienced ever existed.

At the outset the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp from the meant Wetton museum reveals a espresso shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung on the partitions, and also a model ship on its plinth inside a corner.

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

Stemmet explained to the investigators the museum had been moved simply because they could no longer find the money for the rent of R100,000 a month. He said the CTMCA experienced bought residence for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were sold for the same price tag. Schaapkraal is in a very peri-urban location much from the city.

Due to this fact, the museum had been moved to a different site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after going to the premises, which might be in an industrial location, the investigators stated they doubted no matter whether a correct museum existed there. Photos connected towards the report clearly show a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, displayed on tables and spread out on the ground, without having rationalization.

“You will find there's minimal level of things on the museum [that] by no means characterize the more than a hundred-yr history with the Cape Town Carnival, the investigators explained, introducing that there was “no signage exterior the premises indicating that they housed a museum and … commonly, the museum will not search being open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring the location of the museum to an alternate area devoid of notifying the NLC.



The Schaapkraal home, on which no museum was at any time constructed. Picture: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA had to maneuver from your rented Crete Street premises mainly because it experienced operate up a R4-million personal debt with the town of Cape City and was afraid its products could well be connected.

“Due to the lawful battles and also the debts, the organisation had to maneuver its assets from five Crete Street to stay away from the sheriff from attaching the home on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director from the CTMCA, instructed them that the two buses bought with lottery money were saved in the solution area “concealed through the Sheriff”. However the investigators reported they have been not able to substantiate that any buses had at any time been acquired.

Stemmet also confirmed that the buses had been hidden to prevent them getting seized. But when the investigators questioned to generally be taken towards the spot wherever the buses were being saved, he advised them that “the proprietor of the secret locale was not available to open up the premises for us”.

“The CTMCA couldn't give evidence of payment for two automobiles that it allegedly purchased with grant revenue,” the investigators documented.

Soeker also informed them the Schaapkraal property were sold due to credit card debt.

“Mr Soeker defined that Based on his understanding, a result of the personal debt owed to town of Cape City, the CTMCA resolved it would be ideal to promote their [Schaapkraal] residence … also to also to hide the property with the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for safety and safety, has Beforehand instructed GroundUp the CTMCA “threw funds absent” on litigation with the town.

“On a yearly basis like clockwork, as we tactic the end of your 12 months, the CTMCA picks a authorized fight with town, in excess of permits or something else. We by no means initiate it. They continue to keep throwing funds absent on vexatious litigation which they drop and also have expenses awarded towards them. That is totally self-inflicted,” he explained.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial job players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for all of the admin, funds and working ตัว หวย the CTMCA.” The investigators claimed they had been struggling to Get hold of Momberg.

Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “discovered various machines, some in fantastic situation, some in undesirable condition and several that seemed rusty and intensely old”. Stemmet instructed the investigators that there was also an off-web site storage facility where “instruments and a few machinery” had been saved.

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

According to pictures and invoices in GroundUp’s possession, some, if not all, of the merchandise seem like tools that was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing fees for this elimination.

Based on the last development report submitted into the NLC because of the CTMCA, the machinery was purchased from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were being directors at enough time.

The investigators located this “alarming”.

“From your CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape City, exactly the same address on which the museum was intended to be created and/or converted,” they documented.

An audit by accountants Kopano Integrated, connected on the investigative report, recorded that the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one among the administrators.

As outlined by Dabishi Nthambeleni, the organization has compensated R1.two-million like a deposit, this means R6.9-million continues to be owed, while there's no payment date set for when this have to be paid out.

The Kopano audit along with the close hyperlink in between the companies “indicate to us that there's ‘foul Enjoy’ associated with the purchase with the machinery of the museum workshop”, the investigators reported during the report.

“We discover that it is highly possible that CTMCA employed the funding from the NLC to ‘refund’ among its main administrators to the property at the next overpriced fee than the particular selling price and value of the residence and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to your CTMCA were invested.

“The truth is, an in depth report on how the funding of the NLC was utilised, could well be not possible because the CTMCA does not have any receipts, or evidence of payments to verify the amounts invested on Each and every item it asked for funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not conducted a web site pay a visit to prior to approving the grant. But this wasn't common practice at the time plus they identified no proof of negligence by NLC employees.

At enough time, the NLC’s rules didn't need funded organisations to post evidence of payment with interim reports, they pointed out. This meant the CTMCA was in a position to receive a 2nd tranche of funding without the need to give evidence that it had made use of the very first tranche for its meant reason.

Next the appointment of a fresh board, commissioner and senior executive group, the NLC has tightened up on these and various issues.

Dabishi Nthambeleni advised that

the NLC decline any potential funding applications within the CTMCA;
the CTMCA and any customers who had been involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open a prison scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – less than its earlier administration – chose to suppress it, since it experienced done While using the preceding experiences into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker via SMS, and asked for e-mail addresses to deliver the queries by electronic mail far too. But no reaction had been obtained at some time of publication.



The minstrel “museum” in Crete Road, Wetton. Picture: Raymond Joseph

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