Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels carry out in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has identified no evidence that a museum ever existed.
The investigators discovered which the CTMCA did not utilize the R5-million allocated to get or make a museum.
In addition they uncovered the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of cash through the Lottery to get workshop equipment from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Fee (NLC) to create a museum to rejoice the town’s wealthy minstrel historical past went astray. The museum was hardly ever established.

The small print of the abuse of many rands of Lottery cash for any museum that in no way was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was Component of in excess of R64-million in Lottery money allocated to your CTMCA involving 2003 and 2017.

The initial Element of the investigation, by law company Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which bundled funding with the museum. The permitted spending plan for that museum was in excess of R12.eight-million, with R5-million of that allotted for any creating to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a building for the museum and whether or not the museum “in fact existed”.

The company was also instructed to investigate

the purchase with Lottery cash of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different devices “purchased for the production of the costumes and hats” for the minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of many directors in the organisation. Stemmet was reappointed for a director in Could 2021.

The investigation adopted considerable reporting by GroundUp regarding the millions of rands of Lottery funding allocated into the CTMCA (see listed here, here and right here) and the way in which the cash possibly assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at some time by Marius Fransman.



The developing on the correct was the supposed website in the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to your Parliamentary query, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “jobs” - such as the museum - among 2012 and 2015. All 3 initiatives had been done, she told MPs.

Nevertheless the investigators observed no evidence that a museum experienced at any time existed.

Initially the museum was due to open up in rented premises in Crete Street, Wetton. A photo received by GroundUp in the meant Wetton museum displays a espresso shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung on the walls, as well as a design ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to verify if a museum had ever operated from these premises.

Stemmet told the investigators the museum were moved since they could no longer afford the hire of R100,000 a month. He said the CTMCA experienced obtained property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for the same rate. Schaapkraal is in the peri-city location considerably from the city.

Subsequently, the museum had been moved to a different place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, which happen to be within an industrial area, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Shots hooked up to your report clearly show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the ground, without explanation.

“There is a small volume of things at the museum [that] under no circumstances signify the much more than 100-12 months history on the Cape City Carnival, the investigators stated, including that there was “no signage exterior the premises indicating which they housed a museum and … generally, the museum will not seem to generally be open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by relocating The placement from the museum to an alternative location without notifying the NLC.



The Schaapkraal assets, on which no museum was at any time developed. Photo: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA experienced to move in the rented Crete Highway premises because it experienced operate up a R4-million credit card debt with town of Cape Town and was worried its tools could well be attached.

“Mainly because of the legal battles plus the debts, the organisation experienced to maneuver its property from 5 Crete Road to stay away from the sheriff from attaching the house of your organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of the CTMCA, informed them that the two buses bought with lottery resources were being saved in a very solution place “concealed through the Sheriff”. However the investigators said they have been unable to substantiate that any buses experienced ever been acquired.

Stemmet also verified the buses had been hidden to halt them becoming seized. But if the investigators asked to be taken for the place where by the buses had been saved, he told them that “the operator of The key location was not accessible to open the premises for us”.

“The CTMCA could not give evidence of payment for two automobiles that it allegedly purchased with grant income,” the investigators claimed.

Soeker also informed them the Schaapkraal property were bought as a result of credit card debt.

“Mr Soeker spelled out that As outlined by his comprehending, due to credit card debt owed to the City of Cape City, the CTMCA made the decision It might be finest to sell their [Schaapkraal] property … also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for safety and security, has Beforehand advised GroundUp which the CTMCA “threw cash away” on litigation with town.

“Annually like clockwork, as we method the end on the 12 months, the CTMCA picks a authorized struggle with town, over permits or another thing. We by no means initiate it. They preserve throwing cash away on vexatious litigation which they reduce and also have fees awarded towards them. This really is solely self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the main purpose gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all the admin, finances and managing ruay the CTMCA.” The investigators mentioned they were unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “discovered a lot of equipment, some in good problem, some in terrible ailment and some that looked rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-site storage facility where “devices plus some equipment” had been stored.

“We questioned him to acquire us to the ability but he was evasive to our request.”

Dependant on images and invoices in GroundUp’s possession, some, if not all, with the things look like products which was illegally removed from the CTMCA’s past premises. Stemmet is going through rates for this removal.

Based on the remaining progress report submitted for the NLC via the CTMCA, the machinery was bought from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were administrators at some time.

The investigators found this “alarming”.

“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was intended to be crafted and/or converted,” they claimed.

An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded the CTMCA was in the process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the administrators.

In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million like a deposit, that means R6.9-million continues to be owed, even though there isn't a payment day set for when this should be compensated.

The Kopano audit as well as near url among the businesses “point out to us that there is ‘foul Participate in’ involved with the purchase on the machinery on the museum workshop”, the investigators stated during the report.

“We find that it is really probable that CTMCA utilised the funding of the NLC to ‘refund’ one among its most important directors for your house at the next overpriced rate than the actual cost and value of the house and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to determine how the grant into the CTMCA were expended.

“Actually, a detailed report on how the funding from the NLC was used, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on each merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not done a web site stop by just before approving the grant. But this was not typical practice at the time and so they located no proof of negligence by NLC personnel.

At enough time, the NLC’s regulations didn't call for funded organisations to submit proof of payment with interim reports, they identified. This intended that the CTMCA was capable of receive a 2nd tranche of funding while not having to supply proof that it experienced employed the very first tranche for its supposed function.

Following the appointment of a completely new board, commissioner and senior government workforce, the NLC has tightened up on these together with other problems.

Dabishi Nthambeleni encouraged that

the NLC decline any potential funding purposes from the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected to 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 opposed to act around the report’s recommendations, the NLC – less than its past administration – chose to suppress it, mainly because it experienced carried out Using the former studies into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and questioned for e-mail addresses to mail the queries by e mail as well. But no response were been given at the time of publication.



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

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