Leaked report exposes abuse of lottery income compensated to minstrel team

Leaked report exposes abuse of lottery income compensated to minstrel team

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no proof that a museum ever existed.
The investigators located which the CTMCA didn't make use of the R5-million allocated to order or establish a museum.
They also identified the CTMCA only purchased land value R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA employed cash from the Lottery to get workshop machines from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate town’s prosperous minstrel history went astray. The museum was under no circumstances produced.

The details from the abuse of countless rands of Lottery resources for just a museum that in no way was are disclosed within an investigative report commissioned through the NLC in 2021.

The museum grant was Component of over R64-million in Lottery cash allocated on the CTMCA involving 2003 and 2017.

The 1st Element of the investigation, by legislation agency Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which integrated funding with the museum. The authorised funds for your museum was much more than R12.8-million, with R5-million of that allotted to get a setting up to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the developing for your museum and if the museum “truly existed”.

The company was also instructed to analyze

the purchase with Lottery funds of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various equipment “obtained for the producing of your costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous directors of your organisation. Stemmet was reappointed being a director in May well 2021.

The investigation followed in depth reporting by GroundUp with regard to the numerous rands of Lottery funding allocated into the CTMCA (see right here, listed here and in this article) and the way in which the money in all probability aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The constructing on the appropriate was the intended website in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary question, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “jobs” - including the museum - amongst 2012 and 2015. All a few assignments had been done, she informed MPs.

Even so the investigators discovered no proof that a museum had at any time existed.

At the outset the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp from the supposed Wetton museum demonstrates a espresso store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung on the partitions, as well as a design ship on its plinth in a very corner.

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

Stemmet informed the investigators the museum were moved mainly because they could no longer afford the lease of R100,000 per month. He explained the CTMCA had procured house for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been marketed for the same selling price. Schaapkraal is inside of a peri-urban area considerably from the city.

Subsequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after browsing the premises, which can be in an industrial place, the investigators said they doubted no matter if an appropriate museum existed there. Photos hooked up into the report show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the floor, without explanation.

“There's a negligible number of things at the museum [that] under no circumstances symbolize the more than 100-12 months history in the Cape City Carnival, the investigators stated, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … typically, the museum doesn't search to get open up to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by moving The placement of the museum to an alternative area devoid of notifying the NLC.



The Schaapkraal residence, on which no museum was at any time designed. Image: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA had to maneuver in the rented Crete Road premises mainly because it experienced operate up a R4-million financial debt with town of Cape Town and was frightened its equipment would be hooked up.

“As a result of legal battles as well as debts, the organisation experienced to maneuver its house from five Crete Street to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director with the CTMCA, told them the two buses acquired with lottery money had been saved in a top secret area “hidden with the Sheriff”. However the investigators claimed they were not able to confirm that any buses had ever been acquired.

Stemmet also verified which the buses had been hidden to halt them being seized. But once the investigators questioned being taken on the put where by the buses ended up saved, he explained to them that “the proprietor of the secret location wasn't available to open up the premises for us”.

“The CTMCA could not offer proof of payment for 2 vehicles that it allegedly procured with grant dollars,” the investigators noted.

Soeker also explained to them the Schaapkraal house were sold due to the personal debt.

“Mr Soeker discussed that In line with his knowing, a result of the personal debt owed to town of Cape City, the CTMCA decided It could be ideal to offer their [Schaapkraal] assets … also to also to hide the belongings from the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for security and safety, has Formerly told GroundUp the CTMCA “threw funds away” on litigation with town.

“Yearly like clockwork, as we strategy the tip with the yr, the CTMCA picks a legal battle with the town, more than permits or another thing. We never ever initiate it. They maintain throwing revenue away on vexatious litigation which they get rid of and have charges awarded against them. This is totally self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the leading part gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for each of the admin, finances and jogging ผล หวย หุ้น the CTMCA.” The investigators stated they had been struggling to Call Momberg.

Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “uncovered a lot of devices, some in excellent problem, some in negative condition and some that seemed rusty and very outdated”. Stemmet explained to the investigators that there was also an off-web site storage facility wherever “instruments and many equipment” had been held.

“We questioned him to get us to the power but he was evasive to our request.”

Based on images and invoices in GroundUp’s possession, some, Otherwise all, from the objects seem like machines which was illegally faraway from the CTMCA’s earlier premises. Stemmet is experiencing costs for this removal.

In accordance with the final development report submitted to the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, a firm where Stemmet, his spouse and his daughter have been directors at time.

The investigators discovered this “alarming”.

“From the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape City, the same address on which the museum was intended to be developed and/or converted,” they reported.

An audit by accountants Kopano Included, hooked up to your investigative report, recorded that the CTMCA was in the process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the administrators.

As outlined by Dabishi Nthambeleni, the business has compensated R1.2-million being a deposit, this means R6.9-million remains to be owed, nevertheless there is absolutely no payment day set for when this need to be compensated.

The Kopano audit as well as shut link among the companies “indicate to us that there is ‘foul Participate in’ linked to the purchase in the machinery of the museum workshop”, the investigators said during the report.

“We discover that it is remarkably probable that CTMCA applied the funding in the NLC to ‘refund’ amongst its major administrators for your residence at a higher overpriced charge than the particular value and worth of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant into the CTMCA were spent.

“In fact, a detailed report on how the funding in the NLC was utilised, would be unattainable because the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts put in on Every single item it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not done a web-site take a look at in advance of approving the grant. But this was not conventional follow at some time and they uncovered no evidence of negligence by NLC workforce.

At time, the NLC’s procedures didn't need funded organisations to submit proof of payment with interim experiences, they identified. This intended that the CTMCA was ready to get a second tranche of funding while not having to provide evidence that it experienced made use of the first tranche for its supposed reason.

Pursuing the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these as well as other challenges.

Dabishi Nthambeleni encouraged that

the NLC decline any upcoming funding programs from the CTMCA;
the CTMCA and any customers who were linked to the grant be subjected on the NLC’s “delinquency” process;
the NLC open a legal circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated cash.
But, rather than act on the report’s recommendations, the NLC – under its earlier administration – chose to suppress it, as it experienced done Using the prior reviews into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker via SMS, and questioned for e mail addresses to deliver the questions by e mail as well. But no reaction had been received at time of publication.



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

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