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 Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has observed no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't make use of the R5-million allotted to purchase or create a museum.
They also found which the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They located the CTMCA applied cash from your Lottery to purchase workshop products from one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape Town Minstrel Carnival Association (CTMCA) from the Nationwide Lotteries Fee (NLC) to set up a museum to rejoice the city’s rich minstrel historical past went astray. The museum was never established.

The details of your abuse of countless rands of Lottery cash for the museum that in no way was are uncovered in an investigative report commissioned with 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 main Component of the investigation, by law company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which provided funding to the museum. The permitted price range for your museum was in excess of R12.eight-million, with R5-million of that allotted for your setting up to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing with the museum and if the museum “really existed”.

The agency was also instructed to research

the purchase with Lottery cash of two cars – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
several devices “ordered for that production from the costumes and hats” for the minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous administrators of your organisation. Stemmet was reappointed for a director in May possibly 2021.

The investigation adopted comprehensive reporting by GroundUp concerning the a lot of rands of Lottery funding allocated to your CTMCA (see below, here and right here) and the best way the money likely aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The creating on the correct was the meant web page of your minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to some Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - including the museum - concerning 2012 and 2015. All 3 jobs had been finished, she told MPs.

Although the investigators found no evidence that a museum experienced at any time existed.

In the beginning the museum was resulting from open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp from the meant Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of images haphazardly hung on the walls, in addition to a product ship on its plinth in the corner.

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

Stemmet informed the investigators the museum had been moved simply because they could no more afford the rent of R100,000 per month. He reported the CTMCA experienced obtained residence for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were bought for the same value. Schaapkraal is inside a peri-city place far from the town.

Therefore, the museum had been moved to a completely new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after visiting the premises, that are in an industrial area, the investigators claimed they doubted no matter whether a suitable museum existed there. Shots hooked up towards the report demonstrate a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the ground, without having explanation.

“You will find there's nominal quantity of objects at the museum [that] under no circumstances represent the in excess of one hundred-12 months record from the Cape City Carnival, the investigators claimed, introducing that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum isn't going to seem for being open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by transferring The placement on the museum to another site without having notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA had to maneuver with the rented Crete Road premises since it experienced run up a R4-million debt with the City of Cape Town and was concerned its machines could be attached.

“Because of the lawful battles as well as the debts, the organisation had to maneuver its residence from 5 Crete Highway to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director from the CTMCA, told them which the two buses purchased with lottery funds ended up stored inside of a mystery place “concealed from your Sheriff”. Although the investigators explained they had been unable to verify that any buses had at any time been purchased.

Stemmet also confirmed that the buses had been concealed to stop them staying seized. But when the investigators asked to become taken into the spot the place the buses have been saved, he instructed them that “the proprietor of The trick locale wasn't available to open the premises for us”.

“The CTMCA could not give proof of payment for 2 automobiles that it allegedly ordered with grant funds,” the investigators noted.

Soeker also instructed them the Schaapkraal property were sold because of the personal debt.

“Mr Soeker stated that according to his comprehending, a result of the personal debt owed to the City of Cape Town, the CTMCA resolved It might be finest to market their [Schaapkraal] property … and to also to hide the property on the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for basic safety and stability, has Formerly advised GroundUp that the CTMCA “threw funds absent” on litigation with the town.

“Each and every year like clockwork, as we technique the top of the calendar year, the CTMCA picks a authorized battle with the town, in excess of permits or something else. We by no means initiate it. They preserve throwing income away on vexatious litigation they shed and also have prices awarded towards them. This is certainly solely self-inflicted,” he said.

Soeker told the Dabishi Nthambeleni investigators that the principle job gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of many of the admin, finances and running hihuay the CTMCA.” The investigators claimed they had been struggling to Speak to Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “uncovered quite a few machines, some in fantastic problem, some in poor issue and a few that seemed rusty and very aged”. Stemmet told the investigators that there was also an off-website storage facility in which “instruments and many equipment” ended up held.

“We requested him to get us to the ability but he was evasive to our request.”

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.

In accordance with the last development report submitted for the NLC by the CTMCA, the machinery was purchased from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter ended up administrators at the time.

The investigators observed this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the following alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be created and/or converted,” they noted.

An audit by accountants Kopano Included, connected towards the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.

Based on Dabishi Nthambeleni, the corporate has paid R1.2-million being a deposit, meaning R6.9-million remains to be owed, although there is no payment date established for when this should be paid.

The Kopano audit along with the near website link amongst the companies “indicate to us that there's ‘foul Enjoy’ involved with the purchase of the equipment in the museum workshop”, the investigators explained from the report.

“We find that it's highly possible that CTMCA employed the funding of the NLC to ‘refund’ certainly one of its most important directors with the residence at a greater overpriced amount than the particular value and worth of the residence and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to establish how the grant on the CTMCA were used.

“In reality, a detailed report on how the funding from the NLC was utilised, could well be impossible as the CTMCA does not have any receipts, or evidence of payments to verify the amounts invested on Every product it asked for funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC had not conducted a web page check out prior to approving the grant. But this wasn't regular follow at some time and they identified no evidence of carelessness by NLC workforce.

At the time, the NLC’s regulations didn't involve funded organisations to post evidence of payment with interim stories, they identified. This meant the CTMCA was capable to receive a second tranche of funding while not having to give proof that it had made use of the main tranche for its meant goal.

Adhering to the appointment of a different board, commissioner and senior executive group, the NLC has tightened up on these along with other concerns.

Dabishi Nthambeleni recommended that

the NLC drop any potential funding purposes from your CTMCA;
the CTMCA and any users who had been involved with the grant be subjected into the NLC’s “delinquency” method;
the NLC open a legal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated cash.
But, rather then act over the report’s tips, the NLC – underneath its past administration – selected to suppress it, mainly because it experienced finished Using the prior reports into corruption it experienced commissioned.

GroundUp sent concerns to Stemmet and Soeker via SMS, and requested for e-mail addresses to mail the thoughts by e-mail too. But no response were obtained at enough time of publication.



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

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