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 conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has found no evidence that a museum at any time existed.
The investigators identified that the CTMCA didn't use the R5-million allocated to purchase or establish a museum.
Additionally they found the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They observed the CTMCA employed cash from the Lottery to get workshop machines from one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to put in place a museum to celebrate town’s abundant minstrel historical past went astray. The museum was never ever produced.

The main points on the abuse of a lot of rands of Lottery cash for the museum that in no way was are revealed in an investigative report commissioned through the NLC in 2021.

The museum grant was Element of over R64-million in Lottery resources allotted into the CTMCA in between 2003 and 2017.

The initial Section of the investigation, by regulation company Dabishi Nthambeleni, was executed involving September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which involved funding to the museum. The authorized budget to the museum was more than R12.8-million, with R5-million of that allocated for the making to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for the museum and if the museum “actually existed”.

The firm was also instructed to analyze

the purchase with Lottery funds of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of machines “bought for that producing in the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director of 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 continued as two of quite a few directors of the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation followed intensive reporting by GroundUp about the countless rands of Lottery funding allotted on the CTMCA (see listed here, below and listed here) and the way the money most likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.



The making on the appropriate was the supposed web page in the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction into a Parliamentary query, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All 3 initiatives were accomplished, she told MPs.

But the investigators uncovered no proof that a museum had at any time existed.

At the outset the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of your meant Wetton museum exhibits a coffee store with a few musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, and a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum had at any time 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 lease of R100,000 per month. He claimed the CTMCA experienced purchased home for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and had been marketed for a similar rate. Schaapkraal is in a very peri-urban place considerably from town.

Because of this, the museum were moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after going to the premises, which can be in an industrial area, the investigators explained they doubted whether or not a suitable museum existed there. Photographs hooked up towards the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the floor, with no rationalization.

“You will find a minimal level of things with the museum [that] under no circumstances signify the a lot more than one hundred-12 months heritage of your Cape Town Carnival, the investigators explained, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum won't glance to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by going the location in the museum to an alternate spot with out notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to move through the rented Crete Highway premises since it had operate up a R4-million financial debt with the City of Cape City and was worried its machines could well be attached.

“Because of the lawful battles along with the debts, the organisation experienced to maneuver its property from 5 Crete Road to stay away from the sheriff from attaching the residence of the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director on the CTMCA, instructed them the two buses purchased with lottery money have been stored inside a mystery spot “hidden through the Sheriff”. But the investigators stated they were not able to confirm that any buses experienced ever been acquired.

Stemmet also confirmed which the buses had been concealed to stop them remaining seized. But once the investigators questioned for being taken to the put the place the buses were stored, he instructed them that “the owner of The key location was not accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for 2 autos that it allegedly bought with grant dollars,” the investigators noted.

Soeker also instructed them the Schaapkraal property were bought due to the personal debt.

“Mr Soeker spelled out that In accordance with his being familiar with, as a result of credit card debt owed to the town of Cape Town, the CTMCA resolved It could be finest to offer their [Schaapkraal] home … also to also to hide the property of your CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for protection and protection, has Formerly informed GroundUp which the CTMCA “threw income absent” on litigation with town.

“Every year like clockwork, as we method the top in the calendar year, the CTMCA picks a legal fight with the City, above permits or another thing. We never ever initiate it. They keep throwing dollars absent on vexatious litigation that they reduce and have expenditures awarded towards them. This can be completely self-inflicted,” he claimed.

Soeker told the Dabishi Nthambeleni investigators that the principle job gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of the many admin, funds and working หวย ออก the CTMCA.” The investigators claimed they were not able to Make contact with Momberg.

Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “located several equipment, some in very good situation, some in poor problem and several that looked rusty and very previous”. Stemmet told the investigators that there was also an off-web page storage facility in which “devices and several equipment” had been retained.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, from the things seem like gear that was illegally removed from the CTMCA’s preceding premises. Stemmet is experiencing fees for this elimination.

Based on the final development report submitted into the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, a business where Stemmet, his wife and his daughter were being directors at some time.

The investigators located this “alarming”.

“Through the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Notice the subsequent alarming finding: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the business is five Crete Street, Wetton, Cape City, precisely the same address on which the museum was intended to be built and/or converted,” they noted.

An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the entire process of acquiring “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was certainly one of the administrators.

In accordance with Dabishi Nthambeleni, the company has paid out R1.two-million to be a deposit, indicating R6.9-million remains owed, however there's no payment day set for when this has to be paid out.

The Kopano audit as well as close url concerning the companies “indicate to us that there's ‘foul Enjoy’ linked to the acquisition of the equipment with the museum workshop”, the investigators explained inside the report.

“We discover that it is remarkably possible that CTMCA employed the funding of the NLC to ‘refund’ certainly one of its key administrators for your assets at a better overpriced rate than the actual rate and worth of the property and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant into the CTMCA had been spent.

“The truth is, an in depth report on how the funding of your NLC was used, would be unattainable since the CTMCA does not have any receipts, or proof of payments to verify the amounts spent on Just about every merchandise it requested funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a web site go to right before approving the grant. But this was not standard follow at the time and so they uncovered no proof of negligence by NLC personnel.

At enough time, the NLC’s rules didn't need funded organisations to submit proof of payment with interim reports, they identified. This intended the CTMCA was capable to receive a second tranche of funding without having to offer evidence that it experienced utilised the primary tranche for its intended purpose.

Next the appointment of a new board, commissioner and senior govt crew, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni recommended that

the NLC decrease any potential funding purposes through the CTMCA;
the CTMCA and any users who had been involved with the grant be subjected to your NLC’s “delinquency” procedure;
the NLC open a legal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the process of recovering the misappropriated funds.
But, as opposed to act about the report’s suggestions, the NLC – below its prior administration – selected to suppress it, mainly because it had completed With all the prior reports into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to mail the queries by electronic mail also. But no reaction were acquired at some time of publication.



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

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