Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

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Minstrels carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the National Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has discovered no evidence that a museum ever existed.
The investigators discovered that the CTMCA did not make use of the R5-million allocated to buy or build a museum.
In addition they identified that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They found the CTMCA used resources with the Lottery to get workshop products from amongst its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel background went astray. The museum was by no means designed.

The details with the abuse of a lot of rands of Lottery money for a museum that by no means was are uncovered in an investigative report commissioned because of the NLC in 2021.

The museum grant was Element of greater than R64-million in Lottery resources allotted to your CTMCA in between 2003 and 2017.

The main part of the investigation, by regulation business Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which bundled funding for the museum. The accredited spending plan for the museum was a lot more than R12.eight-million, with R5-million of that allotted for a creating to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing to the museum and if the museum “in fact existed”.

The business was also instructed to analyze

the acquisition with Lottery cash of two autos – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
different machines “procured with the production of your costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted criminal 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 ongoing as two of numerous directors in the organisation. Stemmet was reappointed being a director in May perhaps 2021.

The investigation followed extensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted for the CTMCA (see in this article, right here and right here) and how the money likely served finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at time by Marius Fransman.



The developing on the best was the intended web site of the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - including the museum - amongst 2012 and 2015. All a few projects were done, she advised MPs.

However the investigators identified no proof that a museum had at any time existed.

Initially the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of the supposed Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung to the partitions, in addition to a design ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not able” to confirm if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved given that they could no longer manage the lease of R100,000 per month. He stated the CTMCA experienced bought house for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar selling price. Schaapkraal is in a peri-city location much from the city.

Therefore, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after checking out the premises, that happen to be in an industrial region, the investigators reported they doubted whether or not a suitable museum existed there. Photos connected to the report show a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the ground, with no clarification.

“There is a minimum volume of items at the museum [that] on no account represent the much more than one hundred-year heritage in the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outdoors the premises indicating they housed a museum and … frequently, the museum isn't going to search to be open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by shifting The placement of your museum to an alternative site with out notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver within the rented Crete Street premises since it had run up a R4-million financial debt with the City of Cape City and was frightened its products can be connected.

“Due to authorized battles along with the debts, the organisation had to move its assets from five Crete Road to steer clear of the sheriff from attaching the home of your organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them that the two buses bought with lottery funds have been stored in the solution locale “concealed within the Sheriff”. However the investigators mentioned they had been unable to substantiate that any buses experienced ever been purchased.

Stemmet also verified that the buses had been concealed to prevent them staying seized. But in the event the investigators requested to get taken on the spot where the buses were being stored, he explained to them that “the proprietor of the secret locale wasn't accessible to open the premises for us”.

“The CTMCA couldn't deliver evidence of payment for 2 automobiles that it allegedly purchased with grant income,” the investigators reported.

Soeker also advised them the Schaapkraal residence were bought due to the credit card debt.

“Mr Soeker stated that In keeping with his knowing, mainly because of the credit card debt owed to town of Cape City, the CTMCA determined It might be greatest to market their [Schaapkraal] residence … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the home.”

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

“On a yearly basis like clockwork, as we tactic the top with the calendar year, the CTMCA picks a authorized struggle with the City, in excess of permits or another thing. We never ever initiate it. They keep throwing income absent on vexatious litigation which they lose and have charges awarded from them. This really is completely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the leading purpose gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for many of the admin, finances and working หวย ลาว วัน นี้ the CTMCA.” The investigators mentioned they had been struggling to contact Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “found many equipment, some in fantastic problem, some in poor situation and a few that looked rusty and intensely old”. Stemmet informed the investigators that there was also an off-website storage facility where by “instruments and many machinery” had been saved.

“We asked him to just take us to the power but he was evasive to our request.”

Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, of the objects seem like devices that was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with rates for this removing.

Based on the remaining progress report submitted towards the NLC from the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter were administrators at time.

The investigators discovered this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Notice the subsequent alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape Town, the exact same address on which the museum was intended to be created and/or converted,” they described.

An audit by accountants Kopano Included, hooked up to the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the administrators.

In keeping with Dabishi Nthambeleni, the organization has compensated R1.2-million for a deposit, which means R6.nine-million continues to be owed, nevertheless there isn't any payment day set for when this need to be compensated.

The Kopano audit and also the near website link involving the businesses “point out to us that there is ‘foul Perform’ associated with the purchase from the equipment of the museum workshop”, the investigators said inside the report.

“We find that it's highly possible that CTMCA used the funding in the NLC to ‘refund’ amongst its most important directors for your assets at a better overpriced level than the actual selling price and value of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to establish how the grant into the CTMCA had been expended.

“In fact, a detailed report on how the funding on the NLC was made use of, could be impossible since the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities used on Each and every merchandise it requested funding for. The interim report and final report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC experienced not done a web page stop by in advance of approving the grant. But this was not standard observe at time and they observed no evidence of negligence by NLC employees.

At time, the NLC’s rules didn't demand funded organisations to submit evidence of payment with interim reviews, they pointed out. This meant the CTMCA was able to receive a second tranche of funding while not having to deliver evidence that it experienced used the initial tranche for its meant reason.

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

Dabishi Nthambeleni suggested that

the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been linked to the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated funds.
But, rather then act around the report’s suggestions, the NLC – beneath its past administration – selected to suppress it, since it had completed Together with the earlier studies into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker by means of SMS, and asked for electronic mail addresses to send out the concerns by electronic mail way too. But no reaction had been been given at time of publication.



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

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