Leaked report exposes abuse of lottery funds compensated to minstrel team

Leaked report exposes abuse of lottery funds compensated to minstrel team

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Minstrels accomplish in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has uncovered no proof that a museum ever existed.
The investigators uncovered that the CTMCA did not utilize the R5-million allotted to purchase or make a museum.
In addition they identified the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They identified the CTMCA utilised cash within the Lottery to purchase workshop tools from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to setup a museum to celebrate town’s wealthy minstrel historical past went astray. The museum was never ever designed.

The small print of the abuse of many rands of Lottery money for your museum that hardly ever was are unveiled in an investigative report commissioned from the NLC in 2021.

The museum grant was A part of much more than R64-million in Lottery money allotted into the CTMCA amongst 2003 and 2017.

The 1st Portion of the investigation, by law company Dabishi Nthambeleni, was executed between September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which bundled funding for the museum. The authorized spending budget for that museum was in excess of R12.eight-million, with R5-million of that allotted to get a constructing to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the building for your museum and whether or not the museum “basically existed”.

The organization was also instructed to research

the purchase with Lottery cash of two automobiles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
many machines “obtained for that producing of the costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several administrators from the organisation. Stemmet was reappointed to be a director in May well 2021.

The investigation followed intensive reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allotted to the CTMCA (see listed here, in this article and here) and the best way the cash most likely helped finance the ANC’s 2014 election campaign within the Western Cape, led by at time by Marius Fransman.



The creating on the best was the intended internet site on the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to a Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “assignments” - such as the museum - involving 2012 and 2015. All three jobs had been concluded, she informed MPs.

But the investigators located no evidence that a museum had ever existed.

At the outset the museum was because of open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of the supposed Wetton museum exhibits a coffee shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a model ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni stated it was “not ready” to verify if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved since they could now not find the money for the rent of R100,000 per month. He stated the CTMCA experienced bought assets for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for a similar value. Schaapkraal is inside of a peri-urban location considerably from town.

Because of this, the museum were moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial region, the investigators stated they doubted no matter whether a correct museum existed there. Photographs attached into the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without any rationalization.

“You will find a minimal number of things within the museum [that] by no means characterize the greater than one hundred-12 months record from the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum isn't going to glance to generally be open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by going The placement in the museum to an alternative locale devoid of notifying the NLC.



The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA experienced to move with the rented Crete Road premises since it experienced operate up a R4-million financial debt with the town of Cape City and was frightened its devices would be connected.

“Mainly because of the legal battles and the debts, the organisation had to move its assets from 5 Crete Road to stay away from the sheriff from attaching the residence of the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director from the CTMCA, explained to them that the two buses bought with lottery money were saved inside a magic formula locale “concealed from your Sheriff”. But the investigators said they had been unable to confirm that any buses had ever been acquired.

Stemmet also verified the buses had been hidden to stop them staying seized. But if the investigators asked to generally be taken to your spot where the buses ended up saved, he advised them that “the operator of the secret place wasn't accessible to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for two automobiles that it allegedly acquired with grant revenue,” the investigators reported.

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

“Mr Soeker explained that Based on his being familiar with, as a result of financial debt owed to the town of Cape City, the CTMCA resolved It could be greatest to sell their [Schaapkraal] assets … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for security and protection, has Beforehand told GroundUp the CTMCA “threw dollars absent” on litigation with town.

“Each year like clockwork, as we technique the tip of your yr, the CTMCA picks a lawful combat with the town, more than permits or something else. We never initiate it. They keep throwing revenue absent on vexatious litigation that they reduce and also have expenses awarded versus them. This is certainly completely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for all the admin, finances and working หวย ลาว วัน นี้ the CTMCA.” The investigators mentioned they were unable to Call Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “located various machines, some in excellent affliction, some in bad situation and several that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-internet site storage facility wherever “instruments and several machinery” were saved.

“We requested him to just take us to the facility but he was evasive to our ask for.”

Based upon images and invoices in GroundUp’s possession, some, if not all, with the things look like products that was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing costs for this elimination.

In accordance with the last progress report submitted into the NLC through the CTMCA, the equipment was procured from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been administrators at enough time.

The investigators observed this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business 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 for the investigative report, recorded which the CTMCA was in the process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.

In keeping with Dabishi Nthambeleni, the business has paid out R1.2-million for a deposit, this means R6.nine-million remains owed, though there's no payment date established for when this must be compensated.

The Kopano audit as well as near url amongst the companies “suggest to us that there's ‘foul Perform’ involved in the acquisition from the equipment in the museum workshop”, the investigators said during the report.

“We find that it's highly probable that CTMCA made use of the funding in the NLC to ‘refund’ one of its major administrators for the home at an increased overpriced level than the actual cost and worth of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant on the CTMCA had been invested.

“Actually, a detailed report on how the funding from the NLC was utilized, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on Each individual merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC experienced not conducted a web-site go to right before approving the grant. But this wasn't normal exercise at some time and they identified no evidence of negligence by NLC staff members.

At some time, the NLC’s procedures didn't involve funded organisations to post evidence of payment with interim studies, they pointed out. This meant which the CTMCA was ready to get a 2nd tranche of funding without needing to offer evidence that it had utilized the very first tranche for its supposed function.

Following the appointment of a new board, commissioner and senior government team, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni recommended that

the NLC decrease any upcoming funding applications with the CTMCA;
the CTMCA and any users who had been associated with the grant be subjected to your NLC’s “delinquency” process;
the NLC open up a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, instead of act around the report’s recommendations, the NLC – less than its former administration – chose to suppress it, as it experienced accomplished With all the prior experiences into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to ship the thoughts by e-mail far too. But no response had been gained at some time of publication.



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

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