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 two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators found which the CTMCA didn't use the R5-million allotted to obtain or build a museum.
They also found which the CTMCA only bought land value R1.7-million, not R5-million as allotted.
They uncovered the CTMCA made use of money from your Lottery to buy workshop gear from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to build a museum to rejoice the city’s rich minstrel background went astray. The museum was by no means made.

The main points in the abuse of millions of rands of Lottery money for the museum that in no way was are disclosed in an investigative report commissioned through the NLC in 2021.

The museum grant was A part of over R64-million in Lottery cash allocated into the CTMCA amongst 2003 and 2017.

The 1st Component of the investigation, by legislation organization Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which integrated funding with the museum. The authorised spending plan for that museum was a lot more than R12.8-million, with R5-million of that allocated for your setting up to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a building with the museum and whether or not the museum “actually existed”.

The agency was also instructed to research

the purchase with Lottery money of two vehicles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
various equipment “purchased for your manufacturing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of your 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 several directors of the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation followed intensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted on the CTMCA (see below, listed here and right here) and how the resources most likely helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.



The setting up on the ideal was the intended internet site in the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph

In response to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three assignments had been accomplished, she instructed MPs.

Though the investigators discovered no proof that a museum had ever existed.

At first the museum was on account of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp in the supposed Wetton museum exhibits a espresso shop with some musical instruments and minstrel costumes and collages of images haphazardly hung over the walls, and also a product ship on its plinth in a corner.

In its report, Dabishi Nthambeleni mentioned it was “not in a position” to confirm if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum were moved simply because they could not find the money for the lease of R100,000 a month. He explained the CTMCA had acquired assets for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were bought for the same value. Schaapkraal is within a peri-urban area significantly from the city.

As a result, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial spot, the investigators claimed they doubted regardless of whether a suitable museum existed there. Pics connected on the report clearly show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the floor, without having clarification.

“There exists a minimal degree of objects in the museum [that] in no way depict the greater than one hundred-calendar year historical past of the Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum would not appear for being open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by shifting The placement on the museum to an alternate spot without notifying the NLC.



The Schaapkraal home, on which no museum was at any time developed. Photograph: Raymond Joseph

Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver through the rented Crete Street premises as it experienced operate up a R4-million debt with the City of Cape Town and was scared its equipment could be hooked up.

“Due to the lawful battles and also the debts, the organisation experienced to move its property from 5 Crete Road to stay away from the sheriff from attaching the house of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director in the CTMCA, told them which the two buses purchased with lottery resources have been stored in a magic formula locale “hidden in the Sheriff”. Nevertheless the investigators said they were being unable to verify that any buses experienced at any time been acquired.

Stemmet also verified which the buses had been concealed to halt them getting seized. But if the investigators questioned to become taken for the position in which the buses had been stored, he informed them that “the owner of The key place wasn't available to open the premises for us”.

“The CTMCA couldn't deliver proof of payment for 2 autos that it allegedly acquired with grant cash,” the investigators reported.

Soeker also advised them the Schaapkraal residence were sold as a result of personal debt.

“Mr Soeker defined that Based on his being familiar with, due to personal debt owed to town of Cape City, the CTMCA decided It might be finest to market their [Schaapkraal] residence … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for basic safety and security, has Beforehand advised GroundUp that the CTMCA “threw revenue away” on litigation with the City.

“Each year like clockwork, as we method the top in the year, the CTMCA picks a authorized struggle with town, above permits or another thing. We never ever initiate it. They preserve throwing revenue absent on vexatious litigation that they drop and have fees awarded towards them. That is totally self-inflicted,” he explained.

Soeker advised the Dabishi Nthambeleni investigators that the leading part players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who ended up accountable for every one of the admin, funds and working หวย ลาว ย้อน หลัง the CTMCA.” The investigators stated they had been struggling to Speak to Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered quite a few equipment, some in great ailment, some in negative ailment and a few that seemed rusty and very aged”. Stemmet advised the investigators that there was also an off-web page storage facility where “instruments and a few machinery” ended up kept.

“We asked him to get us to the power but he was evasive to our ask for.”

Based on photographs and invoices in GroundUp’s possession, some, if not all, from the things seem like tools which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with fees for this removal.

In accordance with the ultimate development report submitted to your NLC with the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter had been directors at enough time.

The investigators uncovered this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Be aware the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape City, the same handle on which the museum was intended to be built and/or transformed,” they documented.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded which the CTMCA was in the process of paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was amongst the directors.

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

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

“We find that it's remarkably probable that CTMCA made use of the funding on the NLC to ‘refund’ one among its main directors for that property at a better overpriced level than the actual selling price and price of the property and/or machinery.”

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

“In point of fact, an in depth report on how the funding in the NLC was utilised, might be impossible given that the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities put in on Every single merchandise it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not done a internet site pay a visit to right before approving the grant. But this was not common observe at the time and so they observed no proof of carelessness by NLC workforce.

At the time, the NLC’s policies didn't have to have 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 without needing to offer proof that it experienced applied the main tranche for its supposed reason.

Adhering to the appointment of a fresh board, commissioner and senior executive staff, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni proposed that

the NLC decline any upcoming funding programs with the CTMCA;
the CTMCA and any members who ended up associated with the grant be subjected to your NLC’s “delinquency” procedure;
the NLC open a legal circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated funds.
But, as an alternative to act to the report’s tips, the NLC – under its earlier administration – chose to suppress it, as it experienced done Using the previous reports into corruption it experienced commissioned.

GroundUp sent concerns to Stemmet and Soeker by using SMS, and requested for electronic mail addresses to mail the queries by electronic mail far too. But no response had been been given at time of publication.



The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph

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