Leaked report exposes abuse of lottery dollars compensated to minstrel team

Leaked report exposes abuse of lottery dollars compensated to minstrel team

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Minstrels conduct in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum at any time existed.
The investigators located the CTMCA did not use the R5-million allotted to buy or develop a museum.
Additionally they observed which the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They observed the CTMCA utilized money with the Lottery to invest in workshop gear from considered one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape Town Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the city’s loaded minstrel background went astray. The museum was never ever created.

The main points from the abuse of millions of rands of Lottery cash for just a museum that by no means was are discovered in an investigative report commissioned via the NLC in 2021.

The museum grant was part of in excess of R64-million in Lottery funds allocated on the CTMCA concerning 2003 and 2017.

The first Component of the investigation, by legislation firm Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which involved funding for your museum. The authorised funds for that museum was much more than R12.eight-million, with R5-million of that allocated for your developing to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building with the museum and if the museum “actually existed”.

The agency was also instructed to analyze

the acquisition with Lottery funds of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
many machines “bought for your manufacturing on the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director in 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 many directors of the organisation. Stemmet was reappointed as being a director in May perhaps 2021.

The investigation followed comprehensive reporting by GroundUp about the numerous rands of Lottery funding allotted for the CTMCA (see here, below and right here) and just how the money likely assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.



The building on the ideal was the meant web site on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “jobs” - such as the museum - amongst 2012 and 2015. All a few jobs were finished, she informed MPs.

However the investigators found no evidence that a museum had ever existed.

At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp of your intended Wetton museum demonstrates a espresso shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung over the walls, along with a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni stated it was “not able” to substantiate if a museum experienced ever operated from these premises.

Stemmet told the investigators the museum had been moved because they could not manage the lease of R100,000 a month. He stated the CTMCA experienced acquired home for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were marketed for the same value. Schaapkraal is within a peri-urban region much from the town.

Therefore, the museum had been moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after going to the premises, which can be within an industrial location, the investigators reported they doubted no matter if a proper museum existed there. Photos attached towards the report display a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, without explanation.

“There's a negligible degree of goods at the museum [that] on no account represent the greater than a hundred-yr record of the Cape City Carnival, the investigators explained, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum isn't going to search to become open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by going the location with the museum to an alternate locale with no notifying the NLC.



The Schaapkraal residence, on which no museum was ever developed. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to maneuver through the rented Crete Street premises mainly because it had run up a R4-million personal debt with town of Cape City and was afraid its products could well be attached.

“Due to the authorized battles as well as the debts, the organisation had to move its residence from five Crete Highway to steer clear of the sheriff from attaching the property from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director in the CTMCA, informed them which the two buses purchased with lottery resources have been stored in a very top secret site “concealed from the Sheriff”. Even so the investigators claimed they were unable to verify that any buses had at any time been acquired.

Stemmet also verified which the buses were concealed to halt them getting seized. But once the investigators asked for being taken for the put where by the buses were being saved, he informed them that “the operator of The key locale was not accessible to open up the premises for us”.

“The CTMCA could not give evidence of payment for 2 vehicles that it allegedly obtained with grant dollars,” the investigators claimed.

Soeker also told them the Schaapkraal home had been sold because of the debt.

“Mr Soeker explained that As outlined by his being familiar with, because of the personal debt owed to the town of Cape Town, the CTMCA determined It will be ideal to promote their [Schaapkraal] assets … and to also to cover the belongings with the CTMCA to avoid the sheriff from attaching the residence.”

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

“On a yearly basis like clockwork, as we strategy the top of your year, the CTMCA picks a legal battle with the City, about permits or another thing. We in no way initiate it. They hold throwing revenue absent on vexatious litigation which they reduce and possess charges awarded from them. This is entirely self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the principle purpose gamers on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for the many admin, finances and operating หุ้น ชอง 9 the CTMCA.” The investigators claimed they had been struggling to Call Momberg.

Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “identified various machines, some in fantastic problem, some in negative ailment and several that appeared rusty and intensely old”. Stemmet explained to the investigators that there was also an off-web-site storage facility where “instruments and a few machinery” had been held.

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

Based upon pics and invoices in GroundUp’s possession, some, if not all, from the items look like devices that was illegally faraway from the CTMCA’s earlier premises. Stemmet is going through expenses for this removal.

In accordance with the last development report submitted on the NLC through the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter ended up administrators at some time.

The investigators identified this “alarming”.

“With the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Highway, Wetton, Cape City, the same deal with on which the museum was intended to be crafted and/or transformed,” they noted.

An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the administrators.

In line with Dabishi Nthambeleni, the company has compensated R1.two-million like a deposit, this means R6.nine-million continues to be owed, however there isn't any payment date set for when this have to be compensated.

The Kopano audit and the close website link among the businesses “reveal to us that there is ‘foul play’ linked to the acquisition on the machinery from the museum workshop”, the investigators mentioned while in the report.

“We discover that it is very possible that CTMCA applied the funding on the NLC to ‘refund’ one among its principal administrators to the property at a better overpriced level than the actual price tag and price of the home and/or machinery.”

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

“In point of fact, an in depth report on how the funding with the NLC was applied, could be unachievable as the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Each individual merchandise it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not carried out a internet site pay a visit to before approving the grant. But this was not standard follow at some time and they identified no proof of carelessness by NLC workers.

At time, the NLC’s regulations didn't have to have funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was able to receive a second tranche of funding without needing to present evidence that it experienced made use of the very first tranche for its intended objective.

Adhering to the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other issues.

Dabishi Nthambeleni proposed that

the NLC decline any upcoming funding programs in the CTMCA;
the CTMCA and any customers who were associated with the grant be subjected into the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated resources.
But, in lieu of act on the report’s recommendations, the NLC – under its prior administration – chose to suppress it, as it experienced finished with the prior experiences into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by using SMS, and requested for electronic mail addresses to ship the concerns by e mail as well. But no reaction had been gained at the time of publication.



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

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