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 two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no evidence that a museum at any time existed.
The investigators identified which the CTMCA didn't utilize the R5-million allotted to obtain or build a museum.
Additionally they observed the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They located the CTMCA utilised resources through the Lottery to acquire workshop machines from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to build a museum to celebrate the city’s loaded minstrel history went astray. The museum was in no way produced.

The small print on the abuse of millions of rands of Lottery cash for just a museum that by no means was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery funds allotted to the CTMCA amongst 2003 and 2017.

The initial part of the investigation, by regulation business Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which integrated funding for your museum. The accepted finances with the museum was much more than R12.8-million, with R5-million of that allocated for the building to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating for that museum and whether or not the museum “actually existed”.

The agency was also instructed to research

the acquisition with Lottery cash of two cars – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
numerous devices “procured to the production on the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director from 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 several directors of the organisation. Stemmet was reappointed like a director in Could 2021.

The investigation adopted extensive reporting by GroundUp in regards to the many rands of Lottery funding allotted on the CTMCA (see right here, in this article and right here) and the way in which the money almost certainly served finance the ANC’s 2014 election campaign within the Western Cape, led by at enough time by Marius Fransman.



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

In reaction to some Parliamentary issue, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - including the museum - between 2012 and 2015. All a few assignments had been done, she explained to MPs.

Though the investigators observed no proof that a museum had at any time existed.

At the outset the museum was on account of open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp with the intended Wetton museum exhibits a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, and a product ship on its plinth in a corner.

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

Stemmet advised the investigators the museum had been moved since they could now not find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced obtained property for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for the same rate. Schaapkraal is within a peri-city area much from the town.

Subsequently, the museum had been moved to a fresh locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after browsing the premises, which are within an industrial space, the investigators said they doubted regardless of whether a correct museum existed there. Pictures hooked up to your report exhibit a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without any rationalization.

“There exists a minimal degree of things on the museum [that] on no account signify the over a hundred-12 months record of your Cape City Carnival, the investigators claimed, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … frequently, the museum doesn't look to get open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving the location from the museum to another spot with out notifying the NLC.



The Schaapkraal home, on which no museum was ever built. Photograph: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA experienced to move from your rented Crete Highway premises mainly because it had operate up a R4-million credit card debt with town of Cape Town and was scared its devices could well be hooked up.

“Due to legal battles along with the debts, the organisation experienced to maneuver its assets from 5 Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director of your CTMCA, advised them the two buses acquired with lottery funds had been stored inside of a mystery site “concealed from the Sheriff”. However the investigators stated they were unable to confirm that any buses experienced at any time been bought.

Stemmet also verified which the buses had been concealed to prevent them becoming seized. But in the event the investigators asked to generally be taken on the put in which the buses ended up saved, he told them that “the owner of the secret spot wasn't accessible to open the premises for us”.

“The CTMCA could not give evidence of payment for two autos that it allegedly ordered with grant dollars,” the investigators described.

Soeker also instructed them the Schaapkraal residence had been sold because of the personal debt.

“Mr Soeker spelled out that according to his comprehending, due to the personal debt owed to the City of Cape City, the CTMCA determined It will be greatest to provide their [Schaapkraal] house … also to also to hide the assets with the CTMCA to avoid the sheriff from attaching the home.”

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

“Every year like clockwork, as we method the end from the year, the CTMCA picks a legal struggle with town, about permits or another thing. We never ever initiate it. They hold throwing funds absent on vexatious litigation they drop and have prices awarded from them. That is entirely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been in command of all of the admin, finances and managing ตรวจ หวย รัฐบาล the CTMCA.” The investigators said they had been struggling to Make contact with Momberg.

Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “found quite a few devices, some in superior situation, some in undesirable condition and a few that seemed rusty and extremely old”. Stemmet advised the investigators that there was also an off-web page storage facility where “devices and many machinery” had been kept.

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

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your goods appear to be machines that was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing costs for this elimination.

In accordance with the last development 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 Incorporated, connected towards the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” 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 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, though there's no payment date set for when this must be compensated.

The Kopano audit as well as shut backlink amongst the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition in the equipment on the museum workshop”, the investigators mentioned in the report.

“We find that it's extremely possible that CTMCA used the funding on the NLC to ‘refund’ certainly one of its key administrators for the house at the next overpriced price than the actual value and worth of the residence and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been invested.

“In fact, a detailed report on how the funding of the NLC was used, would be impossible given that the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used 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 performed a web-site pay a visit to in advance of approving the grant. But this wasn't normal exercise at some time and they identified no evidence of negligence by NLC personnel.

At enough 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 able to get a 2nd tranche of funding without needing to offer evidence that it had utilized the very first tranche for its supposed reason.

Subsequent the appointment of a brand new board, commissioner and senior government group, the NLC has tightened up on these and other troubles.

Dabishi Nthambeleni suggested that

the NLC decrease any upcoming funding programs with the CTMCA;
the CTMCA and any users who had been involved with the grant be subjected to your NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, as opposed to act within the report’s recommendations, the NLC – under its former administration – selected to suppress it, because it experienced performed Together with the past experiences into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by way of SMS, and questioned for electronic mail addresses to deliver the queries by email far too. But no response had been gained at time of publication.



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

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