Leaked report exposes abuse of lottery revenue paid out to minstrel team

Leaked report exposes abuse of lottery revenue paid out 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 via the Countrywide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not make use of the R5-million allocated to order or produce a museum.
Additionally they discovered the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They observed the CTMCA utilized resources with the Lottery to invest in workshop devices from among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Fee (NLC) to arrange a museum to celebrate town’s rich minstrel background went astray. The museum was by no means created.

The main points in the abuse of numerous rands of Lottery cash to get a museum that in no way was are unveiled in an investigative report commissioned with the NLC in 2021.

The museum grant was Section of in excess of R64-million in Lottery cash allotted to the CTMCA amongst 2003 and 2017.

The 1st Section of the investigation, by law business Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which incorporated funding to the museum. The accredited funds to the museum was in excess of R12.8-million, with R5-million of that allocated to get a creating to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up to the museum and whether or not the museum “really existed”.

The agency was also instructed to analyze

the acquisition with Lottery funds of two autos – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
different devices “acquired for that production with the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director of 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 a number of administrators on the organisation. Stemmet was reappointed like a director in Might 2021.

The investigation adopted substantial reporting by GroundUp with regards to the numerous rands of Lottery funding allotted for the CTMCA (see in this article, right here and in this article) and the way in which the money likely helped finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The setting up on the right was the supposed website in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction into a Parliamentary issue, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “assignments” - including the museum - concerning 2012 and 2015. All 3 tasks were accomplished, she informed MPs.

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

Initially the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photo received by GroundUp of the supposed Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, plus a design ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to verify if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum were moved mainly because they could no more manage the rent of R100,000 per month. He mentioned the CTMCA had ordered house for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been bought for the same rate. Schaapkraal is in the peri-city region significantly from the city.

Due to this fact, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after viewing the premises, which can be in an industrial spot, the investigators explained they doubted whether a proper museum existed there. Photos hooked up to the report display a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the ground, without any clarification.

“You will find there's minimum amount of products within the museum [that] by no means symbolize the greater than a hundred-calendar year record with the Cape City Carnival, the investigators stated, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum would not look for being open to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by relocating The situation on the museum to another spot with no notifying the NLC.



The Schaapkraal house, on which no museum was at any time created. Image: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises as it had run up a R4-million financial debt with town of Cape City and was frightened its devices could well be hooked up.

“A result of the authorized battles as well as debts, the organisation had to move its home from 5 Crete Highway to stay away from the sheriff from attaching the assets with the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director from the CTMCA, advised them the two buses acquired with lottery funds ended up stored in the secret place “hidden from the Sheriff”. Nevertheless the investigators stated they were being unable to substantiate that any buses had ever been acquired.

Stemmet also confirmed the buses were hidden to prevent them remaining seized. But once the investigators requested to generally be taken for the position where the buses have been stored, he instructed them that “the operator of The trick locale wasn't accessible to open up the premises for us”.

“The CTMCA couldn't deliver evidence of payment for 2 cars that it allegedly ordered with grant dollars,” the investigators described.

Soeker also instructed them the Schaapkraal residence had been sold due to credit card debt.

“Mr Soeker discussed that As outlined by his knowledge, a result of the debt owed to the town of Cape City, the CTMCA made the decision it would be ideal to sell their [Schaapkraal] house … also to also to hide the assets with the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for basic safety and protection, has Beforehand told GroundUp that the CTMCA “threw cash away” on litigation with the City.

“Yearly like clockwork, as we technique the tip in the yr, the CTMCA picks a legal struggle with the town, in excess of permits or something else. We by no means initiate it. They maintain throwing money absent on vexatious litigation that they lose and also have fees awarded against them. This is often totally self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the key job players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all the admin, finances and managing ตรวจ the CTMCA.” The investigators explained 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 issue, some in lousy condition and a few that looked rusty and extremely old”. Stemmet told the investigators that there was also an off-website storage facility in which “instruments and some equipment” have been held.

“We asked him to choose us to the ability but he was evasive to our request.”

Based on pics and invoices in GroundUp’s possession, some, if not all, of your objects appear to be devices that was illegally removed from the CTMCA’s former premises. Stemmet is going through charges for this elimination.

Based on the final progress report submitted on the NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were administrators at the time.

The investigators discovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate 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, hooked up 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 a close corporation of which Stemmet was amongst the administrators.

Based on Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, indicating R6.9-million continues to be owed, however there isn't a payment day set for when this should be compensated.

The Kopano audit as well as near website link in between the businesses “reveal to us that there is ‘foul Enjoy’ associated with the acquisition in the equipment in the museum workshop”, the investigators said while in the report.

“We discover that it is hugely possible that CTMCA utilized the funding with the NLC to ‘refund’ one of its major administrators with the property at a greater overpriced charge than the actual selling price and worth of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were used.

“In point of fact, an in depth report on how the funding in the NLC was utilized, would be impossible given that the CTMCA does not have any receipts, or evidence of payments to verify the quantities invested on each merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not executed a website take a look at before approving the grant. But this was not normal exercise at some time they usually discovered no evidence of negligence by NLC workers.

At the time, the NLC’s principles did not need funded organisations to post evidence of payment with interim stories, they pointed out. This meant which the CTMCA was ready to get a second tranche of funding without having to deliver evidence that it had applied the primary tranche for its intended intent.

Next the appointment of a completely new board, commissioner and senior executive workforce, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni encouraged that

the NLC decrease any long term funding apps from the CTMCA;
the CTMCA and any associates who have been involved in the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, as an alternative to act about the report’s suggestions, the NLC – beneath its earlier administration – chose to suppress it, mainly because it experienced done With all the prior experiences into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for email addresses to mail the inquiries by electronic mail much too. But no reaction had been acquired at some time of publication.



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

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