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 photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Fee to the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no proof that a museum ever existed.
The investigators identified which the CTMCA didn't utilize the R5-million allocated to get or produce a museum.
In addition they observed the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA employed funds from your Lottery to get workshop equipment from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Association (CTMCA) with the National Lotteries Commission (NLC) to put in place a museum to rejoice the city’s loaded minstrel record went astray. The museum was by no means established.

The small print on the abuse of an incredible number of rands of Lottery funds for the museum that hardly ever was are exposed within an investigative report commissioned through the NLC in 2021.

The museum grant was Section of over R64-million in Lottery money allocated towards the CTMCA between 2003 and 2017.

The 1st A part of the investigation, by regulation firm Dabishi Nthambeleni, was conducted in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding with the museum. The authorised spending plan with the museum was more than R12.8-million, with R5-million of that allocated for the making to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a creating with the museum and whether the museum “truly existed”.

The business was also instructed to investigate

the acquisition with Lottery resources of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
several devices “bought for the producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted legal 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 quite a few administrators with the organisation. Stemmet was reappointed as a director in Might 2021.

The investigation followed substantial reporting by GroundUp concerning the an incredible number of rands of Lottery funding allotted on the CTMCA (see below, here and listed here) and how the money most likely aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at the time by Marius Fransman.



The creating on the proper was the meant web site from the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - including the museum - in between 2012 and 2015. All 3 jobs had been completed, she explained to MPs.

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

At first the museum was resulting from open up in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp of the supposed Wetton museum exhibits a coffee shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung to the walls, along with a model ship on its plinth in the corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to confirm if a museum experienced at any time operated from these premises.

Stemmet instructed the investigators the museum were moved as they could not afford to pay for the rent of R100,000 a month. He claimed the CTMCA experienced acquired home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for a similar cost. Schaapkraal is in the peri-city area much from the town.

As a result, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after visiting the premises, which can be in an industrial region, the investigators said they doubted no matter whether a suitable museum existed there. Shots connected towards the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and unfold out on the floor, without having rationalization.

“You will find a nominal quantity of merchandise within the museum [that] in no way symbolize the in excess of a hundred-calendar year record of the Cape City Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating that they housed a museum and … usually, the museum will not search to become open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by shifting The situation in the museum to an alternate area with out notifying the NLC.



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

Buses
Stemmet instructed the investigators the CTMCA experienced to move within the rented Crete Road premises as it had run up a R4-million personal debt with the town of Cape Town and was afraid its equipment would be hooked up.

“Because of the legal battles and also the debts, the organisation had to maneuver its house from five Crete Street to stay away from the sheriff from attaching the house in the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director from the CTMCA, advised them which the two buses bought with lottery funds were being saved in a mystery location “hidden with the Sheriff”. But the investigators claimed they were being not able to substantiate that any buses had at any time been bought.

Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators asked for being taken for the put where the buses were being stored, he instructed them that “the owner of the secret site was not accessible to open the premises for us”.

“The CTMCA couldn't present proof of payment for 2 motor vehicles that it allegedly acquired with grant revenue,” the investigators described.

Soeker also advised them the Schaapkraal home were sold due to the credit card debt.

“Mr Soeker described that In accordance with his being familiar with, due to financial debt owed to town of Cape City, the CTMCA resolved it would be very best to provide their [Schaapkraal] property … and to also to hide the property from the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for basic safety and safety, has Beforehand explained to GroundUp the CTMCA “threw money absent” on litigation with the City.

“Every year like clockwork, as we tactic the end of your year, the CTMCA picks a authorized combat with the town, around permits or another thing. We by no means initiate it. They continue to keep throwing funds away on vexatious litigation they eliminate and have expenditures awarded against them. This is certainly completely self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the primary position players on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of every one of the admin, finances and working หวย ไทยรัฐ the CTMCA.” The investigators mentioned they had been not able to Get hold of Momberg.

Hats
All through their “investigation in loco” within the Primrose Park premises, the investigators “observed various equipment, some in superior ailment, some in terrible problem and a few that appeared rusty and extremely previous”. Stemmet informed the investigators that there was also an off-site storage facility the place “devices and many equipment” were stored.

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

Determined by shots and invoices in GroundUp’s possession, some, if not all, with the items appear to be products which was illegally removed from the CTMCA’s past premises. Stemmet is struggling with rates for this removing.

Based on the last progress report submitted towards the NLC by the CTMCA, the machinery was purchased from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were administrators at time.

The investigators discovered this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Take note the following alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Highway, Wetton, Cape City, the same address on which the museum was meant to be built and/or transformed,” they claimed.

An audit by accountants Kopano Included, hooked up towards the investigative report, recorded that the CTMCA was in the process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the directors.

As outlined by Dabishi Nthambeleni, the corporate has compensated R1.2-million as a deposit, indicating R6.nine-million remains to be owed, though there is not any payment date established for when this has to be paid.

The Kopano audit as well as the close url involving the businesses “suggest to us that there is ‘foul Engage in’ linked to the acquisition of your equipment with the museum workshop”, the investigators claimed during the report.

“We find that it is really possible that CTMCA utilised the funding in the NLC to ‘refund’ one among its principal directors for your property at the next overpriced amount than the actual selling price and value of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant to the CTMCA had been spent.

“Actually, an in depth report on how the funding of your NLC was utilized, will be unachievable because the CTMCA does not have any receipts, or proof of payments to substantiate the quantities used on each product it asked for funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC experienced not done a web-site check out prior to approving the grant. But this wasn't regular exercise at time and they found no evidence of negligence by NLC workforce.

At time, the NLC’s regulations didn't demand funded organisations to post proof of payment with interim experiences, they identified. This intended that the CTMCA was capable of receive a second tranche of funding without needing to present evidence that it had employed the initial tranche for its intended goal.

Subsequent the appointment of a brand new board, commissioner and senior govt staff, the NLC has tightened up on these and other challenges.

Dabishi Nthambeleni advisable that

the NLC decline any future funding purposes from your CTMCA;
the CTMCA and any members who have been linked to the grant be subjected on the NLC’s “delinquency” process;
the NLC open a legal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated cash.
But, rather then act around the report’s recommendations, the NLC – below its prior administration – chose to suppress it, as it experienced finished with the previous experiences into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker by using SMS, and requested for email addresses to mail the issues by email much too. But no response had been been given at time of publication.



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

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