Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

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Minstrels conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has located no evidence that a museum ever existed.
The investigators located which the CTMCA did not use the R5-million allocated to obtain or create a museum.
Additionally they observed which the CTMCA only acquired land worth R1.7-million, not R5-million as allotted.
They discovered the CTMCA employed money through the Lottery to acquire workshop products from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to setup a museum to rejoice the city’s abundant minstrel background went astray. The museum was by no means made.

The details on the abuse of millions of rands of Lottery money for your museum that by no means was are unveiled within an investigative report commissioned by the NLC in 2021.

The museum grant was Portion of in excess of R64-million in Lottery resources allotted into the CTMCA concerning 2003 and 2017.

The first part of the investigation, by regulation business Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which incorporated funding for your museum. The approved spending plan to the museum was greater than R12.8-million, with R5-million of that allotted for any setting up to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a making for the museum and whether the museum “in fact existed”.

The business was also instructed to analyze

the acquisition with Lottery resources of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of devices “ordered with the producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various directors with the organisation. Stemmet was reappointed being a director in Might 2021.

The investigation followed intensive reporting by GroundUp regarding the countless rands of Lottery funding allotted to your CTMCA (see right here, here and in this article) and the way the cash likely assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.



The setting up on the appropriate was the supposed site in the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “initiatives” - such as the museum - between 2012 and 2015. All 3 projects had been finished, she explained to MPs.

However the investigators identified no proof that a museum experienced at any time existed.

To start with the museum was due to open in rented premises in Crete Road, Wetton. A photo attained by GroundUp from the supposed Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of pics haphazardly hung on the partitions, in addition to a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni reported it had been “not in a position” to verify if a museum experienced ever operated from these premises.

Stemmet told the investigators the museum had been moved simply because they could no more pay for the lease of R100,000 per month. He stated the CTMCA had procured assets for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for a similar cost. Schaapkraal is in the peri-city spot much from town.

As a result, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after going to the premises, which might be within an industrial area, the investigators claimed they doubted regardless of whether an appropriate museum existed there. Photos connected to the report display a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, without having clarification.

“There is a small level of merchandise on the museum [that] on no account symbolize the much more than 100-yr heritage of the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum would not glimpse to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by going The placement in the museum to an alternative locale without the need of notifying the NLC.



The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA experienced to move through the rented Crete Road premises since it experienced operate up a R4-million financial debt with the town of Cape City and was afraid its products could well be attached.

“A result of the authorized battles as well as debts, the organisation experienced to maneuver its assets from five Crete Highway to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director of your CTMCA, explained to them the two buses purchased with lottery funds were saved within a key place “concealed from your Sheriff”. Nevertheless the investigators said they ended up unable to verify that any buses experienced ever been purchased.

Stemmet also verified that the buses were concealed to stop them currently being seized. But when the investigators asked being taken to the spot where by the buses were stored, he informed them that “the proprietor of The key spot wasn't accessible to open the premises for us”.

“The CTMCA could not supply proof of payment for two vehicles that it allegedly bought with grant cash,” the investigators noted.

Soeker also told them the Schaapkraal property were offered due to the debt.

“Mr Soeker stated that In keeping with his knowledge, a result of the debt owed to the town of Cape City, the CTMCA made a decision it would be ideal to sell their [Schaapkraal] house … also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for protection and protection, has previously advised GroundUp which the CTMCA “threw money away” on litigation with the City.

“Annually like clockwork, as we approach the top from the 12 months, the CTMCA picks a authorized battle with the town, about permits or another thing. We never ever initiate it. They preserve throwing money absent on vexatious litigation they eliminate and possess prices awarded versus them. This is entirely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the key function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, finances and working ruay the CTMCA.” The investigators explained they were not able to contact Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “found quite a few equipment, some in excellent issue, some in bad problem and many that appeared rusty and intensely aged”. Stemmet told the investigators that there was also an off-web site storage facility where by “instruments and some equipment” were being kept.

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

According to photos and invoices in GroundUp’s possession, some, Otherwise all, on the things appear to be gear that was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with costs for this elimination.

According to the closing progress report submitted to the NLC by the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators located this “alarming”.

“In the CIPC research of Martin-Conne Milliners and the invoices submitted, we Notice the subsequent alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Street, Wetton, Cape Town, precisely the same handle on which the museum was meant to be designed and/or transformed,” they documented.

An audit by accountants Kopano Integrated, attached on the investigative report, recorded the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.

Based on Dabishi Nthambeleni, the organization has compensated R1.2-million for a deposit, that means R6.9-million is still owed, while there's no payment date set for when this have to be paid out.

The Kopano audit as well as near url amongst the companies “indicate to us that there's ‘foul Engage in’ associated with the acquisition on the machinery with the museum workshop”, the investigators explained inside the report.

“We discover that it is highly probable that CTMCA used the funding in the NLC to ‘refund’ certainly one of its most important directors for the house at a higher overpriced level than the actual price tag and price of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant to your CTMCA were expended.

“In point of fact, an in depth report on how the funding of your NLC was applied, might be difficult since the CTMCA does not have any receipts, or evidence of payments to confirm the quantities spent 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 done a web site stop by just before approving the grant. But this was not typical observe at the time and they identified no evidence of negligence by NLC personnel.

At enough time, the NLC’s policies didn't call for funded organisations to submit proof of payment with interim reports, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding without needing to offer evidence that it had used the main tranche for its meant objective.

Next the appointment of a different board, commissioner and senior executive staff, the NLC has tightened up on these together with other problems.

Dabishi Nthambeleni proposed that

the NLC decline any foreseeable future funding purposes in the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, instead of act around the report’s tips, the NLC – underneath its preceding administration – chose to suppress it, mainly because it had carried out with the past reviews into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for email addresses to ship the questions by e-mail far too. But no reaction had been acquired at enough time of publication.



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

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