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 into a R27.three-million grant by the Countrywide Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum at any time existed.
The investigators identified the CTMCA didn't use the R5-million allocated to order or build a museum.
They also observed which the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They identified the CTMCA utilised cash with the Lottery to invest in workshop machines from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to put in place a museum to rejoice the town’s rich minstrel heritage went astray. The museum was in no way established.

The small print of your abuse of numerous rands of Lottery resources to get a museum that under no circumstances was are exposed in an investigative report commissioned with the NLC in 2021.

The museum grant was A part of much more than R64-million in Lottery cash allotted towards the CTMCA amongst 2003 and 2017.

The first Element of the investigation, by legislation firm Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which bundled funding for that museum. The authorized spending plan for that museum was a lot more than R12.eight-million, with R5-million of that allocated for any developing to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for the museum and whether or not the museum “essentially existed”.

The business was also instructed to investigate

the acquisition with Lottery resources of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of equipment “ordered for your producing in the costumes and hats” with the minstrels carnival, for R5.four-million.
At some 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 wife Zainonesa and daughter Raziah continued as two of numerous directors of your organisation. Stemmet was reappointed like a director in Could 2021.

The investigation followed intensive reporting by GroundUp regarding the many rands of Lottery funding allocated into the CTMCA (see right here, below and right here) and just how the funds possibly served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The developing on the appropriate was the intended web-site from the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Image: Raymond Joseph

In response into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “initiatives” - including the museum - in between 2012 and 2015. All 3 jobs had been done, she informed MPs.

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

To start with the museum was due to open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp with the meant Wetton museum reveals a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung around the partitions, as well as a model ship on its plinth in a very corner.

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

Stemmet explained to the investigators the museum were moved as they could now not afford to pay for the hire of R100,000 per month. He mentioned the CTMCA experienced ordered house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for the same selling price. Schaapkraal is within a peri-city region considerably from the city.

Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following viewing the premises, that happen to be within an industrial region, the investigators claimed they doubted no matter whether an appropriate museum existed there. Photographs connected for the report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, without any rationalization.

“There exists a minimal number of things within the museum [that] by no means represent the a lot more than a hundred-year historical past with the Cape City Carnival, the investigators said, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't look to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation with the museum to an alternate place with out notifying the NLC.



The Schaapkraal assets, on which no museum was ever constructed. Picture: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Street premises because it had operate up a R4-million personal debt with the City of Cape Town and was worried its tools could well be attached.

“A result of the authorized battles and the debts, the organisation had to maneuver its property from 5 Crete Road to avoid the sheriff from attaching the property from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director from the CTMCA, informed them that the two buses purchased with lottery resources have been saved in a mystery site “concealed within the Sheriff”. However the investigators said they have been not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified the buses were hidden to stop them becoming seized. But when the investigators asked to generally be taken for the spot the place the buses ended up saved, he explained to them that “the operator of The key locale wasn't available to open up the premises for us”.

“The CTMCA could not give evidence of payment for two vehicles that it allegedly bought with grant funds,” the investigators documented.

Soeker also advised them the Schaapkraal house were bought due to financial debt.

“Mr Soeker stated that In accordance with his comprehending, due to the credit card debt owed to the town of Cape City, the CTMCA resolved it would be finest to sell their [Schaapkraal] property … and to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and stability, has Formerly advised GroundUp the CTMCA “threw funds away” on litigation with the City.

“Each year like clockwork, as we method the top on the calendar year, the CTMCA picks a legal combat with town, more than permits or something else. We never initiate it. They keep throwing income absent on vexatious litigation they shed and also have expenses awarded from them. This really is solely self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the main function players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being answerable for each of the admin, funds and functioning ตรวจ สลาก the CTMCA.” The investigators said they had been struggling to contact Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “discovered many equipment, some in fantastic affliction, some in undesirable situation and some that appeared rusty and very outdated”. Stemmet told the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” were retained.

“We questioned him to consider us to the ability but he was evasive to our ask for.”

Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, with the goods look like products which was illegally faraway from the CTMCA’s past premises. Stemmet is dealing with rates for this elimination.

According to the final development report submitted to your NLC via the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization wherein Stemmet, his wife and his daughter were administrators at enough time.

The investigators identified this “alarming”.

“In the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Be aware the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is 5 Crete Road, Wetton, Cape Town, the same deal with on which the museum was intended to be built and/or converted,” they noted.

An audit by accountants Kopano Integrated, attached towards the investigative report, recorded that the CTMCA was in the process of purchasing “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the directors.

As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as being a deposit, indicating R6.nine-million remains owed, even though there is not any payment day established for when this must be compensated.

The Kopano audit and also the close hyperlink among the companies “show to us that there is ‘foul Participate in’ linked to the acquisition in the equipment of your museum workshop”, the investigators reported from the report.

“We find that it is extremely possible that CTMCA utilized the funding with the NLC to ‘refund’ certainly one of its most important directors to the assets at a higher overpriced fee than the particular price and value of the home and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to establish how the grant on the CTMCA were spent.

“In fact, an in depth 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 quantities invested on Each and every item it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC had not done a web-site pay a visit to right before approving the grant. But this was not normal observe at time plus they uncovered no proof of negligence by NLC staff.

At time, the NLC’s regulations didn't involve funded organisations to post evidence of payment with interim stories, they identified. This meant that the CTMCA was capable of receive a next tranche of funding without the need to provide evidence that it had utilized the very first tranche for its intended reason.

Pursuing the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni encouraged that

the NLC decline any foreseeable future funding purposes from your CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, instead of act around the report’s tips, the NLC – less than its past administration – chose to suppress it, as it experienced accomplished With all the prior experiences into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the thoughts by e-mail far too. But no response had been gained at some time of publication.



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

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