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 two January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the Countrywide Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no evidence that a museum at any time existed.
The investigators located which the CTMCA didn't use the R5-million allocated to acquire or establish a museum.
They also found that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They located the CTMCA used funds from the Lottery to buy workshop machines from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Fee (NLC) to set up a museum to rejoice the city’s rich minstrel record went astray. The museum was in no way designed.

The details with the abuse of an incredible number of rands of Lottery money for the museum that by no means was are unveiled in an investigative report commissioned with the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery cash allocated into the CTMCA concerning 2003 and 2017.

The very first Component of the investigation, by regulation firm Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which provided funding for your museum. The accepted budget with the museum was greater than R12.eight-million, with R5-million of that allocated for the creating to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing for the museum and if the museum “truly existed”.

The business was also instructed to investigate

the purchase with Lottery resources of two autos – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
various equipment “purchased with the producing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators on the organisation. Stemmet was reappointed as being a director in May perhaps 2021.

The investigation followed considerable reporting by GroundUp about the a lot of rands of Lottery funding allotted towards the CTMCA (see below, in this article and right here) and how the resources most likely assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The constructing on the appropriate was the intended web-site on the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 jobs had been done, she advised MPs.

However the investigators observed no evidence that a museum had ever existed.

At the beginning the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp from the intended Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the walls, plus a model ship on its plinth within a corner.

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

Stemmet explained to the investigators the museum were moved as they could not pay for the hire of R100,000 a month. He reported the CTMCA had procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for a similar price. Schaapkraal is in a very peri-city region significantly from town.

Consequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to 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 demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed to the wall, exhibited on tables and spread out on the ground, with no clarification.

“There's a small level of merchandise on the museum [that] on no account signify the in excess of a hundred-year historical past with the Cape City Carnival, the investigators said, adding that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum would not appear to generally be open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving the location in the museum to an alternative area devoid of notifying the NLC.



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

Buses
Stemmet instructed the investigators the CTMCA had to maneuver through the rented Crete Road premises because it experienced run up a R4-million personal debt with the City of Cape Town and was worried its devices will be attached.

“Due to the authorized battles as well as the debts, the organisation had to move its house from 5 Crete Street to steer clear of the sheriff from attaching the property from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director of the CTMCA, instructed them the two buses bought with lottery money had been stored inside a magic formula spot “concealed within the Sheriff”. However the investigators mentioned they have been unable to substantiate that any buses had at any time been purchased.

Stemmet also confirmed which the buses had been concealed to prevent them staying seized. But once the investigators questioned to get taken on the location where the buses ended up saved, he told them that “the owner of The key locale wasn't available to open the premises for us”.

“The CTMCA could not supply proof of payment for two cars that it allegedly procured with grant cash,” the investigators documented.

Soeker also instructed them the Schaapkraal residence had been offered due to the financial debt.

“Mr Soeker described that As outlined by his knowledge, a result of the financial debt owed to town of Cape Town, the CTMCA resolved It could be best to offer their [Schaapkraal] property … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the property.”

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

“Each and every year like clockwork, as we tactic the top of your calendar year, the CTMCA picks a lawful combat with the City, more than permits or something else. We never initiate it. They keep throwing revenue absent on vexatious litigation that they lose and also have fees awarded towards them. This is fully self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the leading function gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of the many admin, funds and operating ผล หวย the CTMCA.” The investigators stated they were struggling to Speak to Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “found quite a few devices, some in good situation, some in undesirable affliction plus some that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-site storage facility where “devices plus some equipment” have been stored.

“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 the objects 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 ended up administrators at enough time.

The investigators uncovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, the identical address on which the museum was intended to be built and/or transformed,” they noted.

An audit by accountants Kopano Included, attached on the investigative report, recorded which the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the administrators.

Based on Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, this means R6.nine-million remains to be owed, while there is no payment day established for when this need to be paid out.

The Kopano audit as well as the close connection concerning the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition from the equipment from the museum workshop”, the investigators reported while in the report.

“We discover that it is hugely possible that CTMCA employed the funding of your NLC to ‘refund’ among its key administrators for your house at an increased overpriced rate than the actual cost and value of the house and/or machinery.”

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

“The truth is, a detailed report on how the funding in the NLC was utilized, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to verify the amounts expended on Every single item it requested funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not carried out a site check out before approving the grant. But this was not normal exercise at enough time plus they located no evidence of carelessness by NLC workforce.

At enough time, the NLC’s policies did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to get a second tranche of funding while not having to supply evidence that it experienced utilised the first tranche for its meant purpose.

Adhering to the appointment of a new board, commissioner and senior executive staff, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni proposed that

the NLC decline any potential funding programs through the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open up a legal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated money.
But, as opposed to act on the report’s tips, the NLC – below its previous administration – chose to suppress it, mainly because it had finished Together with the previous studies into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker by using SMS, and asked for e-mail addresses to send out the thoughts by email also. But no response had been acquired at enough time of publication.



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

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