Leaked report exposes abuse of lottery cash paid to minstrel team

Leaked report exposes abuse of lottery cash paid to minstrel team

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Minstrels execute in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators identified the CTMCA didn't utilize the R5-million allocated to order or build a museum.
They also located the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used funds in the Lottery to buy workshop tools from one among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate town’s prosperous minstrel background went astray. The museum was never made.

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

The museum grant was Portion of in excess of R64-million in Lottery cash allotted to your CTMCA concerning 2003 and 2017.

The main Element of the investigation, by regulation organization Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which integrated funding for the museum. The authorised funds for your museum was more than R12.8-million, with R5-million of that allotted to get a making to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing with the museum and whether the museum “truly existed”.

The organization was also instructed to analyze

the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
various equipment “procured for that producing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of your 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 to be a director in May possibly 2021.

The investigation adopted intensive reporting by GroundUp about the millions of rands of Lottery funding allocated into the CTMCA (see in this article, in this article and below) and just how the cash most likely assisted finance the ANC’s 2014 election campaign in the Western Cape, led by at the time by Marius Fransman.



The constructing on the best was the meant web page from the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Picture: Raymond Joseph

In response to some Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “initiatives” - such as the museum - amongst 2012 and 2015. All three tasks were concluded, she advised MPs.

Even so the investigators identified no evidence that a museum had ever existed.

At first the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp from the supposed Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, plus a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni mentioned it was “not ready” to verify if a museum had at any time operated from these premises.

Stemmet advised the investigators the museum had been moved since they could now not find the money for the rent of R100,000 per month. He stated the CTMCA experienced bought assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for the same price tag. Schaapkraal is in a peri-urban place far from the city.

Due to this fact, the museum were moved to a brand new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after going to the premises, that happen to be in an industrial location, the investigators mentioned they doubted no matter if a suitable museum existed there. Images attached to the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without any rationalization.

“You will find a minimal number of things within the museum [that] by no means characterize the greater than one hundred-12 months record from 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 look to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by transferring The placement from the museum to another site with no notifying the NLC.



The Schaapkraal home, on which no museum was at any time developed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA had to maneuver in the rented Crete Street premises mainly because it had run up a R4-million credit card debt with town of Cape Town and was scared its machines will be connected.

“Mainly because of the legal battles as well as the debts, the organisation had to move its home from 5 Crete Road to avoid the sheriff from attaching the home in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses purchased with lottery funds were saved within a key location “concealed from your Sheriff”. However the investigators reported they have been not able to confirm that any buses experienced at any time been bought.

Stemmet also confirmed which the buses had been hidden to prevent them remaining seized. But once the investigators requested to generally be taken for the position where the buses had been stored, he advised them that “the proprietor of The key site wasn't accessible to open the premises for us”.

“The CTMCA could not supply proof of payment for two vehicles that it allegedly purchased with grant money,” the investigators reported.

Soeker also explained to them the Schaapkraal assets had been sold due to credit card debt.

“Mr Soeker discussed that In accordance with his knowing, because of the personal debt owed to the City of Cape Town, the CTMCA decided It could be best to market their [Schaapkraal] assets … and to also to hide the property of your CTMCA to avoid the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Formerly told GroundUp the CTMCA “threw dollars away” on litigation with the town.

“On a yearly basis like clockwork, as we solution the tip from the calendar year, the CTMCA picks a authorized struggle with the town, about permits or another thing. We in no way initiate it. They continue to keep throwing cash away on vexatious litigation that they shed and possess fees awarded versus them. This really is completely self-inflicted,” he mentioned.

Soeker informed the Dabishi Nthambeleni investigators that the leading position players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, funds and operating หวย หุ้น ช่อง 9 the CTMCA.” The investigators explained they had been not able to Get in touch with Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “found a lot of equipment, some in excellent ailment, some in poor affliction and some that looked rusty and intensely aged”. Stemmet told the investigators that there was also an off-web site storage facility the place “devices and many equipment” have been held.

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

Based upon pics and invoices in GroundUp’s possession, some, if not all, from the products look like devices that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this removal.

Based on the final progress report submitted to your NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter had been directors at time.

The investigators observed this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the business is 5 Crete Highway, Wetton, Cape Town, the identical address on which the museum was meant to be created and/or transformed,” they documented.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded which the CTMCA was in the process of getting “equipment, 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 amongst the directors.

As outlined by Dabishi Nthambeleni, the company has paid R1.2-million like a deposit, indicating R6.9-million continues to be owed, however there is not any payment day set for when this has to be paid.

The Kopano audit and the shut url among the companies “point out to us that there is ‘foul Participate in’ involved with the acquisition with the machinery on the museum workshop”, the investigators stated during the report.

“We find that it is really probable that CTMCA utilised the funding of your NLC to ‘refund’ among its most important administrators for your house at an increased overpriced level than the particular price and value of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been invested.

“In fact, an in depth report on how the funding of your NLC was made use of, might be extremely hard since the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities spent on Each individual merchandise it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not executed a site check out before approving the grant. But this was not normal exercise at some time they usually discovered no evidence of negligence by NLC workers.

At time, the NLC’s principles did not need funded organisations to submit 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 provide evidence that it had made use of the 1st tranche for its meant purpose.

Pursuing the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these as well as other difficulties.

Dabishi Nthambeleni suggested that

the NLC decrease any upcoming funding applications through the CTMCA;
the CTMCA and any users who were associated with the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, in lieu of act about the report’s suggestions, the NLC – below its previous administration – selected to suppress it, because it experienced performed Together with the prior experiences into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for e mail addresses to send the inquiries by electronic mail also. But no reaction were received at time of publication.



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

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