Leaked report exposes abuse of lottery dollars compensated to minstrel team

Leaked report exposes abuse of lottery dollars compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the Countrywide Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no proof that a museum at any time existed.
The investigators discovered the CTMCA didn't use the R5-million allocated to obtain or develop a museum.
In addition they identified the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They observed the CTMCA used money with the Lottery to purchase workshop tools from one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Commission (NLC) to setup a museum to rejoice town’s abundant minstrel record went astray. The museum was in no way designed.

The details in the abuse of an incredible number of rands of Lottery funds for any museum that under no circumstances was are uncovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Component of in excess of R64-million in Lottery funds allocated for the CTMCA between 2003 and 2017.

The main Element of the investigation, by regulation company Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which incorporated funding to the museum. The accepted price range with the museum was over R12.eight-million, with R5-million of that allocated for a building to deal with the museum.

Read the report (PDF, 7MB)

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

The firm was also instructed to research

the purchase with Lottery money of two automobiles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
different machines “ordered for that producing of the costumes and hats” for the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors of your organisation. Stemmet was reappointed being a director in Could 2021.

The investigation adopted in depth reporting by GroundUp concerning the a lot of rands of Lottery funding allotted into the CTMCA (see listed here, here and below) and how the cash most likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.



The making on the best was the intended website of your minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph

In response to the Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “jobs” - including the museum - involving 2012 and 2015. All a few tasks had been accomplished, she told MPs.

Even so the investigators uncovered no evidence that a museum experienced at any time existed.

At the beginning the museum was on account of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of your intended Wetton museum exhibits a espresso shop with some musical devices and minstrel costumes and collages of images haphazardly hung about the partitions, plus a model ship on its plinth inside of a corner.

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

Stemmet explained to the investigators the museum were moved as they could now not find the money for the hire of R100,000 per month. He reported the CTMCA experienced purchased property for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been bought for a similar selling price. Schaapkraal is in a peri-urban area considerably from town.

Because of this, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after visiting the premises, that are in an industrial space, the investigators explained they doubted regardless of whether an appropriate museum existed there. Photographs attached to the report show a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the ground, without explanation.

“There's a minimal level of products at the museum [that] on no account characterize the in excess of one hundred-year historical past on the Cape Town Carnival, the investigators said, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … generally, the museum does not glance to get open to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by moving The situation in the museum to an alternate locale devoid of notifying the NLC.



The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA experienced to maneuver in the rented Crete Road premises because it experienced operate up a R4-million debt with town of Cape Town and was concerned its products could be hooked up.

“As a result of legal battles plus the debts, the organisation had to maneuver its house from five Crete Road to stay away from the sheriff from attaching the property with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director with the CTMCA, informed them which the two buses bought with lottery cash had been saved inside of a secret location “concealed from your Sheriff”. Even so the investigators mentioned they were being unable to substantiate that any buses experienced ever been acquired.

Stemmet also confirmed that the buses were concealed to halt them remaining seized. But when the investigators requested to get taken for the spot where by the buses were saved, he instructed them that “the operator of the secret location wasn't available to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for 2 vehicles that it allegedly ordered with grant funds,” the investigators noted.

Soeker also explained to them the Schaapkraal residence were offered because of the debt.

“Mr Soeker discussed that Based on his comprehending, because of the personal debt owed to the town of Cape Town, the CTMCA decided It could be most effective to offer their [Schaapkraal] assets … and to also to hide the assets with the CTMCA to avoid the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for security and protection, has Beforehand instructed GroundUp the CTMCA “threw money absent” on litigation with the town.

“Yearly like clockwork, as we strategy the end of your yr, the CTMCA picks a lawful combat with the City, over permits or something else. We hardly ever initiate it. They preserve throwing income absent on vexatious litigation they reduce and possess expenses awarded in opposition to them. This is entirely self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the principle position players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for the many admin, finances and functioning หวย ไทยรัฐ the CTMCA.” The investigators mentioned they were not able to Speak to Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “found a lot of machines, some in very good condition, some in undesirable situation and several that appeared rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “devices and many equipment” have been saved.

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

Determined by photographs and invoices in GroundUp’s possession, some, if not all, of the items look like devices that was illegally faraway from the CTMCA’s preceding premises. Stemmet is experiencing expenses for this removal.

In accordance with the closing progress report submitted into the NLC via the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm by which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators found this “alarming”.

“Through the CIPC research of Martin-Conne Milliners as well as invoices submitted, we note the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be developed and/or converted,” they claimed.

An audit by accountants Kopano Included, connected on the investigative report, recorded that the CTMCA was in the whole process of getting “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.

In keeping with Dabishi Nthambeleni, the business has paid out R1.two-million as being a deposit, indicating R6.nine-million is still owed, even though there is not any payment day established for when this needs to be compensated.

The Kopano audit as well as near url amongst the companies “show to us that there is ‘foul Participate in’ linked to the purchase from the equipment in the museum workshop”, the investigators stated during the report.

“We find that it's highly probable that CTMCA utilised the funding in the NLC to ‘refund’ certainly one of its most important directors with the house at a higher overpriced amount than the actual selling price and value of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant for the CTMCA were used.

“Actually, a detailed report on how the funding with the NLC was used, will be extremely hard as being the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts put in on Just about every merchandise it requested funding for. The interim report and remaining report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not done a site take a look at just before approving the grant. But this wasn't typical apply at enough time and they observed no proof of negligence by NLC employees.

At enough time, the NLC’s procedures did not demand funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was in a position to receive a 2nd tranche of funding while not having to offer proof that it had utilised the first tranche for its intended purpose.

Following the appointment of a fresh board, commissioner and senior executive workforce, the NLC has tightened up on these along with other concerns.

Dabishi Nthambeleni recommended that

the NLC drop any long run funding programs in the CTMCA;
the CTMCA and any users who have been involved in the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a prison situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, instead of act within the report’s suggestions, the NLC – underneath its former administration – selected to suppress it, since it had accomplished While using the former stories into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and asked for email addresses to mail the issues by e-mail too. But no reaction had been been given at time of publication.



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

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