Leaked report exposes abuse of lottery income paid out to minstrel group

Leaked report exposes abuse of lottery income paid out to minstrel group

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Minstrels execute 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 Fee for the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has found no proof that a museum at any time existed.
The investigators identified which the CTMCA didn't use the R5-million allotted to buy or develop a museum.
In addition they uncovered that the CTMCA only bought land really worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA made use of funds from your Lottery to purchase workshop devices from among its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to set up a museum to rejoice the city’s abundant minstrel history went astray. The museum was hardly ever produced.

The details of your abuse of an incredible number of rands of Lottery funds to get a museum that by no means was are exposed in an investigative report commissioned via the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery cash allocated on the CTMCA amongst 2003 and 2017.

The 1st Section of the investigation, by regulation company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which integrated funding for your museum. The approved price range for your museum was more than R12.8-million, with R5-million of that allotted for your developing to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the making with the museum and whether the museum “actually existed”.

The organization was also instructed to investigate

the acquisition with Lottery cash of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of equipment “acquired to the manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director on the 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 a number of directors on the organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted considerable reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated on the CTMCA (see in this article, right here and right here) and the way in which the resources almost certainly served finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The creating on the best was the meant web page of the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction into a Parliamentary concern, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - including the museum - concerning 2012 and 2015. All 3 tasks had been concluded, she informed MPs.

Nevertheless the investigators found no proof that a museum experienced at any time existed.

At the beginning the museum was resulting from open up in rented premises in Crete Road, Wetton. A photo received by GroundUp from the intended Wetton museum exhibits a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung about the partitions, and also a design ship on its plinth in a corner.

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

Stemmet instructed the investigators the museum had been moved because they could not find the money for the lease of R100,000 a month. He mentioned the CTMCA had acquired assets for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar selling price. Schaapkraal is in a peri-urban area considerably from the city.

As a result, the museum had been moved to a new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial spot, the investigators claimed they doubted regardless of whether a suitable museum existed there. Shots hooked up to the report show a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without any explanation.

“You will find there's small volume of things on the museum [that] under no circumstances represent the over 100-calendar year record of your Cape Town Carnival, the investigators reported, incorporating that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum would not look to become open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going The placement with the museum to an alternative area with out notifying the NLC.



The Schaapkraal house, on which no museum was at any time crafted. Photograph: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA had to move within the rented Crete Highway premises because it experienced operate up a R4-million personal debt with the town of Cape Town and was scared its devices would be hooked up.

“Due to the legal battles and also the debts, the organisation experienced to move its home from five Crete Road to steer clear of the sheriff from attaching the house of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director of the CTMCA, explained to them that the two buses purchased with lottery cash had been saved in a mystery locale “concealed from your Sheriff”. But the investigators explained they have been not able to substantiate that any buses had at any time been bought.

Stemmet also confirmed the buses had been hidden to stop them staying seized. But in the event the investigators asked to become taken towards the location exactly where the buses ended up stored, he informed them that “the owner of The trick locale was not accessible to open the premises for us”.

“The CTMCA could not provide evidence of payment for 2 autos that it allegedly purchased with grant dollars,” the investigators reported.

Soeker also advised them the Schaapkraal assets had been offered as a result of personal debt.

“Mr Soeker defined that according to his understanding, a result of the personal debt owed to town of Cape City, the CTMCA made a decision It could be ideal to offer their [Schaapkraal] house … also to also to hide the belongings in the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for security and protection, has Beforehand advised GroundUp that the CTMCA “threw revenue absent” on litigation with the town.

“Each year like clockwork, as we tactic the tip on the calendar year, the CTMCA picks a authorized combat with town, more than permits or something else. We hardly ever initiate it. They maintain throwing funds away on vexatious litigation that they get rid of and also have expenditures awarded from them. This is certainly fully self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the main purpose players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in command of each of the admin, finances and jogging ตรวจ รางวัล the CTMCA.” The investigators said they had been struggling to Speak to Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “discovered a lot of equipment, some in great issue, some in lousy situation and several that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-web-site storage facility where by “devices and many machinery” had been stored.

“We asked him to choose us to the ability but he was evasive to our request.”

Based on shots and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise seem like gear which was illegally removed from the CTMCA’s past premises. Stemmet is going through charges for this elimination.

In accordance with the last progress report submitted to the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators discovered this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape Town, the same handle on which the museum was intended to be crafted and/or transformed,” they reported.

An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.

In keeping with Dabishi Nthambeleni, the organization has paid out R1.two-million to be a deposit, meaning R6.9-million is still owed, although there is absolutely no payment date set for when this should be paid.

The Kopano audit and the shut backlink involving the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition in the equipment on the museum workshop”, the investigators mentioned during the report.

“We find that it's extremely probable that CTMCA used the funding in the NLC to ‘refund’ one of its major administrators for your house at the next overpriced price than the actual price tag and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were put in.

“The truth is, an in depth report on how the funding in the NLC was employed, will be unattainable because the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities spent on each merchandise it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not performed a web-site go to in advance of approving the grant. But this wasn't normal exercise at some time and they discovered no evidence of negligence by NLC personnel.

At enough time, the NLC’s regulations didn't have to have funded organisations to post proof of payment with interim studies, they pointed out. This meant which the CTMCA was ready to get a 2nd tranche of funding without needing to supply evidence that it experienced utilised the primary tranche for its intended intent.

Pursuing the appointment of a fresh board, commissioner and senior executive staff, the NLC has tightened up on these along with other issues.

Dabishi Nthambeleni advisable that

the NLC drop any potential funding purposes in the CTMCA;
the CTMCA and any associates who ended up involved in the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a felony circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated resources.
But, rather than act on the report’s tips, the NLC – less than its past administration – chose to suppress it, as it experienced accomplished Together with the prior experiences into corruption it had commissioned.

GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for email addresses to mail the questions by e mail as well. But no reaction were obtained at enough time of publication.



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

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