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 photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the National Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has uncovered no proof that a museum ever existed.
The investigators observed that the CTMCA didn't make use of the R5-million allocated to purchase or establish a museum.
Additionally they found that the CTMCA only purchased land worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA employed cash from the Lottery to get workshop tools from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) from the Countrywide Lotteries Commission (NLC) to set up a museum to celebrate the town’s wealthy minstrel background went astray. The museum was hardly ever created.

The details of the abuse of millions of rands of Lottery money to get a museum that in no way was are discovered in an investigative report commissioned with the NLC in 2021.

The museum grant was A part of greater than R64-million in Lottery resources allotted to the CTMCA among 2003 and 2017.

The main A part of the investigation, by legislation company Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which provided funding for that museum. The accredited budget to the museum was much more than R12.8-million, with R5-million of that allotted for a creating to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up for that museum and whether the museum “basically existed”.

The business was also instructed to research

the purchase with Lottery cash of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of devices “purchased for your producing of the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director of 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 ongoing as two of quite a few administrators in the organisation. Stemmet was reappointed like a director in Could 2021.

The investigation adopted comprehensive reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allocated on the CTMCA (see in this article, right here and below) and the way the funds possibly served finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The making on the right was the meant site of the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph

In response to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - such as the museum - in between 2012 and 2015. All a few assignments were concluded, she advised MPs.

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

In the beginning the museum was due to open in rented premises in Crete Street, Wetton. A photo received by GroundUp of your supposed Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to confirm if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum had been moved given that they could no more find the money for the lease of R100,000 a month. He stated the CTMCA had bought home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been sold for a similar selling price. Schaapkraal is inside of a peri-urban area considerably from the town.

Because of this, the museum were moved to a new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, which are within an industrial area, the investigators explained they doubted no matter whether an appropriate museum existed there. Pics attached to the report demonstrate a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed to the wall, displayed on tables and distribute out on the floor, with no explanation.

“You will find a negligible level of products in the museum [that] by no means signify the over 100-12 months background on the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating they housed a museum and … normally, the museum doesn't search being open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by transferring The situation with the museum to an alternative location with out notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA had to maneuver from your rented Crete Highway premises since it had run up a R4-million financial debt with the town of Cape City and was scared its machines could be hooked up.

“Because of the lawful battles as well as debts, the organisation had to maneuver its home from five Crete Street to stay away from the sheriff from attaching the residence on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of your CTMCA, explained to them that the two buses purchased with lottery funds had been saved in a very solution place “hidden through the Sheriff”. Though the investigators said they ended up not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified which the buses were hidden to stop them becoming seized. But once the investigators requested to get taken to your place in which the buses have been stored, he informed them that “the operator of The key locale was not available to open the premises for us”.

“The CTMCA could not give proof of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.

Soeker also told them the Schaapkraal residence were offered due to the personal debt.

“Mr Soeker defined that In keeping with his understanding, as a result of debt owed to town of Cape Town, the CTMCA determined It will be finest to offer their [Schaapkraal] house … and to also to cover the assets of your CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for protection and protection, has previously advised GroundUp which the CTMCA “threw funds absent” on litigation with town.

“Yearly like clockwork, as we tactic the end with the calendar year, the CTMCA picks a legal fight with the town, in excess of permits or another thing. We never initiate it. They maintain throwing cash absent on vexatious litigation which they lose and have fees awarded towards them. This really is entirely self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and managing ผล สลากกินแบ่ง the CTMCA.” The investigators claimed they had been not able to Get in touch with Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered several devices, some in superior situation, some in undesirable affliction plus some that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-website storage facility exactly where “instruments plus some equipment” have been held.

“We asked him to take us to the power but he was evasive to our request.”

Depending on photos and invoices in GroundUp’s possession, some, Otherwise all, on the things look like products that was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing costs for this elimination.

In accordance with the last development report submitted towards the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation during which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators found this “alarming”.

“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the whole process of getting “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the directors.

As outlined by Dabishi Nthambeleni, the organization has paid out R1.2-million being a deposit, this means R6.nine-million remains owed, nevertheless there isn't any payment day established for when this need to be paid out.

The Kopano audit plus the near hyperlink in between the companies “suggest to us that there's ‘foul Perform’ involved in the purchase from the equipment in the museum workshop”, the investigators said from the report.

“We find that it is really probable that CTMCA applied the funding from the NLC to ‘refund’ amongst its principal administrators for that property at a greater overpriced fee than the particular rate and value of the property and/or machinery.”

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

“The truth is, an in depth report on how the funding on the NLC was utilised, will be unattainable because the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on Each individual merchandise it asked for funding for. The interim report and last report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not conducted a internet site visit ahead of approving the grant. But this wasn't standard apply at enough time plus they uncovered no proof of carelessness by NLC workers.

At the time, the NLC’s principles did not demand funded organisations to submit proof of payment with interim reviews, they pointed out. This intended the CTMCA was capable to receive a second tranche of funding without having to deliver evidence that it had made use of the main tranche for its meant objective.

Next the appointment of a different board, commissioner and senior government team, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni suggested that

the NLC decrease any foreseeable future funding programs from the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected to the NLC’s “delinquency” course of action;
the NLC open up a criminal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated resources.
But, as opposed to act to the report’s tips, the NLC – under its prior administration – chose to suppress it, because it had completed Along with the previous studies into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker by using SMS, and questioned for e mail addresses to deliver the thoughts by e-mail much too. But no response were received at enough time of publication.



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

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