Leaked report exposes abuse of lottery revenue compensated to minstrel team

Leaked report exposes abuse of lottery revenue compensated to minstrel team

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Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has observed no proof that a museum ever existed.
The investigators found that the CTMCA didn't make use of the R5-million allotted to buy or establish a museum.
Additionally they identified that the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA made use of resources in the Lottery to get workshop products from certainly one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to create a museum to celebrate town’s loaded minstrel heritage went astray. The museum was never established.

The details on the abuse of countless rands of Lottery resources for any museum that under no circumstances was are discovered within an investigative report commissioned because of the NLC in 2021.

The museum grant was A part of a lot more than R64-million in Lottery cash allotted to your CTMCA involving 2003 and 2017.

The 1st Section of the investigation, by legislation organization Dabishi Nthambeleni, was done among September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which incorporated funding to the museum. The accredited budget for the museum was much more than R12.eight-million, with R5-million of that allocated for your constructing to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a setting up with the museum and whether or not the museum “really existed”.

The organization was also instructed to analyze

the acquisition with Lottery funds of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of devices “purchased with the production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of several directors from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation followed intensive reporting by GroundUp about the an incredible number of rands of Lottery funding allotted to the CTMCA (see listed here, listed here and in this article) and the way in which the cash most likely assisted finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.



The creating on the right was the meant web page with the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - involving 2012 and 2015. All a few projects had been finished, she told MPs.

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

At the outset the museum was due to open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp in the intended Wetton museum exhibits a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung within the walls, and a design ship on its plinth within 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 informed the investigators the museum had been moved simply because they could now not afford to pay for the rent of R100,000 per month. He said the CTMCA had acquired residence for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for the same cost. Schaapkraal is within a peri-city spot significantly from the town.

Therefore, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after browsing the premises, which can be within an industrial spot, the investigators stated they doubted whether or not an appropriate museum existed there. Photos hooked up to your report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, with no explanation.

“You will find there's minimum volume of objects for the museum [that] under no circumstances characterize the more than one hundred-12 months historical past in the Cape Town Carnival, the investigators mentioned, including that there was “no signage exterior the premises indicating that they housed a museum and … typically, the museum isn't going to glance for being open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by going The situation of your museum to an alternative locale without notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA had to maneuver with the rented Crete Highway premises as it experienced operate up a R4-million debt with the City of Cape Town and was worried its products would be connected.

“Due to the legal battles along with the debts, the organisation experienced to move its house from 5 Crete Road to avoid the sheriff from attaching the home in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director from the CTMCA, informed them which the two buses purchased with lottery money had been saved inside of a solution site “hidden from your Sheriff”. But the investigators reported they had been unable to substantiate that any buses had ever been acquired.

Stemmet also verified that the buses had been hidden to halt them currently being seized. But if the investigators questioned to be taken towards the location in which the buses ended up stored, he advised them that “the proprietor of The key locale wasn't accessible to open the premises for us”.

“The CTMCA couldn't give proof of payment for two vehicles that it allegedly acquired with grant income,” the investigators reported.

Soeker also advised them the Schaapkraal property had been bought as a result of financial debt.

“Mr Soeker explained that Based on his understanding, a result of the personal debt owed to town of Cape City, the CTMCA determined it would be ideal to offer their [Schaapkraal] residence … also to also to cover the assets in the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp the CTMCA “threw cash absent” on litigation with the City.

“Each year like clockwork, as we solution the top from the 12 months, the CTMCA picks a lawful fight with the town, around permits or another thing. We by no means initiate it. They preserve throwing cash away on vexatious litigation that they drop and also have charges awarded from them. This is certainly fully self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the primary role gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of every one of the admin, finances and jogging cat888 the CTMCA.” The investigators claimed they had been not able to Make contact with Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “found a lot of machines, some in fantastic issue, some in poor issue and some that looked rusty and very old”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “devices and some machinery” have been kept.

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

Dependant on pictures and invoices in GroundUp’s possession, some, Otherwise all, from the goods appear to be tools that was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing prices for this elimination.

Based on the last development report submitted into the NLC with the CTMCA, the machinery was ordered from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter were being directors at time.

The investigators uncovered this “alarming”.

“Through the CIPC search of Martin-Conne Milliners plus the invoices submitted, we note the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be built and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached to the investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the directors.

Based on Dabishi Nthambeleni, the company has paid R1.two-million as being a deposit, that means R6.nine-million remains owed, though there isn't a payment day set for when this have to be compensated.

The Kopano audit as well as shut hyperlink amongst the companies “show to us that there is ‘foul play’ associated with the purchase of the equipment of your museum workshop”, the investigators said within the report.

“We discover that it is really probable that CTMCA utilized the funding from the NLC to ‘refund’ one of its main administrators to the assets at a better overpriced price than the particular price tag and price of the house and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to determine how the grant to the CTMCA had been spent.

“The truth is, an in depth report on how the funding of your NLC was used, would be unattainable since the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on Every item it asked for funding for. The interim report and ultimate report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not carried out a internet site check out just before approving the grant. But this wasn't normal observe at the time and so they observed no proof of carelessness by NLC staff.

At enough time, the NLC’s procedures didn't demand funded organisations to post evidence of payment with interim experiences, they pointed out. This intended that the CTMCA was ready to get a next tranche of funding without having to offer proof that it had utilised the first tranche for its supposed purpose.

Next the appointment of a fresh board, commissioner and senior executive team, the NLC has tightened up on these and various difficulties.

Dabishi Nthambeleni advised that

the NLC decline any long term funding applications with the CTMCA;
the CTMCA and any associates who had been linked to the grant be subjected on the NLC’s “delinquency” procedure;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated funds.
But, rather than act within the report’s tips, the NLC – under its earlier administration – selected to suppress it, mainly because it experienced done With all the earlier reviews into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and asked for e mail addresses to send the issues by e-mail as well. But no reaction were obtained at some time of publication.



The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph

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