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 Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has observed no proof that a museum ever existed.
The investigators observed that the CTMCA did not make use of the R5-million allotted to obtain or create a museum.
Additionally they uncovered which the CTMCA only bought land really worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA employed money with the Lottery to invest in workshop machines from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to put in place a museum to rejoice the town’s rich minstrel heritage went astray. The museum was never ever created.

The small print of the abuse of an incredible number of rands of Lottery resources for any museum that by no means was are discovered in an investigative report commissioned because of the NLC in 2021.

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

The first part of the investigation, by regulation firm Dabishi Nthambeleni, was done between September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which included funding for your museum. The approved budget with the museum was much more than R12.eight-million, with R5-million of that allocated for any making to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the constructing to the museum and whether or not the museum “actually existed”.

The agency was also instructed to investigate

the purchase with Lottery cash of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
many equipment “ordered to the production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of administrators in the organisation. Stemmet was reappointed as being a director in May well 2021.

The investigation followed intensive reporting by GroundUp in regards to the many rands of Lottery funding allotted for the CTMCA (see here, listed here and listed here) and the way in which the cash almost certainly helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.



The building on the best was the supposed web page in the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Image: Raymond Joseph

In response to the Parliamentary dilemma, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - between 2012 and 2015. All 3 tasks were accomplished, she told MPs.

Though the investigators located no evidence that a museum had at any time existed.

In the beginning the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp on the meant Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, in addition to a product ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not able” to verify if a museum had ever operated from these premises.

Stemmet informed the investigators the museum were moved because they could now not find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced obtained property for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same price. Schaapkraal is in the peri-city location significantly from town.

Because of this, the museum were moved to a whole new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after traveling to the premises, which are within an industrial space, the investigators reported they doubted regardless of whether a proper museum existed there. Pictures hooked up into the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, displayed on tables and unfold out on the ground, without explanation.

“You will find there's minimum amount of objects at the museum [that] under no circumstances represent the a lot more than a hundred-year historical past with the Cape City Carnival, the investigators said, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't glimpse to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation with the museum to an alternate place without notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to maneuver from the rented Crete Street premises mainly because it had run up a R4-million personal debt with the City of Cape Town and was fearful its gear might be hooked up.

“As a result of authorized battles as well as debts, the organisation experienced to maneuver its assets from five Crete Highway to steer clear of the sheriff from attaching the property from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director in the CTMCA, instructed them which the two buses acquired with lottery resources were stored in a magic formula site “concealed from your Sheriff”. But the investigators explained they were being unable to confirm that any buses had at any time been acquired.

Stemmet also verified which the buses were concealed to prevent them remaining seized. But if the investigators questioned to generally be taken for the location exactly where the buses have been stored, he told them that “the owner of the secret location wasn't available to open up the premises for us”.

“The CTMCA could not give evidence of payment for 2 cars that it allegedly ordered with grant funds,” the investigators documented.

Soeker also explained to them the Schaapkraal house had been bought as a result of debt.

“Mr Soeker stated that As outlined by his understanding, due to debt owed to the City of Cape Town, the CTMCA made the decision It could be ideal to sell their [Schaapkraal] property … also to also to cover the property on the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and protection, has Beforehand instructed GroundUp which the CTMCA “threw funds absent” on litigation with the City.

“On a yearly basis like clockwork, as we solution the end from the calendar year, the CTMCA picks a lawful struggle with the City, above permits or something else. We never initiate it. They preserve throwing dollars absent on vexatious litigation they get rid of and also have prices awarded against them. This can be fully self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial purpose gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who had been in command of all of the admin, funds and working ruay the CTMCA.” The investigators mentioned they had been struggling to Get hold of Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “observed quite a few machines, some in excellent condition, some in terrible problem and some that looked rusty and extremely previous”. Stemmet advised the investigators that there was also an off-web page storage facility where “instruments and a few machinery” had been held.

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

Dependant on shots and invoices in GroundUp’s possession, some, if not all, from the merchandise seem like gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with charges for this removing.

According to the closing progress report submitted to the NLC via the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter have been administrators at some time.

The investigators found this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the subsequent alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is five Crete Street, Wetton, Cape Town, the identical address on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, hooked up towards the investigative report, recorded which the CTMCA was in the process of paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the administrators.

In line with Dabishi Nthambeleni, the organization has paid out R1.two-million to be a deposit, meaning R6.9-million continues to be owed, however there is no payment day established for when this must be paid.

The Kopano audit as well as the close website link amongst the companies “indicate to us that there's ‘foul Enjoy’ associated with the acquisition of your machinery from the museum workshop”, the investigators said in the report.

“We discover that it is remarkably probable that CTMCA made use of the funding in the NLC to ‘refund’ among its most important directors to the assets at a better overpriced level than the actual price tag and price of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA were used.

“In fact, a detailed report on how the funding on the NLC was utilised, might be impossible given that the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on each merchandise it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC experienced not carried out a web page check out before approving the grant. But this was not common observe at the time and so they located no proof of carelessness by NLC workforce.

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 which the CTMCA was ready to get a 2nd tranche of funding while not having to deliver evidence that it had employed the initial tranche for its intended intent.

Next the appointment of a new board, commissioner and senior govt crew, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni recommended that

the NLC decrease any future funding apps in the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the process of recovering the misappropriated funds.
But, as an alternative to act to the report’s tips, the NLC – less than its former administration – selected to suppress it, because it had carried out With all the prior experiences into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and questioned for email addresses to send out the concerns by e mail as well. But no reaction were obtained at the time of publication.



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

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