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 complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the National Lotteries Fee on the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no evidence that a museum ever existed.
The investigators observed the CTMCA didn't make use of the R5-million allocated to purchase or make a museum.
Additionally they located that the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilised resources in the Lottery to get workshop products from amongst its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape City Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the city’s wealthy minstrel historical past went astray. The museum was by no means created.

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

The museum grant was Portion of more than R64-million in Lottery money allotted into the CTMCA among 2003 and 2017.

The main Section of the investigation, by regulation business Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which involved funding with the museum. The authorized spending budget for the museum was over R12.8-million, with R5-million of that allotted for any developing to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a building for that museum and if the museum “basically existed”.

The business was also instructed to investigate

the purchase with Lottery cash of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
various devices “acquired for your manufacturing in the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of administrators in the organisation. Stemmet was reappointed to be a director in May 2021.

The investigation followed intensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated into the CTMCA (see listed here, in this article and listed here) and the best way the money most likely helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.



The developing on the right was the supposed web-site in the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph

In response to a Parliamentary question, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “jobs” - including the museum - between 2012 and 2015. All three jobs were concluded, she explained to MPs.

Even so the investigators found no proof that a museum experienced ever existed.

At first the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp on the meant Wetton museum reveals a coffee shop with some musical devices and minstrel costumes and collages of photos haphazardly hung within the partitions, along with a product ship on its plinth in the corner.

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

Stemmet advised the investigators the museum were moved simply because they could now not afford to pay for the rent of R100,000 a month. He reported the CTMCA experienced acquired house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and were marketed for the same price tag. Schaapkraal is within a peri-city location significantly from town.

Therefore, the museum were moved to a brand new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after checking out the premises, which can be in an industrial place, the investigators said they doubted no matter if an appropriate museum existed there. Photos hooked up into the report show a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the floor, without having explanation.

“There's a negligible number of things at the museum [that] by no means stand for the a lot more than a hundred-year background with the Cape City Carnival, the investigators said, adding that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum isn't going to seem being open to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by relocating the location of the museum to another spot without having notifying the NLC.



The Schaapkraal property, on which no museum was at any time developed. Image: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Street premises because it had run up a R4-million personal debt with the City of Cape Town and was fearful its equipment can be hooked up.

“Because of the legal battles along with the debts, the organisation experienced to maneuver its house from five Crete Street to stay away from the sheriff from attaching the house on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director on the CTMCA, advised them the two buses bought with lottery resources were being stored within a magic formula location “concealed through the Sheriff”. Nevertheless the investigators stated they were being unable to substantiate that any buses had at any time been acquired.

Stemmet also confirmed which the buses had been concealed to stop them currently being seized. But when the investigators requested to generally be taken towards the position where the buses have been saved, he explained to them that “the operator of the secret area was not available to open the premises for us”.

“The CTMCA could not supply proof of payment for 2 vehicles that it allegedly acquired with grant money,” the investigators documented.

Soeker also instructed them the Schaapkraal residence had been offered due to debt.

“Mr Soeker spelled out that Based on his comprehension, mainly because of the credit card debt owed to town of Cape Town, the CTMCA made a decision It will be ideal to promote their [Schaapkraal] property … and also to also to cover the belongings on the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for security and stability, has Formerly informed GroundUp which the CTMCA “threw funds absent” on litigation with the City.

“Each year like clockwork, as we approach the end of the yr, the CTMCA picks a authorized combat with town, over permits or something else. We under no circumstances initiate it. They continue to keep throwing revenue absent on vexatious litigation they eliminate and possess costs awarded in opposition to them. This is completely self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the main role players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of all of the admin, funds and managing หวย วัน นี้ the CTMCA.” The investigators reported they had been struggling to Speak to Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “located many devices, some in good problem, some in terrible condition and a few that seemed rusty and very outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility where “devices plus some equipment” have been held.

“We requested him to get us to the ability but he was evasive to our request.”

According to pictures and invoices in GroundUp’s possession, some, Otherwise all, with the goods appear to be equipment which was illegally removed from the CTMCA’s past premises. Stemmet is going through charges for this elimination.

In accordance with the ultimate development report submitted towards the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter ended up administrators at some time.

The investigators found this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the subsequent alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape City, precisely the same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, hooked up for the 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 corporation of which Stemmet was considered one of the administrators.

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

The Kopano audit as well as the shut backlink concerning the businesses “reveal to us that there is ‘foul play’ linked to the acquisition on the machinery of the museum workshop”, the investigators said in the report.

“We discover that it is really possible that CTMCA utilized the funding with the NLC to ‘refund’ among its most important directors for your residence at a higher overpriced fee than the particular cost and worth of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant for the CTMCA had been invested.

“In fact, a detailed report on how the funding of the NLC was used, could well be unachievable given that the CTMCA does not have any receipts, or evidence of payments to verify the amounts expended on Every single item it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not executed a website take a look at prior to approving the grant. But this was not typical practice at the time and so they observed no proof of carelessness by NLC workforce.

At some time, the NLC’s rules did not require funded organisations to post evidence of payment with interim stories, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding while not having to supply proof that it experienced employed the very first tranche for its supposed function.

Subsequent the appointment of a new board, commissioner and senior government team, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni suggested that

the NLC decrease any future funding programs with the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, as opposed to act within the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it experienced performed Along with the earlier reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and requested for email addresses to ship the questions by e mail too. But no response had been gained at the time of publication.



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

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