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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant through the National Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has located no proof that a museum ever existed.
The investigators observed the CTMCA did not use the R5-million allocated to buy or create a museum.
They also found the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA used funds in the Lottery to invest in workshop devices from considered one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s wealthy minstrel historical past went astray. The museum was under no circumstances established.

The details in the abuse of a lot of rands of Lottery cash for your museum that under no circumstances was are revealed in an investigative report commissioned by the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery money allocated on the CTMCA among 2003 and 2017.

The main A part of the investigation, by legislation organization Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding for that museum. The authorized price range for the museum was over R12.eight-million, with R5-million of that allocated for just a creating to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating to the museum and whether the museum “basically existed”.

The company was also instructed to research

the purchase with Lottery resources of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous equipment “acquired with the producing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of administrators from the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation adopted comprehensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted on the CTMCA (see in this article, below and right here) and just how the cash likely served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.



The making on the best was the meant web site from the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to some Parliamentary issue, former NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - including the museum - in between 2012 and 2015. All a few jobs were accomplished, she instructed MPs.

Although the investigators located no proof that a museum experienced at any time existed.

In the beginning the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp in the meant Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of images haphazardly hung on the walls, plus a design ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni said it was “not in a position” to confirm if a museum experienced at any time operated from these premises.

Stemmet advised the investigators the museum had been moved as they could now not afford the rent of R100,000 per month. He claimed the CTMCA had bought assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were offered for the same rate. Schaapkraal is in a very peri-urban space much from town.

Subsequently, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, that happen to be within an industrial region, the investigators explained they doubted whether a suitable museum existed there. Shots attached on the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the floor, without having rationalization.

“You will find there's minimum volume of things with the museum [that] by no means stand for the a lot more than a hundred-12 months history with the Cape Town Carnival, the investigators reported, including that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum isn't going to appear being open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by transferring The placement on the museum to an alternate spot with no notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA had to maneuver through the rented Crete Street premises because it experienced run up a R4-million financial debt with the City of Cape City and was concerned its tools would be connected.

“As a result of lawful battles as well as the debts, the organisation experienced to maneuver its residence from 5 Crete Street to avoid the sheriff from attaching the house of the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director of the CTMCA, advised them which the two buses bought with lottery funds have been stored in the solution location “concealed from the Sheriff”. Even so the investigators reported they were not able to verify that any buses had at any time been acquired.

Stemmet also verified the buses had been hidden to halt them remaining seized. But when the investigators asked to generally be taken to your position the place the buses had been saved, he explained to them that “the owner of The key locale was not available to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for 2 automobiles that it allegedly procured with grant cash,” the investigators documented.

Soeker also instructed them the Schaapkraal residence were offered as a result of financial debt.

“Mr Soeker described that In keeping with his knowing, a result of the credit card debt owed to town of Cape City, the CTMCA made a decision It could be greatest to market their [Schaapkraal] house … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for protection and safety, has Earlier explained to GroundUp that the CTMCA “threw income absent” on litigation with town.

“Each and every year like clockwork, as we solution the end in the 12 months, the CTMCA picks a lawful struggle with the City, above permits or something else. We under no circumstances initiate it. They retain throwing revenue absent on vexatious litigation they drop and have costs awarded versus them. This is often totally self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the key position players on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and jogging ตรวจ หวย ล่าสุด the CTMCA.” The investigators claimed they had been struggling to Call Momberg.

Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “observed several machines, some in good ailment, some in terrible problem and a few that seemed rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-web-site storage facility exactly where “instruments and many machinery” had been retained.

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

Based on images and invoices in GroundUp’s possession, some, if not all, on the objects seem like equipment that was illegally removed from the CTMCA’s past premises. Stemmet is facing costs for this removal.

According to the final development report submitted into the NLC because of the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter have been administrators at time.

The investigators found this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Street, Wetton, Cape Town, precisely the same deal with on which the museum was intended to be built and/or transformed,” they described.

An audit by accountants Kopano Incorporated, hooked up towards the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the directors.

In accordance with Dabishi Nthambeleni, the company has paid out R1.two-million as a deposit, indicating R6.nine-million is still owed, however there is no payment date set for when this have to be paid out.

The Kopano audit and the close hyperlink amongst the businesses “suggest to us that there's ‘foul Participate in’ involved in the acquisition with the equipment on the museum workshop”, the investigators claimed in the report.

“We discover that it is extremely possible that CTMCA applied the funding with the NLC to ‘refund’ among its primary administrators for your assets at an increased overpriced charge than the particular cost and worth of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant into the CTMCA had been invested.

“The truth is, an in depth report on how the funding of your NLC was used, could be difficult given that the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts invested on Every single merchandise it asked for funding for. The interim report and remaining report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not conducted a web page visit right before approving the grant. But this wasn't regular observe at some time and so they discovered no proof of carelessness by NLC personnel.

At the time, the NLC’s regulations did not involve funded organisations to submit proof of payment with interim stories, they identified. This intended that the CTMCA was capable to get a 2nd tranche of funding without the need to provide evidence that it experienced made use of the first tranche for its supposed function.

Adhering to the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni advisable that

the NLC decline any future funding purposes from your CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected towards the NLC’s “delinquency” system;
the NLC open a legal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as an alternative to act over the report’s recommendations, the NLC – below its earlier administration – chose to suppress it, because it had completed With all the prior reports into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to send the inquiries by email way too. But no reaction had been gained at some time of publication.



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

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