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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the Nationwide Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has found no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't use the R5-million allocated to obtain or produce a museum.
Additionally they identified which the CTMCA only purchased land worthy of R1.7-million, not R5-million as allocated.
They found the CTMCA made use of resources from your Lottery to acquire workshop gear from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to the Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Commission (NLC) to put in place a museum to celebrate the town’s wealthy minstrel background went astray. The museum was under no circumstances produced.

The main points from the abuse of countless rands of Lottery resources for your museum that in no way was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery funds allotted to the CTMCA involving 2003 and 2017.

The initial A part of the investigation, by legislation business Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which involved funding with the museum. The accepted spending plan for the museum was a lot more than R12.eight-million, with R5-million of that allocated for a developing to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a building with the museum and whether the museum “really existed”.

The agency was also instructed to analyze

the purchase with Lottery resources of two cars – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
numerous devices “acquired for that production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous administrators in the organisation. Stemmet was reappointed being a director in Might 2021.

The investigation adopted intensive reporting by GroundUp with regards to the an incredible number of rands of Lottery funding allocated towards the CTMCA (see right here, here and in this article) and the best way the funds almost certainly helped finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at the time by Marius Fransman.



The setting up on the proper was the meant website with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “tasks” - such as the museum - between 2012 and 2015. All a few initiatives had been finished, she instructed MPs.

Although the investigators uncovered no evidence that a museum had at any time existed.

At the beginning the museum was as a result of open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp on the intended Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung on the partitions, and a product ship on its plinth in a corner.

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

Stemmet told the investigators the museum were moved given that they could no longer afford to pay for the lease of R100,000 per month. He claimed the CTMCA had purchased residence for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were bought for a similar price tag. Schaapkraal is inside of a peri-urban spot significantly from the city.

As a result, the museum were moved to a different place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after going to the premises, which happen to be within an industrial place, the investigators claimed they doubted regardless of whether a suitable museum existed there. Photos attached to the report clearly show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the floor, without having clarification.

“There's a minimal degree of things at the museum [that] on no account characterize the over a hundred-12 months history with the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating they housed a museum and … frequently, the museum doesn't glance to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by moving The situation on the museum to an alternate location without notifying the NLC.



The Schaapkraal residence, on which no museum was at any time designed. Photograph: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA experienced to maneuver in the rented Crete Street premises because it had operate up a R4-million debt with the town of Cape Town and was scared its devices could be connected.

“Due to the legal battles and also the debts, the organisation experienced to maneuver its house from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery resources have been saved within a secret site “hidden with the Sheriff”. Nevertheless the investigators reported they had been unable to verify that any buses experienced at any time been bought.

Stemmet also confirmed the buses had been hidden to prevent them being seized. But once the investigators requested being taken to the location in which the buses had been saved, he explained to them that “the proprietor of the secret place wasn't available to open the premises for us”.

“The CTMCA couldn't give proof of payment for 2 automobiles that it allegedly bought with grant revenue,” the investigators described.

Soeker also advised them the Schaapkraal property had been bought due to the personal debt.

“Mr Soeker discussed that In accordance with his being familiar with, a result of the debt owed to the City of Cape City, the CTMCA determined It could be best to promote their [Schaapkraal] house … also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the house.”

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

“Each year like clockwork, as we technique the tip in the 12 months, the CTMCA picks a lawful combat with the town, over permits or something else. We never ever initiate it. They maintain throwing revenue absent on vexatious litigation that they lose and also have expenses awarded versus them. This is solely self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial position gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in control of each of the admin, finances and jogging หวย วัน นี้ the CTMCA.” The investigators explained they were struggling to Make contact with Momberg.

Hats
All through their “investigation in loco” in the Primrose Park premises, the investigators “located a lot of devices, some in very good ailment, some in bad problem and a few that looked rusty and extremely aged”. Stemmet told the investigators that there was also an off-site storage facility where “devices plus some equipment” ended up stored.

“We asked him to choose us to the ability but he was evasive to our ask for.”

Based upon photographs and invoices in GroundUp’s possession, some, if not all, of your goods appear to be products which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing costs for this removal.

According to the ultimate development report submitted to the NLC via the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter have been administrators at time.

The investigators discovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Highway, Wetton, Cape Town, precisely the same handle on which the museum was intended to be developed and/or converted,” they described.

An audit by accountants Kopano Included, hooked up to the investigative report, recorded that the CTMCA was in the process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the directors.

In line with Dabishi Nthambeleni, the business has paid R1.two-million to be a deposit, this means R6.nine-million continues to be owed, though there isn't any payment day established for when this has to be paid.

The Kopano audit and the near link concerning the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition of the machinery of your museum workshop”, the investigators mentioned in the report.

“We find that it's highly probable that CTMCA employed the funding on the NLC to ‘refund’ amongst its main administrators with the assets at the next overpriced rate than the particular selling price and worth of the property and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant into the CTMCA were spent.

“In point of fact, a detailed report on how the funding with the NLC was utilized, could well be extremely hard as the CTMCA does not have any receipts, or proof of payments to substantiate the quantities spent on Every single product it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC had not performed a web site check out before approving the grant. But this was not normal exercise at enough time plus they observed no evidence of carelessness by NLC workforce.

At enough time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was in a position to get a next tranche of funding while not having to provide proof that it experienced used the primary tranche for its supposed purpose.

Adhering to the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni recommended that

the NLC decline any future funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated funds.
But, rather than act about the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced completed While using the prior stories into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the issues by e mail far too. But no reaction had been acquired at time of publication.



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