Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels execute in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum at any time existed.
The investigators found the CTMCA didn't utilize the R5-million allocated to order or build a museum.
They also found that the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They located the CTMCA employed money with the Lottery to get workshop equipment from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape City Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Fee (NLC) to setup a museum to rejoice the city’s wealthy minstrel heritage went astray. The museum was never ever designed.

The main points from the abuse of many rands of Lottery resources for the museum that under no circumstances was are discovered in an investigative report commissioned via the NLC in 2021.

The museum grant was part of over R64-million in Lottery money allocated to the CTMCA between 2003 and 2017.

The 1st Portion of the investigation, by regulation agency Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which bundled funding for that museum. The permitted spending plan with the museum was over R12.8-million, with R5-million of that allocated to get a developing to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the making to the museum and whether the museum “actually existed”.

The organization was also instructed to research

the purchase with Lottery funds of two vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “purchased to the producing from the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director in 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 ongoing as two of many directors from the organisation. Stemmet was reappointed as being a director in Might 2021.

The investigation adopted considerable reporting by GroundUp about the many rands of Lottery funding allocated for the CTMCA (see here, listed here and here) and the best way the resources almost certainly served finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The constructing on the appropriate was the intended website of the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to your Parliamentary issue, former NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “tasks” - such as the museum - concerning 2012 and 2015. All three jobs were concluded, she explained to MPs.

Even so the investigators discovered no proof that a museum experienced at any time existed.

At the outset the museum was because of open in rented premises in Crete Road, Wetton. A photo received by GroundUp of your intended Wetton museum exhibits a espresso shop with some musical instruments and minstrel costumes and collages of images haphazardly hung around the walls, and also a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni stated it was “not able” to confirm if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum were moved since they could now not afford the lease of R100,000 per month. He stated the CTMCA had acquired residence for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for a similar rate. Schaapkraal is within a peri-urban region far from town.

Subsequently, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after checking out the premises, which are in an industrial region, the investigators stated they doubted whether a proper museum existed there. Photos hooked up to your report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, displayed on tables and unfold out on the floor, without explanation.

“You will find there's nominal quantity of goods on the museum [that] on no account symbolize the over 100-calendar year heritage of the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … usually, the museum will not seem being open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by going The situation on the museum to an alternative location without notifying the NLC.



The Schaapkraal residence, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Highway premises because it experienced operate up a R4-million financial debt with the town of Cape City and was frightened its machines will be connected.

“Due to the legal battles plus the debts, the organisation experienced to maneuver its residence from five Crete Highway to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director from the CTMCA, told them that the two buses acquired with lottery cash have been stored inside a secret locale “hidden from your Sheriff”. However the investigators reported they have been not able to verify that any buses experienced ever been purchased.

Stemmet also verified the buses were concealed to stop them getting seized. But in the event the investigators requested being taken for the place wherever the buses had been stored, he instructed them that “the operator of The trick place was not available to open up the premises for us”.

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

Soeker also instructed them the Schaapkraal house had been sold due to personal debt.

“Mr Soeker explained that In accordance with his comprehension, a result of the financial debt owed to town of Cape City, the CTMCA determined It will be finest to market their [Schaapkraal] property … and also to also to cover the property of your CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Formerly instructed GroundUp which the CTMCA “threw money away” on litigation with the City.

“Each and every year like clockwork, as we solution the top of the year, the CTMCA picks a legal struggle with town, around permits or another thing. We hardly ever initiate it. They maintain throwing cash away on vexatious litigation which they reduce and also have expenses awarded against them. This really is completely self-inflicted,” he stated.

Soeker informed the Dabishi Nthambeleni investigators that the primary function gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of all the admin, finances and jogging ตรวจ ล้อ ต เต อ รี่ the CTMCA.” The investigators explained they had been struggling to Call Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located numerous devices, some in superior problem, some in lousy problem and some that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility in which “instruments plus some machinery” were held.

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

Determined by pics and invoices in GroundUp’s possession, some, if not all, in the things appear to be machines that was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with costs for this removal.

In accordance with the remaining development report submitted to your NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter were being directors at some time.

The investigators observed this “alarming”.

“With the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we note the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Road, Wetton, Cape Town, precisely the same tackle on which the museum was meant to be designed and/or converted,” they described.

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

As outlined by Dabishi Nthambeleni, the business has compensated R1.two-million for a deposit, that means R6.nine-million continues to be owed, although there isn't any payment date set for when this needs to be paid.

The Kopano audit plus the near backlink between the businesses “reveal to us that there is ‘foul play’ involved in the acquisition in the equipment with the museum workshop”, the investigators reported during the report.

“We find that it is really probable that CTMCA used the funding with the NLC to ‘refund’ one among its main directors for that home at a better overpriced rate than the actual selling price and value of the residence and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was unable to determine how the grant on the CTMCA were expended.

“In reality, a detailed report on how the funding in the NLC was made use of, would be not possible since the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts spent on Every product it requested funding for. The interim report and remaining report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not conducted a web page take a look at just before approving the grant. But this wasn't common apply at the time they usually identified no proof of carelessness by NLC workers.

At time, the NLC’s regulations didn't require funded organisations to submit proof of payment with interim reviews, they identified. This meant the CTMCA was in a position to receive a second tranche of funding without needing to present evidence that it experienced applied the main tranche for its supposed reason.

Pursuing the appointment of a different board, commissioner and senior government team, the NLC has tightened up on these as well as other issues.

Dabishi Nthambeleni proposed that

the NLC decrease any potential funding applications with the CTMCA;
the CTMCA and any associates who were involved with the grant be subjected to the NLC’s “delinquency” approach;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated funds.
But, as opposed to act about the report’s tips, the NLC – underneath its preceding administration – selected to suppress it, because it had done Using the previous experiences into corruption it had commissioned.

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



The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph

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