Leaked report exposes abuse of lottery revenue paid out to minstrel team

Leaked report exposes abuse of lottery revenue paid out to minstrel team

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Fee to your Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has discovered no evidence that a museum ever existed.
The investigators identified which the CTMCA didn't use the R5-million allocated to purchase or establish a museum.
Additionally they uncovered the CTMCA only acquired land well worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA utilised cash within the Lottery to purchase workshop tools from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape City Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to set up a museum to celebrate the city’s wealthy minstrel historical past went astray. The museum was under no circumstances produced.

The details on the abuse of an incredible number of rands of Lottery cash to get a museum that never ever was are exposed within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of over R64-million in Lottery resources allotted on the CTMCA concerning 2003 and 2017.

The 1st A part of the investigation, by legislation business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which incorporated funding to the museum. The approved price range with the museum was a lot more than R12.eight-million, with R5-million of that allotted for any building to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a building for that museum and whether the museum “really existed”.

The firm was also instructed to investigate

the acquisition with Lottery money of two cars – a 60-seater bus and a 23-seater bus – for R2.4-million; and
a variety of equipment “obtained for the producing of your costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from 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 several administrators with the organisation. Stemmet was reappointed being a director in Could 2021.

The investigation adopted considerable reporting by GroundUp concerning the countless rands of Lottery funding allotted on the CTMCA (see listed here, listed here and below) and the best way the money possibly served finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.



The building on the correct was the intended web-site of your minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “jobs” - such as the museum - concerning 2012 and 2015. All a few jobs had been accomplished, she advised MPs.

Though the investigators uncovered no proof that a museum experienced ever existed.

To start with the museum was on account of open up in rented premises in Crete Road, Wetton. A photo received by GroundUp of the supposed Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung around the walls, as well as a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni explained it had been “not able” to substantiate if a museum experienced at any time operated from these premises.

Stemmet explained to the investigators the museum were moved because they could no more find the money for the lease of R100,000 a month. He said the CTMCA experienced acquired home for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were sold for a similar price. Schaapkraal is in a peri-city spot far from town.

Due to this fact, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after traveling to the premises, that happen to be within an industrial place, the investigators said they doubted irrespective of whether a correct museum existed there. Shots attached to your report demonstrate a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, shown on tables and unfold out on the ground, without any explanation.

“There exists a small degree of goods with the museum [that] by no means stand for the in excess of 100-12 months record in the Cape City Carnival, the investigators claimed, adding that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum does not search being open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating the location from the museum to an alternative location with out notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to move from the rented Crete Road premises because it experienced run up a R4-million credit card debt with the City of Cape Town and was frightened its equipment would be hooked up.

“Due to legal battles along with the debts, the organisation had to maneuver its home from five Crete Road to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director with the CTMCA, instructed them that the two buses bought with lottery resources ended up saved in a very key location “hidden through the Sheriff”. However the investigators reported they ended up unable to verify that any buses had at any time been purchased.

Stemmet also confirmed which the buses were concealed to prevent them remaining seized. But if the investigators requested to become taken towards the position the place the buses were stored, he told them that “the owner of The key place wasn't accessible to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for 2 motor vehicles that it allegedly acquired with grant dollars,” the investigators claimed.

Soeker also informed them the Schaapkraal home had been marketed because of the debt.

“Mr Soeker discussed that In keeping with his comprehending, due to financial debt owed to the City of Cape Town, the CTMCA determined it would be most effective to market their [Schaapkraal] property … also to also to hide the belongings with the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and protection, has Beforehand informed GroundUp which the CTMCA “threw income absent” on litigation with town.

“Each year like clockwork, as we strategy the tip in the yr, the CTMCA picks a authorized battle with the City, in excess of permits or another thing. We hardly ever initiate it. They keep throwing cash absent on vexatious litigation which they eliminate and also have fees awarded in opposition to them. That is totally self-inflicted,” he stated.

Soeker explained to the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in control of all the admin, finances and managing ตรวจ the CTMCA.” The investigators reported they had been struggling to Speak to Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “located numerous machines, some in fantastic situation, some in terrible condition and a few that seemed rusty and very outdated”. Stemmet explained to the investigators that there was also an off-site storage facility exactly where “instruments and some equipment” were being saved.

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

Based on shots and invoices in GroundUp’s possession, some, Otherwise all, on the things appear to be machines that was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with rates for this elimination.

In accordance with the last development report submitted to the NLC because of the CTMCA, the equipment was bought 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 as well as invoices submitted, we Take note the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape City, a similar tackle on which the museum was intended to be crafted and/or converted,” they reported.

An audit by accountants Kopano Integrated, attached into the investigative report, recorded the CTMCA was in the process of obtaining “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 certainly one of the administrators.

In accordance with Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, that means R6.nine-million remains owed, although there isn't a payment day established for when this needs to be compensated.

The Kopano audit and the shut connection concerning the businesses “show to us that there is ‘foul play’ linked to the purchase in the equipment with the museum workshop”, the investigators mentioned inside the report.

“We discover that it is really probable that CTMCA made use of the funding on the NLC to ‘refund’ among its main administrators for the house at the next overpriced charge than the particular price and worth of the residence and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant towards the CTMCA had been spent.

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

The investigators uncovered that the NLC experienced not conducted a internet site visit in advance of approving the grant. But this wasn't regular follow at enough time they usually discovered no evidence of negligence by NLC staff members.

At enough time, the NLC’s procedures didn't require funded organisations to post evidence of payment with interim stories, they identified. This meant that the CTMCA was capable of receive a next tranche of funding without the need to deliver evidence that it had utilized the very first tranche for its supposed reason.

Adhering to the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these and also other concerns.

Dabishi Nthambeleni recommended that

the NLC decrease any upcoming funding programs within the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open up a felony scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, rather than act on the report’s tips, the NLC – less than its past administration – chose to suppress it, as it experienced performed Together with the earlier reports into corruption it experienced commissioned.

GroundUp despatched issues 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 response were obtained at enough time of publication.



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

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