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 conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Countrywide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has found no proof that a museum ever existed.
The investigators observed the CTMCA did not utilize the R5-million allocated to acquire or make a museum.
They also discovered which the CTMCA only bought land value R1.7-million, not R5-million as allocated.
They uncovered the CTMCA employed cash within the Lottery to purchase workshop products from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel history went astray. The museum was under no circumstances made.

The small print in the abuse of numerous rands of Lottery funds for the museum that never was are uncovered within an investigative report commissioned with the NLC in 2021.

The museum grant was part of in excess of R64-million in Lottery money allocated towards the CTMCA involving 2003 and 2017.

The first part of the investigation, by law business Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which integrated funding to the museum. The permitted spending plan to the museum was over R12.8-million, with R5-million of that allotted for just a setting up to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the developing with the museum and whether the museum “essentially existed”.

The firm was also instructed to research

the acquisition with Lottery funds of two autos – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
numerous equipment “obtained for your production of your costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted felony 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 spouse Zainonesa and daughter Raziah continued as two of quite a few administrators from the organisation. Stemmet was reappointed as a director in May 2021.

The investigation adopted in depth reporting by GroundUp in regards to the numerous rands of Lottery funding allotted towards the CTMCA (see below, here and in this article) and just how the money likely helped finance the ANC’s 2014 election campaign during the Western Cape, led by at some time by Marius Fransman.



The building on the proper was the supposed site of the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction into a Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All three jobs had been concluded, she informed MPs.

Though the investigators located no evidence that a museum experienced ever existed.

At the outset the museum was because of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp of your meant Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung around the walls, along with a model ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum had been moved simply because they could no longer afford the hire of R100,000 a month. He said the CTMCA experienced obtained property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been marketed for a similar price tag. Schaapkraal is inside a peri-city area significantly from town.

Therefore, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after viewing the premises, which happen to be within an industrial region, the investigators explained they doubted no matter whether an appropriate museum existed there. Pictures attached for the report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, with no rationalization.

“You will find a minimal number of products on the museum [that] under no circumstances signify the a lot more than one hundred-12 months history in the Cape Town Carnival, the investigators said, incorporating that there was “no signage outside the premises indicating they housed a museum and … frequently, the museum doesn't search to generally be open up to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by moving The placement from the museum to an alternative location with no notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA experienced to move in the rented Crete Highway premises as it experienced operate up a R4-million credit card debt with town of Cape Town and was worried its devices can be attached.

“As a result of lawful battles as well as the debts, the organisation experienced to maneuver its home from five Crete Highway to stay away from the sheriff from attaching the assets in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director of the CTMCA, advised them the two buses acquired with lottery cash were being stored in the secret area “hidden from your Sheriff”. But the investigators explained they were being unable to substantiate that any buses had at any time been bought.

Stemmet also confirmed that the buses had been hidden to stop them becoming seized. But when the investigators questioned to be taken to the place where the buses were saved, he advised them that “the owner of The trick spot wasn't available to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for two cars that it allegedly purchased with grant funds,” the investigators described.

Soeker also explained to them the Schaapkraal property had been sold because of the personal debt.

“Mr Soeker stated that Based on his comprehending, because of the personal debt owed to the City of Cape City, the CTMCA determined It will be greatest to provide their [Schaapkraal] home … and also to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Beforehand informed GroundUp that the CTMCA “threw funds away” on litigation with the town.

“Annually like clockwork, as we solution the top of your calendar year, the CTMCA picks a lawful combat with the town, above permits or something else. We by no means initiate it. They maintain throwing money absent on vexatious litigation that they lose and possess charges awarded towards them. This is fully self-inflicted,” he mentioned.

Soeker explained to the Dabishi Nthambeleni investigators that the leading function players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, funds and operating ผล สลาก the CTMCA.” The investigators explained they had been not able to Call Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “identified a lot of equipment, some in great issue, some in lousy condition and a few that looked rusty and extremely old”. Stemmet informed the investigators that there was also an off-web site storage facility in which “instruments and some equipment” ended up held.

“We asked him to take us to the power but he was evasive to our request.”

According to shots and invoices in GroundUp’s possession, some, if not all, from the merchandise seem like equipment that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with expenses for this removing.

According to the ultimate development report submitted to the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter ended up administrators at some time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was intended to be crafted and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the directors.

As outlined by Dabishi Nthambeleni, the company has paid R1.two-million as a deposit, which means R6.9-million is still owed, although there is absolutely no payment date set for when this must be compensated.

The Kopano audit as well as near website link in between the businesses “point out to us that there is ‘foul Participate in’ involved with the acquisition on the machinery on the museum workshop”, the investigators stated during the report.

“We find that it is really probable that CTMCA utilised the funding of the NLC to ‘refund’ one among its main directors to the residence at the next overpriced price than the actual value and worth of the house and/or machinery.”

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

“The truth is, a detailed report on how the funding in the NLC was utilized, would be impossible given that the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every product it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC experienced not done a web site stop by just before approving the grant. But this was not typical observe at the time and so they located no evidence of negligence by NLC personnel.

At enough time, the NLC’s regulations didn't call for funded organisations to submit proof of payment with interim reports, they identified. This intended that the CTMCA was in a position to get a 2nd tranche of funding while not having to supply evidence that it experienced utilized the first tranche for its supposed goal.

Following the appointment of a different board, commissioner and senior executive workforce, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni advisable that

the NLC drop any potential funding apps from the CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated cash.
But, instead of act around the report’s suggestions, the NLC – underneath its former administration – selected to suppress it, as it experienced carried out With all the earlier reviews into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to mail the inquiries by e-mail much too. But no response had been been given at some time of publication.



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

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