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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or make a museum.
Additionally they discovered which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied money from the Lottery to buy workshop tools from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to build a museum to celebrate the town’s rich minstrel historical past went astray. The museum was in no way designed.

The main points in the abuse of millions of rands of Lottery cash for any museum that by no means was are discovered in an investigative report commissioned via the NLC in 2021.

The museum grant was part of in excess of R64-million in Lottery cash allotted on the CTMCA amongst 2003 and 2017.

The initial A part of the investigation, by law firm Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which integrated funding to the museum. The authorised finances for your museum was much more than R12.8-million, with R5-million of that allocated to get a creating to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a setting up for your museum and whether the museum “truly existed”.

The organization was also instructed to analyze

the purchase with Lottery funds of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several machines “ordered for your producing in the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted felony 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 spouse Zainonesa and daughter Raziah ongoing as two of quite a few directors from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted considerable reporting by GroundUp with regards to the a lot of rands of Lottery funding allotted on the CTMCA (see listed here, listed here and right here) and the way the resources in all probability assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.



The setting up on the appropriate was the supposed web-site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “assignments” - such as the museum - involving 2012 and 2015. All a few jobs were completed, she told MPs.

Nevertheless the investigators located no proof that a museum had at any time existed.

At the beginning the museum was due to open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the supposed Wetton museum reveals a espresso store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, as well as a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni said it had been “not ready” to substantiate if a museum had ever operated from these premises.

Stemmet instructed the investigators the museum were moved given that they could now not afford the rent of R100,000 a month. He explained the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were offered for the same value. Schaapkraal is in the peri-urban region far from town.

Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial space, the investigators mentioned they doubted whether or not a suitable museum existed there. Pictures connected into the report present a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find a small degree of items at the museum [that] in no way represent the more than a hundred-12 months historical past from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum would not seem to become open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation of the museum to an alternate site with out notifying the NLC.



The Schaapkraal house, on which no museum was at any time crafted. Image: Raymond Joseph

Buses
Stemmet informed the investigators that the CTMCA had to maneuver from your rented Crete Road premises because it experienced run up a R4-million personal debt with the City of Cape Town and was concerned its equipment will be connected.

“As a result of lawful battles and also the debts, the organisation had to move its home from 5 Crete Street to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director of the CTMCA, explained to them the two buses acquired with lottery money have been stored in a secret location “hidden from the Sheriff”. However the investigators claimed they had been unable to verify that any buses experienced at any time been acquired.

Stemmet also verified which the buses were hidden to stop them staying seized. But when the investigators requested to be taken towards the put where the buses had been stored, he told them that “the owner of the secret location wasn't accessible to open up the premises for us”.

“The CTMCA couldn't deliver proof of payment for two cars that it allegedly bought with grant dollars,” the investigators reported.

Soeker also advised them the Schaapkraal residence had been marketed due to the credit card debt.

“Mr Soeker discussed that Based on his understanding, mainly because of the debt owed to the town of Cape City, the CTMCA decided It might be ideal to offer their [Schaapkraal] residence … also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for basic safety and safety, has previously told GroundUp the CTMCA “threw funds away” on litigation with the town.

“Yearly like clockwork, as we method the top from the calendar year, the CTMCA picks a legal combat with the City, about permits or something else. We under no circumstances initiate it. They maintain throwing dollars absent on vexatious litigation that they get rid of and possess costs awarded in opposition to them. This is often entirely self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial job gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, finances and operating ผล สลากกินแบ่ง the CTMCA.” The investigators explained they were not able to Call Momberg.

Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “discovered many machines, some in superior ailment, some in terrible issue and a few that appeared rusty and very old”. Stemmet instructed the investigators that there was also an off-internet site storage facility exactly where “devices and some machinery” were being stored.

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

Based on images and invoices in GroundUp’s possession, some, Otherwise all, of your products seem like products which was illegally faraway from the CTMCA’s past premises. Stemmet is facing charges for this removal.

According to the final development report submitted into the NLC via the CTMCA, the equipment was acquired from Martin-Conne Milliners, a business during which Stemmet, his spouse and his daughter ended up directors at some time.

The investigators observed this “alarming”.

“Through the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Be aware the subsequent alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Road, Wetton, Cape Town, precisely the same handle on which the museum was meant to be built and/or converted,” they noted.

An audit by accountants Kopano Integrated, connected for the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was among the administrators.

In keeping with Dabishi Nthambeleni, the corporate has paid R1.two-million like a deposit, meaning R6.9-million remains owed, however there isn't any payment day established for when this has to be compensated.

The Kopano audit and also the near backlink between the companies “reveal to us that there's ‘foul Participate in’ linked to the acquisition of the machinery from the museum workshop”, the investigators mentioned inside the report.

“We find that it is highly possible that CTMCA made use of the funding with the NLC to ‘refund’ amongst its key directors for the assets at an increased overpriced charge than the particular price tag and value of the residence and/or machinery.”

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

“The truth is, a detailed report on how the funding on the NLC was used, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities used on Every item it requested funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC had not conducted a site go to prior to approving the grant. But this wasn't typical follow at the time they usually observed no evidence of carelessness by NLC personnel.

At the time, the NLC’s regulations did not have to have funded organisations to submit evidence of payment with interim reports, they pointed out. This intended which the CTMCA was capable to get a next tranche of funding without needing to present evidence that it experienced utilized the 1st tranche for its supposed purpose.

Subsequent the appointment of a whole new board, commissioner and senior government staff, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni suggested that

the NLC decline any long term funding applications within the CTMCA;
the CTMCA and any users who have been associated with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – underneath its previous administration – chose to suppress it, since it experienced done Together with the former reports into corruption it had commissioned.

GroundUp sent concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e-mail also. But no response were been given at enough time of publication.



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