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

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

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Minstrels execute in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission for the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no proof that a museum at any time existed.
The investigators located that the CTMCA didn't utilize the R5-million allocated to get or build a museum.
Additionally they identified the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA utilized cash from your Lottery to purchase workshop machines from certainly one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Commission (NLC) to set up a museum to rejoice the town’s loaded minstrel record went astray. The museum was in no way designed.

The details of your abuse of an incredible number of rands of Lottery cash for your museum that under no circumstances was are discovered in an investigative report commissioned via the NLC in 2021.

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

The main part of the investigation, by regulation business Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which involved funding for that museum. The accredited funds for your museum was greater than R12.eight-million, with R5-million of that allocated to get a creating to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing to the museum and whether or not the museum “in fact existed”.

The firm was also instructed to analyze

the acquisition with Lottery money of two cars – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
different equipment “ordered to the production from the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of the 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 various administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted extensive reporting by GroundUp with regard to the numerous rands of Lottery funding allocated towards the CTMCA (see here, here and in this article) and the way the cash in all probability assisted finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The developing on the correct was the meant site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response into a Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “projects” - such as the museum - amongst 2012 and 2015. All three projects had been finished, she explained to MPs.

Though the investigators observed no evidence that a museum had at any time existed.

To start with the museum was on account of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp with the supposed Wetton museum exhibits a espresso store with a few musical devices and minstrel costumes and collages of pictures haphazardly hung about the walls, plus a design ship on its plinth in the corner.

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

Stemmet advised the investigators the museum were moved since they could now not find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced obtained property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same rate. Schaapkraal is in the peri-city region significantly from town.

Consequently, the museum had been moved to a different locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which are within an industrial area, the investigators said they doubted regardless of whether a correct museum existed there. Photographs attached into the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the floor, without explanation.

“You will find there's nominal quantity of goods on the museum [that] on no account signify the much more than 100-yr background in the Cape City Carnival, the investigators reported, adding that there was “no signage outside the house the premises indicating that they housed a museum and … usually, the museum won't look to get open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by moving The situation of your museum to an alternative location devoid of notifying the NLC.



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

Buses
Stemmet told the investigators the CTMCA had to move within the rented Crete Road premises because it experienced operate up a R4-million financial debt with town of Cape City and was scared its gear could well be connected.

“A result of the authorized battles and the debts, the organisation had to move its assets from 5 Crete Road to avoid the sheriff from attaching the residence with the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director of the CTMCA, informed them which the two buses purchased with lottery cash were saved inside a solution area “concealed from your Sheriff”. However the investigators mentioned they had been not able to substantiate that any buses experienced at any time been purchased.

Stemmet also verified which the buses had been hidden to prevent them being seized. But in the event the investigators questioned for being taken to the put the place the buses had been stored, he told them that “the operator of The trick location wasn't available to open up the premises for us”.

“The CTMCA could not provide proof of payment for two vehicles that it allegedly purchased with grant funds,” the investigators described.

Soeker also explained to them the Schaapkraal property had been offered because of the credit card debt.

“Mr Soeker stated that In line with his knowledge, due to the debt owed to town of Cape City, the CTMCA made the decision it would be finest to promote their [Schaapkraal] residence … and to also to hide the belongings of the CTMCA to stay away from the sheriff from attaching the assets.”

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

“Each year like clockwork, as we strategy the tip in the yr, the CTMCA picks a legal fight with town, about permits or another thing. We never ever initiate it. They hold throwing funds absent on vexatious litigation they drop and have expenditures awarded in opposition to them. This really is solely self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the leading function gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of every one of the admin, funds and running lottovip the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “found several devices, some in fantastic condition, some in poor issue and many that seemed rusty and very outdated”. Stemmet advised the investigators that there was also an off-web-site storage facility wherever “devices and several machinery” were being saved.

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

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like equipment that was illegally faraway from the CTMCA’s earlier premises. Stemmet is struggling with expenses for this removing.

According to the ultimate development report submitted to the NLC through the CTMCA, the equipment was procured from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been directors at time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, precisely the same address on which the museum was meant to be constructed and/or transformed,” they noted.

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

In keeping with Dabishi Nthambeleni, the company has paid R1.2-million as being a deposit, which means R6.9-million is still owed, although there is absolutely no payment date established for when this must be compensated.

The Kopano audit plus the near website link in between the businesses “reveal to us that there is ‘foul Enjoy’ associated with the acquisition on the equipment on the museum workshop”, the investigators stated from the report.

“We find that it is remarkably probable that CTMCA employed the funding of your NLC to ‘refund’ among its key administrators for the home at an increased overpriced level than the particular price and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant to your CTMCA were put in.

“Actually, a detailed report on how the funding of the NLC was used, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on each merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not done a web site stop by prior to approving the grant. But this was not typical observe at the time and they identified no evidence of negligence by NLC staff.

At time, the NLC’s policies did not demand funded organisations to submit proof of payment with interim experiences, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding without needing to provide evidence that it had used the 1st tranche for its meant purpose.

Pursuing the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni suggested that

the NLC decrease any upcoming funding applications through the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as opposed to act within the report’s recommendations, the NLC – less than its past administration – chose to suppress it, mainly because it experienced carried out with the past studies into corruption it experienced commissioned.

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



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

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