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 carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no proof that a museum at any time existed.
The investigators found which the CTMCA didn't make use of the R5-million allocated to buy or build a museum.
In addition they observed the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA applied resources within the Lottery to invest in workshop gear from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Fee (NLC) to build a museum to celebrate town’s loaded minstrel heritage went astray. The museum was never ever created.

The main points with the abuse of numerous rands of Lottery cash to get a museum that never was are unveiled in an investigative report commissioned with the NLC in 2021.

The museum grant was Element of greater than R64-million in Lottery funds allotted into the CTMCA involving 2003 and 2017.

The 1st part of the investigation, by regulation organization Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which provided funding with the museum. The accepted finances for the museum was over R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.

Browse the report (PDF, 7MB)

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

The business was also instructed to research

the purchase with Lottery resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “bought with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators from the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation adopted extensive reporting by GroundUp with regards to the many rands of Lottery funding allotted to your CTMCA (see below, below and below) and the best way the money most likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.



The making on the correct was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been accomplished, she instructed MPs.

Though the investigators found no evidence that a museum experienced at any time existed.

At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the walls, along with a product ship on its plinth within a corner.

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

Stemmet told the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He stated the CTMCA had acquired residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar selling price. Schaapkraal is inside of a peri-city place significantly from the town.

Therefore, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial space, the investigators explained they doubted no matter whether a proper museum existed there. Images hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find a negligible quantity of products on the museum [that] under no circumstances depict the in excess of one hundred-yr background from the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by transferring The situation in the museum to another place devoid of notifying the NLC.



The Schaapkraal property, on which no museum was ever created. Picture: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA had to move in the rented Crete Road premises mainly because it experienced run up a R4-million credit card debt with the City of Cape Town and was fearful its devices will be connected.

“Due to authorized battles plus the debts, the organisation experienced to maneuver its property from five Crete Street to stay away from the sheriff from attaching the assets from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director of your CTMCA, told them that the two buses purchased with lottery money were being saved inside of a top secret locale “concealed with the Sheriff”. Though the investigators claimed they have been not able to verify that any buses experienced ever been acquired.

Stemmet also confirmed which the buses had been hidden to halt them getting seized. But in the event the investigators asked to generally be taken for the put in which the buses ended up saved, he informed them that “the proprietor of The key site wasn't accessible to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators documented.

Soeker also advised them the Schaapkraal house had been sold because of the debt.

“Mr Soeker explained that Based on his knowing, because of the personal debt owed to the town of Cape Town, the CTMCA made a decision It might be most effective to market their [Schaapkraal] property … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for protection and security, has Earlier explained to GroundUp which the CTMCA “threw cash away” on litigation with the town.

“Annually like clockwork, as we solution the end of the year, the CTMCA picks a legal fight with town, over permits or another thing. We never initiate it. They keep throwing money absent on vexatious litigation they drop and have costs awarded versus them. This is certainly totally self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the most crucial part gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of every one of the admin, funds and operating หวย ลาว ย้อน หลัง the CTMCA.” The investigators reported they were unable to contact Momberg.

Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered a lot of machines, some in fantastic situation, some in terrible situation and several that appeared rusty and extremely old”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “instruments and several machinery” have been retained.

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

Determined by images and invoices in GroundUp’s possession, some, if not all, in the products appear to be machines which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with prices for this removal.

In accordance with the ultimate progress report submitted to your NLC through the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators identified this “alarming”.

“With the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporate is 5 Crete Street, Wetton, Cape Town, the identical deal with on which the museum was intended to be built and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached to the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.

In accordance with Dabishi Nthambeleni, the corporation has paid out R1.two-million as a deposit, that means R6.nine-million is still owed, however there is no payment date set for when this have to be compensated.

The Kopano audit and the close website link amongst the companies “reveal to us that there is ‘foul Engage in’ associated with the purchase from the machinery of your museum workshop”, the investigators reported during the report.

“We discover that it is highly possible that CTMCA utilised the funding from the NLC to ‘refund’ certainly one of its most important directors for the residence at a greater overpriced rate than the actual price and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant to your CTMCA were invested.

“The truth is, an in depth report on how the funding of the NLC was employed, might be impossible because the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on each product it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC experienced not performed a website visit right before approving the grant. But this was not standard observe at time they usually located no proof of negligence by NLC staff members.

At the time, the NLC’s regulations did not call for funded organisations to post evidence of payment with interim reviews, they identified. This intended which the CTMCA was in a position to receive a 2nd tranche of funding while not having to deliver evidence that it experienced used the initial tranche for its meant function.

Pursuing the appointment of a different board, commissioner and senior govt staff, the NLC has tightened up on these together with other difficulties.

Dabishi Nthambeleni encouraged that

the NLC decrease any potential funding applications within the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected on the NLC’s “delinquency” procedure;
the NLC open up a criminal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated money.
But, rather then act around the report’s suggestions, the NLC – underneath its previous administration – chose to suppress it, because it had accomplished with the prior reviews into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to mail the thoughts by electronic mail far too. But no response were been given at enough time of publication.



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