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

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

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has located no evidence that a museum ever existed.
The investigators found that the CTMCA did not make use of the R5-million allocated to buy or create a museum.
They also uncovered the CTMCA only bought land worth R1.7-million, not R5-million as allocated.
They observed the CTMCA made use of money with the Lottery to get workshop tools from one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to build a museum to rejoice town’s rich minstrel historical past went astray. The museum was never ever produced.

The small print in the abuse of an incredible number of rands of Lottery resources for any museum that never was are exposed in an investigative report commissioned through the NLC in 2021.

The museum grant was Component of much more than R64-million in Lottery cash allocated to the CTMCA amongst 2003 and 2017.

The first Section of the investigation, by regulation firm Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which provided funding for your museum. The authorised funds for your museum was greater than R12.eight-million, with R5-million of that allotted for just a developing to house the museum.

Examine the report (PDF, 7MB)

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

The firm was also instructed to analyze

the purchase with Lottery resources of two cars – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
many machines “purchased for your production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous directors with the organisation. Stemmet was reappointed like a director in May perhaps 2021.

The investigation adopted substantial reporting by GroundUp concerning the a lot of rands of Lottery funding allotted to your CTMCA (see here, listed here and right here) and the best way the funds probably assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.



The setting up on the appropriate was the meant web site on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photo: Raymond Joseph

In response into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “projects” - such as the museum - amongst 2012 and 2015. All three projects were finished, she explained to MPs.

But the investigators uncovered no proof that a museum had at any time existed.

Initially the museum was because of open up in rented premises in Crete Road, Wetton. A photo received by GroundUp of the supposed Wetton museum displays a espresso shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung within the walls, and a product ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum had been moved since they could no longer pay for the rent of R100,000 per month. He explained the CTMCA had procured house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were marketed for the same price. Schaapkraal is inside a peri-city location far from the town.

Consequently, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after checking out the premises, which happen to be within an industrial place, the investigators reported they doubted regardless of whether a correct museum existed there. Pictures hooked up into the report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without any rationalization.

“There exists a minimal degree of things within the museum [that] in no way signify the a lot more than one hundred-12 months history of the Cape Town Carnival, the investigators said, including that there was “no signage outside the premises indicating they housed a museum and … usually, the museum would not appear to get open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving the location from the museum to an alternate area devoid of notifying the NLC.



The Schaapkraal residence, on which no museum was ever constructed. Picture: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to maneuver from the rented Crete Highway premises because it experienced run up a R4-million personal debt with the town of Cape Town and was worried its devices will be hooked up.

“Because of the lawful battles along with the debts, the organisation experienced to move its home from five Crete Highway to stay away from the sheriff from attaching the house from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director from the CTMCA, instructed them that the two buses purchased with lottery funds were stored in a very magic formula locale “hidden with the Sheriff”. Although the investigators stated they had been unable to confirm that any buses experienced at any time been acquired.

Stemmet also confirmed that the buses were hidden to stop them currently being seized. But if the investigators requested for being taken towards the spot exactly where the buses had been saved, he advised them that “the owner of The trick area was not accessible to open the premises for us”.

“The CTMCA couldn't provide proof of payment for two autos that it allegedly procured with grant income,” the investigators noted.

Soeker also informed them the Schaapkraal property were marketed due to the debt.

“Mr Soeker explained that In line with his comprehension, as a result of debt owed to the town of Cape City, the CTMCA determined It will be greatest to provide their [Schaapkraal] home … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the assets.”

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

“Each year like clockwork, as we method the end of the year, the CTMCA picks a lawful combat with the town, above permits or something else. We by no means initiate it. They keep throwing revenue away on vexatious litigation that they eliminate and also have costs awarded from them. That is entirely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial part gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of every one of the admin, funds and functioning ผล สลาก the CTMCA.” The investigators claimed they had been not able to contact Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “located various equipment, some in great issue, some in terrible condition and some that looked rusty and intensely aged”. Stemmet told the investigators that there was also an off-site storage facility where “devices plus some equipment” have been stored.

“We questioned him to acquire us to the ability but he was evasive to our request.”

Dependant on images and invoices in GroundUp’s possession, some, if not all, of your objects appear to be products which was illegally removed from the CTMCA’s former premises. Stemmet is going through rates for this removal.

Based on the remaining progress report submitted on the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm in which Stemmet, his spouse and his daughter were directors at the time.

The investigators discovered this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or converted,” they reported.

An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the process of getting “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 one of the directors.

In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, this means R6.nine-million remains owed, while there isn't any payment date established for when this needs to be compensated.

The Kopano audit and the shut backlink amongst the companies “indicate to us that there's ‘foul Perform’ linked to the purchase of your machinery of your museum workshop”, the investigators mentioned in the report.

“We find that it's really probable that CTMCA utilised the funding of your NLC to ‘refund’ among its most important administrators for the home at a better overpriced amount than the particular rate and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant for the CTMCA had been used.

“In point of fact, an in depth report on how the funding on the NLC was employed, could be not possible 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 ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not executed a site check out before approving the grant. But this was not normal exercise at some time they usually found no evidence of carelessness by NLC employees.

At the time, the NLC’s guidelines did not require funded organisations to post evidence of payment with interim studies, they pointed out. This intended the CTMCA was capable to receive a next tranche of funding while not having to give proof that it experienced utilized the first tranche for its supposed goal.

Next the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these along with other difficulties.

Dabishi Nthambeleni suggested that

the NLC decrease any upcoming funding applications through the CTMCA;
the CTMCA and any users who were being involved in the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a felony scenario of fraud with SAPS or perhaps 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, as it had carried out with the past reviews into corruption it experienced commissioned.

GroundUp sent inquiries to Stemmet and Soeker by way of SMS, and asked for email addresses to send the issues by e-mail too. But no reaction had been received at the time of publication.



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

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