Leaked report exposes abuse of lottery income compensated to minstrel team

Leaked report exposes abuse of lottery income compensated to minstrel team

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Minstrels conduct in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee for the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators discovered that the CTMCA did not use the R5-million allotted to buy or develop a museum.
They also found that the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They found the CTMCA utilized resources within the Lottery to purchase workshop machines from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Commission (NLC) to put in place a museum to rejoice the town’s prosperous minstrel history went astray. The museum was never produced.

The main points on the abuse of a lot of rands of Lottery cash for any museum that hardly ever was are disclosed in an investigative report commissioned with the NLC in 2021.

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

The main Element of the investigation, by law company Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which integrated funding for the museum. The permitted funds to the museum was more than R12.8-million, with R5-million of that allotted to get a building to accommodate the museum.

Go through the report (PDF, 7MB)

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

The business was also instructed to investigate

the purchase with Lottery cash of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
many machines “acquired for the production of the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director with 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 ongoing as two of various administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation followed substantial reporting by GroundUp with regard to the millions of rands of Lottery funding allocated into the CTMCA (see right here, right here and in this article) and how the money almost certainly served finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The making on the correct was the intended web-site with the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - among 2012 and 2015. All a few assignments were finished, she explained to MPs.

However the investigators discovered no evidence that a museum had at any time existed.

At the beginning the museum was on account of open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of your meant Wetton museum demonstrates a coffee store with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung around the partitions, as well as a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni explained it was “not able” to confirm if a museum experienced ever operated from these premises.

Stemmet explained to the investigators the museum had been moved because they could no more manage the lease of R100,000 per month. He said the CTMCA had obtained property for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were offered for a similar price tag. Schaapkraal is inside a peri-urban space significantly from the city.

Because of this, the museum were moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after viewing the premises, which can be in an industrial spot, the investigators claimed they doubted whether or not a correct museum existed there. Pictures hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without having explanation.

“You will find a minimal level of goods in the museum [that] under no circumstances represent the a lot more than a hundred-calendar year record in the Cape City Carnival, the investigators stated, including that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum will not seem to get open to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by going The placement from the museum to another spot with no notifying the NLC.



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

Buses
Stemmet informed the investigators which the CTMCA had to maneuver with the rented Crete Road premises as it had run up a R4-million personal debt with the City of Cape Town and was afraid its gear could well be connected.

“Due to the legal battles as well as debts, the organisation experienced to maneuver its house from 5 Crete Road to avoid the sheriff from attaching the property of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director in the CTMCA, informed them that the two buses purchased with lottery money were saved in the magic formula locale “hidden from the Sheriff”. But the investigators reported they ended up unable to confirm that any buses experienced at any time been purchased.

Stemmet also verified which the buses had been hidden to prevent them getting seized. But in the event the investigators questioned for being taken to the area where by the buses were saved, he instructed them that “the proprietor of The key area was not available to open the premises for us”.

“The CTMCA couldn't present evidence of payment for two automobiles that it allegedly bought with grant money,” the investigators reported.

Soeker also explained to them the Schaapkraal house were marketed because of the credit card debt.

“Mr Soeker defined that In accordance with his comprehending, due to the financial debt owed to the town of Cape City, the CTMCA decided It might be most effective to sell their [Schaapkraal] home … and to also to hide the belongings from the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for security and safety, has Formerly advised GroundUp the CTMCA “threw funds absent” on litigation with the town.

“Yearly like clockwork, as we method the top in the year, the CTMCA picks a authorized struggle with the town, around permits or something else. We never initiate it. They retain throwing cash away on vexatious litigation which they eliminate and also have costs awarded against them. This is fully self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the most crucial purpose gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of the many admin, finances and operating ตรวจ ล้อ ต เต อ รี่ the CTMCA.” The investigators explained they had been unable to Call Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “identified various machines, some in fantastic ailment, some in poor situation and a few that looked rusty and extremely previous”. Stemmet told the investigators that there was also an off-site storage facility where “devices and several machinery” had been stored.

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

Based on shots and invoices in GroundUp’s possession, some, if not all, from the items appear to be equipment that was illegally removed from the CTMCA’s past premises. Stemmet is struggling with prices for this elimination.

According to the ultimate progress report submitted to your NLC by the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation during which Stemmet, his spouse and his daughter were directors at enough time.

The investigators located this “alarming”.

“Within the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, exactly the same address on which the museum was intended to be crafted and/or converted,” they documented.

An audit by accountants Kopano Integrated, attached to your investigative report, recorded which the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.

According to Dabishi Nthambeleni, the organization has paid R1.two-million for a deposit, indicating R6.9-million is still owed, nevertheless there's no payment day set for when this must be paid out.

The Kopano audit as well as the shut website link concerning the companies “suggest to us that there is ‘foul Perform’ involved with the acquisition from the machinery on the museum workshop”, the investigators reported within the report.

“We find that it is hugely possible that CTMCA applied the funding of the NLC to ‘refund’ certainly one of its major directors to the house at a better overpriced charge than the actual cost and price of the residence and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been expended.

“Actually, an in depth report on how the funding in the NLC was used, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every merchandise it requested funding for. The interim report and closing report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC experienced not done a site go to prior to approving the grant. But this wasn't conventional exercise at enough time and so they discovered no proof of negligence by NLC workers.

At some time, the NLC’s policies did not have to have funded organisations to submit evidence of payment with interim reports, they identified. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to present evidence that it had utilised the main tranche for its intended function.

Pursuing the appointment of a brand new board, commissioner and senior executive crew, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni advised that

the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up associated with the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, rather then act about the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it experienced completed with the earlier stories into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to send the queries by e-mail way too. But no response had been obtained at the time of publication.



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