Leaked report exposes abuse of lottery revenue compensated to minstrel group

Leaked report exposes abuse of lottery revenue compensated to minstrel group

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum ever existed.
The investigators observed that the CTMCA did not utilize the R5-million allocated to order or build a museum.
Additionally they uncovered that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA employed money with the Lottery to invest in workshop machines from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Nationwide Lotteries Commission (NLC) to set up a museum to rejoice the city’s loaded minstrel heritage went astray. The museum was under no circumstances developed.

The details on the abuse of numerous rands of Lottery resources to get a museum that hardly ever was are unveiled in an investigative report commissioned through the NLC in 2021.

The museum grant was part of a lot more than R64-million in Lottery funds allocated on the CTMCA involving 2003 and 2017.

The main Element of the investigation, by regulation business Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which bundled funding with the museum. The accepted price range for your museum was much more than R12.eight-million, with R5-million of that allocated for a constructing to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the setting up for the museum and whether or not the museum “in fact existed”.

The company was also instructed to investigate

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

The investigation followed intensive reporting by GroundUp regarding the numerous rands of Lottery funding allocated towards the CTMCA (see in this article, below and here) and the best way the cash in all probability helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.



The developing on the ideal was the intended site of the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photograph: Raymond Joseph

In response into a Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - including the museum - among 2012 and 2015. All 3 jobs had been done, she instructed MPs.

Even so the investigators discovered no proof that a museum experienced at any time existed.

At the outset the museum was because of open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of the supposed Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a design ship on its plinth within a corner.

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

Stemmet explained to the investigators the museum were moved as they could not afford the hire of R100,000 a month. He reported the CTMCA had procured house for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been offered for a similar cost. Schaapkraal is in a very peri-urban location significantly from town.

Because of this, the museum were moved to a completely new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after going to the premises, that happen to be in an industrial location, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Pics connected for the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, shown on tables and distribute out on the floor, without having clarification.

“There is a nominal quantity of goods on the museum [that] on no account signify the much more than 100-yr historical past of your Cape City Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't glance to generally be open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by going The placement in the museum to an alternative locale without the need of notifying the NLC.



The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA experienced to move with the rented Crete Road premises as it experienced run up a R4-million financial debt with town of Cape Town and was worried its equipment can be hooked up.

“Because of the authorized battles along with the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of the CTMCA, explained to them that the two buses purchased with lottery resources have been stored in a solution location “hidden within the Sheriff”. Though the investigators mentioned they have been unable to confirm that any buses experienced at any time been purchased.

Stemmet also confirmed that the buses had been hidden to stop them becoming seized. But in the event the investigators requested to be taken to the area exactly where the buses have been saved, he informed them that “the operator of the secret area wasn't accessible to open the premises for us”.

“The CTMCA could not provide proof of payment for two vehicles that it allegedly acquired with grant dollars,” the investigators reported.

Soeker also informed them the Schaapkraal house had been offered due to the financial debt.

“Mr Soeker discussed that Based on his comprehension, because of the financial debt owed to the town of Cape Town, the CTMCA made the decision It will be most effective to provide their [Schaapkraal] assets … and to also to hide the property with the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for security and security, has Beforehand advised GroundUp that the CTMCA “threw income absent” on litigation with the City.

“Annually like clockwork, as we approach the tip with the year, the CTMCA picks a legal struggle with town, above permits or another thing. We never initiate it. They keep throwing revenue away on vexatious litigation that they lose and have expenditures awarded against them. That is solely self-inflicted,” he mentioned.

Soeker explained to the Dabishi Nthambeleni investigators that the key position players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of all of the admin, funds and managing ผล หวย หุ้น the CTMCA.” The investigators explained they had been struggling to Speak to Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “found various devices, some in good issue, some in lousy issue and some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-site storage facility in which “instruments and a few machinery” were saved.

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

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with rates for this elimination.

In accordance with the last development report submitted to the NLC with the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter have been administrators at enough time.

The investigators uncovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the next 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 City, the exact same deal with on which the museum was meant to be designed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and inventory” 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 among the administrators.

Based on Dabishi Nthambeleni, the corporate has paid R1.2-million as being a deposit, that means R6.nine-million remains to be owed, nevertheless there isn't any payment date established for when this must be compensated.

The Kopano audit and the shut connection involving the businesses “show to us that there's ‘foul Participate in’ involved with the purchase of your machinery of the museum workshop”, the investigators reported while in the report.

“We discover that it is really probable that CTMCA applied the funding in the NLC to ‘refund’ amongst its principal administrators for the house at the next overpriced price than the actual price tag and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was not able to determine how the grant to the CTMCA were spent.

“In reality, an in depth report on how the funding of your NLC was made use of, could well be impossible given that the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on each merchandise it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not done a web site stop by ahead of approving the grant. But this wasn't standard follow at enough time they usually discovered no evidence of negligence by NLC staff members.

At some time, the NLC’s rules didn't require funded organisations to submit evidence of payment with interim experiences, they identified. This intended the CTMCA was capable of receive a next tranche of funding without having to provide evidence that it had used the first tranche for its supposed goal.

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

Dabishi Nthambeleni advised that

the NLC drop any long term funding apps from the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open up a felony circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, instead of act around the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it had finished While using the preceding reviews into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and asked for e mail addresses to send the issues by email far too. But no reaction had been acquired at some time of publication.



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

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