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

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

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allocated to purchase or create a museum.
They also observed the CTMCA only acquired land truly worth R1.7-million, not R5-million as allotted.
They identified the CTMCA utilized cash from your Lottery to purchase workshop devices from one among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances established.

The main points of the abuse of countless rands of Lottery funds for a museum that never was are revealed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of over R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.

The primary A part of the investigation, by legislation firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for that museum. The approved price range for that museum was more than R12.eight-million, with R5-million of that allotted for just a building to house the museum.

Read the report (PDF, 7MB)

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

The business was also instructed to research

the purchase with Lottery cash of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
several machines “procured to the producing in 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 in 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 as being a director in May possibly 2021.

The investigation followed comprehensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated to the CTMCA (see here, in this article and in this article) and how the money almost certainly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.



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

In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 jobs were done, she told MPs.

However the investigators discovered no proof 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 Road, Wetton. A photograph acquired by GroundUp in the intended Wetton museum displays a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung within the walls, along with a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to substantiate if a museum had at any time operated from these premises.

Stemmet explained to the investigators the museum were moved since they could not manage the hire of R100,000 per month. He claimed the CTMCA had ordered home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-city area considerably from town.

Subsequently, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed 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 an appropriate museum existed there. Photographs hooked up towards the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without rationalization.

“You will find there's minimal quantity of things on the museum [that] by no means symbolize the a lot more than 100-year record with the Cape Town Carnival, the investigators said, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not look to get open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by going the location on the museum to another location with no notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA had to move in the rented Crete Road premises because it experienced operate up a R4-million credit card debt with the town of Cape Town and was afraid its equipment would be hooked up.

“Mainly because of the authorized battles as well as the debts, the organisation had to maneuver its property from five Crete Road to stay away from the sheriff from attaching the home of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources were stored in a very secret area “concealed within the Sheriff”. However the investigators explained they ended up not able to substantiate that any buses experienced ever been purchased.

Stemmet also confirmed that the buses were concealed to prevent them currently being seized. But once the investigators asked to become taken towards the place where the buses were being stored, he informed them that “the operator of The key place wasn't accessible to open up the premises for us”.

“The CTMCA couldn't deliver evidence of payment for 2 motor vehicles that it allegedly procured with grant money,” the investigators reported.

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

“Mr Soeker defined that Based on his comprehending, due to the personal debt owed to the City of Cape City, the CTMCA determined It will be ideal to sell their [Schaapkraal] house … also to also to hide the property of your CTMCA to avoid the sheriff from attaching the residence.”

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

“Each and every year like clockwork, as we tactic the top of your calendar year, the CTMCA picks a lawful struggle with town, about permits or another thing. We never ever initiate it. They hold throwing income away on vexatious litigation which they eliminate and also have fees awarded against them. This is fully self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, funds and running ตรวจ รางวัล the CTMCA.” The investigators stated they were not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in superior problem, some in lousy problem and many that appeared rusty and extremely previous”. Stemmet instructed 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 ability but he was evasive to our request.”

Determined by images and invoices in GroundUp’s possession, some, if not all, from the items look like devices that was illegally faraway from the CTMCA’s former premises. Stemmet is experiencing expenses for this removing.

Based on the final development report submitted towards the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter ended up directors at time.

The investigators observed this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we note the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Street, Wetton, Cape Town, the identical deal with on which the museum was intended to be crafted and/or transformed,” they documented.

An audit by accountants Kopano Incorporated, hooked up into the investigative report, recorded the CTMCA was in the process of purchasing “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the administrators.

In line with Dabishi Nthambeleni, the company has paid out R1.two-million as a deposit, that means R6.nine-million is still owed, even though there is not any payment day set for when this must be paid out.

The Kopano audit and also the shut url in between the companies “point out to us that there is ‘foul play’ involved with the purchase of your machinery of the museum workshop”, the investigators claimed during the report.

“We find that it is hugely possible that CTMCA applied the funding of your NLC to ‘refund’ one among its key directors for your house at an increased overpriced level than the particular rate and worth of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA were put in.

“In fact, a detailed report on how the funding of your NLC was made use of, could well be difficult as being the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts invested on each product it asked for funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not done a internet site visit ahead of approving the grant. But this wasn't conventional practice at the time and they identified no evidence of negligence by NLC staff members.

At some time, the NLC’s procedures didn't have to have funded organisations to submit evidence of payment with interim experiences, they identified. This meant which the CTMCA was able to get a second tranche of funding without needing to provide evidence that it experienced made use of the main tranche for its meant purpose.

Pursuing the appointment of a brand new board, commissioner and senior government team, the NLC has tightened up on these together with other issues.

Dabishi Nthambeleni advised that

the NLC drop any foreseeable future funding purposes in the CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated resources.
But, rather then act to the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, because it experienced completed Using the former stories into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to deliver the issues by e mail much too. But no reaction were been given at some time of publication.



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