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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the Countrywide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no evidence that a museum ever existed.
The investigators observed that the CTMCA didn't utilize the R5-million allocated to obtain or make a museum.
Additionally they discovered which the CTMCA only acquired land well worth R1.7-million, not R5-million as allocated.
They identified the CTMCA used resources through the Lottery to buy workshop machines from among its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape City Minstrel Carnival Association (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s abundant minstrel record went astray. The museum was by no means developed.

The details from the abuse of numerous rands of Lottery resources for any museum that in no way was are exposed within an investigative report commissioned with the NLC in 2021.

The museum grant was Component of much more than R64-million in Lottery cash allotted to your CTMCA between 2003 and 2017.

The first part of the investigation, by regulation agency Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding with the museum. The accredited finances for that museum was in excess of R12.eight-million, with R5-million of that allotted for any setting up to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing to the museum and whether or not the museum “truly existed”.

The business was also instructed to analyze

the purchase with Lottery money of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
various devices “ordered for that manufacturing of the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators on the organisation. Stemmet was reappointed like a director in May perhaps 2021.

The investigation followed considerable reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated on the CTMCA (see in this article, right here and right here) and the way in which the cash probably assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.



The making on the proper was the supposed web-site in the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Image: Raymond Joseph

In response into a Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “projects” - such as the museum - amongst 2012 and 2015. All 3 tasks were concluded, she advised MPs.

Though the investigators located no proof that a museum had at any time existed.

At the beginning the museum was due to open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of the meant Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, along with a product ship on its plinth inside of a corner.

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

Stemmet advised the investigators the museum were moved because they could no longer manage the hire of R100,000 a month. He mentioned the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar rate. Schaapkraal is in a very peri-urban location far from the town.

Therefore, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after going to the premises, which are within an industrial location, the investigators explained they doubted regardless of whether a suitable museum existed there. Shots connected on the report exhibit a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, without having rationalization.

“There's a minimum quantity of goods in the museum [that] under no circumstances depict the over one hundred-year background of your Cape Town Carnival, the investigators stated, including that there was “no signage exterior the premises indicating that they housed a museum and … commonly, the museum doesn't glance to generally be open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by moving the location from the museum to an alternate locale without having notifying the NLC.



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

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises mainly because it had operate up a R4-million debt with the town of Cape City and was worried its equipment might be connected.

“Because of the lawful battles along with the debts, the organisation experienced to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the house of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them that the two buses purchased with lottery money were being saved in a mystery spot “hidden through the Sheriff”. Though the investigators reported they were being not able to verify that any buses had ever been bought.

Stemmet also confirmed the buses had been hidden to halt them remaining seized. But if the investigators asked to generally be taken on the location where by the buses ended up saved, he instructed them that “the owner of The key locale was not accessible to open up the premises for us”.

“The CTMCA could not offer proof of payment for two cars that it allegedly bought with grant money,” the investigators noted.

Soeker also informed them the Schaapkraal house were marketed as a result of credit card debt.

“Mr Soeker defined that In line with his comprehension, due to credit card debt owed to the City of Cape Town, the CTMCA determined it would be best to sell their [Schaapkraal] assets … and also to also to cover the belongings on the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for protection and stability, has previously informed GroundUp that the CTMCA “threw income absent” on litigation with town.

“Each year like clockwork, as we strategy the end on the yr, the CTMCA picks a legal struggle with the town, above permits or something else. We never ever initiate it. They hold throwing funds absent on vexatious litigation which they reduce and possess prices awarded from them. This is certainly totally self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the leading position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being answerable for the many admin, finances and functioning สลาก กิน the CTMCA.” The investigators explained they were not able to Call Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “discovered quite a few devices, some in very good issue, some in terrible ailment plus some that seemed rusty and very old”. Stemmet told the investigators that there was also an off-web site storage facility wherever “instruments and several machinery” were stored.

“We requested him to get us to the facility but he was evasive to our request.”

According to images and invoices in GroundUp’s possession, some, Otherwise all, of your objects appear to be devices which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with rates for this elimination.

According to the remaining progress report submitted to your NLC from the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization during which Stemmet, his spouse and his daughter had been directors at some time.

The investigators discovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape City, the exact same handle on which the museum was intended to be built and/or converted,” they noted.

An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded which the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one among the directors.

In accordance with Dabishi Nthambeleni, the corporation has paid R1.2-million as a deposit, which means R6.9-million remains owed, even though there isn't a payment day set for when this has to be paid.

The Kopano audit and also the near url amongst the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition in the equipment from the museum workshop”, the investigators said during the report.

“We find that it is remarkably possible that CTMCA used the funding on the NLC to ‘refund’ among its key directors for your house at the next overpriced level than the particular selling price and price of the assets and/or equipment.”

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

“The truth is, a detailed report on how the funding of the NLC was utilized, could be not possible given that the CTMCA does not have any receipts, or proof of payments to substantiate the quantities spent on Each individual item it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not carried out a web page pay a visit to right before approving the grant. But this wasn't regular follow at enough time plus they uncovered no evidence of negligence by NLC employees.

At some time, the NLC’s rules didn't involve funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in the position to receive a second tranche of funding without having to provide evidence that it experienced utilised the very first tranche for its supposed objective.

Pursuing the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these and other concerns.

Dabishi Nthambeleni proposed that

the NLC drop any future funding applications in the CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated cash.
But, as opposed to act on the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it experienced done Along with the previous studies into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the issues by electronic mail too. But no response had been received at the time of publication.



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