Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators uncovered that the CTMCA didn't utilize the R5-million allocated to get or create a museum.
Additionally they identified which the CTMCA only acquired land value R1.seven-million, not R5-million as allocated.
They located the CTMCA made use of funds from your Lottery to acquire workshop gear from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to create a museum to celebrate the town’s abundant minstrel heritage went astray. The museum was under no circumstances made.

The main points of the abuse of millions of rands of Lottery resources for a museum that under no circumstances was are disclosed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery money allocated on the CTMCA concerning 2003 and 2017.

The primary Element of the investigation, by regulation firm Dabishi Nthambeleni, was performed between September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which involved funding for the museum. The accredited spending budget to the museum was a lot more than R12.8-million, with R5-million of that allocated for the setting up to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the creating to the museum and if the museum “essentially existed”.

The company was also instructed to analyze

the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
different machines “obtained to the manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few administrators of the organisation. Stemmet was reappointed to be a director in May possibly 2021.

The investigation followed intensive reporting by GroundUp with regard to the numerous rands of Lottery funding allotted to the CTMCA (see listed here, in this article and here) and the best way the cash probably helped finance the ANC’s 2014 election campaign within the Western Cape, led by at time by Marius Fransman.



The creating on the best was the intended web site in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to a Parliamentary dilemma, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “assignments” - including the museum - involving 2012 and 2015. All three jobs had been concluded, she informed MPs.

But the investigators observed no evidence that a museum had ever existed.

At the beginning the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp in the supposed Wetton museum shows a coffee shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a model ship on its plinth inside a corner.

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

Stemmet instructed the investigators the museum had been moved simply because they could no longer afford to pay for the lease of R100,000 per month. He explained the CTMCA had acquired home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar price. Schaapkraal is in a very peri-city region significantly from town.

Because of this, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, that happen to be in an industrial location, the investigators explained they doubted no matter if a suitable museum existed there. Images connected towards the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without having explanation.

“There is a nominal quantity of merchandise on the museum [that] on no account symbolize the much more than 100-yr heritage of your Cape City Carnival, the investigators said, including that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum does not seem to generally be open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by going The situation of your museum to an alternate spot with out notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA experienced to move with the rented Crete Highway premises mainly because it experienced run up a R4-million personal debt with town of Cape City and was afraid its tools would be attached.

“Mainly because of the legal battles as well as the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the home on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director with the CTMCA, informed them which the two buses purchased with lottery cash have been saved inside a magic formula spot “concealed from the Sheriff”. However the investigators claimed they were being not able to substantiate that any buses experienced at any time been acquired.

Stemmet also confirmed the buses had been concealed to prevent them being seized. But when the investigators questioned to be taken for the area the place the buses were being saved, he advised them that “the owner of The key locale was not accessible to open the premises for us”.

“The CTMCA couldn't present proof of payment for two cars that it allegedly acquired with grant income,” the investigators described.

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

“Mr Soeker spelled out that As outlined by his knowing, due to the debt owed to the City of Cape Town, the CTMCA made the decision it would be best to sell their [Schaapkraal] property … and to also to cover the property from the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for protection and safety, has previously informed GroundUp which the CTMCA “threw money absent” on litigation with the City.

“Every year like clockwork, as we tactic the top with the year, the CTMCA picks a authorized fight with the City, about permits or something else. We under no circumstances initiate it. They maintain throwing income absent on vexatious litigation which they shed and also have expenditures awarded against them. That is solely self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the primary function players on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for each of the admin, funds and working ผล สลากกินแบ่ง the CTMCA.” The investigators stated they were unable to Call Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located many equipment, some in great ailment, some in terrible situation plus some that looked rusty and very aged”. Stemmet advised the investigators that there was also an off-site storage facility the place “devices plus some machinery” had been held.

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

Determined by shots and invoices in GroundUp’s possession, some, if not all, in the merchandise look like devices that was illegally removed from the CTMCA’s previous premises. Stemmet is facing charges for this removing.

Based on the last progress report submitted towards the NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, a company wherein Stemmet, his wife and his daughter were being directors at enough time.

The investigators uncovered this “alarming”.

“From your CIPC look for of Martin-Conne Milliners along with the invoices submitted, we note the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Street, Wetton, Cape Town, the exact same deal with on which the museum was intended to be developed and/or converted,” they claimed.

An audit by accountants Kopano Included, connected on the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the administrators.

Based on Dabishi Nthambeleni, the organization has paid out R1.2-million as being a deposit, indicating R6.nine-million remains owed, even though there is no payment day established for when this should be paid.

The Kopano audit along with the near url involving the businesses “point out to us that there's ‘foul Engage in’ associated with the purchase from the machinery of the museum workshop”, the investigators said in the report.

“We discover that it is highly possible that CTMCA made use of the funding of your NLC to ‘refund’ amongst its key directors to the assets at a better overpriced rate than the actual rate and value of the residence and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant on the CTMCA had been put in.

“The truth is, an in depth report on how the funding with the NLC was made use of, could be extremely hard since the CTMCA does not have any receipts, or proof of payments to substantiate the quantities invested on Each and every product it requested funding for. The interim report and final report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC had not done a web-site check out before approving the grant. But this was not regular observe at enough time plus they located no proof of negligence by NLC personnel.

At some time, the NLC’s principles didn't involve funded organisations to post evidence of payment with interim reports, they identified. This intended which the CTMCA was ready to get a next tranche of funding without the need to deliver evidence that it had used the first tranche for its supposed reason.

Adhering to the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni advisable that

the NLC decline any upcoming funding programs with the CTMCA;
the CTMCA and any members who have been involved with the grant be subjected to the NLC’s “delinquency” method;
the NLC open a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated resources.
But, as opposed to act over the report’s tips, the NLC – below its former administration – chose to suppress it, as it experienced carried out With all the former reviews into corruption it had commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to send out the inquiries by e-mail too. But no response were obtained at enough time of publication.



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

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