Leaked report exposes abuse of lottery revenue compensated to minstrel team

Leaked report exposes abuse of lottery revenue compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the National Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has discovered no proof that a museum ever existed.
The investigators uncovered which the CTMCA didn't use the R5-million allocated to order or make a museum.
Additionally they identified which the CTMCA only bought land worthy of R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilized cash from the Lottery to get workshop equipment from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the town’s prosperous minstrel heritage went astray. The museum was under no circumstances designed.

The details of your abuse of millions of rands of Lottery resources for any museum that hardly ever was are uncovered in an investigative report commissioned via the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery cash allocated on the CTMCA involving 2003 and 2017.

The 1st Element of the investigation, by legislation agency Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which integrated funding with the museum. The permitted price range for the museum was in excess of R12.8-million, with R5-million of that allocated for just a constructing to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a constructing for that museum and if the museum “in fact existed”.

The company was also instructed to investigate

the acquisition with Lottery resources of two automobiles – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
several machines “procured for that manufacturing of the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors from the organisation. Stemmet was reappointed being a director in May perhaps 2021.

The investigation adopted substantial reporting by GroundUp about the many rands of Lottery funding allocated to your CTMCA (see here, listed here and listed here) and the way in which the funds most likely helped finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.



The building on the proper was the supposed web page from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - including the museum - among 2012 and 2015. All three projects were concluded, she advised MPs.

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

At first the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp on the intended Wetton museum reveals a espresso store with a few musical instruments and minstrel costumes and collages of images haphazardly hung to the partitions, and also a design ship on its plinth in a very corner.

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

Stemmet told the investigators the museum were moved as they could not pay for the hire of R100,000 a month. He reported the CTMCA had purchased residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar cost. Schaapkraal is in a very peri-city location considerably 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 immediately after visiting the premises, which can be in an industrial region, the investigators mentioned they doubted no matter if a suitable museum existed there. Images attached 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 explanation.

“You will find there's nominal amount of goods in the museum [that] under no circumstances represent the in excess of a hundred-year background with the Cape City Carnival, the investigators said, adding that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum isn't going to glance being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement from the museum to another site devoid of notifying the NLC.



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

Buses
Stemmet explained to the investigators the CTMCA experienced to maneuver through the rented Crete Highway premises since it experienced operate up a R4-million financial debt with the town of Cape City and was afraid its products would be attached.

“A result of the lawful battles and the debts, the organisation had to move its property from 5 Crete Road to avoid the sheriff from attaching the property from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses purchased with lottery money had been saved in a very mystery area “hidden with the Sheriff”. Although the investigators mentioned they were unable to substantiate that any buses had at any time been acquired.

Stemmet also confirmed the buses were hidden to prevent them remaining seized. But once the investigators requested to generally be taken for the position where the buses have been stored, he instructed them that “the operator of The trick locale wasn't accessible to open up the premises for us”.

“The CTMCA could not offer evidence of payment for two automobiles that it allegedly ordered with grant money,” the investigators noted.

Soeker also advised them the Schaapkraal house had been sold because of the debt.

“Mr Soeker described that As outlined by his understanding, mainly because of the financial debt owed to the town of Cape Town, the CTMCA made a decision It will be best to promote their [Schaapkraal] home … and to also to cover the assets with the CTMCA to stay away from the sheriff from attaching the assets.”

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

“Annually like clockwork, as we strategy the tip of the yr, the CTMCA picks a authorized combat with town, above permits or another thing. We hardly ever initiate it. They continue to keep throwing dollars absent on vexatious litigation that they drop and possess expenditures awarded from them. This really is entirely self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of every one of the admin, finances and running หวย ลาว วัน นี้ the CTMCA.” The investigators explained they were not able to Make contact with Momberg.

Hats
For the duration of their “investigation in loco” in the Primrose Park premises, the investigators “found various devices, some in great problem, some in negative situation and many that looked rusty and very aged”. Stemmet instructed the investigators that there was also an off-website storage facility wherever “devices and a few machinery” had been held.

“We requested 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 things look like products which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing costs for this elimination.

In accordance with the ultimate development report submitted to the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter were directors at the time.

The investigators discovered this “alarming”.

“Through the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the company is five Crete Street, Wetton, Cape City, a similar tackle on which the museum was intended to be designed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded which the CTMCA was in the process of getting “equipment, plant and stock” 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.

According to Dabishi Nthambeleni, the corporate has compensated R1.two-million to be a deposit, meaning R6.9-million is still owed, although there is absolutely no payment date set for when this must be compensated.

The Kopano audit as well as near url among the companies “suggest to us that there is ‘foul play’ linked to the purchase of your machinery of your museum workshop”, the investigators claimed inside the report.

“We discover that it's very possible that CTMCA utilized the funding with the NLC to ‘refund’ certainly one of its major administrators for the home at an increased overpriced level than the particular price and value of the home and/or machinery.”

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

“The truth is, an in depth report on how the funding in the NLC was employed, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Just about every item it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not executed a site check out before approving the grant. But this was not common observe at the time and they identified no evidence of negligence by NLC personnel.

At enough time, the NLC’s regulations didn't have to have funded organisations to post proof of payment with interim reviews, they identified. This intended the CTMCA was capable of receive a next tranche of funding without the need to present proof that it experienced utilised the primary tranche for its intended reason.

Adhering to the appointment of a brand new board, commissioner and senior govt group, the NLC has tightened up on these and other troubles.

Dabishi Nthambeleni suggested that

the NLC decrease any upcoming funding applications through the CTMCA;
the CTMCA and any users who were associated with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, rather than act over the report’s tips, the NLC – underneath its preceding administration – chose to suppress it, mainly because it had carried out with the former studies into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and questioned for e-mail addresses to mail the queries by e mail as well. But no response were been given at the time of publication.



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

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