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 photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has discovered no evidence that a museum ever existed.
The investigators found which the CTMCA did not use the R5-million allotted to obtain or produce a museum.
Additionally they identified which the CTMCA only acquired land value R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of money from the Lottery to purchase workshop equipment from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) via the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s wealthy minstrel heritage went astray. The museum was under no circumstances designed.

The small print of your abuse of many rands of Lottery money for a museum that under no circumstances was are exposed within an investigative report commissioned via the NLC in 2021.

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

The first Component of the investigation, by law agency Dabishi Nthambeleni, was executed involving September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for the museum. The authorised budget for that museum was more than R12.8-million, with R5-million of that allocated for just a constructing to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a creating to the museum and if the museum “truly existed”.

The company was also instructed to investigate

the purchase with Lottery funds of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
numerous machines “purchased with the production in the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted legal 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 spouse Zainonesa and daughter Raziah ongoing as two of numerous administrators of your organisation. Stemmet was reappointed being a director in May 2021.

The investigation followed intensive reporting by GroundUp about the an incredible number of rands of Lottery funding allocated to your CTMCA (see in this article, below and here) and how the resources likely assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at enough time by Marius Fransman.



The setting up on the proper was the supposed website of your minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to a Parliamentary problem, previous NLC Commissioner Thabang Mampane shown grants to a few CTMCA “jobs” - including the museum - concerning 2012 and 2015. All three jobs were finished, she informed MPs.

Though the investigators uncovered no proof that a museum experienced at any time existed.

At the outset the museum was because of open up in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp with the meant Wetton museum shows a coffee store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung on the walls, and also a product ship on its plinth within a corner.

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

Stemmet informed the investigators the museum were moved given that they could not manage the rent of R100,000 per month. He mentioned the CTMCA experienced ordered home for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were bought for the same price tag. Schaapkraal is in a peri-city area much from the town.

As a result, the museum had been moved to a whole new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after going to the premises, which happen to be within an industrial region, the investigators explained they doubted no matter whether a correct museum existed there. Images connected to your report clearly show a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the floor, without having clarification.

“There's a minimal quantity of merchandise within the museum [that] by no means signify the a lot more than a hundred-year heritage with the Cape City Carnival, the investigators stated, incorporating that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum isn't going to glance to generally be open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by relocating The placement of the museum to another area without the need of notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA had to maneuver from the rented Crete Street premises mainly because it experienced operate up a R4-million financial debt with town of Cape Town and was worried its gear might be hooked up.

“Because of the legal battles as well as debts, the organisation experienced to maneuver its assets from 5 Crete Street to stay away from the sheriff from attaching the residence of the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director with the CTMCA, instructed them which the two buses purchased with lottery money ended up stored inside a key spot “hidden in the Sheriff”. Even so the investigators mentioned they had been not able to confirm that any buses experienced at any time been bought.

Stemmet also confirmed that the buses had been hidden to prevent them staying seized. But in the event the investigators questioned to generally be taken towards the location in which the buses have been stored, he told them that “the operator of The key area was not accessible to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for two vehicles that it allegedly purchased with grant revenue,” the investigators described.

Soeker also instructed them the Schaapkraal home were offered because of the personal debt.

“Mr Soeker discussed that As outlined by his knowing, because of the personal debt owed to the City of Cape Town, the CTMCA determined It could be most effective to promote their [Schaapkraal] house … also to also to cover the property with the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for protection and protection, has Earlier informed GroundUp that the CTMCA “threw revenue absent” on litigation with the City.

“Each year like clockwork, as we method the top on the yr, the CTMCA picks a lawful battle with the City, about permits or something else. We in no way initiate it. They keep throwing revenue away on vexatious litigation which they drop and possess charges awarded in opposition to them. This can be entirely self-inflicted,” he explained.

Soeker explained to the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for all of the admin, finances and running ตรวจ หวย ย้อน หลัง the CTMCA.” The investigators claimed they had been unable to Get hold of Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “uncovered numerous devices, some in fantastic condition, some in undesirable condition and some that seemed rusty and very aged”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “devices and many machinery” were retained.

“We requested him to just take us to the facility but he was evasive to our ask for.”

Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise appear to be devices that was illegally removed from the CTMCA’s past premises. Stemmet is dealing with rates for this removal.

In accordance with the last progress report submitted for the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were directors at time.

The investigators identified this “alarming”.

“Through the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the company is five Crete Road, Wetton, Cape Town, the identical address on which the museum was intended to be built and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, attached to your investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was among the administrators.

According to Dabishi Nthambeleni, the company has paid R1.two-million to be a deposit, indicating R6.nine-million continues to be owed, even though there's no payment day set for when this should be compensated.

The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul play’ associated with the acquisition with the machinery in the museum workshop”, the investigators reported within the report.

“We find that it is extremely probable that CTMCA employed the funding on the NLC to ‘refund’ considered one of its most important administrators with the residence at an increased overpriced fee than the actual cost and price of the assets and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been unable to determine how the grant for the CTMCA were expended.

“In fact, an in depth report on how the funding from the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on Each individual item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC experienced not conducted a internet site stop by prior to approving the grant. But this wasn't standard apply at time plus they located no evidence of carelessness by NLC workforce.

At enough time, the NLC’s regulations did not need funded organisations to post proof of payment with interim experiences, they pointed out. This intended the CTMCA was in a position to get a second tranche of funding without the need to present proof that it had made use of the primary tranche for its supposed goal.

Next the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these together with other issues.

Dabishi Nthambeleni advised that

the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on 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 process of recovering the misappropriated cash.
But, as an alternative to act within the report’s tips, the NLC – underneath its earlier administration – selected to suppress it, as it had done While using the earlier experiences into corruption it experienced commissioned.

GroundUp sent inquiries to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the thoughts by email way too. But no response had been acquired at time of publication.



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