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 because of the Nationwide Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no evidence that a museum at any time existed.
The investigators located which the CTMCA did not make use of the R5-million allotted to get or establish a museum.
Additionally they observed which the CTMCA only bought land well worth R1.7-million, not R5-million as allotted.
They observed the CTMCA used funds in the Lottery to get workshop products from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to create a museum to rejoice the town’s wealthy minstrel history went astray. The museum was never made.

The details of your abuse of an incredible number of rands of Lottery funds for your museum that never ever was are exposed in an investigative report commissioned by the NLC in 2021.

The museum grant was part of over R64-million in Lottery funds allotted to the CTMCA in between 2003 and 2017.

The primary Portion of the investigation, by legislation organization Dabishi Nthambeleni, was performed among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding to the museum. The permitted spending plan for your museum was much more than R12.eight-million, with R5-million of that allocated for your setting up to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a creating for your museum and whether or not the museum “in fact existed”.

The company was also instructed to investigate

the purchase with Lottery resources of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of machines “purchased for the manufacturing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various directors of your organisation. Stemmet was reappointed for a director in Could 2021.

The investigation adopted comprehensive reporting by GroundUp with regards to the countless rands of Lottery funding allocated into the CTMCA (see right here, below and in this article) and the way in which the money likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.



The creating on the best was the intended internet site on the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 projects had been done, she advised MPs.

Nevertheless the investigators uncovered no proof 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 photo obtained by GroundUp in the intended Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of pics haphazardly hung over the partitions, and a product ship on its plinth inside of a corner.

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

Stemmet advised the investigators the museum had been moved because they could now not manage the rent of R100,000 per month. He stated the CTMCA experienced obtained property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same rate. Schaapkraal is in the peri-city area much from town.

Consequently, the museum had been moved to a different locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which are within an industrial area, the investigators said they doubted regardless of whether a correct museum existed there. Pictures hooked up to your report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the ground, without any rationalization.

“There exists a minimal number of products for the museum [that] in no way characterize the greater than one hundred-12 months record from the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum does not look to become open up to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation with the museum to an alternate place with out notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises mainly because it had run up a R4-million personal debt with the City of Cape Town and was fearful its products can be attached.

“Due to the authorized battles as well as the debts, the organisation experienced to move its assets from 5 Crete Street to avoid the sheriff from attaching the residence of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director of your CTMCA, advised them which the two buses bought with lottery funds had been stored inside a magic formula place “hidden from the Sheriff”. But the investigators said they ended up unable to substantiate that any buses had at any time been purchased.

Stemmet also confirmed which the buses had been concealed to halt them staying seized. But when the investigators questioned being taken into the position where the buses had been saved, he explained to them that “the proprietor of The trick area wasn't available to open the premises for us”.

“The CTMCA couldn't provide proof of payment for two autos that it allegedly procured with grant dollars,” the investigators reported.

Soeker also advised them the Schaapkraal house had been offered as a result of credit card debt.

“Mr Soeker stated that In line with his knowledge, due to credit card debt owed to the City of Cape City, the CTMCA made the decision It could be most effective to sell their [Schaapkraal] assets … also to also to hide the assets on the CTMCA to stay away from the sheriff from attaching the home.”

JP Smith, Cape City’s mayco member for safety and protection, has previously advised GroundUp which the CTMCA “threw income away” on litigation with town.

“Annually like clockwork, as we method the tip of your yr, the CTMCA picks a authorized struggle with town, about permits or something else. We never initiate it. They preserve throwing income absent on vexatious litigation that they drop and have expenses awarded from them. This is completely self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the key part players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for the many admin, finances and functioning หวย หุ้น ช่อง 9 the CTMCA.” The investigators claimed they were unable to Make contact with Momberg.

Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “found a lot of machines, some in fantastic problem, some in lousy affliction and some that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “devices and several machinery” were kept.

“We questioned him to acquire us to the ability but he was evasive to our request.”

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of the merchandise seem like machines that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with fees for this removal.

Based on the closing development report submitted for the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm wherein Stemmet, his wife and his daughter were directors at the time.

The investigators identified this “alarming”.

“Through the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address 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 described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the directors.

In keeping with Dabishi Nthambeleni, the organization has paid out R1.two-million as a deposit, that means R6.nine-million remains owed, however there is no payment date set for when this has to be paid out.

The Kopano audit plus the near url amongst the companies “indicate to us that there's ‘foul Participate in’ linked to the purchase from the equipment in the museum workshop”, the investigators mentioned in the report.

“We find that it's extremely possible that CTMCA used the funding in the NLC to ‘refund’ one of its major administrators for the residence at a greater overpriced amount than the particular cost and worth of the house and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to determine how the grant towards the CTMCA had been invested.

“The truth is, an in depth report on how the funding of your NLC was employed, can be unachievable as being the CTMCA does not have any receipts, or proof of payments to verify the amounts used on each merchandise it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not executed a web site go to before approving the grant. But this was not standard exercise at time they usually identified no proof of carelessness by NLC employees.

At enough time, the NLC’s policies didn't involve funded organisations to post proof of payment with interim reports, they pointed out. This meant that the CTMCA was in the position to get a next tranche of funding without having to give proof that it had used the first tranche for its supposed reason.

Pursuing the appointment of a completely new board, commissioner and senior government workforce, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni recommended that

the NLC decline 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” course of action;
the NLC open up a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated resources.
But, rather then act over the report’s suggestions, the NLC – beneath its earlier administration – selected to suppress it, since it had done While using the preceding reviews into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for email addresses to ship the questions by e-mail much too. But no response had been gained at some time of publication.



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

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