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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no proof that a museum ever existed.
The investigators located which the CTMCA didn't utilize the R5-million allotted to purchase or make a museum.
In addition they uncovered the CTMCA only acquired land really worth R1.seven-million, not R5-million as allotted.
They located the CTMCA utilized money through the Lottery to acquire workshop products from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the city’s rich minstrel heritage went astray. The museum was hardly ever produced.

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

The museum grant was part of in excess of R64-million in Lottery money allocated to your CTMCA in between 2003 and 2017.

The first Portion of the investigation, by regulation company Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which bundled funding for the museum. The accepted funds for the museum was much more than R12.eight-million, with R5-million of that allotted to get a developing to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a making with the museum and whether the museum “really existed”.

The company was also instructed to investigate

the purchase with Lottery money of two cars – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of devices “ordered with the production with the costumes and hats” for that minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several directors of the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation adopted substantial reporting by GroundUp regarding the many rands of Lottery funding allocated on the CTMCA (see below, here and right here) and the way in which the funds in all probability helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.



The making on the right was the supposed site from the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “initiatives” - including the museum - involving 2012 and 2015. All three jobs had been concluded, she advised MPs.

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

In the beginning the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp from the meant Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of images haphazardly hung within the partitions, and also a product ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum were moved mainly because they could now not afford to pay for the lease of R100,000 a month. He said the CTMCA experienced acquired home for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been bought for the same price. Schaapkraal is in a very peri-urban spot far from town.

Due to this fact, the museum had been moved to a whole new place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after going to the premises, which happen to be within an industrial area, the investigators explained they doubted whether a correct museum existed there. Images hooked up towards the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, shown on tables and unfold out on the ground, without having clarification.

“There's a minimal amount of goods on the museum [that] in no way stand for the a lot more than a hundred-year historical past of your Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … typically, the museum won't appear for being open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation of your museum to another spot with no notifying the NLC.



The Schaapkraal house, on which no museum was ever crafted. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to maneuver from your rented Crete Highway premises since it experienced run up a R4-million personal debt with the City of Cape Town and was afraid its products will be connected.

“Because of the authorized battles and the debts, the organisation had to move its home from 5 Crete Street to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director from the CTMCA, informed them that the two buses acquired with lottery resources ended up saved within a key place “concealed with the Sheriff”. Although the investigators explained they have been unable to verify that any buses had at any time been bought.

Stemmet also verified that the buses were concealed to stop them remaining seized. But once the investigators questioned to become taken into the spot where the buses had been stored, he instructed them that “the owner of the secret area wasn't available to open the premises for us”.

“The CTMCA could not present evidence of payment for 2 motor vehicles that it allegedly procured with grant income,” the investigators reported.

Soeker also explained to them the Schaapkraal property had been sold due to the financial debt.

“Mr Soeker described that In keeping with his understanding, due to the debt owed to town of Cape Town, the CTMCA determined it would be very best to sell their [Schaapkraal] assets … and also to also to hide the property of the CTMCA to steer clear of the sheriff from attaching the residence.”

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

“Every year like clockwork, as we technique the end on the calendar year, the CTMCA picks a legal combat with the City, in excess of permits or something else. We by no means initiate it. They continue to keep throwing funds absent on vexatious litigation they eliminate and possess prices awarded against them. That is solely self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the main part players on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of each of the admin, funds and jogging หวย ลาว วัน นี้ the CTMCA.” The investigators said they were not able to Make contact with Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “discovered various machines, some in great affliction, some in negative ailment and a few that appeared rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-website storage facility wherever “devices and some machinery” were held.

“We requested him to just take us to the ability but he was evasive to our request.”

Determined by images and invoices in GroundUp’s possession, some, if not all, of the items seem like gear which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing expenses for this removing.

According to the remaining progress report submitted into the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter had been directors at enough time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Road, Wetton, Cape City, a similar tackle on which the museum was intended to be crafted and/or converted,” they reported.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of acquiring “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.

Based on Dabishi Nthambeleni, the corporation has paid R1.2-million as being a deposit, that means R6.9-million continues to be owed, while there isn't any payment day established for when this needs to be compensated.

The Kopano audit as well as near url amongst the companies “suggest to us that there's ‘foul Engage in’ involved in the acquisition from the equipment in the museum workshop”, the investigators stated in the report.

“We discover that it's remarkably probable that CTMCA applied the funding in the NLC to ‘refund’ certainly one of its most important directors with the home at the next overpriced price than the actual rate and value of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant towards the CTMCA had been put in.

“The truth is, an in depth report on how the funding with the NLC was applied, would be unattainable since the CTMCA does not have any receipts, or evidence of payments to verify the quantities used on Each individual merchandise it requested funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not carried out a website stop by ahead of approving the grant. But this wasn't common practice at enough time they usually identified no proof of carelessness by NLC personnel.

At some time, the NLC’s policies didn't require funded organisations to submit proof of payment with interim studies, they pointed out. This intended the CTMCA was in the position to get a 2nd tranche of funding while not having to deliver evidence that it had employed the initial tranche for its intended purpose.

Following the appointment of a new board, commissioner and senior executive staff, the NLC has tightened up on these and various issues.

Dabishi Nthambeleni proposed that

the NLC decline any future funding apps from the CTMCA;
the CTMCA and any customers who were being associated with the grant be subjected to your NLC’s “delinquency” procedure;
the NLC open a legal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as opposed to act about the report’s suggestions, the NLC – beneath its former administration – selected to suppress it, since it experienced performed Using the previous experiences into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker by using SMS, and requested for email addresses to mail the issues by e-mail too. But no response were obtained at some time of publication.



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

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