Leaked report exposes abuse of lottery income paid out to minstrel team

Leaked report exposes abuse of lottery income paid out to minstrel team

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has observed no proof that a museum ever existed.
The investigators uncovered that the CTMCA did not make use of the R5-million allotted to purchase or make a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA utilised cash from your Lottery to invest in workshop gear from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) via the Countrywide Lotteries Fee (NLC) to arrange a museum to rejoice town’s loaded minstrel history went astray. The museum was in no way designed.

The main points with the abuse of a lot of rands of Lottery funds for your museum that hardly ever was are disclosed in an investigative report commissioned from the NLC in 2021.

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

The main Component of the investigation, by regulation company Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which included funding for the museum. The approved spending plan for your museum was in excess of R12.eight-million, with R5-million of that allotted for a setting up to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a setting up for that museum and if the museum “actually existed”.

The business was also instructed to analyze

the acquisition with Lottery money of two cars – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
many devices “obtained for your producing of your costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted prison 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 numerous administrators with the organisation. Stemmet was reappointed being a director in Could 2021.

The investigation adopted intensive reporting by GroundUp about the a lot of rands of Lottery funding allocated for the CTMCA (see in this article, right here and below) and the way the money likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at time by Marius Fransman.



The constructing on the ideal was the meant web page of the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to the Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 projects were finished, she explained to MPs.

Although the investigators discovered no evidence that a museum experienced ever existed.

At first the museum was resulting from open up in rented premises in Crete Road, Wetton. A photo received by GroundUp of your supposed Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of images haphazardly hung over the partitions, and a product ship on its plinth in a corner.

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

Stemmet advised the investigators the museum had been moved given that they could not pay for the hire of R100,000 a month. He stated the CTMCA experienced acquired home for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for a similar cost. Schaapkraal is in a very peri-urban space significantly from the city.

As a result, the museum had been moved to a new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after going to the premises, which might be in an industrial region, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Photos hooked up towards the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the floor, without having rationalization.

“You will find a small degree of goods for the museum [that] by no means signify the more than one hundred-calendar year historical past of the Cape Town Carnival, the investigators stated, adding that there was “no signage outdoors the premises indicating which they housed a museum and … frequently, the museum won't seem for being open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by going the location of your museum to an alternative location without having notifying the NLC.



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

Buses
Stemmet instructed the investigators the CTMCA experienced to move with the rented Crete Street premises mainly because it had run up a R4-million credit card debt with the town of Cape City and was fearful its devices will be hooked up.

“As a result of lawful battles and also the debts, the organisation experienced to maneuver its home from five Crete Highway to stay away from the sheriff from attaching the residence on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director from the CTMCA, explained to them that the two buses bought with lottery resources ended up stored in a mystery spot “hidden with the Sheriff”. However the investigators reported they were not able to substantiate that any buses had ever been purchased.

Stemmet also verified which the buses were concealed to stop them staying seized. But when the investigators asked to be taken towards the spot the place the buses were being saved, he explained to them that “the operator of the secret site wasn't accessible to open up the premises for us”.

“The CTMCA could not offer proof of payment for 2 motor vehicles that it allegedly procured with grant income,” the investigators noted.

Soeker also informed them the Schaapkraal property had been bought due to the personal debt.

“Mr Soeker stated that In accordance with his comprehending, mainly because of the financial debt owed to the town of Cape City, the CTMCA resolved It might be finest to promote their [Schaapkraal] property … and to also to hide the assets from the CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for protection and protection, has Earlier instructed GroundUp which the CTMCA “threw money absent” on litigation with town.

“Yearly like clockwork, as we technique the end on the year, the CTMCA picks a authorized struggle with the City, over permits or something else. We by no means initiate it. They keep throwing funds away on vexatious litigation they reduce and have fees awarded versus them. This is entirely self-inflicted,” he said.

Soeker told the Dabishi Nthambeleni investigators that the key function gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of many of the admin, finances and managing หวย วัน นี้ the CTMCA.” The investigators claimed they had been not able to Make contact with Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “found quite a few machines, some in excellent ailment, some in poor issue and many that appeared rusty and extremely old”. Stemmet advised the investigators that there was also an off-site storage facility exactly where “instruments and some equipment” ended up retained.

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

Dependant on shots and invoices in GroundUp’s possession, some, if not all, from the merchandise look like products that was illegally faraway from the CTMCA’s prior premises. Stemmet is facing prices for this removal.

Based on the final development report submitted towards the NLC via the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators uncovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the corporation is five Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they documented.

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.one-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.

According to Dabishi Nthambeleni, the organization has paid out R1.2-million like a deposit, that means R6.9-million continues to be owed, however there is not any payment day set for when this has to be paid.

The Kopano audit and the shut backlink involving the companies “indicate to us that there's ‘foul Perform’ linked to the purchase of the equipment of the museum workshop”, the investigators claimed inside the report.

“We discover that it is hugely possible that CTMCA utilized the funding on the NLC to ‘refund’ one of its major administrators with the home at a better overpriced amount than the particular rate and price of the property and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were put in.

“Actually, a detailed report on how the funding of the NLC was used, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every product it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC experienced not conducted a internet site visit ahead of approving the grant. But this wasn't conventional apply at time plus they observed no proof of carelessness by NLC workforce.

At some time, the NLC’s rules didn't involve funded organisations to post proof of payment with interim studies, they pointed out. This intended the CTMCA was in the position to receive a second tranche of funding without having to deliver proof that it experienced applied 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 various troubles.

Dabishi Nthambeleni recommended that

the NLC decline any long run funding applications through the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up 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 cash.
But, in lieu of act to the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had finished Along with the earlier reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to ship the thoughts by email far too. But no reaction had been acquired at some time of publication.



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

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