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 conduct in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the Countrywide Lotteries Commission for the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has uncovered no proof that a museum ever existed.
The investigators discovered which the CTMCA did not utilize the R5-million allotted to obtain or produce a museum.
Additionally they located the CTMCA only bought land really worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA used funds within the Lottery to invest in workshop tools from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) via the Countrywide Lotteries Fee (NLC) to build a museum to celebrate the city’s loaded minstrel history went astray. The museum was hardly ever established.

The details in the abuse of countless rands of Lottery funds for just a museum that under no circumstances was are disclosed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of over R64-million in Lottery funds allocated into the CTMCA between 2003 and 2017.

The main Section of the investigation, by law company Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which provided funding to the museum. The accredited budget to the museum was more than R12.eight-million, with R5-million of that allocated to get a making to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the making with the museum and whether or not the museum “truly existed”.

The company was also instructed to investigate

the purchase with Lottery resources of two automobiles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
different equipment “acquired with the producing with the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on 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 ongoing as two of several directors on the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation followed considerable reporting by GroundUp with regards to the an incredible number of rands of Lottery funding allocated to the CTMCA (see in this article, below and listed here) and the way the cash possibly served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The making on the appropriate was the intended web-site in the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to a Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All 3 initiatives were accomplished, she explained to MPs.

However the investigators discovered no evidence that a museum had ever existed.

At first the museum was because of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the supposed Wetton museum displays a coffee store with a few musical devices and minstrel costumes and collages of photographs haphazardly hung over the walls, and also a product ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum had been moved since they could not find the money for the hire of R100,000 a month. He explained the CTMCA experienced purchased house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same price tag. Schaapkraal is in a very peri-city spot significantly from the city.

Consequently, the museum had been moved to a new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after visiting the premises, which are in an industrial place, the investigators said they doubted irrespective of whether a suitable museum existed there. Images connected on the report clearly show a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, with no explanation.

“You will find there's negligible degree of items for the museum [that] under no circumstances characterize the much more than one hundred-calendar year historical past from the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outside the premises indicating that they housed a museum and … commonly, the museum does not search to get open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by going the location in the museum to an alternative place without having notifying the NLC.



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

Buses
Stemmet informed the investigators which the CTMCA had to move in the rented Crete Road premises since it had operate up a R4-million personal debt with town of Cape Town and was fearful its machines would be attached.

“As a result of authorized battles along with the debts, the organisation had to move its residence from five Crete Street to avoid the sheriff from attaching the house of the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director of your CTMCA, informed them that the two buses acquired with lottery cash were being stored inside of a mystery spot “hidden within the Sheriff”. Even so the investigators said they had been unable to verify that any buses had ever been purchased.

Stemmet also verified which the buses were hidden to stop them currently being seized. But if the investigators asked to become taken towards the place where the buses were saved, he informed them that “the owner of The trick location wasn't available to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for 2 cars that it allegedly purchased with grant cash,” the investigators reported.

Soeker also told them the Schaapkraal residence were offered due to financial debt.

“Mr Soeker stated that In keeping with his knowledge, as a result of personal debt owed to town of Cape City, the CTMCA made the decision it would be greatest to provide their [Schaapkraal] property … and to also to cover the belongings of the CTMCA to avoid the sheriff from attaching the property.”

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

“Every year like clockwork, as we solution the end with the 12 months, the CTMCA picks a lawful fight with the town, in excess of permits or another thing. We by no means initiate it. They preserve throwing funds away on vexatious litigation that they lose and have costs awarded against them. This is solely self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the principle part gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for all of the admin, funds and operating หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators mentioned they were not able to Make contact with Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered quite a few machines, some in very good condition, some in undesirable ailment and some that seemed rusty and very aged”. Stemmet told the investigators that there was also an off-internet site storage facility wherever “devices plus some equipment” ended up saved.

“We questioned him to choose us to the power but he was evasive to our ask for.”

Determined by pics and invoices in GroundUp’s possession, some, if not all, in the objects seem like gear which was illegally removed from the CTMCA’s former premises. Stemmet is struggling with rates for this elimination.

Based on the final development report submitted on the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter were being directors at enough time.

The investigators located this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Be aware the next alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Road, Wetton, Cape Town, precisely the same deal with on which the museum was intended to be built and/or converted,” they claimed.

An audit by accountants Kopano Included, connected for the investigative report, recorded the CTMCA was in the entire process of getting “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.

In line with Dabishi Nthambeleni, the business has compensated R1.two-million being a deposit, this means R6.9-million continues to be owed, while there isn't a payment day established for when this needs to be compensated.

The Kopano audit as well as shut connection between the businesses “point out to us that there is ‘foul Engage in’ associated with the purchase of your equipment in the museum workshop”, the investigators mentioned inside the report.

“We find that it's extremely possible that CTMCA applied the funding in the NLC to ‘refund’ among its principal directors with the residence at a higher overpriced level than the actual value and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant to the CTMCA had been spent.

“Actually, an in depth report on how the funding of your NLC was used, could be unattainable since the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities used on each merchandise it requested funding for. The interim report and remaining report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC had not executed a web site go to before approving the grant. But this wasn't normal practice at enough time they usually observed no proof of negligence by NLC personnel.

At some time, the NLC’s policies didn't involve funded organisations to post evidence of payment with interim reports, they pointed out. This meant that the CTMCA was capable to receive a 2nd tranche of funding while not having to provide evidence that it had employed the main tranche for its supposed intent.

Next the appointment of a completely new board, commissioner and senior govt crew, the NLC has tightened up on these together with other troubles.

Dabishi Nthambeleni suggested that

the NLC decrease any long term funding apps from your CTMCA;
the CTMCA and any users who had been involved with the grant be subjected to the NLC’s “delinquency” method;
the NLC open up a prison case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated resources.
But, rather than act around the report’s recommendations, the NLC – under its prior administration – chose to suppress it, as it experienced finished Using the earlier studies into corruption it had commissioned.

GroundUp despatched inquiries to Stemmet and Soeker through SMS, and asked for email addresses to send out the inquiries by e-mail too. But no response were acquired at some time of publication.



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

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