Leaked report exposes abuse of lottery dollars compensated to minstrel team

Leaked report exposes abuse of lottery dollars compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the National Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has found no evidence that a museum at any time existed.
The investigators uncovered the CTMCA did not use the R5-million allocated to acquire or create a museum.
Additionally they found the CTMCA only bought land really worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA used money through the Lottery to invest in workshop devices from among its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape Town Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Commission (NLC) to build a museum to rejoice the city’s rich minstrel record went astray. The museum was never produced.

The main points in the abuse of numerous rands of Lottery cash to get a museum that under no circumstances was are uncovered within an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of more than R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.

The primary Section of the investigation, by legislation agency Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which incorporated funding for the museum. The approved spending plan for the museum was more than R12.8-million, with R5-million of that allotted for a making to house the museum.

Read through the report (PDF, 7MB)

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

The company was also instructed to research

the purchase with Lottery funds of two automobiles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
various equipment “bought for the producing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators of the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation adopted substantial reporting by GroundUp concerning the many rands of Lottery funding allotted on the CTMCA (see here, right here and here) and the way the cash almost certainly served finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The constructing on the proper was the intended web-site from the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “initiatives” - including the museum - among 2012 and 2015. All three projects were accomplished, she informed MPs.

However the investigators found no proof that a museum experienced ever existed.

At the outset the museum was on account of open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp with the meant Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung over the walls, and a design ship on its plinth in a corner.

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

Stemmet informed the investigators the museum had been moved given that they could no more find the money for the lease of R100,000 a month. He said the CTMCA experienced obtained property for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar cost. Schaapkraal is inside a peri-city space significantly from the city.

As a result, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be in an industrial spot, the investigators stated they doubted whether a proper museum existed there. Photographs attached for the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, displayed on tables and spread out on the ground, without clarification.

“You will find a negligible amount of items on the museum [that] on no account signify the in excess of one hundred-12 months heritage of your Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum would not look to generally be open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternate place with no notifying the NLC.



The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to move from the rented Crete Road premises because it experienced operate up a R4-million financial debt with the town of Cape Town and was fearful its machines might be connected.

“Due to the lawful battles and the debts, the organisation experienced to move its house from 5 Crete Road to stay away from the sheriff from attaching the house from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director from the CTMCA, instructed them that the two buses acquired with lottery funds ended up stored inside of a magic formula locale “hidden with the Sheriff”. Even so the investigators stated they have been not able to substantiate that any buses experienced at any time been acquired.

Stemmet also confirmed that the buses were concealed to prevent them being seized. But in the event the investigators questioned being taken to the location where the buses were being saved, he advised them that “the proprietor of The key place was not available to open the premises for us”.

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

Soeker also told them the Schaapkraal assets were sold due to credit card debt.

“Mr Soeker defined that In accordance with his understanding, due to personal debt owed to town of Cape City, the CTMCA made a decision It will be most effective to provide their [Schaapkraal] assets … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for security and stability, has Formerly informed GroundUp that the CTMCA “threw cash absent” on litigation with the City.

“Yearly like clockwork, as we strategy the end of the 12 months, the CTMCA picks a legal struggle with the City, around permits or something else. We by no means initiate it. They continue to keep throwing funds absent on vexatious litigation that they shed and possess prices awarded in opposition to them. This is often entirely self-inflicted,” he explained.

Soeker explained to the Dabishi Nthambeleni investigators that the main function players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, finances and jogging เช ค หวย the CTMCA.” The investigators explained they had been struggling to Call Momberg.

Hats
During their “investigation in loco” within the Primrose Park premises, the investigators “located numerous devices, some in excellent ailment, some in negative ailment and a few that seemed rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-web site storage facility where by “instruments and several equipment” ended up kept.

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

Depending on shots and invoices in GroundUp’s possession, some, Otherwise all, with the goods seem like devices that was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with rates for this elimination.

In accordance with the ultimate progress report submitted into the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter were directors at time.

The investigators uncovered this “alarming”.

“From your CIPC research of Martin-Conne Milliners as well as invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the process of obtaining “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 corporation of which Stemmet was among the administrators.

In accordance with Dabishi Nthambeleni, the corporate has compensated R1.two-million to be a deposit, meaning R6.9-million is still owed, although there is absolutely no payment date set for when this should be paid.

The Kopano audit and the shut backlink amongst the companies “suggest to us that there's ‘foul Perform’ involved in the purchase from the equipment from the museum workshop”, the investigators reported while in the report.

“We discover that it is remarkably probable that CTMCA applied the funding of the NLC to ‘refund’ considered one of its primary directors for that assets at a greater overpriced fee than the particular rate and value of the property and/or machinery.”

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

“Actually, a detailed report on how the funding on the NLC was made use of, would be difficult given that the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities used on Every product it asked for funding for. The interim report and ultimate report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not executed a internet site check out prior to approving the grant. But this wasn't regular exercise at the time and so they located no proof of carelessness by NLC employees.

At time, the NLC’s rules didn't call for funded organisations to submit proof of payment with interim reports, they identified. This intended which the CTMCA was in a position to receive a next tranche of funding without the need to provide evidence that it had made use of the initial tranche for its meant purpose.

Adhering to the appointment of a whole new board, commissioner and senior executive workforce, the NLC has tightened up on these and other issues.

Dabishi Nthambeleni proposed that

the NLC drop any potential funding purposes within the CTMCA;
the CTMCA and any users who ended up involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated funds.
But, as an alternative to act to the report’s tips, the NLC – below its earlier administration – chose to suppress it, because it experienced accomplished Along with the former experiences into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and requested for email addresses to send out the issues by e-mail much too. But no reaction were gained at time of publication.



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

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