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 execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has located no evidence that a museum at any time existed.
The investigators discovered which the CTMCA didn't use the R5-million allotted to purchase or produce a museum.
They also identified the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilized money through the Lottery to acquire workshop machines from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Commission (NLC) to build a museum to celebrate town’s prosperous minstrel history went astray. The museum was hardly ever designed.

The main points in the abuse of millions of rands of Lottery money for just a museum that by no means was are unveiled within an investigative report commissioned by the NLC in 2021.

The museum grant was Portion of much more than R64-million in Lottery resources allotted into the CTMCA in between 2003 and 2017.

The initial Portion of the investigation, by law firm Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which involved funding with the museum. The approved spending budget with the museum was in excess of R12.8-million, with R5-million of that allotted for any building to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing for the museum and if the museum “basically existed”.

The company was also instructed to analyze

the acquisition with Lottery funds of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
several machines “bought for that production of your costumes and hats” with the minstrels carnival, for R5.4-million.
At the time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few administrators of the organisation. Stemmet was reappointed to be a director in May perhaps 2021.

The investigation adopted in depth reporting by GroundUp with regards to the millions of rands of Lottery funding allotted into the CTMCA (see below, here and right here) and the way the funds most likely helped finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The developing on the right was the intended site on the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “tasks” - including the museum - among 2012 and 2015. All a few tasks were completed, she informed MPs.

Even so the investigators located no proof that a museum experienced ever existed.

In the beginning the museum was because of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the intended Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung about the walls, in addition to a model ship on its plinth in the corner.

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

Stemmet explained to the investigators the museum had been moved given that they could no longer afford to pay for the lease of R100,000 per month. He mentioned the CTMCA experienced obtained assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for a similar rate. Schaapkraal is in a peri-city place much from the city.

As a result, the museum had been moved to a fresh locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following checking out the premises, which are within an industrial region, the investigators claimed they doubted whether or not a correct museum existed there. Photographs connected to your report clearly show a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the floor, without having clarification.

“There is a negligible number of things within the museum [that] by no means stand for the a lot more than a hundred-year heritage of your Cape Town Carnival, the investigators explained, introducing that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum would not glance to be open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving the location from the museum to an alternative location with no notifying the NLC.



The Schaapkraal home, on which no museum was at any time developed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA had to maneuver in the rented Crete Street premises because it had run up a R4-million personal debt with the City of Cape Town and was concerned its machines will be connected.

“Due to the legal battles as well as the debts, the organisation had to move its home from 5 Crete Road to avoid the sheriff from attaching the home from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses purchased with lottery funds were saved within a magic formula locale “hidden in the Sheriff”. But the investigators claimed they had been not able to confirm that any buses had at any time been acquired.

Stemmet also confirmed the buses were concealed to stop them currently being seized. But in the event the investigators asked to get taken into the location the place the buses were being saved, he told them that “the owner of the secret location was not accessible to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for two automobiles that it allegedly obtained with grant cash,” the investigators noted.

Soeker also told them the Schaapkraal assets were offered because of the credit card debt.

“Mr Soeker discussed that In accordance with his comprehending, mainly because of the personal debt owed to town of Cape Town, the CTMCA resolved It will be very best to promote their [Schaapkraal] assets … and to also to cover the assets from the CTMCA to steer clear of the sheriff from attaching the assets.”

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

“Yearly like clockwork, as we strategy the top in the calendar year, the CTMCA picks a legal combat with the City, about permits or another thing. We hardly ever initiate it. They preserve throwing money away on vexatious litigation they reduce and have charges awarded towards them. This is often entirely self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the leading role gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who ended up answerable for all of the admin, finances and working ตัว หวย the CTMCA.” The investigators stated they were struggling to Call Momberg.

Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “observed a lot of devices, some in very good affliction, some in undesirable condition plus some that seemed rusty and extremely aged”. Stemmet advised the investigators that there was also an off-web site storage facility in which “devices and a few equipment” have been kept.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, from the goods seem like devices which was illegally faraway from the CTMCA’s preceding premises. Stemmet is struggling with charges for this removing.

In accordance with the closing progress report submitted towards the NLC from the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization wherein Stemmet, his spouse and his daughter had been directors at some time.

The investigators uncovered this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape City, the exact same handle on which the museum was meant to be built and/or transformed,” they reported.

An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, 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 company has paid out R1.two-million like a deposit, this means R6.nine-million is still owed, however there isn't any payment date established for when this have to be compensated.

The Kopano audit as well as the shut backlink in between the companies “point out to us that there's ‘foul play’ involved in the acquisition of your equipment in the museum workshop”, the investigators mentioned while in the report.

“We find that it is very probable that CTMCA utilised the funding with the NLC to ‘refund’ one of its most important directors for the assets at the next overpriced level than the actual cost and price of the home and/or equipment.”

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

“The truth is, an in depth report on how the funding of the NLC was utilized, could be extremely hard as being the CTMCA does not have any receipts, or proof of payments to confirm the quantities expended on Every item it asked for funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not done a web page take a look at just before approving the grant. But this wasn't standard follow at enough time they usually discovered no proof of carelessness by NLC workers.

At time, the NLC’s regulations didn't need funded organisations to submit proof of payment with interim studies, they pointed out. This meant that the CTMCA was capable to receive a second tranche of funding without needing to give evidence that it had employed the initial tranche for its intended intent.

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

Dabishi Nthambeleni suggested that

the NLC decrease any long term funding purposes from your CTMCA;
the CTMCA and any users who have been linked to the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated cash.
But, rather then act on the report’s tips, the NLC – under its prior administration – chose to suppress it, as it experienced done with the former experiences into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and asked for e mail addresses to deliver the thoughts by e-mail much too. But no response were obtained at some time of publication.



The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph

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