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

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

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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant with the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum ever existed.
The investigators observed that the CTMCA didn't make use of the R5-million allotted to buy or produce a museum.
Additionally they found that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA applied resources from your Lottery to purchase workshop devices from among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Association (CTMCA) from the Nationwide Lotteries Commission (NLC) to arrange a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was in no way created.

The main points on the abuse of an incredible number of rands of Lottery resources for just a museum that by no means was are disclosed within an investigative report commissioned because of the NLC in 2021.

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

The first Component of the investigation, by legislation firm Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which integrated funding to the museum. The authorised price range for the museum was in excess of R12.8-million, with R5-million of that allotted for the developing to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a making for your museum and whether the museum “really existed”.

The company was also instructed to research

the purchase with Lottery cash of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
many equipment “bought with the manufacturing in the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director with the 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 directors of the organisation. Stemmet was reappointed for a director in May possibly 2021.

The investigation adopted extensive reporting by GroundUp in regards to the millions of rands of Lottery funding allocated into the CTMCA (see in this article, listed here and in this article) and the way in which the funds likely helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.



The creating on the best was the meant website in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to some Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - such as the museum - among 2012 and 2015. All three jobs were finished, she explained to MPs.

Even so the investigators identified no evidence that a museum had ever existed.

To start with the museum was due to open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp on the meant Wetton museum displays a espresso store with some musical devices and minstrel costumes and collages of photographs haphazardly hung over the walls, as well as a product ship on its plinth in a corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not in a position” to verify if a museum had at any time operated from these premises.

Stemmet told the investigators the museum had been moved since they could no more pay for the lease of R100,000 per month. He explained the CTMCA had acquired residence for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is inside of a peri-city space considerably from the town.

Therefore, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial space, the investigators explained they doubted no matter whether a correct museum existed there. Pics attached to the report show a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the floor, without having explanation.

“There's a minimum volume of goods with the museum [that] by no means signify the greater than 100-12 months historical past of the Cape Town Carnival, the investigators said, including that there was “no signage exterior the premises indicating which they housed a museum and … usually, the museum won't appear being open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by shifting The placement with the museum to another locale without having notifying the NLC.



The Schaapkraal house, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to maneuver within the rented Crete Highway premises mainly because it experienced run up a R4-million personal debt with the town of Cape City and was afraid its machines can be attached.

“A result of the lawful battles and the debts, the organisation had to maneuver its residence from five Crete Highway to steer clear of the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director with the CTMCA, instructed them the two buses purchased with lottery money have been stored inside a solution locale “concealed through the Sheriff”. Although the investigators reported they ended up unable to substantiate that any buses had ever been acquired.

Stemmet also verified the buses had been concealed to stop them remaining seized. But if the investigators requested to become taken to the position the place the buses were stored, he explained to them that “the owner of The key locale was not available to open up the premises for us”.

“The CTMCA couldn't offer proof of payment for 2 automobiles that it allegedly purchased with grant money,” the investigators described.

Soeker also told them the Schaapkraal home had been offered due to the credit card debt.

“Mr Soeker stated that In keeping with his comprehension, because of the financial debt owed to the town of Cape City, the CTMCA determined It could be finest to sell their [Schaapkraal] assets … and also to also to hide the belongings of the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for security and stability, has Formerly told GroundUp the CTMCA “threw dollars away” on litigation with the town.

“Each and every year like clockwork, as we approach the tip with the yr, the CTMCA picks a legal struggle with the City, around permits or something else. We by no means initiate it. They maintain throwing income absent on vexatious litigation which they reduce and also have expenditures awarded in opposition to them. That is entirely self-inflicted,” he explained.

Soeker explained to the Dabishi Nthambeleni investigators that the key purpose gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in charge of each of the admin, finances and operating หวย วัน นี้ the CTMCA.” The investigators mentioned they had been struggling to Get hold of Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “uncovered a lot of machines, some in fantastic issue, some in poor affliction and a few that appeared rusty and very aged”. Stemmet instructed the investigators that there was also an off-website storage facility in which “devices and some machinery” were held.

“We questioned him to choose us to the facility but he was evasive to our request.”

Based on images and invoices in GroundUp’s possession, some, if not all, on the products seem like machines which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with fees for this elimination.

Based on the last development report submitted to your NLC because of the CTMCA, the machinery was procured from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter were directors at enough time.

The investigators found this “alarming”.

“From your CIPC research of Martin-Conne Milliners and also the invoices submitted, we Observe the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape City, precisely the same tackle on which the museum was intended to be developed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, attached to the investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the administrators.

As outlined by Dabishi Nthambeleni, the company has compensated R1.2-million being a deposit, meaning R6.9-million remains to be owed, nevertheless there's no payment date set for when this need to be compensated.

The Kopano audit and the shut backlink concerning the businesses “reveal to us that there is ‘foul play’ involved in the acquisition from the machinery from the museum workshop”, the investigators mentioned while in the report.

“We find that it's very possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its major administrators to the property at an increased overpriced fee than the particular price tag and price of the property and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to establish how the grant for the CTMCA were used.

“In reality, a detailed report on how the funding from the NLC was utilised, might be impossible because the CTMCA does not have any receipts, or proof of payments to substantiate the quantities put in on Every single merchandise it requested funding for. The interim report and last report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not executed a internet site go to right before approving the grant. But this was not common practice at enough time they usually identified no proof of carelessness by NLC workers.

At time, the NLC’s procedures did not demand funded organisations to submit proof of payment with interim stories, they identified. This intended that the CTMCA was capable to get a 2nd tranche of funding without the need to offer proof that it had applied the main tranche for its supposed function.

Adhering to the appointment of a different board, commissioner and senior government crew, the NLC has tightened up on these together with other troubles.

Dabishi Nthambeleni advised that

the NLC drop any foreseeable future funding purposes from your CTMCA;
the CTMCA and any users who had been involved with the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open up a criminal scenario of fraud with SAPS or perhaps 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 preceding administration – chose to suppress it, as it had done with the previous experiences into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and asked for e mail addresses to deliver the questions by e-mail as well. But no reaction had been gained at time of publication.



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

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