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 perform in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant because of the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has located no evidence that a museum ever existed.
The investigators located which the CTMCA didn't use the R5-million allocated to acquire or build a museum.
Additionally they observed which the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA employed money through the Lottery to acquire workshop devices from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to put in place a museum to celebrate the town’s rich minstrel record went astray. The museum was under no circumstances produced.

The main points from the abuse of a lot of rands of Lottery funds for the museum that never was are uncovered in an investigative report commissioned because of the NLC in 2021.

The museum grant was part of over R64-million in Lottery money allocated for the CTMCA amongst 2003 and 2017.

The 1st Component of the investigation, by legislation agency Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which incorporated funding for your museum. The approved finances to the museum was in excess of R12.8-million, with R5-million of that allotted for any building to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a constructing for that museum and if the museum “really existed”.

The firm was also instructed to analyze

the acquisition with Lottery funds of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
numerous devices “procured to the producing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on 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 directors in the organisation. Stemmet was reappointed as being a director in May perhaps 2021.

The investigation followed intensive reporting by GroundUp with regards to the many rands of Lottery funding allotted on the CTMCA (see here, listed here and below) and just how the funds probably aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.



The setting up on the correct was the supposed website in the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - including the museum - involving 2012 and 2015. All three assignments were completed, she instructed MPs.

Although the investigators observed no evidence that a museum had ever existed.

At the outset the museum was because of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp on the meant Wetton museum displays a espresso store with a few musical instruments and minstrel costumes and collages of images haphazardly hung within the walls, in addition to a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni stated it was “not able” to confirm if a museum had ever operated from these premises.

Stemmet instructed the investigators the museum were moved because they could no more manage the rent of R100,000 a month. He stated the CTMCA experienced obtained assets for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for a similar value. Schaapkraal is in a peri-urban place considerably from the city.

Due to this fact, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial spot, the investigators explained they doubted whether an appropriate museum existed there. Pics connected towards the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the ground, without explanation.

“You will find a minimum amount of objects at the museum [that] by no means stand for the over one hundred-calendar year history in the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum does not look to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going The placement in the museum to an alternative locale devoid of notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA experienced to maneuver from your rented Crete Highway premises since it had operate up a R4-million debt with the City of Cape Town and was worried its gear can be hooked up.

“Because of the authorized battles plus the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the house on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director on the CTMCA, advised them that the two buses acquired with lottery cash have been stored in a top secret spot “hidden within the Sheriff”. Although the investigators mentioned they were unable to substantiate that any buses had ever been acquired.

Stemmet also confirmed the buses were concealed to stop them remaining seized. But if the investigators requested for being taken on the spot exactly where the buses were being stored, he explained to them that “the proprietor of The trick area was not accessible to open the premises for us”.

“The CTMCA could not supply evidence of payment for two motor vehicles that it allegedly ordered with grant funds,” the investigators reported.

Soeker also informed them the Schaapkraal assets were bought because of the debt.

“Mr Soeker described that As outlined by his being familiar with, mainly because of the personal debt owed to the City of Cape City, the CTMCA decided It will be best to offer their [Schaapkraal] house … and to also to cover the property of the CTMCA to stay away from the sheriff from attaching the property.”

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

“Each year like clockwork, as we tactic the tip of your year, the CTMCA picks a authorized combat with the town, around permits or something else. We in no way initiate it. They retain throwing money absent on vexatious litigation they drop and also have fees awarded towards them. This is often completely self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the main role gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of many of the admin, finances and functioning ตัว 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 various machines, some in very good ailment, some in bad problem and several that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-internet site storage facility the place “instruments and a few equipment” ended up held.

“We requested him to consider us to the power but he was evasive to our request.”

Based upon shots and invoices in GroundUp’s possession, some, Otherwise all, of the objects seem like products that was illegally faraway from the CTMCA’s prior premises. Stemmet is dealing with rates for this elimination.

In accordance with the ultimate development report submitted for the NLC from the CTMCA, the machinery was procured from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter had been directors at enough time.

The investigators uncovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent 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 address on which the museum was meant to be developed and/or transformed,” they documented.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the administrators.

Based on Dabishi Nthambeleni, the business has paid out R1.2-million for a deposit, meaning R6.9-million remains to be owed, although there is not any payment day established for when this should be paid.

The Kopano audit as well as the near backlink concerning the businesses “point out to us that there is ‘foul Perform’ involved in the acquisition of your equipment with the museum workshop”, the investigators claimed during the report.

“We discover that it is really possible that CTMCA utilized the funding of the NLC to ‘refund’ certainly one of its main administrators for that home at a greater overpriced level than the particular price and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant towards the CTMCA had been put in.

“In reality, a detailed report on how the funding on the NLC was used, could be unachievable as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts spent on each product it requested funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not carried out a site check out before approving the grant. But this was not normal exercise at some time and they discovered no evidence of negligence by NLC workers.

At time, the NLC’s policies did not call for funded organisations to submit proof of payment with interim reports, they identified. This meant that the CTMCA was in a position to get a next tranche of funding while not having to give proof that it experienced employed the very first tranche for its supposed function.

Following the appointment of a new board, commissioner and senior government workforce, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni proposed that

the NLC decline any foreseeable future funding purposes in the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as an alternative to act within the report’s recommendations, the NLC – under its former administration – chose to suppress it, as it experienced accomplished With all the previous stories into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker by means of SMS, and asked for e mail addresses to mail the inquiries by electronic mail as well. But no reaction were received at time of publication.



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

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