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 Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no proof that a museum ever existed.
The investigators found that the CTMCA didn't utilize the R5-million allotted to obtain or make a museum.
They also located which the CTMCA only acquired land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA applied money from your Lottery to buy workshop gear from amongst its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Fee (NLC) to arrange a museum to celebrate the town’s prosperous minstrel heritage went astray. The museum was in no way produced.

The details in the abuse of countless rands of Lottery resources to get a museum that hardly ever was are disclosed within an investigative report commissioned from the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery resources allocated to your CTMCA concerning 2003 and 2017.

The very first A part of the investigation, by law firm Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which provided funding to the museum. The accepted finances with the museum was more than R12.8-million, with R5-million of that allocated for your developing to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating for that museum and whether or not the museum “essentially existed”.

The agency was also instructed to research

the acquisition with Lottery funds of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
various equipment “purchased with the production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with 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 on the organisation. Stemmet was reappointed to be a director in Might 2021.

The investigation followed comprehensive reporting by GroundUp with regards to the many rands of Lottery funding allotted for the CTMCA (see in this article, here and here) and the way the cash in all probability aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The constructing on the best was the meant web-site with the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph

In response into a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “jobs” - such as the museum - between 2012 and 2015. All a few jobs were done, she explained to MPs.

But the investigators found no evidence that a museum experienced at any time existed.

At first the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp of the meant Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, and also a model ship on its plinth inside of a corner.

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

Stemmet told the investigators the museum had been moved given that they could now not manage the lease of R100,000 per month. He mentioned the CTMCA had acquired residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been marketed for the same rate. Schaapkraal is inside of a peri-city area much from the city.

Therefore, the museum had been moved to a new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, that are within an industrial location, the investigators mentioned they doubted no matter whether a proper museum existed there. Photographs connected to the report present a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, displayed on tables and distribute out on the ground, without having clarification.

“There exists a minimum volume of merchandise at the museum [that] in no way represent the more than a hundred-yr history of the Cape City Carnival, the investigators stated, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … generally, the museum does not appear for being open to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by shifting The placement with the museum to an alternative site devoid of notifying the NLC.



The Schaapkraal home, on which no museum was ever crafted. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators which the CTMCA had to move from the rented Crete Road premises mainly because it experienced run up a R4-million personal debt with the town of Cape City and was worried its products would be attached.

“Mainly because of the lawful battles and also the debts, the organisation experienced to maneuver its home from five Crete Street to avoid the sheriff from attaching the house from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director from the CTMCA, instructed them the two buses bought with lottery funds were being stored inside a secret place “concealed from your Sheriff”. Although the investigators mentioned they were unable to confirm that any buses had ever been bought.

Stemmet also verified which the buses were concealed to halt them becoming seized. But once the investigators asked to get taken on the spot in which the buses were saved, he explained to them that “the operator of the secret area was not accessible to open the premises for us”.

“The CTMCA couldn't supply proof of payment for 2 cars that it allegedly ordered with grant income,” the investigators described.

Soeker also advised them the Schaapkraal home were sold due to credit card debt.

“Mr Soeker spelled out that Based on his knowing, because of the personal debt owed to the City of Cape Town, the CTMCA made a decision It will be very best to offer their [Schaapkraal] property … and to also to hide the assets from the CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for security and security, has previously told GroundUp which the CTMCA “threw revenue away” on litigation with the City.

“Yearly like clockwork, as we method the top on the yr, the CTMCA picks a lawful battle with the City, more than permits or something else. We never initiate it. They hold throwing money away on vexatious litigation that they shed and also have prices awarded against them. This is certainly solely self-inflicted,” he said.

Soeker told the Dabishi Nthambeleni investigators that the primary function gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of the many admin, finances and running ผล หวย ลาว the CTMCA.” The investigators explained they were unable to Speak to Momberg.

Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “identified numerous machines, some in great condition, some in poor affliction and a few that seemed rusty and intensely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where “instruments plus some machinery” have been retained.

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

Determined by pics and invoices in GroundUp’s possession, some, Otherwise all, in the goods seem like gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is experiencing fees for this removing.

Based on the remaining progress report submitted towards the NLC by the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm by which Stemmet, his spouse and his daughter were directors at some time.

The investigators discovered this “alarming”.

“Within the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we note the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the company is 5 Crete Road, Wetton, Cape City, the identical deal with on which the museum was intended to be crafted and/or transformed,” they described.

An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded that 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 considered one of the administrators.

In line with Dabishi Nthambeleni, the corporation has paid R1.2-million like a deposit, indicating R6.nine-million remains to be owed, while there's no payment date set for when this has to be paid.

The Kopano audit and also the close link between the businesses “reveal to us that there is ‘foul play’ linked to the purchase of the equipment on the museum workshop”, the investigators explained while in the report.

“We find that it's hugely probable that CTMCA made use of the funding with the NLC to ‘refund’ among its principal administrators for your assets at a better overpriced level than the actual price tag and price of the house and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant on the CTMCA had been used.

“In reality, a detailed report on how the funding from the NLC was utilized, could be extremely hard since the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities invested on Each and every item it asked for funding for. The interim report and ultimate report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not executed a web site visit in advance of approving the grant. But this was not common practice at time they usually discovered no evidence of negligence by NLC staff members.

At the time, the NLC’s regulations didn't demand funded organisations to submit proof of payment with interim stories, they identified. This intended the CTMCA was in the position to receive a second tranche of funding without needing to supply proof that it experienced made use of the main tranche for its meant goal.

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

Dabishi Nthambeleni advisable that

the NLC drop any foreseeable future funding applications with the CTMCA;
the CTMCA and any associates who were involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a prison circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated funds.
But, as an alternative to act on the report’s recommendations, the NLC – below its preceding administration – chose to suppress it, because it had accomplished While using the previous reports into corruption it had commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and requested for electronic mail addresses to ship the issues by e mail also. But no reaction had been acquired at some time of publication.



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

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