Leaked report exposes abuse of lottery revenue paid out to minstrel team

Leaked report exposes abuse of lottery revenue paid out to minstrel team

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Minstrels carry out in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators uncovered the CTMCA didn't utilize the R5-million allocated to order or build a museum.
Additionally they uncovered that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA utilized cash with the Lottery to buy workshop devices from one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to setup a museum to rejoice town’s rich minstrel historical past went astray. The museum was in no way made.

The small print with the abuse of an incredible number of rands of Lottery resources to get a museum that never ever was are uncovered in an investigative report commissioned with the NLC in 2021.

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

The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which included funding for that museum. The approved price range for that museum was greater than R12.eight-million, with R5-million of that allocated to get a setting up to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a creating for that museum and if the museum “essentially existed”.

The agency was also instructed to analyze

the purchase with Lottery resources of two cars – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
numerous devices “ordered for your manufacturing in the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director on 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 several administrators in the organisation. Stemmet was reappointed as being a director in Might 2021.

The investigation adopted substantial reporting by GroundUp in regards to the millions of rands of Lottery funding allotted to the CTMCA (see here, right here and right here) and the way the money most likely helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at some time by Marius Fransman.



The setting up on the ideal was the supposed web site on the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to the Parliamentary query, former NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “jobs” - including the museum - among 2012 and 2015. All a few projects had been concluded, she informed MPs.

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

At first the museum was due to open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp on the meant Wetton museum shows a coffee shop with some musical instruments and minstrel costumes and collages of images haphazardly hung to the partitions, in addition to a product ship on its plinth in a corner.

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

Stemmet informed the investigators the museum were moved since they could now not find the money for the rent of R100,000 per month. He explained the CTMCA experienced ordered house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for the same selling price. Schaapkraal is within a peri-city region significantly from town.

Therefore, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following checking out the premises, which happen to be within an industrial space, the investigators said they doubted no matter whether a correct museum existed there. Photographs attached towards the report show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, with no clarification.

“There exists a minimal degree of things at the museum [that] under no circumstances represent the in excess of 100-yr heritage of the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … frequently, the museum does not appear for being open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement in the museum to an alternative locale devoid of notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver with the rented Crete Street premises as it had run up a R4-million credit card debt with the town of Cape Town and was concerned its machines would be attached.

“A result of the lawful battles and the debts, the organisation had to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director from the CTMCA, advised them that the two buses acquired with lottery funds were being stored inside of a mystery area “concealed through the Sheriff”. Though the investigators claimed they had been unable to verify that any buses had at any time been acquired.

Stemmet also verified that the buses were concealed to prevent them being seized. But once the investigators questioned for being taken to your put exactly where the buses had been saved, he told them that “the owner of The trick site was not accessible to open up the premises for us”.

“The CTMCA could not give proof of payment for two automobiles that it allegedly purchased with grant dollars,” the investigators reported.

Soeker also informed them the Schaapkraal house were marketed because of the financial debt.

“Mr Soeker spelled out that As outlined by his being familiar with, as a result of financial debt owed to the City of Cape City, the CTMCA resolved It could be very best to provide their [Schaapkraal] home … also to also to hide the assets with the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for safety and safety, has Beforehand informed GroundUp the CTMCA “threw dollars absent” on litigation with town.

“Yearly like clockwork, as we tactic the top of your calendar year, the CTMCA picks a lawful struggle with the City, around permits or another thing. We by no means initiate it. They maintain throwing cash absent on vexatious litigation they get rid of and have costs awarded versus them. This is often fully self-inflicted,” he mentioned.

Soeker explained to the Dabishi Nthambeleni investigators that the leading part gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and functioning ผล หวย หุ้น the CTMCA.” The investigators mentioned they were not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located many equipment, some in great issue, some in poor affliction and some that looked rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-website storage facility the place “devices and some machinery” have been retained.

“We questioned him to consider us to the ability but he was evasive to our ask for.”

According to images and invoices in GroundUp’s possession, some, Otherwise all, of the products look like machines which was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing fees for this removal.

In accordance with the last development report submitted to the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter ended up directors at time.

The investigators uncovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we Observe the following alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Road, Wetton, Cape City, the identical tackle on which the museum was meant to be created and/or converted,” they claimed.

An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was amongst the directors.

In accordance with Dabishi Nthambeleni, the corporate has compensated R1.two-million as a deposit, which means R6.9-million remains to be owed, nevertheless there is absolutely no payment date set for when this has to be paid.

The Kopano audit and also the close link in between the companies “suggest to us that there's ‘foul Participate in’ involved in the acquisition with the equipment on the museum workshop”, the investigators stated inside the report.

“We discover that it is really probable that CTMCA used the funding on the NLC to ‘refund’ certainly one of its main directors for that property at a better overpriced level than the actual price tag and worth of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to establish how the grant for the CTMCA had been invested.

“Actually, a detailed report on how the funding on the NLC was utilised, might be impossible given that the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities invested on Every product it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not performed a site take a look at just before approving the grant. But this wasn't standard follow at some time and they located no proof of carelessness by NLC workers.

At enough time, the NLC’s rules did not need funded organisations to submit proof of payment with interim reviews, they pointed out. This meant which the CTMCA was ready to get a 2nd tranche of funding without the need to present evidence that it had employed the primary tranche for its intended purpose.

Following the appointment of a brand new board, commissioner and senior govt crew, the NLC has tightened up on these and also other concerns.

Dabishi Nthambeleni recommended that

the NLC decrease any upcoming funding programs within the CTMCA;
the CTMCA and any associates who were involved with the grant be subjected to the NLC’s “delinquency” method;
the NLC open up a prison case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated funds.
But, instead of act about the report’s suggestions, the NLC – beneath its preceding administration – chose to suppress it, because it experienced finished Along with the preceding reviews into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker by using SMS, and requested for e-mail addresses to mail the inquiries by email far too. But no response had been been given at the time of publication.



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

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