LEAKED REPORT EXPOSES ABUSE OF LOTTERY DOLLARS PAID OUT TO MINSTREL GROUP

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

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

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant through the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has identified no evidence that a museum at any time existed.
The investigators identified which the CTMCA didn't use the R5-million allotted to purchase or establish a museum.
They also identified which the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allotted.
They observed the CTMCA utilised funds from your Lottery to purchase workshop products from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to build a museum to rejoice town’s abundant minstrel record went astray. The museum was in no way designed.

The small print with the abuse of millions of rands of Lottery money for just a museum that in no way was are unveiled in an investigative report commissioned because of the NLC in 2021.

The museum grant was Element of a lot more than R64-million in Lottery funds allotted to the CTMCA between 2003 and 2017.

The first part of the investigation, by regulation firm Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which integrated funding for your museum. The approved finances for your museum was in excess of R12.8-million, with R5-million of that allocated for just a making to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing to the museum and whether the museum “basically existed”.

The organization was also instructed to research

the purchase with Lottery funds of two cars – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
many devices “purchased for your production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors of your organisation. Stemmet was reappointed to be a director in Might 2021.

The investigation followed intensive reporting by GroundUp regarding the millions of rands of Lottery funding allotted to the CTMCA (see here, right here and in this article) and how the resources likely helped finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.



The developing on the appropriate was the intended web page of the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to the Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - including the museum - among 2012 and 2015. All a few tasks had been completed, she told MPs.

But the investigators discovered no evidence that a museum had ever existed.

At the outset the museum was because of open in rented premises in Crete Road, Wetton. A photo received by GroundUp of your meant Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, and a model ship on its plinth within a corner.

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

Stemmet explained to the investigators the museum were moved since they could no more pay for the rent of R100,000 per month. He stated the CTMCA had purchased residence for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and had been marketed for the same selling price. Schaapkraal is inside of a peri-urban location much from the town.

Due to this fact, the museum had been moved to a different site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after traveling to the premises, which can be in an industrial place, the investigators claimed they doubted no matter whether a suitable museum existed there. Images attached for the report demonstrate a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, without having explanation.

“You will find there's nominal level of merchandise with the museum [that] in no way stand for the greater than one hundred-year record from the Cape Town Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't look being open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by moving the location from the museum to another location without notifying the NLC.



The Schaapkraal property, on which no museum was ever built. Photo: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA experienced to move in the rented Crete Road premises as it had operate up a R4-million credit card debt with the City of Cape Town and was scared its equipment might be hooked up.

“Because of the authorized battles and also the debts, the organisation experienced to maneuver its house from five Crete Road to steer clear of the sheriff from attaching the home of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director on the CTMCA, instructed them that the two buses acquired with lottery money had been stored within a key spot “hidden through the Sheriff”. However the investigators stated they were not able to verify that any buses experienced ever been acquired.

Stemmet also verified that the buses had been hidden to halt them being seized. But once the investigators asked to get taken for the spot where by the buses were stored, he informed them that “the proprietor of The key area was not available to open the premises for us”.

“The CTMCA couldn't deliver proof of payment for two autos that it allegedly procured with grant funds,” the investigators claimed.

Soeker also advised them the Schaapkraal house had been sold because of the credit card debt.

“Mr Soeker explained that In keeping with his understanding, because of the financial debt owed to the town of Cape Town, the CTMCA made the decision it would be most effective to offer their [Schaapkraal] property … and also to also to hide the property of your CTMCA to steer clear of the sheriff from attaching the home.”

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

“Every year like clockwork, as we tactic the tip on the calendar year, the CTMCA picks a legal combat with the City, more than permits or another thing. We under no circumstances initiate it. They maintain throwing revenue absent on vexatious litigation that they shed and possess costs awarded versus them. This is certainly solely self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the leading job players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of many of the admin, finances and functioning ตัว หวย the CTMCA.” The investigators mentioned they were struggling to Make contact with Momberg.

Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “discovered many machines, some in good problem, some in terrible condition and a few that looked rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-website storage facility wherever “instruments and some equipment” had been stored.

“We asked him to choose us to the ability but he was evasive to our request.”

Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like machines that was illegally faraway from the CTMCA’s prior premises. Stemmet is experiencing costs for this removing.

According to the remaining progress report submitted into the NLC through the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter ended up administrators at the time.

The investigators found this “alarming”.

“Within the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Highway, Wetton, Cape City, the exact same address on which the museum was intended to be crafted and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected to your investigative report, recorded which the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.

In keeping with Dabishi Nthambeleni, the business has paid out R1.two-million like a deposit, that means R6.9-million remains owed, though there isn't any payment date set for when this should be compensated.

The Kopano audit plus the shut url in between the businesses “indicate to us that there is ‘foul Participate in’ involved in the purchase with the machinery from the museum workshop”, the investigators claimed in the report.

“We find that it is extremely probable that CTMCA utilised the funding with the NLC to ‘refund’ certainly one of its major directors to the house at a greater overpriced charge than the actual value and worth of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to your CTMCA had been expended.

“In fact, an in depth report on how the funding in the NLC was used, can be not possible given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every single merchandise it asked for funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC experienced not conducted a web-site visit prior to approving the grant. But this wasn't standard practice at some time plus they identified no evidence of carelessness by NLC staff members.

At time, the NLC’s guidelines didn't call for funded organisations to submit proof of payment with interim reports, they identified. This meant the CTMCA was capable of get a 2nd tranche of funding without having to provide proof that it experienced utilized the main tranche for its intended reason.

Subsequent the appointment of a completely new board, commissioner and senior govt group, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni proposed that

the NLC decline any long term funding programs through the CTMCA;
the CTMCA and any customers who have been involved with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a prison circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, in lieu of act about the report’s recommendations, the NLC – under its former administration – chose to suppress it, mainly because it had performed Along with the prior reports into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to deliver the inquiries by e mail too. But no response had been obtained at time of publication.



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

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