Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated 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 right into a R27.three-million grant because of the Countrywide Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has discovered no evidence that a museum ever existed.
The investigators found that the CTMCA did not utilize the R5-million allocated to get or develop a museum.
In addition they uncovered which the CTMCA only purchased land really worth R1.7-million, not R5-million as allotted.
They identified the CTMCA utilised cash from the Lottery to buy workshop gear from one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Fee (NLC) to create a museum to celebrate town’s wealthy minstrel background went astray. The museum was by no means established.

The small print of your abuse of many rands of Lottery cash for just a museum that never was are revealed within an investigative report commissioned by the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery cash allocated on the CTMCA concerning 2003 and 2017.

The very first part of the investigation, by regulation agency Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for the museum. The accepted funds with the museum was a lot more than R12.eight-million, with R5-million of that allocated for the setting up to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a setting up to the museum and whether or not the museum “essentially existed”.

The firm was also instructed to investigate

the acquisition with Lottery cash of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
several devices “acquired for your manufacturing of your costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director in 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 a director in Could 2021.

The investigation followed considerable reporting by GroundUp with regards to the numerous rands of Lottery funding allocated to your CTMCA (see in this article, below and here) and the best way the money almost certainly aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.



The making on the proper was the meant web page of the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In response into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - such as the museum - among 2012 and 2015. All a few assignments were accomplished, she told MPs.

Though the investigators located no evidence that a museum had ever existed.

At first the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp on the intended Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of pics haphazardly hung over the partitions, in addition to a product ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni claimed it had been “not in a position” to confirm if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved mainly because they could no more manage the rent of R100,000 per month. He stated the CTMCA experienced obtained assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were bought for the same selling price. Schaapkraal is inside a peri-urban space much from the town.

Subsequently, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after traveling to the premises, which are within an industrial space, the investigators reported they doubted regardless of whether a correct museum existed there. Pictures attached into the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the ground, without explanation.

“You will find a minimum degree of objects at the museum [that] by no means stand for the over a hundred-calendar year background on the Cape City Carnival, the investigators claimed, introducing that there was “no signage outside the premises indicating which they housed a museum and … frequently, the museum isn't going to seem to become open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by relocating The situation in the museum to an alternate location without having notifying the NLC.



The Schaapkraal assets, on which no museum was at any time built. Image: Raymond Joseph

Buses
Stemmet informed the investigators the CTMCA experienced to maneuver with the rented Crete Road premises mainly because it experienced operate up a R4-million financial debt with the town of Cape Town and was scared its products would be attached.

“A result of the legal battles and also the debts, the organisation experienced to maneuver its residence from 5 Crete Road to avoid the sheriff from attaching the house in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of your CTMCA, informed them that the two buses purchased with lottery resources were being stored inside of a mystery place “hidden from the Sheriff”. Although the investigators said they ended up unable to confirm that any buses experienced ever been bought.

Stemmet also verified the buses were hidden to stop them remaining seized. But once the investigators requested to become taken for the area the place the buses had been saved, he informed them that “the owner of the secret locale was not accessible to open the premises for us”.

“The CTMCA could not supply proof of payment for 2 autos that it allegedly bought with grant money,” the investigators claimed.

Soeker also instructed them the Schaapkraal residence had been offered as a result of debt.

“Mr Soeker spelled out that In accordance with his being familiar with, mainly because of the personal debt owed to town of Cape City, the CTMCA made a decision It could be greatest to market their [Schaapkraal] house … also to also to cover the belongings of your CTMCA to avoid the sheriff from attaching the residence.”

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

“Each and every year like clockwork, as we approach the tip of the yr, the CTMCA picks a authorized combat with town, more than permits or something else. We in no way initiate it. They hold throwing dollars absent on vexatious litigation that they shed and possess expenditures awarded in opposition to them. That is totally self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the main job players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of many of the admin, finances and working หวย วัน นี้ the CTMCA.” The investigators reported they had been struggling to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “identified numerous machines, some in very good ailment, some in poor issue and many that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility where “instruments and some machinery” were retained.

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

Depending on shots and invoices in GroundUp’s possession, some, Otherwise all, with the merchandise look like devices that was illegally faraway from the CTMCA’s previous premises. Stemmet is facing prices for this elimination.

According to the final progress report submitted to the NLC with the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization where Stemmet, his wife and his daughter had been administrators at some time.

The investigators identified this “alarming”.

“In the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Observe the subsequent alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or converted,” they reported.

An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the administrators.

According to Dabishi Nthambeleni, the corporate has compensated R1.two-million as a deposit, which means R6.9-million is still owed, even though there isn't a payment day set for when this have to be paid out.

The Kopano audit along with the near hyperlink between the businesses “point out to us that there is ‘foul play’ linked to the purchase of the equipment from the museum workshop”, the investigators reported while in the report.

“We discover that it is really probable that CTMCA applied the funding from the NLC to ‘refund’ considered one of its primary directors for that property at a greater overpriced fee than the particular rate and value of the house and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to your CTMCA were put in.

“The truth is, a detailed report on how the funding in the NLC was employed, will be unattainable because the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities invested on each product it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not carried out a site check out before approving the grant. But this was not common observe at the time and so they located no proof of carelessness by NLC workforce.

At some time, the NLC’s rules didn't require funded organisations to post evidence of payment with interim stories, they identified. This meant that the CTMCA was in a position to get a 2nd tranche of funding while not having to give proof that it experienced utilised the primary tranche for its intended intent.

Pursuing the appointment of a fresh board, commissioner and senior executive staff, the NLC has tightened up on these and also other concerns.

Dabishi Nthambeleni suggested that

the NLC decrease any foreseeable future funding applications with the CTMCA;
the CTMCA and any associates who ended up involved in the grant be subjected on the NLC’s “delinquency” system;
the NLC open a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated resources.
But, rather than act on the report’s tips, the NLC – less than its former administration – selected to suppress it, because it had done with the past studies into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and questioned for e mail addresses to send the issues by email much too. But no response had been been given at time of publication.



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

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