Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no proof that a museum at any time existed.
The investigators found the CTMCA didn't utilize the R5-million allotted to get or produce a museum.
They also discovered the CTMCA only purchased land value R1.seven-million, not R5-million as allocated.
They located the CTMCA applied resources within the Lottery to invest in workshop equipment from certainly one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the city’s loaded minstrel background went astray. The museum was never ever made.

The small print in the abuse of a lot of rands of Lottery resources for the museum that in no way was are revealed in an investigative report commissioned by the NLC in 2021.

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

The 1st Section of the investigation, by regulation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which included funding with the museum. The accredited spending budget to the museum was greater than R12.eight-million, with R5-million of that allocated for just a setting up to accommodate the museum.

Browse the report (PDF, 7MB)

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

The company was also instructed to analyze

the purchase with Lottery cash of two cars – a 60-seater bus and a 23-seater bus – for R2.4-million; and
various devices “procured for the production on the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted considerable reporting by GroundUp concerning the countless rands of Lottery funding allocated towards the CTMCA (see here, right here and below) and the way the funds most likely helped finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.



The creating on the appropriate was the intended web site of the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to a Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All 3 projects were concluded, she informed MPs.

Nevertheless the investigators discovered no evidence that a museum experienced ever existed.

In the beginning the museum was due to open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp on the meant Wetton museum exhibits a espresso store with a few musical instruments and minstrel costumes and collages of images haphazardly hung over the partitions, along with a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni stated it had been “not ready” to substantiate if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved given that they could no longer afford to pay for the lease of R100,000 a month. He claimed the CTMCA had procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar cost. Schaapkraal is in a very peri-urban location considerably from town.

Because of this, the museum were moved to a new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after going to the premises, that happen to be in an industrial location, the investigators explained they doubted whether an appropriate museum existed there. Shots connected for the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, with no clarification.

“There's a negligible volume of items with the museum [that] in no way depict the more than 100-yr record 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 look to become open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni mentioned, by moving The situation with the museum to an alternate place without notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises mainly because it had run up a R4-million personal debt with town of Cape Town and was concerned its equipment can be hooked up.

“Because of the legal battles along with the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery resources were being stored within a magic formula location “concealed from your Sheriff”. However the investigators reported they ended up not able to confirm that any buses had ever been acquired.

Stemmet also verified which the buses had been concealed to prevent them getting seized. But in the event the investigators requested to be taken on the spot where by the buses have been stored, he advised them that “the owner of the secret place wasn't available to open the premises for us”.

“The CTMCA couldn't present proof of payment for 2 automobiles that it allegedly acquired with grant dollars,” the investigators claimed.

Soeker also explained to them the Schaapkraal property had been sold due to the debt.

“Mr Soeker discussed that Based on his knowing, mainly because of the credit card debt owed to the town of Cape City, the CTMCA resolved It will be very best to offer their [Schaapkraal] residence … and also to also to cover the property from the CTMCA to steer clear of the sheriff from attaching the residence.”

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

“Yearly like clockwork, as we solution the top from the yr, the CTMCA picks a lawful struggle with town, above permits or another thing. We by no means initiate it. They hold throwing income away on vexatious litigation they reduce and have expenses awarded towards them. That is totally self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the primary role gamers on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of all the admin, finances and jogging หวย ลาว ออก วัน นี้ สด 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 “observed several equipment, some in great affliction, some in bad situation and many that appeared rusty and extremely outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility where “instruments and some equipment” were being saved.

“We requested him to just take us to the ability but he was evasive to our request.”

Based on shots and invoices in GroundUp’s possession, some, if not all, from the items seem like tools which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing costs for this removing.

According to the ultimate development report submitted for the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter have been directors at enough time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape Town, exactly the same handle on which the museum was intended to be constructed and/or transformed,” they noted.

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

In accordance with Dabishi Nthambeleni, the corporate has compensated R1.two-million to be a deposit, meaning R6.nine-million is still owed, though there is absolutely no payment date set for when this must be compensated.

The Kopano audit plus the near website link among the businesses “point out to us that there is ‘foul Participate in’ involved with the purchase of your machinery of your museum workshop”, the investigators explained within the report.

“We discover that it's very possible that CTMCA used the funding on the NLC to ‘refund’ one of its major administrators with the home at a better overpriced level than the particular price and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to determine how the grant to the CTMCA were used.

“In point of fact, an in depth report on how the funding on the NLC was utilised, will be unattainable because the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on Each individual merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not conducted a internet site visit ahead of approving the grant. But this wasn't standard apply at enough time plus they uncovered no proof of carelessness by NLC employees.

At the time, the NLC’s principles did not need funded organisations to submit evidence of payment with interim experiences, 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 initial tranche for its supposed reason.

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

Dabishi Nthambeleni suggested that

the NLC decrease any future funding programs with the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected to your NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, as opposed to act within the report’s recommendations, the NLC – under its former administration – selected to suppress it, because it experienced finished While using the past studies into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker through SMS, and asked for e mail addresses to deliver the questions by e mail also. But no reaction had been gained at time of publication.



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

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