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

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

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Countrywide Lotteries Commission for the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no proof that a museum ever existed.
The investigators found the CTMCA did not utilize the R5-million allocated to buy or produce a museum.
Additionally they uncovered that the CTMCA only purchased land really worth R1.7-million, not R5-million as allocated.
They observed the CTMCA made use of funds in the Lottery to acquire workshop machines from considered one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to set up a museum to rejoice the town’s wealthy minstrel heritage went astray. The museum was hardly ever designed.

The small print with the abuse of an incredible number of rands of Lottery resources for your museum that never was are exposed in an investigative report commissioned with the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery cash allotted towards the CTMCA amongst 2003 and 2017.

The first Portion of the investigation, by law company Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which bundled funding for your museum. The accepted price range for that museum was greater than R12.8-million, with R5-million of that allocated to get a building to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the setting up for your museum and whether the museum “in fact existed”.

The firm was also instructed to investigate

the acquisition with Lottery money of two vehicles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many devices “procured for your production in the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors of the organisation. Stemmet was reappointed to be a director in May 2021.

The investigation followed in depth reporting by GroundUp concerning the countless rands of Lottery funding allocated into the CTMCA (see listed here, right here and here) and the way in which the cash almost certainly aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at time by Marius Fransman.



The making on the right was the supposed internet site on the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to your Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All three assignments were concluded, she told MPs.

Though the investigators identified no proof that a museum had ever existed.

Initially the museum was resulting from open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp of the meant Wetton museum displays a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung about the walls, and also a model ship on its plinth in the corner.

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

Stemmet instructed the investigators the museum had been moved given that they could now not manage the hire of R100,000 a month. He said the CTMCA had acquired residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar value. Schaapkraal is in the peri-urban place much from the town.

Consequently, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after going to the premises, which happen to be within an industrial location, the investigators reported they doubted irrespective of whether a correct museum existed there. Photographs connected for the report exhibit a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, with no explanation.

“You will find there's nominal quantity of goods for the museum [that] under no circumstances characterize the much more than 100-calendar year history of the Cape City Carnival, the investigators stated, incorporating that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum isn't going to glance to generally be open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating the location with the museum to another location devoid of notifying the NLC.



The Schaapkraal residence, on which no museum was ever created. Photo: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA experienced to move in the rented Crete Highway premises since it had operate up a R4-million debt with the town of Cape Town and was concerned its gear might be attached.

“Because of the authorized battles as well as debts, the organisation had to maneuver its house from five Crete Street to avoid the sheriff from attaching the house of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director on the CTMCA, instructed them the two buses purchased with lottery money had been stored in a secret location “concealed through the Sheriff”. Although the investigators explained they had been not able to verify that any buses experienced ever been acquired.

Stemmet also confirmed which the buses had been concealed to halt them currently being seized. But when the investigators requested to be taken to your location wherever the buses were stored, he advised them that “the operator of The trick place was not available to open up the premises for us”.

“The CTMCA could not provide proof of payment for 2 automobiles that it allegedly bought with grant cash,” the investigators described.

Soeker also explained to them the Schaapkraal home were sold due to personal debt.

“Mr Soeker defined that according to his understanding, as a result of credit card debt owed to the City of Cape Town, the CTMCA decided it would be best to provide their [Schaapkraal] assets … and to also to cover the assets 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 Formerly explained to GroundUp the CTMCA “threw income away” on litigation with the town.

“Annually like clockwork, as we strategy the tip with the year, the CTMCA picks a lawful fight with the City, in excess of permits or another thing. We in no way initiate it. They continue to keep throwing funds away on vexatious litigation they eliminate and also have expenditures awarded from them. This is completely self-inflicted,” he claimed.

Soeker told the Dabishi Nthambeleni investigators that the leading purpose players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of all of the admin, funds and jogging ltpbet the CTMCA.” The investigators said they were not able to Speak to Momberg.

Hats
Through their “investigation in loco” with the Primrose Park premises, the investigators “located many equipment, some in good condition, some in lousy issue and a few that appeared rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-web site storage facility where “instruments and some equipment” ended up retained.

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

According to pics and invoices in GroundUp’s possession, some, Otherwise all, on the products appear to be gear which was illegally removed from the CTMCA’s prior premises. Stemmet is facing prices for this elimination.

According to the remaining progress report submitted into the NLC because of the CTMCA, the equipment was acquired from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter had been directors at enough time.

The investigators uncovered this “alarming”.

“From your CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming finding: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape City, the exact same deal with on which the museum was meant to be designed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the directors.

In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million like a deposit, indicating R6.nine-million remains to be owed, however there is not any payment day set for when this has to be paid.

The Kopano audit and the shut backlink amongst the companies “suggest to us that there is ‘foul play’ linked to the purchase with the machinery with the museum workshop”, the investigators mentioned in the report.

“We find that it's highly probable that CTMCA made use of the funding in the NLC to ‘refund’ considered one of its primary directors to the assets at a higher overpriced charge than the actual price tag and worth of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA were used.

“In point of fact, an in depth report on how the funding on the NLC was employed, will be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Every single item it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC experienced not performed a web-site go to in advance of approving the grant. But this wasn't regular follow at enough time they usually found no proof of carelessness by NLC employees.

At the time, the NLC’s guidelines did not require funded organisations to post evidence of payment with interim studies, they pointed out. This meant which the CTMCA was in the position to receive a second tranche of funding without the need to deliver proof that it experienced applied the primary tranche for its intended intent.

Adhering to the appointment of a fresh 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 applications through the CTMCA;
the CTMCA and any users who were associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated cash.
But, rather then act to the report’s suggestions, the NLC – beneath its prior administration – selected to suppress it, since it had finished Along with the earlier reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the thoughts by e-mail far too. But no reaction had been acquired at enough time of publication.



The minstrel “museum” in Crete Highway, Wetton. Photo: Raymond Joseph

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