Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

Blog Article

Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Countrywide Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators found which the CTMCA did not make use of the R5-million allocated to acquire or build a museum.
They also located the CTMCA only purchased land worthy of R1.7-million, not R5-million as allocated.
They observed the CTMCA utilised funds in the Lottery to get workshop devices from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) with the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s wealthy minstrel historical past went astray. The museum was never designed.

The details of your abuse of millions of rands of Lottery cash for any museum that never was are discovered within an investigative report commissioned with the NLC in 2021.

The museum grant was Component of over R64-million in Lottery money allocated on the CTMCA involving 2003 and 2017.

The main Portion of the investigation, by legislation business Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which provided funding for that museum. The accredited price range for your museum was over R12.eight-million, with R5-million of that allocated for a creating to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a building for that museum and whether the museum “really existed”.

The organization was also instructed to investigate

the acquisition with Lottery funds of two cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
a variety of devices “bought for your production with the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of administrators in the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp concerning the many rands of Lottery funding allocated to your CTMCA (see right here, here and listed here) and the best way the cash possibly aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.



The building on the best was the intended web-site from the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All a few jobs were finished, she instructed MPs.

Nevertheless the investigators observed no evidence that a museum experienced at any time existed.

Initially the museum was resulting from open up in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp with the supposed Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung to the walls, along with a design ship on its plinth inside of a corner.

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

Stemmet instructed the investigators the museum were moved mainly because they could not find the money for the hire of R100,000 a month. He mentioned the CTMCA had acquired house for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been sold for a similar value. Schaapkraal is inside of a peri-city location considerably from the city.

Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following browsing the premises, which can be in an industrial place, the investigators reported they doubted no matter whether a suitable museum existed there. Images attached towards the report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the ground, without explanation.

“There is a minimum quantity of goods for the museum [that] in no way symbolize the a lot more than one hundred-yr historical past in the Cape City Carnival, the investigators said, including that there was “no signage outdoors the premises indicating that they housed a museum and … normally, the museum won't look to be open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni observed, by relocating the location of your museum to an alternate spot without notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA had to maneuver through the rented Crete Highway premises mainly because it had operate up a R4-million debt with the City of Cape Town and was fearful its tools might be hooked up.

“A result of the lawful battles and the debts, the organisation experienced to move its assets from 5 Crete Highway to avoid the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director in the CTMCA, informed them which the two buses purchased with lottery cash had been saved in a very top secret area “concealed in the Sheriff”. But the investigators stated they have been unable to confirm that any buses had at any time been purchased.

Stemmet also verified which the buses were concealed to stop them getting seized. But if the investigators requested being taken on the position the place the buses ended up stored, he explained to them that “the owner of The key area wasn't accessible to open the premises for us”.

“The CTMCA couldn't deliver evidence of payment for 2 cars that it allegedly bought with grant revenue,” the investigators noted.

Soeker also instructed them the Schaapkraal home had been marketed because of the financial debt.

“Mr Soeker stated that In keeping with his understanding, because of the credit card debt owed to the town of Cape Town, the CTMCA decided It might be ideal to provide their [Schaapkraal] assets … and also to also to hide the property of the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for security and safety, has previously advised GroundUp that the CTMCA “threw revenue absent” on litigation with the City.

“On a yearly basis like clockwork, as we method the end with the 12 months, the CTMCA picks a authorized battle with the City, above permits or something else. We in no way initiate it. They hold throwing income away on vexatious litigation which they get rid of and have prices awarded in opposition to them. This can be entirely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial part gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of the many admin, funds and running lottovip the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “found several devices, some in fantastic condition, some in poor problem and many that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-internet site storage facility the place “instruments and some equipment” ended up held.

“We asked him to take us to the power but he was evasive to our request.”

Based on pics and invoices in GroundUp’s possession, some, if not all, of your objects appear to be devices that was illegally removed from the CTMCA’s former premises. Stemmet is going through rates for this removal.

Based on the remaining progress report submitted for the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter ended up administrators at enough time.

The investigators uncovered this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, precisely the same address on which the museum was meant to be constructed and/or transformed,” they reported.

An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded that the CTMCA was in the whole process of getting “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.

In line with Dabishi Nthambeleni, the organization has compensated R1.two-million as being a deposit, indicating R6.nine-million is still owed, even though there is no payment date set for when this have to be paid out.

The Kopano audit plus the shut connection between the businesses “reveal to us that there is ‘foul Participate in’ involved with the purchase of the equipment on the museum workshop”, the investigators mentioned within the report.

“We discover that it is remarkably probable that CTMCA made use of the funding in the NLC to ‘refund’ one of its most important directors with the house at a higher overpriced amount than the actual value and price of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to determine how the grant towards the CTMCA had been spent.

“Actually, an in depth report on how the funding of the NLC was utilized, will be unachievable as the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities expended on Just about every merchandise it asked for funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not conducted a web page take a look at prior to approving the grant. But this was not typical apply at enough time they usually found no evidence of negligence by NLC staff members.

At some time, the NLC’s guidelines did not need funded organisations to submit evidence of payment with interim reports, they identified. This intended the CTMCA was capable to receive a next tranche of funding without the need to present proof that it experienced utilised the initial tranche for its supposed function.

Subsequent the appointment of a new board, commissioner and senior government workforce, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni proposed that

the NLC decline any foreseeable future funding purposes in the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected to the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act over the report’s tips, the NLC – under its preceding administration – selected to suppress it, as it had accomplished Using the earlier stories into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker via SMS, and questioned for e mail addresses to deliver the questions by e-mail as well. But no reaction were obtained at some time of publication.



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

https://javorka.online
https://ufabetsea.online
https://ufabetwine.online
https://ufabetsc.online
https://ufabethunter.online
https://ufawinbet.site
https://sagaming99.site
https://sagaming93.online
https://sagaming92.online
https://sagaming91.online
https://sagaming90.online
https://javbom.online
https://javcanna.online
https://javmini.online
https://javoops.online
https://javhubs.online
https://javep.online
https://javzooms.online
https://javporns.online
https://javbros.online
https://sagamings.online
https://huaylnw.shop
https://huayka.shop
https://huaynaja.shop
https://huay1.site
https://huay2.site
https://huay3.site
https://huay4.site
https://huay5.site
https://huay6.site
https://edeltanet.com