Leaked report exposes abuse of lottery revenue compensated to minstrel team

Leaked report exposes abuse of lottery revenue compensated to minstrel team

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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators located which the CTMCA didn't use the R5-million allocated to obtain or create a museum.
Additionally they observed which the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA employed resources with the Lottery to purchase workshop equipment from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Fee (NLC) to create a museum to celebrate the town’s rich minstrel historical past went astray. The museum was hardly ever created.

The main points with the abuse of many rands of Lottery money for any museum that under no circumstances was are uncovered in an investigative report commissioned via the NLC in 2021.

The museum grant was A part of much more than R64-million in Lottery resources allocated for the CTMCA between 2003 and 2017.

The 1st part of the investigation, by legislation agency Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which included funding for that museum. The accredited funds for your museum was in excess of R12.eight-million, with R5-million of that allocated for any setting up to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the building with the museum and whether the museum “essentially existed”.

The firm was also instructed to research

the acquisition with Lottery money of two vehicles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
numerous machines “obtained for that production with the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors of the organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed intensive reporting by GroundUp with regard to the many rands of Lottery funding allotted for the CTMCA (see here, in this article and listed here) and how the funds most likely aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The setting up on the right was the meant web page of your minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction into a Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “jobs” - including the museum - between 2012 and 2015. All 3 tasks were completed, she instructed MPs.

Nevertheless the investigators found no proof that a museum had at any time existed.

At first the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp from the supposed Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a model ship on its plinth within a corner.

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

Stemmet instructed the investigators the museum had been moved simply because they could no longer afford to pay for the lease of R100,000 per month. He mentioned the CTMCA experienced acquired property for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were bought for the same price tag. Schaapkraal is inside a peri-urban place far from the city.

Due to this fact, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial spot, the investigators explained they doubted irrespective of whether an appropriate museum existed there. Pics connected towards the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the floor, without explanation.

“You will find a minimum degree of objects at the museum [that] by no means stand for the over one hundred-calendar year history in the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum does not seem to generally be open to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by relocating the location from the museum to an alternate locale with no notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA had to move from your rented Crete Street premises because it had operate up a R4-million credit card debt with the town of Cape City and was scared its products will be hooked up.

“Due to the lawful battles and the debts, the organisation experienced to move its residence from 5 Crete Street to avoid the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director of the CTMCA, told them that the two buses bought with lottery money had been stored in the top secret area “hidden from your Sheriff”. Though the investigators stated they ended up not able to substantiate that any buses had at any time been purchased.

Stemmet also verified the buses had been hidden to halt them currently being seized. But when the investigators questioned for being taken to the place where by the buses have been saved, he informed them that “the proprietor of The key place wasn't available to open up the premises for us”.

“The CTMCA couldn't give evidence of payment for 2 autos that it allegedly ordered with grant income,” the investigators claimed.

Soeker also informed them the Schaapkraal residence were sold as a result of debt.

“Mr Soeker explained that according to his knowledge, due to the debt owed to the City of Cape City, the CTMCA made the decision It will be best to offer their [Schaapkraal] house … also to also to hide the belongings in the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for protection and safety, has Beforehand instructed GroundUp the CTMCA “threw revenue absent” on litigation with town.

“Annually like clockwork, as we approach the top with the yr, the CTMCA picks a authorized struggle with town, over permits or something else. We under no circumstances initiate it. They maintain throwing income away on vexatious litigation which they eliminate and also have costs awarded versus them. This is certainly completely self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the key job players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of all the admin, funds and working หวย วัน นี้ the CTMCA.” The investigators explained they were unable to Call Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “identified various machines, some in great issue, some in lousy condition and a few that looked rusty and extremely old”. Stemmet told the investigators that there was also an off-website storage facility exactly where “instruments plus some equipment” have been stored.

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

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, on the products seem like gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is facing prices for this removal.

Based on the remaining progress report submitted for the NLC via the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been directors at some time.

The investigators found this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Notice the following alarming discovering: Mr Stemmet himself is often 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 developed and/or transformed,” they noted.

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

Based on Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, indicating R6.nine-million remains to be owed, while there is no payment day set for when this has to be paid.

The Kopano audit and also the close hyperlink amongst the companies “show to us that there's ‘foul Participate in’ involved with the purchase of the equipment in the museum workshop”, the investigators stated during the report.

“We find that it's extremely possible that CTMCA utilized the funding of the NLC to ‘refund’ one among its primary directors for that home at a better overpriced rate than the actual price tag and worth of the property and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was unable to determine how the grant towards the CTMCA had been invested.

“In fact, a detailed report on how the funding in the NLC was employed, can be extremely hard because the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every single item it asked for funding for. The interim report and ultimate report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not carried out a web page take a look at prior to approving the grant. But this wasn't conventional practice at enough time they usually found no evidence of negligence by NLC workers.

At enough time, the NLC’s regulations didn't involve funded organisations to post evidence of payment with interim stories, they pointed out. This meant that the CTMCA was in a position to receive a second tranche of funding without the need to provide evidence that it had utilized the very first tranche for its supposed reason.

Adhering to the appointment of a brand new board, commissioner and senior govt crew, the NLC has tightened up on these along with other challenges.

Dabishi Nthambeleni advisable that

the NLC drop any long term funding programs within the CTMCA;
the CTMCA and any members who have been involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, rather than act over the report’s tips, the NLC – beneath its earlier administration – selected to suppress it, since it had finished Along with the earlier reports into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker by using SMS, and requested for e mail addresses to send the issues by email also. But no reaction were received at time of publication.



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

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