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 carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no proof that a museum ever existed.
The investigators found which the CTMCA didn't use the R5-million allotted to buy or make a museum.
In addition they identified the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They identified the CTMCA used funds from your Lottery to buy workshop gear from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Fee (NLC) to put in place a museum to celebrate the city’s rich minstrel background went astray. The museum was under no circumstances produced.

The main points with the abuse of millions of rands of Lottery resources to get a museum that under no circumstances was are discovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Component of a lot more than R64-million in Lottery resources allotted towards the CTMCA involving 2003 and 2017.

The very first Section of the investigation, by legislation business Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which included funding for your museum. The accepted funds to the museum was much more than R12.8-million, with R5-million of that allotted for just a creating to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating for that museum and whether the museum “in fact existed”.

The business was also instructed to investigate

the purchase with Lottery money of two cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
several devices “acquired to the production from the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various directors of your organisation. Stemmet was reappointed being a director in Might 2021.

The investigation adopted in depth reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allotted to the CTMCA (see listed here, below and here) and the best way the cash likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at the time by Marius Fransman.



The developing on the correct was the supposed website in the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - such as the museum - in between 2012 and 2015. All 3 projects were completed, she instructed MPs.

However the investigators observed no proof that a museum had ever existed.

At first the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp in the intended Wetton museum demonstrates a espresso shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the walls, plus a design ship on its plinth within a corner.

In its report, Dabishi Nthambeleni explained it was “not in a position” to substantiate if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum had been moved given that they could no longer afford to pay for the lease of R100,000 per month. He claimed the CTMCA had ordered home for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same rate. Schaapkraal is within a peri-city space much from the town.

Subsequently, the museum had been moved to a fresh site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following browsing the premises, which might be within an industrial place, the investigators claimed they doubted whether an appropriate museum existed there. Shots connected for the report present a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, without having clarification.

“There is a nominal quantity of goods in the museum [that] under no circumstances signify the in excess of a hundred-year background with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum will not search to get open to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by shifting the location of your museum to another spot with out notifying the NLC.



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

Buses
Stemmet explained to the investigators which the CTMCA had to maneuver in the rented Crete Highway premises since it experienced run up a R4-million personal debt with the town of Cape City and was frightened its products might be connected.

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

Sedrick Soeker, The present director of your CTMCA, told them that the two buses bought with lottery resources ended up stored within a key spot “concealed within the Sheriff”. However the investigators claimed they ended up not able to substantiate that any buses experienced ever been bought.

Stemmet also verified that the buses were hidden to halt them currently being seized. But when the investigators requested to generally be taken on the put wherever the buses had been stored, he explained to them that “the owner of the secret site was not accessible to open the premises for us”.

“The CTMCA couldn't give evidence of payment for 2 vehicles that it allegedly obtained with grant revenue,” the investigators described.

Soeker also explained to them the Schaapkraal property were bought because of the debt.

“Mr Soeker explained that In keeping with his comprehending, as a result of financial debt owed to town of Cape City, the CTMCA made a decision It might be most effective to market their [Schaapkraal] home … also to also to hide the property of your CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and protection, has Earlier told GroundUp that the CTMCA “threw income absent” on litigation with the town.

“On a yearly basis like clockwork, as we approach the end from the yr, the CTMCA picks a authorized combat with the town, about permits or another thing. We hardly ever initiate it. They continue to keep throwing dollars away on vexatious litigation that they lose and possess prices awarded versus them. This is solely self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the principle part gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of many of the admin, funds and operating หวย ลาว ย้อน หลัง the CTMCA.” The investigators reported they had been struggling to Make contact with Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “uncovered several devices, some in superior situation, some in undesirable affliction plus some that appeared rusty and intensely aged”. Stemmet told the investigators that there was also an off-website storage facility exactly where “instruments and some equipment” ended up retained.

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

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, on the products look like tools which was illegally removed from the CTMCA’s former premises. Stemmet is going through charges for this elimination.

In accordance with the final progress report submitted to your NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter ended up administrators at some time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape City, precisely the same address on which the museum was meant to be constructed and/or transformed,” they documented.

An audit by accountants Kopano Included, connected into the investigative report, recorded the CTMCA was in the whole process of buying “equipment, 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 one of the directors.

As outlined by Dabishi Nthambeleni, the company has paid R1.2-million as being a deposit, that means R6.9-million continues to be owed, even though there is not any payment day set for when this has to be paid.

The Kopano audit and also the shut connection involving the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition from the equipment in the museum workshop”, the investigators said from the report.

“We find that it is really probable that CTMCA utilised the funding from the NLC to ‘refund’ considered one of its main directors to the assets at a higher overpriced charge than the particular selling price and price of the assets and/or equipment.”

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

“Actually, a detailed report on how the funding from the NLC was utilized, could be impossible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Just about every item it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not executed a website stop by just before approving the grant. But this was not typical practice at time and so they observed 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 studies, they pointed out. This meant which the CTMCA was ready to get a second tranche of funding without needing to provide evidence that it had used the main tranche for its meant objective.

Next the appointment of a different board, commissioner and senior executive staff, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni encouraged that

the NLC drop any potential funding purposes in the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open a legal scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had finished While using the preceding reviews into corruption it experienced commissioned.

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



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

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