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

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

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the Countrywide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no evidence that a museum ever existed.
The investigators located that the CTMCA did not use the R5-million allocated to buy or establish a museum.
Additionally they identified the CTMCA only acquired land well worth R1.seven-million, not R5-million as allotted.
They found the CTMCA employed resources from your Lottery to acquire workshop machines from among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) because of the Nationwide Lotteries Commission (NLC) to setup a museum to rejoice the town’s wealthy minstrel background went astray. The museum was in no way produced.

The main points on the abuse of an incredible number of rands of Lottery money for just a museum that under no circumstances was are uncovered within an investigative report commissioned through the NLC in 2021.

The museum grant was part of a lot more than R64-million in Lottery resources allotted for the CTMCA between 2003 and 2017.

The primary Element of the investigation, by regulation firm Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which incorporated funding with the museum. The authorised spending budget to the museum was much more than R12.8-million, with R5-million of that allocated for any creating to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the creating for the museum and whether or not the museum “essentially existed”.

The organization was also instructed to investigate

the purchase with Lottery resources of two cars – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
a variety of machines “purchased for that manufacturing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous directors in the organisation. Stemmet was reappointed being a director in May possibly 2021.

The investigation followed extensive reporting by GroundUp about the an incredible number of rands of Lottery funding allotted towards the CTMCA (see in this article, in this article and here) and how the money likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.



The developing on the ideal was the supposed web site on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - such as the museum - involving 2012 and 2015. All a few jobs had been finished, she informed MPs.

Even so the investigators uncovered no proof that a museum experienced ever existed.

Initially the museum was due to open in rented premises in Crete Highway, Wetton. A photo received by GroundUp of the intended Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of pics haphazardly hung on the partitions, along with a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not ready” to substantiate if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum had been moved given that they could not afford the hire of R100,000 per month. He claimed the CTMCA had ordered residence for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been sold for a similar price tag. Schaapkraal is in a very peri-urban area considerably from town.

Subsequently, the museum had been moved to a fresh location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after traveling to the premises, which might be within an industrial place, the investigators said they doubted no matter if an appropriate museum existed there. Photos attached on the report demonstrate a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and spread out on the floor, without any explanation.

“There's a minimal amount of goods on the museum [that] in no way stand for the in excess of 100-calendar year heritage from the Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum would not seem to be open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by shifting The placement on the museum to an alternate spot without the need of notifying the NLC.



The Schaapkraal property, on which no museum was ever constructed. Photograph: Raymond Joseph

Buses
Stemmet told the investigators which the CTMCA had to maneuver from your rented Crete Highway premises as it had run up a R4-million personal debt with the City of Cape Town and was afraid its devices could be connected.

“Because of the authorized battles as well as debts, the organisation had to move its home from five Crete Highway to stay away from the sheriff from attaching the residence from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director of the CTMCA, advised them which the two buses acquired with lottery funds were saved inside of a top secret location “hidden through the Sheriff”. Though the investigators claimed they were being unable to substantiate that any buses experienced ever been bought.

Stemmet also confirmed that the buses were concealed to halt them being seized. But in the event the investigators requested to get taken for the spot the place the buses ended up stored, he instructed them that “the operator of The trick location wasn't available to open the premises for us”.

“The CTMCA couldn't offer evidence of payment for two autos that it allegedly purchased with grant cash,” the investigators reported.

Soeker also advised them the Schaapkraal property were bought because of the personal debt.

“Mr Soeker discussed that In accordance with his being familiar with, as a result of credit card debt owed to the town of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] house … and to also to hide the belongings with the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp the CTMCA “threw cash away” on litigation with the town.

“Every year like clockwork, as we strategy the tip of your calendar year, the CTMCA picks a legal fight with the City, more than permits or something else. We in no way initiate it. They hold throwing revenue absent on vexatious litigation which they shed and have charges awarded from them. This is solely self-inflicted,” he claimed.

Soeker instructed the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of all the admin, funds and running ltpbet the CTMCA.” The investigators said they had been struggling to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “located numerous devices, some in superior affliction, some in negative condition and many that looked rusty and intensely old”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “devices and some equipment” were stored.

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

According to photographs and invoices in GroundUp’s possession, some, if not all, in the products appear to be equipment which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing fees for this removing.

According to the remaining progress report submitted to your NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter were administrators at enough time.

The investigators discovered this “alarming”.

“With the CIPC research of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape City, a similar tackle on which the museum was intended 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 paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was amongst the directors.

In keeping with Dabishi Nthambeleni, the business has paid out R1.2-million for a deposit, this means R6.nine-million remains owed, nevertheless there's no payment date set for when this should be paid.

The Kopano audit as well as the close website link among the companies “suggest to us that there's ‘foul Perform’ involved in the acquisition on the machinery with the museum workshop”, the investigators explained inside the report.

“We discover that it is remarkably probable that CTMCA utilized the funding of the NLC to ‘refund’ considered one of its principal directors with the property at a better overpriced amount than the particular cost and worth of the assets and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA had been spent.

“In reality, an in depth report on how the funding with the NLC was applied, can be difficult as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Every product it requested funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not performed a web site visit ahead of approving the grant. But this wasn't standard follow at enough time they usually discovered no evidence of negligence by NLC staff.

At enough time, the NLC’s regulations didn't have to have funded organisations to post evidence of payment with interim studies, they pointed out. This meant which the CTMCA was ready to get a 2nd tranche of funding without needing to supply evidence that it experienced employed the initial tranche for its intended reason.

Adhering to the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni proposed that

the NLC decline any long run funding applications through the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a prison case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire 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 done While using the past reviews into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker through SMS, and questioned for e mail addresses to send the inquiries by electronic mail also. But no reaction were obtained at enough time of publication.



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

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