Leaked report exposes abuse of lottery income paid out to minstrel group

Leaked report exposes abuse of lottery income paid out to minstrel group

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Minstrels carry out in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the National Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has observed no proof that a museum at any time existed.
The investigators identified which the CTMCA did not make use of the R5-million allotted to buy or make a museum.
They also observed which the CTMCA only bought land worthy of R1.7-million, not R5-million as allocated.
They observed the CTMCA used money with the Lottery to get workshop products from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to create a museum to rejoice the town’s prosperous minstrel background went astray. The museum was never ever created.

The details of your abuse of millions of rands of Lottery cash for the museum that never ever was are unveiled in an investigative report commissioned because of the NLC in 2021.

The museum grant was Portion of more than R64-million in Lottery cash allotted on the CTMCA between 2003 and 2017.

The primary Element of the investigation, by law company Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which integrated funding to the museum. The approved funds for the museum was in excess of R12.eight-million, with R5-million of that allocated for just a creating to accommodate the museum.

Examine the report (PDF, 7MB)

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

The company was also instructed to analyze

the purchase with Lottery money of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “ordered for that manufacturing with the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous directors of the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation followed in depth reporting by GroundUp about the countless rands of Lottery funding allotted into the CTMCA (see below, listed here and right here) and the way the cash likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.



The setting up on the correct was the intended web-site of your minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - including the museum - among 2012 and 2015. All a few assignments had been done, she advised MPs.

Nevertheless the investigators found no proof that a museum experienced ever existed.

At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp of your supposed Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung within the walls, and also a product ship on its plinth inside of a corner.

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

Stemmet told the investigators the museum were moved mainly because they could no more find the money for the lease of R100,000 per month. He claimed the CTMCA had procured residence for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been marketed for a similar selling price. Schaapkraal is within a peri-city area significantly from town.

Due to this fact, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which can be in an industrial spot, the investigators reported they doubted regardless of whether a correct museum existed there. Photographs attached towards the report display a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the floor, without having clarification.

“There's a negligible number of things at the museum [that] under no circumstances represent the in excess of 100-yr record from the Cape Town Carnival, the investigators claimed, introducing that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum won't glimpse to become open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement on the museum to an alternate place without having notifying the NLC.



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

Buses
Stemmet explained to the investigators the CTMCA had to maneuver in the rented Crete Highway premises because it experienced operate up a R4-million financial debt with town of Cape Town and was fearful its gear might be attached.

“As a result of lawful battles plus the debts, the organisation had to maneuver its house from five Crete Road to steer clear of the sheriff from attaching the house in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of the CTMCA, informed them that the two buses bought with lottery funds have been saved in a key site “hidden with the Sheriff”. Although the investigators explained they had been not able to verify that any buses experienced ever been purchased.

Stemmet also confirmed that the buses were concealed to stop them becoming seized. But when the investigators requested for being taken to the spot the place the buses had been saved, he instructed them that “the operator of the secret locale wasn't available to open the premises for us”.

“The CTMCA could not give evidence of payment for two autos that it allegedly purchased with grant funds,” the investigators described.

Soeker also told them the Schaapkraal home had been sold due to financial debt.

“Mr Soeker explained that Based on his being familiar with, due to the credit card debt owed to the town of Cape Town, the CTMCA determined it would be ideal to offer their [Schaapkraal] assets … also to also to hide the assets in the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for safety and stability, has Earlier advised GroundUp that the CTMCA “threw dollars away” on litigation with the City.

“On a yearly basis like clockwork, as we technique the end of the calendar year, the CTMCA picks a legal fight with the City, above permits or something else. We under no circumstances initiate it. They continue to keep throwing revenue absent on vexatious litigation that they shed and possess expenditures awarded in opposition to them. This can be entirely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and operating ตรวจ หวย the CTMCA.” The investigators mentioned they were unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered quite a few equipment, some in excellent condition, some in undesirable situation and several that appeared rusty and extremely previous”. Stemmet advised the investigators that there was also an off-site storage facility in which “instruments and a few machinery” had been held.

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

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, in the products appear to be machines that was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing expenses for this removing.

Based on the closing progress report submitted on the NLC by the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were being administrators at the time.

The investigators located this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the same tackle on which the museum was intended to be crafted and/or converted,” they reported.

An audit by accountants Kopano Integrated, attached to your investigative report, recorded that the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the administrators.

In line with Dabishi Nthambeleni, the corporation has paid R1.2-million being a deposit, this means R6.nine-million continues to be owed, while there's no payment date established for when this should be paid.

The Kopano audit and the shut connection concerning the businesses “show to us that there is ‘foul Enjoy’ involved with the purchase with the machinery of your museum workshop”, the investigators claimed inside the report.

“We discover that it is remarkably possible that CTMCA made use of the funding on the NLC to ‘refund’ one of its key directors for that home at a better overpriced level than the particular price and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to your CTMCA were expended.

“The truth is, a detailed report on how the funding in the NLC was employed, could be unattainable because 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 of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not done a web site visit ahead of approving the grant. But this wasn't standard apply at time plus they observed no proof of carelessness by NLC workforce.

At some time, the NLC’s guidelines did not require funded organisations to post evidence of payment with interim reports, they identified. This meant the CTMCA was capable to get a 2nd tranche of funding without having to deliver proof that it experienced utilized the 1st tranche for its intended reason.

Following the appointment of a different board, commissioner and senior executive group, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni advisable that

the NLC drop any upcoming funding applications through the CTMCA;
the CTMCA and any customers who were being linked to the grant be subjected into the NLC’s “delinquency” process;
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, as opposed to act around the report’s tips, the NLC – underneath its earlier administration – selected to suppress it, because it experienced carried out with the preceding reports into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker via SMS, and requested for e mail addresses to send out the questions by email also. But no reaction had been gained at enough time of publication.



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

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