Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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Minstrels complete in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the Countrywide Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum at any time existed.
The investigators found the CTMCA didn't use the R5-million allotted to buy or produce a museum.
In addition they identified the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA applied funds from your Lottery to acquire workshop equipment from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to put in place a museum to celebrate town’s rich minstrel record went astray. The museum was never ever created.

The main points of your abuse of millions of rands of Lottery funds for the museum that in no way was are uncovered within an investigative report commissioned via the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery resources allocated to your CTMCA between 2003 and 2017.

The 1st A part of the investigation, by regulation business Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which integrated funding for the museum. The approved finances for that museum was much more than R12.eight-million, with R5-million of that allocated for a making to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building for your museum and whether the museum “basically existed”.

The company was also instructed to research

the purchase with Lottery funds of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
various equipment “bought to the manufacturing on the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous directors of the organisation. Stemmet was reappointed to be a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp with regard to the a lot of rands of Lottery funding allotted on the CTMCA (see here, below and right here) and how the money likely helped finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at some time by Marius Fransman.



The setting up on the right was the meant website from the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to your Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “jobs” - including the museum - amongst 2012 and 2015. All 3 initiatives were done, she told MPs.

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

At first the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of the supposed Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung on the partitions, plus a design ship on its plinth in a corner.

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

Stemmet explained to the investigators the museum were moved mainly because they could no longer pay for the rent of R100,000 per month. He said the CTMCA experienced bought property for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were offered for the same cost. Schaapkraal is inside a peri-urban location considerably from town.

Therefore, the museum were moved to a new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, that are within an industrial spot, the investigators claimed they doubted whether or not an appropriate museum existed there. Pics hooked up into the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and spread out on the floor, with no rationalization.

“You will find there's small number of things at the museum [that] on no account represent the a lot more than one hundred-year heritage from the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum does not appear to be open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by shifting The placement from the museum to an alternate locale without the need of notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to maneuver with the rented Crete Street premises mainly because it experienced run up a R4-million debt with the town of Cape City and was scared its equipment would be hooked up.

“Due to legal battles plus the debts, the organisation had to move its house from five Crete Road to stay away from the sheriff from attaching the assets in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of your CTMCA, told them that the two buses bought with lottery funds had been stored in the top secret spot “concealed from the Sheriff”. Even so the investigators explained they were being not able to verify that any buses had ever been purchased.

Stemmet also confirmed that the buses had been hidden to halt them currently being seized. But if the investigators requested for being taken towards the area wherever the buses ended up stored, he informed them that “the proprietor of the secret spot was not available to open the premises for us”.

“The CTMCA could not present evidence of payment for 2 vehicles that it allegedly acquired with grant dollars,” the investigators claimed.

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

“Mr Soeker spelled out that As outlined by his understanding, a result of the credit card debt owed to town of Cape Town, the CTMCA made a decision It could be most effective to promote their [Schaapkraal] house … and to also to cover the property of your CTMCA to avoid the sheriff from attaching the property.”

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

“On a yearly basis like clockwork, as we solution the end of your 12 months, the CTMCA picks a legal fight with town, above permits or another thing. We never initiate it. They continue to keep throwing funds away on vexatious litigation they shed and have charges awarded versus them. That is entirely self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the main part players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for the many admin, finances and working หวย วัน นี้ the CTMCA.” The investigators stated they were struggling to contact Momberg.

Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “uncovered several equipment, some in superior issue, some in poor condition and many that appeared rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-web-site storage facility in which “devices and a few machinery” have been saved.

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

Based on photographs and invoices in GroundUp’s possession, some, Otherwise all, with the merchandise look like machines which was illegally faraway from the CTMCA’s past premises. Stemmet is facing charges for this removing.

Based on the last development report submitted to your NLC because of the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his wife and his daughter ended up directors at time.

The investigators uncovered this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Be aware the subsequent alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is five Crete Street, Wetton, Cape Town, precisely the same deal with on which the museum was intended to be created and/or transformed,” they claimed.

An audit by accountants Kopano Integrated, attached into the investigative report, recorded which the CTMCA was in the entire process of getting “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was considered one of the directors.

As outlined by Dabishi Nthambeleni, the business has paid R1.2-million to be a deposit, which means R6.nine-million continues to be owed, though there is not any payment day set for when this must be paid.

The Kopano audit as well as the near connection between the businesses “indicate to us that there's ‘foul Enjoy’ involved with the purchase in the machinery of the museum workshop”, the investigators mentioned inside the report.

“We find that it's really possible that CTMCA utilised the funding on the NLC to ‘refund’ one among its major administrators for the assets at a better overpriced price than the actual price and worth of the home and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it had been not able to establish how the grant to your CTMCA were used.

“In fact, a detailed report on how the funding on the NLC was made use of, would be unattainable because the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities put in on Every single merchandise it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not executed a web site stop by just before approving the grant. But this wasn't regular exercise at some time and so they observed no proof of negligence by NLC workers.

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

Pursuing the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni proposed that

the NLC decline any long run funding applications through the CTMCA;
the CTMCA and any users who were involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated cash.
But, in lieu of act to the report’s tips, the NLC – beneath its earlier administration – chose to suppress it, mainly because it experienced accomplished With all the prior experiences into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the thoughts by e-mail far too. But no response had been gained at time of publication.



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

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