Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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Minstrels accomplish in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no proof that a museum at any time existed.
The investigators observed that the CTMCA didn't make use of the R5-million allocated to acquire or create a museum.
In addition they found that the CTMCA only bought land value R1.seven-million, not R5-million as allocated.
They located the CTMCA made use of resources from the Lottery to purchase workshop gear from one among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Association (CTMCA) with the National Lotteries Fee (NLC) to put in place a museum to celebrate town’s abundant minstrel heritage went astray. The museum was never made.

The main points in the abuse of countless rands of Lottery money for just a museum that hardly ever was are discovered within an investigative report commissioned from the NLC in 2021.

The museum grant was part of greater than R64-million in Lottery money allocated to your CTMCA concerning 2003 and 2017.

The main A part of the investigation, by legislation business Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which involved funding for the museum. The accredited spending plan for the museum was a lot more than R12.eight-million, with R5-million of that allotted for any creating to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a developing with the museum and if the museum “basically existed”.

The business was also instructed to analyze

the acquisition with Lottery funds of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous machines “bought with the manufacturing of your costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted legal 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 ongoing as two of a number of administrators in the organisation. Stemmet was reappointed for a director in May well 2021.

The investigation adopted in depth reporting by GroundUp regarding the millions of rands of Lottery funding allotted for the CTMCA (see listed here, listed here and in this article) and just how the resources in all probability served finance the ANC’s 2014 election campaign within the Western Cape, led by at time by Marius Fransman.



The making on the ideal was the meant internet site on the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “assignments” - such as the museum - in between 2012 and 2015. All three assignments had been concluded, she informed MPs.

Though the investigators discovered no proof that a museum had ever existed.

To start with the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp on the meant Wetton museum displays a coffee store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung around the partitions, and a product ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum were moved simply because they could no more afford to pay for the rent of R100,000 a month. He stated the CTMCA had obtained house for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar price tag. Schaapkraal is in a very peri-urban spot significantly from the city.

Therefore, the museum were moved to a new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, which are in an industrial place, the investigators stated they doubted whether or not a suitable museum existed there. Shots hooked up towards the report exhibit a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed on the wall, displayed on tables and spread out on the floor, without any clarification.

“There exists a small number of objects with the museum [that] under no circumstances stand for the much more than 100-12 months history with the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … normally, the museum doesn't glance for being open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by shifting The situation of the museum to an alternate area without notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA had to maneuver within the rented Crete Highway premises as it had operate up a R4-million debt with town of Cape Town and was scared its gear would be connected.

“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 property in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director from the CTMCA, informed them the two buses purchased with lottery money have been stored within a mystery site “concealed from the Sheriff”. Nevertheless the investigators mentioned they ended up not able to confirm that any buses had ever been bought.

Stemmet also verified which the buses had been concealed to prevent them remaining seized. But if the investigators questioned to generally be taken to your area the place the buses ended up stored, he instructed them that “the owner of the secret spot was not accessible to open the premises for us”.

“The CTMCA couldn't provide proof of payment for 2 cars that it allegedly procured with grant cash,” the investigators described.

Soeker also instructed them the Schaapkraal house had been bought due to the debt.

“Mr Soeker defined that In keeping with his knowledge, due to the credit card debt owed to the town of Cape City, the CTMCA resolved it would be most effective to promote their [Schaapkraal] residence … also to also to cover the assets from the CTMCA to avoid the sheriff from attaching the home.”

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

“Each and every year like clockwork, as we method the top of the calendar year, the CTMCA picks a legal combat with town, over permits or something else. We in no way initiate it. They keep throwing income absent on vexatious litigation that they eliminate and have costs awarded from them. This really is solely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the leading job gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in charge of every one of the admin, finances and operating ผล สลากกินแบ่ง the CTMCA.” The investigators explained they had been unable to contact Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “found numerous devices, some in excellent situation, some in poor situation and a few that appeared rusty and extremely outdated”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and a few equipment” were held.

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

Based upon pictures and invoices in GroundUp’s possession, some, if not all, on the items seem like devices that was illegally faraway from the CTMCA’s former premises. Stemmet is going through fees for this elimination.

Based on the ultimate progress report submitted into the NLC via the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization during which Stemmet, his spouse and his daughter ended up directors at some time.

The investigators located this “alarming”.

“From your CIPC look for of Martin-Conne Milliners along with the invoices submitted, we note the subsequent alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Street, Wetton, Cape Town, a similar handle on which the museum was meant to be designed and/or transformed,” they described.

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

As outlined by Dabishi Nthambeleni, the organization has compensated R1.two-million as being a deposit, indicating R6.nine-million is still owed, even though there is not any payment day established for when this has to be paid out.

The Kopano audit plus the shut connection among the companies “reveal to us that there is ‘foul Enjoy’ linked to the acquisition with the machinery from the museum workshop”, the investigators stated within the report.

“We discover that it's hugely probable that CTMCA employed the funding from the NLC to ‘refund’ among its principal administrators for your assets at a better overpriced level than the actual value and price of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA had been put in.

“In point of fact, an in depth report on how the funding of the NLC was employed, might be unachievable as the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts put in on each item it asked for funding for. The interim report and ultimate report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC had not done a site stop by ahead of approving the grant. But this was not typical apply at enough time they usually located no proof of negligence by NLC employees.

At enough time, the NLC’s principles did not involve funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was able to receive a next tranche of funding without having to supply proof that it had employed the primary tranche for its supposed 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 problems.

Dabishi Nthambeleni proposed that

the NLC decrease any upcoming funding apps within the CTMCA;
the CTMCA and any associates who have been linked to the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open up a prison circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – beneath its earlier administration – chose to suppress it, as it experienced performed While using the past studies into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker through SMS, and asked for electronic mail addresses to send out the concerns by e mail as well. But no reaction had been gained at the time of publication.



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

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