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

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

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Minstrels conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators found which the CTMCA didn't use the R5-million allotted to obtain or establish a museum.
In addition they observed the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA utilized resources through the Lottery to purchase workshop devices from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel historical past went astray. The museum was hardly ever produced.

The details from the abuse of numerous rands of Lottery funds for a museum that never was are revealed within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery funds allotted towards the CTMCA between 2003 and 2017.

The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for that museum. The authorized funds for that museum was more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether the museum “basically existed”.

The organization was also instructed to research

the acquisition with Lottery cash of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many devices “purchased to the manufacturing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors on the organisation. Stemmet was reappointed for a director in May 2021.

The investigation adopted extensive reporting by GroundUp with regard to the millions of rands of Lottery funding allotted into the CTMCA (see in this article, below and below) and the best way the funds most likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.



The creating on the right was the intended site on the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph

In response into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been finished, she advised MPs.

Although the investigators uncovered no evidence that a museum experienced ever existed.

In the beginning the museum was on account of open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp of the meant Wetton museum displays a espresso store with a few musical instruments and minstrel costumes and collages of images haphazardly hung to the partitions, in addition to a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni explained it absolutely was “not able” to verify if a museum experienced ever operated from these premises.

Stemmet explained to the investigators the museum had been moved because they could no more manage the rent of R100,000 per month. He stated the CTMCA had procured house for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is in a peri-city space considerably from the town.

Subsequently, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after visiting the premises, which happen to be in an industrial area, the investigators explained they doubted no matter whether a proper museum existed there. Images hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the ground, with no explanation.

“There exists a nominal number of merchandise within the museum [that] on no account represent the greater than 100-calendar year heritage on the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum will not look being open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by going the location on the museum to another place devoid of notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to move through the rented Crete Street premises as it had run up a R4-million debt with town of Cape City and was concerned its products can be attached.

“Because of the lawful battles as well as debts, the organisation had to maneuver its residence from 5 Crete Street to avoid the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director of the CTMCA, advised them which the two buses bought with lottery cash were being stored in the top secret place “hidden with the Sheriff”. But the investigators mentioned they have been not able to verify that any buses had ever been bought.

Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators asked to be taken into the put where by the buses ended up stored, he explained to them that “the proprietor of the secret locale was not accessible to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for two automobiles that it allegedly acquired with grant income,” the investigators described.

Soeker also instructed them the Schaapkraal house had been sold due to credit card debt.

“Mr Soeker discussed that In line with his comprehension, as a result of debt owed to the town of Cape Town, the CTMCA made a decision It might be most effective to market their [Schaapkraal] assets … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has previously informed GroundUp the CTMCA “threw dollars absent” on litigation with town.

“Every year like clockwork, as we strategy the end in the yr, the CTMCA picks a legal battle with the City, more than permits or something else. We never initiate it. They maintain throwing money absent on vexatious litigation they drop and have prices awarded from them. That is entirely self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of many of the admin, finances and working ตรวจ หวย ลาว วัน นี้ the CTMCA.” The investigators stated they were not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in fantastic situation, some in terrible situation and many that appeared rusty and intensely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where “instruments and some machinery” were stored.

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

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.

In accordance with the last development report submitted for the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter ended up administrators at the time.

The investigators located this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape Town, the same handle on which the museum was meant to be created and/or converted,” they reported.

An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the whole process of getting “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.

In keeping with Dabishi Nthambeleni, the business has compensated R1.2-million being a deposit, this means R6.9-million continues to be owed, while there isn't any payment date set for when this have to be compensated.

The Kopano audit as well as shut link in between the companies “show to us that there is ‘foul Enjoy’ involved in the acquisition on the equipment in the museum workshop”, the investigators reported while in the report.

“We discover that it's highly probable that CTMCA applied the funding on the NLC to ‘refund’ among its most important administrators with the home at a greater overpriced level than the particular selling price and worth of the home and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was not able to determine how the grant for the CTMCA were invested.

“Actually, a detailed report on how the funding of your NLC was utilised, would be unachievable as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities expended on Just about every product it asked for funding for. The interim report and final report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC had not executed a site pay a visit to ahead of approving the grant. But this was not normal apply at enough time and they discovered no evidence of negligence by NLC workers.

At some time, the NLC’s procedures did not need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a 2nd tranche of funding without having to present proof that it had applied the very first tranche for its meant intent.

Following the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni recommended that

the NLC drop any future funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, mainly because it had accomplished with the preceding reviews into corruption it had commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the issues by e mail far too. But no reaction had been obtained at the time of publication.



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