Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee into the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum ever existed.
The investigators observed that the CTMCA did not make use of the R5-million allotted to purchase or make a museum.
They also identified the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA utilised cash within the Lottery to purchase workshop gear from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) because of the Nationwide Lotteries Commission (NLC) to put in place a museum to celebrate the town’s wealthy minstrel record went astray. The museum was in no way developed.

The main points of your abuse of an incredible number of rands of Lottery funds for your museum that under no circumstances was are unveiled in an investigative report commissioned from the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery funds allocated on the CTMCA in between 2003 and 2017.

The 1st Element of the investigation, by law organization Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which provided funding with the museum. The accepted finances to the museum was much more than R12.eight-million, with R5-million of that allocated for your developing to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a constructing for that museum and whether or not the museum “essentially existed”.

The business was also instructed to research

the purchase with Lottery funds of two autos – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
different devices “purchased to the manufacturing of your costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted legal 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 wife Zainonesa and daughter Raziah ongoing as two of various directors in the organisation. Stemmet was reappointed as a director in Could 2021.

The investigation followed substantial reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allocated to your CTMCA (see right here, below and right here) and just how the cash most likely assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at some time by Marius Fransman.



The making on the appropriate was the intended web site of your minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to your Parliamentary question, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “tasks” - such as the museum - between 2012 and 2015. All three projects were completed, she advised MPs.

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

At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum demonstrates a coffee store with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, and a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not ready” to confirm if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved given that they could not afford the hire of R100,000 a month. He reported the CTMCA had purchased residence for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been marketed for a similar price tag. Schaapkraal is in a peri-urban place far from the town.

Subsequently, the museum had been moved to a whole new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after browsing the premises, that happen to be in an industrial spot, the investigators reported they doubted regardless of whether a correct museum existed there. Photographs connected on the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the ground, with no rationalization.

“There exists a minimal degree of things within the museum [that] by no means stand for the over a hundred-calendar year background on the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum will not seem to get open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by relocating the location of the museum to another spot with no notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA experienced to maneuver from the rented Crete Highway premises since it had operate up a R4-million financial debt with the town of Cape City and was fearful its machines might be attached.

“Due to authorized battles plus the debts, the organisation had to move its assets from 5 Crete Road to stay away from the sheriff from attaching the property in the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director in the CTMCA, advised them the two buses purchased with lottery cash have been saved inside of a secret place “hidden from your Sheriff”. Nevertheless the investigators said they had been unable to substantiate that any buses had ever been purchased.

Stemmet also verified the buses had been hidden to prevent them being seized. But once the investigators requested to become taken towards the put where by the buses ended up stored, he told them that “the owner of the secret place wasn't accessible to open the premises for us”.

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

Soeker also informed them the Schaapkraal assets had been bought as a result of personal debt.

“Mr Soeker discussed that In keeping with his knowing, due to the personal debt owed to town of Cape City, the CTMCA decided it would be greatest to offer their [Schaapkraal] house … and to also to cover the assets in the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for protection and safety, has Beforehand advised GroundUp which the CTMCA “threw money away” on litigation with the City.

“Annually like clockwork, as we solution the top of the calendar year, the CTMCA picks a lawful struggle with the town, in excess of permits or something else. We never ever initiate it. They hold throwing funds away on vexatious litigation which they eliminate and also have expenses awarded versus them. This is certainly totally self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, funds and operating หวย ลาว ล่าสุด the CTMCA.” The investigators said they were struggling to Speak to Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “discovered quite a few equipment, some in great issue, some in terrible condition and a few that looked rusty and extremely previous”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “instruments and a few machinery” were kept.

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

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of the goods appear to be machines that was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with rates for this removal.

Based on the final progress report submitted to your NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been administrators at enough time.

The investigators observed this “alarming”.

“From the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Road, Wetton, Cape City, the identical address on which the museum was meant to be constructed and/or transformed,” they documented.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of getting “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 considered one of the directors.

In line with Dabishi Nthambeleni, the corporation has paid R1.two-million as being a deposit, which means R6.9-million continues to be owed, even though there isn't a payment day set for when this has to be paid.

The Kopano audit and also the shut link concerning the businesses “show to us that there's ‘foul Participate in’ involved with the purchase of your machinery of the museum workshop”, the investigators claimed inside the report.

“We discover that it's hugely possible that CTMCA employed the funding of your NLC to ‘refund’ among its most important directors to the residence at a higher overpriced fee than the particular value and worth of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant on the CTMCA had been invested.

“Actually, a detailed report on how the funding from the NLC was employed, will be difficult since the CTMCA does not have any receipts, or evidence of payments to confirm the quantities put in on Every product it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not executed a website stop by just before approving the grant. But this was not conventional practice at time plus they uncovered no proof of carelessness by NLC workers.

At time, the NLC’s policies did not demand funded organisations to submit proof of payment with interim reports, they identified. This intended the CTMCA was capable of receive a next tranche of funding without the need to deliver proof that it had made use of the 1st tranche for its meant objective.

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

Dabishi Nthambeleni encouraged that

the NLC decline any foreseeable future funding purposes from your CTMCA;
the CTMCA and any users who had been involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as opposed to act within the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it experienced finished Along with the earlier reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to send out the queries by electronic mail also. But no reaction were acquired at some time of publication.



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

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