Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has found no proof that a museum ever existed.
The investigators uncovered which the CTMCA did not utilize the R5-million allocated to obtain or produce a museum.
Additionally they found the CTMCA only acquired land truly worth R1.7-million, not R5-million as allotted.
They discovered the CTMCA utilised resources with the Lottery to buy workshop devices from among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to set up a museum to rejoice the town’s rich minstrel history went astray. The museum was in no way created.

The small print from the abuse of millions of rands of Lottery funds for just a museum that hardly ever was are unveiled within an investigative report commissioned with the NLC in 2021.

The museum grant was Component of in excess of R64-million in Lottery funds allotted to the CTMCA amongst 2003 and 2017.

The first Component of the investigation, by law organization Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which integrated funding for that museum. The accredited price range with the museum was in excess of R12.8-million, with R5-million of that allocated for a constructing to house the museum.

Examine the report (PDF, 7MB)

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

The firm was also instructed to analyze

the purchase with Lottery resources of two cars – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
a variety of devices “ordered with the producing in the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director of 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 ongoing as two of quite a few directors of your organisation. Stemmet was reappointed like a director in Could 2021.

The investigation adopted extensive reporting by GroundUp about the numerous rands of Lottery funding allotted to your CTMCA (see right here, below and here) and the way in which the cash probably assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at the time by Marius Fransman.



The constructing on the appropriate was the intended web-site in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to a Parliamentary dilemma, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “projects” - such as the museum - amongst 2012 and 2015. All three assignments were done, she informed MPs.

But the investigators uncovered no evidence that a museum experienced at any time existed.

At the beginning the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp in the supposed Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung on the walls, and also a product ship on its plinth inside a corner.

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

Stemmet told the investigators the museum had been moved mainly because they could no longer afford the rent of R100,000 per month. He explained the CTMCA had obtained residence for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were offered for a similar selling price. Schaapkraal is in the peri-urban location far from the town.

Due to this fact, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after traveling to the premises, that happen to be within an industrial location, the investigators reported they doubted no matter whether a correct museum existed there. Images connected on the report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the floor, without any explanation.

“You will find there's small number of objects on the museum [that] in no way signify the greater than a hundred-yr record on the Cape Town Carnival, the investigators claimed, including that there was “no signage outside the house the premises indicating that they housed a museum and … typically, the museum won't glimpse to be open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting the location in the museum to an alternative place without having notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA had to move through the rented Crete Street premises because it experienced run up a R4-million financial debt with the City of Cape City and was frightened its equipment could well be attached.

“Mainly because of the legal battles as well as debts, the organisation had to maneuver its property from 5 Crete Highway to avoid the sheriff from attaching the house with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery funds were saved inside of a solution spot “hidden within the Sheriff”. Although the investigators mentioned they had been not able to verify that any buses had at any time been bought.

Stemmet also verified the buses were hidden to halt them staying seized. But once the investigators questioned being taken for the place wherever the buses have been saved, he told them that “the proprietor of The trick site was not accessible to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for two autos that it allegedly ordered with grant revenue,” the investigators reported.

Soeker also advised them the Schaapkraal assets had been sold due to the personal debt.

“Mr Soeker discussed that In keeping with his being familiar with, due to credit card debt owed to the town of Cape City, the CTMCA made the decision it would be very best to market their [Schaapkraal] residence … also to also to cover the property with the CTMCA to steer clear of the sheriff from attaching the property.”

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

“On a yearly basis like clockwork, as we tactic the end from the calendar year, the CTMCA picks a legal combat with the City, more than permits or another thing. We hardly ever initiate it. They retain throwing money away on vexatious litigation that they reduce and have costs awarded towards them. This can be totally self-inflicted,” he said.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial job gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of each of the admin, finances and running หวย หุ้น ช่อง 9 the CTMCA.” The investigators stated they were not able to Speak to Momberg.

Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “uncovered numerous devices, some in great condition, some in lousy ailment and many that seemed rusty and intensely old”. Stemmet advised the investigators that there was also an off-website storage facility where by “instruments plus some machinery” ended up stored.

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

Dependant on images and invoices in GroundUp’s possession, some, if not all, of the products appear to be gear which was illegally faraway from the CTMCA’s former premises. Stemmet is facing rates for this elimination.

According to the final development report submitted to your NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, a company where Stemmet, his spouse and his daughter had been directors at enough time.

The investigators found this “alarming”.

“From your CIPC research of Martin-Conne Milliners as well as invoices submitted, we note the following alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the company is five Crete Street, Wetton, Cape Town, the identical deal with on which the museum was meant to be designed and/or transformed,” they noted.

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

According to Dabishi Nthambeleni, the business has paid out R1.two-million to be a deposit, meaning R6.9-million is still owed, although there isn't a payment day set for when this have to be paid out.

The Kopano audit as well as near url amongst the companies “suggest to us that there's ‘foul Engage in’ involved in the acquisition in the machinery of the museum workshop”, the investigators reported from the report.

“We find that it's extremely possible that CTMCA used the funding with the NLC to ‘refund’ among its most important directors for that assets at a greater overpriced amount than the particular value and worth of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA were used.

“In reality, an in depth report on how the funding with the NLC was applied, might be difficult since the CTMCA does not have any receipts, or evidence of payments to verify the quantities expended on Just about every merchandise it asked for funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not done a internet site visit just before approving the grant. But this wasn't conventional apply at enough time they usually found no evidence of carelessness by NLC workers.

At the time, the NLC’s principles didn't call for funded organisations to post proof of payment with interim reviews, they pointed out. This intended which the CTMCA was ready to get a 2nd tranche of funding while not having to present evidence that it had employed the initial tranche for its intended intent.

Pursuing the appointment of a whole new board, commissioner and senior executive team, the NLC has tightened up on these as well as other issues.

Dabishi Nthambeleni encouraged that

the NLC decline any upcoming funding programs from the CTMCA;
the CTMCA and any associates who were being involved in the grant be subjected on the NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated money.
But, as opposed to act about the report’s suggestions, the NLC – below its previous administration – selected to suppress it, because it had carried out with the former studies into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and questioned for e-mail addresses to send out the concerns by e mail too. But no response had been gained at some time of publication.



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

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