Leaked report exposes abuse of lottery revenue compensated to minstrel team

Leaked report exposes abuse of lottery revenue compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant by the National Lotteries Commission towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no evidence that a museum at any time existed.
The investigators found the CTMCA did not make use of the R5-million allocated to purchase or establish a museum.
In addition they located that the CTMCA only bought land worthy of R1.7-million, not R5-million as allocated.
They located the CTMCA used money within the Lottery to purchase workshop gear from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to arrange a museum to rejoice town’s loaded minstrel background went astray. The museum was in no way created.

The details of your 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 part of more than R64-million in Lottery money allotted for the CTMCA in between 2003 and 2017.

The 1st Component of the investigation, by regulation organization Dabishi Nthambeleni, was done between September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which bundled funding for the museum. The authorized spending plan with the museum was much more than R12.8-million, with R5-million of that allotted for your setting up to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a setting up for your museum and whether the museum “essentially existed”.

The agency was also instructed to investigate

the purchase with Lottery resources of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of machines “obtained for that production with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the 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 various administrators of the organisation. Stemmet was reappointed like a director in May possibly 2021.

The investigation adopted considerable reporting by GroundUp with regards to the millions of rands of Lottery funding allocated on the CTMCA (see below, in this article and in this article) and the way the funds in all probability helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.



The constructing on the best was the supposed web page of the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In response into a Parliamentary question, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - such as the museum - involving 2012 and 2015. All three initiatives were completed, she informed MPs.

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

At first the museum was as a result of 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 on the walls, and also a design ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum were moved because they could not afford to pay for the hire of R100,000 a month. He claimed the CTMCA experienced obtained house for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar cost. Schaapkraal is in a peri-city area significantly from the city.

As a result, the museum had been moved to a new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which might be in an industrial region, the investigators claimed they doubted irrespective of whether a proper museum existed there. Photographs connected into the report show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without rationalization.

“There is a minimal level of things on the museum [that] on no account represent the a lot more than one hundred-year record with the Cape Town Carnival, the investigators reported, including that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum would not seem to get open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by going The placement on the museum to another place without having notifying the NLC.



The Schaapkraal property, on which no museum was ever crafted. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to move within the rented Crete Street premises mainly because it experienced operate up a R4-million debt with the City of Cape City and was fearful its equipment might be hooked up.

“A result of the lawful battles and the debts, the organisation had to maneuver its property from five Crete Street to steer clear of the sheriff from attaching the residence of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director of the CTMCA, explained to them the two buses bought with lottery resources were stored inside of a key place “concealed within the Sheriff”. However the investigators explained they have been unable to verify that any buses had ever been bought.

Stemmet also verified which the buses were hidden to prevent them getting seized. But once the investigators questioned to be taken for the put in which the buses ended up saved, he told them that “the operator of the secret location wasn't accessible to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for 2 motor vehicles that it allegedly ordered with grant income,” the investigators noted.

Soeker also explained to them the Schaapkraal home were marketed due to the debt.

“Mr Soeker explained that In line with his comprehension, a result of the financial debt owed to town of Cape Town, the CTMCA made a decision it would be ideal to provide their [Schaapkraal] property … also to also to cover the property in the CTMCA to steer clear of the sheriff from attaching the house.”

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

“Each year like clockwork, as we strategy the top of your year, the CTMCA picks a authorized combat with town, in excess of permits or another thing. We in no way initiate it. They retain throwing money absent on vexatious litigation that they get rid of and possess prices awarded against them. That is totally self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the main part gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of many of the admin, finances and working fox888 the CTMCA.” The investigators claimed they were unable to Call Momberg.

Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “found a lot of machines, some in excellent condition, some in undesirable situation plus some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility in which “instruments and a few equipment” were being saved.

“We questioned him to acquire us to the power but he was evasive to our request.”

Determined by pics and invoices in GroundUp’s possession, some, if not all, of the products appear to be equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.

Based on the final progress report submitted to your NLC through the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization wherein Stemmet, his wife and his daughter were being directors at enough time.

The investigators discovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we note the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Highway, Wetton, Cape Town, the exact same deal with on which the museum was intended to be built and/or transformed,” they noted.

An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the directors.

Based on Dabishi Nthambeleni, the business has compensated R1.two-million as being a deposit, that means R6.9-million remains to be owed, nevertheless there's no payment date set for when this has to be compensated.

The Kopano audit as well as near url involving the businesses “suggest to us that there is ‘foul Engage in’ involved with the purchase of your equipment from the museum workshop”, the investigators mentioned while in the report.

“We find that it's remarkably possible that CTMCA employed the funding from the NLC to ‘refund’ one of its key directors with the house at a better overpriced price than the particular cost and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant for the CTMCA were expended.

“In reality, a detailed report on how the funding from the NLC was employed, can be difficult as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts used on Each individual merchandise it asked for funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not conducted a web-site go to in advance of approving the grant. But this wasn't normal exercise at some time and they located no proof of carelessness by NLC workforce.

At the time, the NLC’s principles did not have to have funded organisations to post evidence of payment with interim stories, they identified. This meant the CTMCA was in the position to get a 2nd tranche of funding while not having to present proof that it had made use of the main tranche for its supposed reason.

Adhering to the appointment of a fresh board, commissioner and senior executive staff, the NLC has tightened up on these together with other troubles.

Dabishi Nthambeleni advised that

the NLC drop any foreseeable future funding purposes from your CTMCA;
the CTMCA and any customers who were being associated with the grant be subjected to your NLC’s “delinquency” method;
the NLC open a felony circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated funds.
But, as opposed to act to the report’s recommendations, the NLC – underneath its former administration – selected to suppress it, as it experienced performed Using the prior reports into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker through SMS, and asked for e mail addresses to deliver the thoughts by e-mail too. But no response were acquired at some time of publication.



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

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