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 perform in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant with the Nationwide Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has located no evidence that a museum at any time existed.
The investigators identified the CTMCA didn't utilize the R5-million allocated to buy or establish a museum.
Additionally they uncovered the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They located the CTMCA used funds through the Lottery to purchase workshop products from certainly one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Commission (NLC) to put in place a museum to celebrate the city’s prosperous minstrel record went astray. The museum was under no circumstances established.

The main points with the abuse of a lot of rands of Lottery money for a museum that under no circumstances was are uncovered within an investigative report commissioned via the NLC in 2021.

The museum grant was Component of a lot more than R64-million in Lottery funds allocated into the CTMCA amongst 2003 and 2017.

The primary Element of the investigation, by law company Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which incorporated funding for that museum. The authorised budget for that museum was a lot more than R12.eight-million, with R5-million of that allotted for your developing to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the developing to the museum and if the museum “basically existed”.

The company was also instructed to investigate

the acquisition with Lottery funds of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
various devices “bought for your producing with the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of administrators of the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation followed in depth reporting by GroundUp in regards to the many rands of Lottery funding allocated to the CTMCA (see in this article, listed here and here) and the way the cash most likely aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.



The building on the right was the meant site of your minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph

In response to the Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 jobs had been concluded, she told MPs.

Though the investigators identified no evidence that a museum had ever existed.

In the beginning the museum was due to open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp in the supposed Wetton museum reveals a espresso shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung within the partitions, and a product ship on its plinth within a corner.

In its report, Dabishi Nthambeleni claimed it absolutely was “not ready” to substantiate if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum were moved simply because they could no more afford to pay for the hire of R100,000 per month. He explained the CTMCA experienced acquired house for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and were marketed for the same price. Schaapkraal is in a peri-city region significantly from the city.

Consequently, the museum were moved to a brand new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after going to the premises, which happen to be within an industrial area, the investigators explained they doubted whether a correct museum existed there. Images connected to your report clearly show a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the ground, without having explanation.

“There's a nominal amount of merchandise within the museum [that] on no account characterize the in excess of 100-12 months background of your Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating which they housed a museum and … usually, the museum isn't going to glimpse to become open to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni observed, by going The situation of the museum to an alternative place without having notifying the NLC.



The Schaapkraal home, on which no museum was ever crafted. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to maneuver through the rented Crete Highway premises since it experienced run up a R4-million credit card debt with the City of Cape Town and was worried its products could be connected.

“As a result of authorized battles as well as debts, the organisation had to move its home from 5 Crete Road to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director from the CTMCA, informed them that the two buses acquired with lottery resources ended up stored within a magic formula place “hidden in the Sheriff”. Even so the investigators claimed they were not able to substantiate that any buses experienced ever been acquired.

Stemmet also verified that the buses had been concealed to halt them being seized. But in the event the investigators requested to become taken towards the place where the buses were saved, he informed them that “the operator of The key locale wasn't available to open up the premises for us”.

“The CTMCA could not supply evidence of payment for two automobiles that it allegedly ordered with grant funds,” the investigators described.

Soeker also told them the Schaapkraal home had been bought because of the debt.

“Mr Soeker discussed that As outlined by his comprehension, due to the debt owed to the City of Cape City, the CTMCA resolved It will be most effective to offer their [Schaapkraal] home … and to also to cover the property in the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Earlier explained to GroundUp the CTMCA “threw cash away” on litigation with the City.

“Yearly like clockwork, as we technique the end with the yr, the CTMCA picks a lawful fight with the town, over permits or something else. We never ever initiate it. They maintain throwing income absent on vexatious litigation they shed and also have prices awarded in opposition to them. This can be completely self-inflicted,” he claimed.

Soeker instructed the Dabishi Nthambeleni investigators that the main function players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for the many admin, finances and running หวย รัฐบาล the CTMCA.” The investigators reported they had been not able to Make contact with Momberg.

Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “discovered numerous devices, some in very good problem, some in poor ailment and several that looked rusty and very previous”. Stemmet instructed the investigators that there was also an off-website storage facility where by “instruments and a few machinery” have been saved.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, on the merchandise look like machines that was illegally removed from the CTMCA’s earlier premises. Stemmet is struggling with charges for this removal.

In accordance with the last development report submitted on the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter were being directors at enough time.

The investigators uncovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Street, Wetton, Cape Town, exactly the same address on which the museum was meant to be created and/or converted,” they reported.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the process of obtaining “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 one among the administrators.

In accordance with Dabishi Nthambeleni, the company has paid R1.2-million for a deposit, meaning R6.9-million is still owed, however there isn't any payment date set for when this has to be paid out.

The Kopano audit plus the near url amongst the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition on the machinery of your museum workshop”, the investigators claimed inside the report.

“We discover that it is highly probable that CTMCA used the funding on the NLC to ‘refund’ certainly one of its key directors for your assets at a greater overpriced amount than the particular value and worth of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were expended.

“In point of fact, an in depth report on how the funding with the NLC was applied, can be extremely hard since the CTMCA does not have any receipts, or evidence of payments to verify the quantities expended on Every single item it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not conducted a internet site go to right before approving the grant. But this was not common observe at the time and so they uncovered no proof of negligence by NLC staff.

At time, the NLC’s regulations didn't have to have funded organisations to post evidence of payment with interim studies, they identified. This meant that the CTMCA was capable of receive a next tranche of funding without having to provide evidence that it had utilized the very first tranche for its supposed reason.

Subsequent the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these along with other issues.

Dabishi Nthambeleni advisable that

the NLC drop any potential funding purposes in the CTMCA;
the CTMCA and any customers who ended up involved in the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open up a felony circumstance of fraud with SAPS or maybe 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 former administration – selected to suppress it, because it experienced performed Along with the earlier reports into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for email addresses to send out the concerns by e mail as well. But no reaction were received at time of publication.



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

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