Leaked report exposes abuse of lottery income paid out to minstrel team

Leaked report exposes abuse of lottery income paid out to minstrel team

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Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Nationwide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has identified no proof that a museum ever existed.
The investigators discovered the CTMCA did not use the R5-million allotted to obtain or build a museum.
In addition they uncovered the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of cash from your Lottery to purchase workshop devices from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to build a museum to celebrate the city’s loaded minstrel background went astray. The museum was under no circumstances created.

The small print on the abuse of countless rands of Lottery cash to get a museum that under no circumstances was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was part of much more than R64-million in Lottery money allocated towards the CTMCA amongst 2003 and 2017.

The primary Section of the investigation, by legislation firm Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which involved funding for that museum. The approved price range for your museum was over R12.8-million, with R5-million of that allocated for your developing to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building for the museum and if the museum “basically existed”.

The firm was also instructed to investigate

the acquisition with Lottery funds of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of devices “bought for the production in the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various administrators on the organisation. Stemmet was reappointed to be a director in Might 2021.

The investigation followed extensive reporting by GroundUp concerning the countless rands of Lottery funding allotted to the CTMCA (see in this article, listed here and listed here) and just how the cash almost certainly aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at the time by Marius Fransman.



The building on the proper was the supposed website in the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - including the museum - among 2012 and 2015. All three jobs were accomplished, she advised MPs.

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

At the outset the museum was resulting from open up in rented premises in Crete Street, Wetton. A photograph attained by GroundUp with the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung to the partitions, and also a design ship on its plinth in a very corner.

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

Stemmet informed the investigators the museum were moved because they could now not afford to pay for the lease of R100,000 a month. He claimed the CTMCA had obtained house for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for the same price tag. Schaapkraal is within a peri-city location considerably from the town.

Therefore, the museum were moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after going to the premises, which happen to be within an industrial region, the investigators claimed they doubted regardless of whether a suitable museum existed there. Images attached towards the report display a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the ground, without explanation.

“You will find there's minimal number of merchandise in the museum [that] by no means symbolize the greater than 100-12 months heritage from the Cape Town Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum isn't going to search to become open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going the location of your museum to an alternative site with no notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA experienced to move from your rented Crete Street premises since it had run up a R4-million financial debt with the City of Cape City and was afraid its equipment could be attached.

“As a result of legal battles and the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of the CTMCA, instructed them which the two buses purchased with lottery resources had been saved in a solution location “hidden from the Sheriff”. Even so the investigators said they had been unable to substantiate that any buses experienced at any time been acquired.

Stemmet also verified which the buses were concealed to stop them becoming seized. But once the investigators asked to become taken for the spot the place the buses have been stored, he told them that “the operator of The key area was not accessible to open the premises for us”.

“The CTMCA couldn't supply proof of payment for 2 automobiles that it allegedly obtained with grant income,” the investigators described.

Soeker also instructed them the Schaapkraal residence had been sold due to debt.

“Mr Soeker described that according to his comprehension, due to financial debt owed to the town of Cape City, the CTMCA resolved It will be ideal to provide their [Schaapkraal] assets … and also to also to cover the property of the CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and security, has Earlier advised GroundUp which the CTMCA “threw cash away” on litigation with town.

“Each and every year like clockwork, as we strategy the end of the year, the CTMCA picks a authorized battle with the town, about permits or something else. We never ever initiate it. They keep throwing revenue away on vexatious litigation that they reduce and also have fees awarded towards them. That is totally self-inflicted,” he explained.

Soeker advised the Dabishi Nthambeleni investigators that the principle purpose players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being answerable for many of the admin, funds and managing สลาก กิน รัฐบาล the CTMCA.” The investigators explained they were struggling to Get in touch with Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “discovered several devices, some in excellent problem, some in undesirable issue plus some that appeared rusty and extremely previous”. Stemmet informed the investigators that there was also an off-website storage facility the place “instruments and some equipment” were being held.

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

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, in the things appear to be gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with charges for this elimination.

In accordance with the ultimate progress report submitted into the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter ended up directors at time.

The investigators discovered this “alarming”.

“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape City, a similar deal with on which the museum was meant to be constructed and/or converted,” they described.

An audit by accountants Kopano Included, attached to your investigative report, recorded which the CTMCA was in the process of purchasing “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the directors.

In line with Dabishi Nthambeleni, the corporate has compensated R1.two-million to be a deposit, this means R6.9-million continues to be owed, although there is absolutely no payment date established for when this have to be paid.

The Kopano audit plus the close link involving the companies “point out to us that there is ‘foul Engage in’ involved in the purchase of your machinery in the museum workshop”, the investigators reported within the report.

“We discover that it's highly possible that CTMCA used the funding of the NLC to ‘refund’ among its principal directors with the assets at an increased overpriced fee than the actual price and price of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been used.

“Actually, an in depth report on how the funding in the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts invested on Just about every product it asked for funding for. The interim report and final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a internet site check out in advance of approving the grant. But this was not normal apply at the time they usually observed no evidence of carelessness by NLC personnel.

At the time, the NLC’s rules didn't need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a second tranche of funding while not having to provide proof that it had applied the initial tranche for its meant reason.

Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advised that

the NLC decrease any potential funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, in lieu of act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had performed Using the preceding experiences into corruption it experienced commissioned.

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



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