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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed the CTMCA did not use the R5-million allotted to acquire or produce a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA used cash in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel historical past went astray. The museum was hardly ever created.

The details of the abuse of countless rands of Lottery funds for a museum that never was are revealed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery funds allotted towards the CTMCA between 2003 and 2017.

The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which incorporated funding with the museum. The authorized funds with the museum was greater than R12.8-million, with R5-million of that allotted for a developing to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing to the museum and whether the museum “actually existed”.

The business was also instructed to research

the purchase with Lottery resources of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
many devices “purchased to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors on the organisation. Stemmet was reappointed for a director in May 2021.

The investigation adopted in depth reporting by GroundUp with regard to the millions of rands of Lottery funding allotted to your CTMCA (see below, below and listed here) and the way in which the funds likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.



The building on the appropriate was the supposed web-site in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph

In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All a few projects had been completed, she informed MPs.

Even so the investigators located no proof that a museum had ever existed.

At first the museum was because of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp with the intended Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung to the walls, and also a model ship on its plinth inside of a corner.

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

Stemmet informed the investigators the museum had been moved mainly because they could now not pay for the lease of R100,000 a month. He stated the CTMCA experienced ordered home for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been offered for the same rate. Schaapkraal is inside a peri-urban area significantly from town.

Because of this, the museum were moved to a new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following browsing the premises, which can be in an industrial region, the investigators stated they doubted irrespective of whether a suitable museum existed there. Images attached to the report exhibit a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, displayed on tables and unfold out on the ground, without having explanation.

“You will find a negligible volume of things within the museum [that] in no way symbolize the in excess of 100-calendar year background with the Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … typically, the museum does not glance to get open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by going the location with the museum to another area without the need of notifying the NLC.



The Schaapkraal home, on which no museum was ever designed. Image: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA had to maneuver in the rented Crete Road premises because it experienced operate up a R4-million credit card debt with the town of Cape Town and was scared its tools will be attached.

“Because of the lawful battles as well as debts, the organisation had to maneuver its residence from 5 Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director from the CTMCA, explained to them that the two buses purchased with lottery resources had been stored inside of a key site “concealed in the Sheriff”. Although the investigators reported they were unable to confirm that any buses had at any time been acquired.

Stemmet also verified the buses had been hidden to stop them being seized. But when the investigators questioned to generally be taken into the put where by the buses ended up stored, he explained to them that “the proprietor of the secret locale wasn't available to open the premises for us”.

“The CTMCA couldn't give proof of payment for two vehicles that it allegedly ordered with grant funds,” the investigators claimed.

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

“Mr Soeker discussed that according to his comprehension, due to the debt owed to the City of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] house … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for safety and protection, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with the town.

“Yearly like clockwork, as we approach the end from the year, the CTMCA picks a legal fight with town, around permits or another thing. We hardly ever initiate it. They continue to keep throwing revenue absent on vexatious litigation that they shed and possess expenditures awarded in opposition to them. This can be completely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all of the admin, finances and jogging หวย หุ้น ช่อง 9 the CTMCA.” The investigators said they were unable to Call Momberg.

Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “found quite a few equipment, some in excellent ailment, some in negative affliction and some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility the place “instruments and many equipment” ended up retained.

“We requested him to acquire us to the ability but he was evasive to our request.”

Depending on photographs and invoices in GroundUp’s possession, some, if not all, of the merchandise look like products that was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with charges for this elimination.

According to the remaining progress report submitted into the NLC with the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company where Stemmet, his spouse and his daughter had been directors at some time.

The investigators discovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape City, precisely the same tackle on which the museum was intended to be built and/or transformed,” they reported.

An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded the CTMCA was in the process of acquiring “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the directors.

According to Dabishi Nthambeleni, the corporate has paid R1.2-million to be a deposit, that means R6.nine-million remains to be owed, however there is absolutely no payment day set for when this must be paid out.

The Kopano audit and also the near hyperlink concerning the companies “reveal to us that there's ‘foul play’ associated with the purchase of the equipment of your museum workshop”, the investigators mentioned from the report.

“We discover that it's really possible that CTMCA used the funding of the NLC to ‘refund’ among its major administrators to the residence at an increased overpriced fee than the actual cost and price of the assets and/or equipment.”

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

“In fact, an in depth report on how the funding on the NLC was employed, would be impossible as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts expended on Every single product it requested funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not done a site check out before approving the grant. But this wasn't standard observe at the time they usually uncovered no evidence of negligence by NLC employees.

At some time, the NLC’s policies did not call for funded organisations to submit evidence of payment with interim reviews, they identified. This intended the CTMCA was in a position to get a second tranche of funding without the need to present proof that it had made use of the 1st tranche for its intended intent.

Adhering to the appointment of a fresh board, commissioner and senior govt team, the NLC has tightened up on these as well as other difficulties.

Dabishi Nthambeleni advised that

the NLC drop any potential funding purposes from the CTMCA;
the CTMCA and any members who have been associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it had accomplished Together with the previous reviews into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to send the queries by e mail way too. But no reaction had been obtained at the time of publication.



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