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

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

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Minstrels carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant through the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not make use of the R5-million allocated to purchase or create a museum.
Additionally they discovered which the CTMCA only acquired land well worth R1.7-million, not R5-million as allotted.
They found the CTMCA made use of resources from the Lottery to acquire workshop products from amongst its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted into the Cape Town Minstrel Carnival Association (CTMCA) with the National Lotteries Fee (NLC) to set up a museum to rejoice town’s wealthy minstrel historical past went astray. The museum was under no circumstances designed.

The main points on the abuse of numerous rands of Lottery resources for any museum that in no way was are uncovered within an investigative report commissioned through the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery resources allotted for the CTMCA involving 2003 and 2017.

The 1st Section of the investigation, by law business Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which provided funding with the museum. The authorized finances for the museum was more than R12.eight-million, with R5-million of that allotted for any building to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a building with the museum and whether or not the museum “truly existed”.

The organization was also instructed to analyze

the acquisition with Lottery resources of two automobiles – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
different machines “acquired for the manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few administrators in the organisation. Stemmet was reappointed being a director in May 2021.

The investigation followed intensive reporting by GroundUp in regards to the millions of rands of Lottery funding allotted into the CTMCA (see right here, in this article and right here) and the best way the cash most likely served finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The building on the best was the intended website from the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to a Parliamentary question, former NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - including the museum - involving 2012 and 2015. All a few tasks had been accomplished, she instructed MPs.

Nevertheless the investigators identified no proof that a museum experienced ever existed.

At the beginning the museum was because of open up in rented premises in Crete Street, Wetton. A photograph received by GroundUp with the supposed Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung over the walls, in addition to a design ship on its plinth in a very corner.

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

Stemmet told the investigators the museum were moved given that they could now not pay for the rent of R100,000 a month. He mentioned the CTMCA had bought property for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been bought for a similar selling price. Schaapkraal is in the peri-urban area considerably from the city.

Because of this, the museum were moved to a different area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after checking out the premises, that are in an industrial spot, the investigators reported they doubted no matter if a suitable museum existed there. Pics hooked up to your report exhibit a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed towards the wall, exhibited on tables and distribute out on the ground, without having rationalization.

“You will find there's negligible level of merchandise in the museum [that] on no account signify the more than 100-year history from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the house the premises indicating that they housed a museum and … generally, the museum does not glance for being open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The placement in the museum to an alternate area with no notifying the NLC.



The Schaapkraal residence, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA had to maneuver through the rented Crete Road premises mainly because it had operate up a R4-million credit card debt with the town of Cape City and was concerned its equipment might be hooked up.

“A result of the lawful battles along with the debts, the organisation experienced to maneuver its home from 5 Crete Street to steer clear of the sheriff from attaching the property from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them which the two buses acquired with lottery resources ended up saved in the key place “concealed within the Sheriff”. Though the investigators claimed they have been not able to verify that any buses experienced ever been acquired.

Stemmet also verified that the buses had been hidden to prevent them being seized. But once the investigators asked to become taken for the place where the buses were being stored, he advised them that “the owner of the secret area was not available to open the premises for us”.

“The CTMCA couldn't supply proof of payment for 2 cars that it allegedly obtained with grant revenue,” the investigators reported.

Soeker also advised them the Schaapkraal property had been marketed because of the financial debt.

“Mr Soeker stated that As outlined by his knowing, because of the financial debt owed to the City of Cape City, the CTMCA decided it would be best to promote their [Schaapkraal] home … also to also to hide the property in the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and security, has Earlier instructed GroundUp the CTMCA “threw money absent” on litigation with the City.

“Yearly like clockwork, as we strategy the top of the 12 months, the CTMCA picks a lawful fight with the town, above permits or something else. We in no way initiate it. They keep throwing funds away on vexatious litigation that they drop and also have prices awarded against them. This is certainly entirely self-inflicted,” he mentioned.

Soeker informed the Dabishi Nthambeleni investigators that the primary function players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of all the admin, finances and functioning หวย the CTMCA.” The investigators claimed they were unable to Speak to Momberg.

Hats
For the duration of their “investigation in loco” in the Primrose Park premises, the investigators “found quite a few equipment, some in very good condition, some in terrible situation and several that appeared rusty and extremely old”. Stemmet advised the investigators that there was also an off-website storage facility the place “devices plus some equipment” were being kept.

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

Based on photos and invoices in GroundUp’s possession, some, if not all, from the items look like machines which was illegally removed from the CTMCA’s prior premises. Stemmet is dealing with charges for this removing.

Based on the last development report submitted to your NLC with the CTMCA, the machinery was ordered from Martin-Conne Milliners, a business during which Stemmet, his spouse and his daughter had been administrators at enough time.

The investigators identified this “alarming”.

“In the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we note the following alarming obtaining: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is five Crete Street, Wetton, Cape City, the same handle on which the museum was meant to be designed and/or converted,” they reported.

An audit by accountants Kopano Included, hooked up for the investigative report, recorded that the CTMCA was in the whole process of obtaining “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 of the administrators.

As outlined by Dabishi Nthambeleni, the company has paid out R1.two-million as a deposit, that means R6.nine-million is still owed, however there is no payment day established for when this should be paid.

The Kopano audit as well as the close hyperlink in between the companies “indicate to us that there's ‘foul Enjoy’ involved with the purchase of the equipment with the museum workshop”, the investigators explained while in the report.

“We find that it's hugely possible that CTMCA made use of the funding on the NLC to ‘refund’ certainly one of its most important directors for that property at an increased overpriced rate than the actual rate and value of the residence and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA were expended.

“In point of fact, an in depth report on how the funding of the NLC was used, would be unattainable since the CTMCA does not have any receipts, or evidence of payments to verify the amounts spent on Every product it asked for funding for. The interim report and closing report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC had not carried out a website stop by just before approving the grant. But this wasn't regular exercise at some time and they uncovered no evidence of negligence by NLC employees.

At the time, the NLC’s regulations didn't require funded organisations to submit proof of payment with interim reports, they pointed out. This meant which the CTMCA was capable of receive a second tranche of funding without needing to present evidence that it had utilised the 1st tranche for its meant function.

Adhering to the appointment of a whole new board, commissioner and senior executive workforce, the NLC has tightened up on these and various challenges.

Dabishi Nthambeleni advisable that

the NLC drop any foreseeable future funding programs in the CTMCA;
the CTMCA and any users who had been involved with the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open a legal circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated cash.
But, rather then act around the report’s recommendations, the NLC – under its previous administration – selected to suppress it, since it had carried out Using the earlier reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and questioned for e mail addresses to deliver the issues by e-mail much too. But no response were been given at time of publication.



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

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