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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has uncovered no evidence that a museum ever existed.
The investigators identified which the CTMCA didn't utilize the R5-million allocated to order or create a museum.
Additionally they located which the CTMCA only bought land well worth R1.7-million, not R5-million as allocated.
They observed the CTMCA used resources in the Lottery to buy workshop equipment from considered one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to setup a museum to rejoice the city’s abundant minstrel history went astray. The museum was never produced.

The main points of your abuse of millions of rands of Lottery cash for your museum that in no way was are revealed in an investigative report commissioned with the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery money allotted on the CTMCA between 2003 and 2017.

The main Element of the investigation, by law company Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding for the museum. The accepted funds to the museum was in excess of R12.eight-million, with R5-million of that allotted for your building to house the museum.

Read the report (PDF, 7MB)

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

The company was also instructed to investigate

the purchase with Lottery money of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
many equipment “bought with the production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director on 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 continued as two of various administrators of the organisation. Stemmet was reappointed to be a director in Could 2021.

The investigation adopted considerable reporting by GroundUp concerning the numerous rands of Lottery funding allotted for the CTMCA (see in this article, right here and in this article) and the best way the money likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.



The making on the ideal was the meant website in the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph

In response into a Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “assignments” - such as the museum - in between 2012 and 2015. All 3 tasks were concluded, she explained to MPs.

Nevertheless the investigators observed no evidence that a museum experienced ever existed.

To start with the museum was on account of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with a few musical devices and minstrel costumes and collages of images haphazardly hung around the walls, and a design ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni reported it was “not able” to substantiate if a museum had ever operated from these premises.

Stemmet advised the investigators the museum were moved because they could no longer afford to pay for the lease of R100,000 a month. He reported the CTMCA had purchased assets for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and were bought for the same selling price. Schaapkraal is in a peri-city location significantly from the town.

As a result, the museum were moved to a fresh place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after going to the premises, that are within an industrial location, the investigators said they doubted whether or not a correct museum existed there. Pictures hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without any explanation.

“There is a negligible level of things for the museum [that] in no way stand for the over 100-year record with the Cape City Carnival, the investigators explained, introducing that there was “no signage outside the premises indicating that they housed a museum and … commonly, the museum would not glance to generally be open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The situation with the museum to an alternative place with out notifying the NLC.



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

Buses
Stemmet told the investigators that the CTMCA experienced to maneuver from your rented Crete Highway premises as it experienced operate up a R4-million credit card debt with the town of Cape City and was afraid its devices will be attached.

“Mainly because of the authorized battles plus the debts, the organisation experienced to maneuver its house from five Crete Highway to stay away from the sheriff from attaching the assets on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director of the CTMCA, instructed them that the two buses purchased with lottery funds were being stored in a very magic formula location “concealed from the Sheriff”. Though the investigators mentioned they were not able to substantiate that any buses experienced ever been purchased.

Stemmet also verified the buses were concealed to stop them staying seized. But when the investigators asked to generally be taken towards the spot in which the buses have been stored, he explained to them that “the operator of the secret area wasn't available to open up the premises for us”.

“The CTMCA could not offer proof of payment for 2 autos that it allegedly bought with grant income,” the investigators documented.

Soeker also told them the Schaapkraal home had been marketed due to the credit card debt.

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

JP Smith, Cape Town’s mayco member for safety and safety, has Beforehand instructed GroundUp the CTMCA “threw dollars away” on litigation with town.

“Each and every year like clockwork, as we method the end with the year, the CTMCA picks a lawful fight with the town, above permits or another thing. We under no circumstances initiate it. They hold throwing revenue away on vexatious litigation which they shed and have expenditures awarded towards them. This is certainly solely self-inflicted,” he mentioned.

Soeker explained to the Dabishi Nthambeleni investigators that the primary part players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for every one of the admin, finances and operating หวย ลาว ล่าสุด the CTMCA.” The investigators claimed they had been unable to contact Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “identified various machines, some in fantastic issue, some in undesirable condition and several that seemed rusty and extremely old”. Stemmet instructed the investigators that there was also an off-web site storage facility where by “instruments and several machinery” ended up stored.

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

Determined by pics and invoices in GroundUp’s possession, some, Otherwise all, of your items appear to be gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is experiencing fees for this removal.

In accordance with the ultimate development report submitted to your NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter were directors at enough time.

The investigators located this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Observe the subsequent alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape City, exactly the same address on which the museum was meant to be built and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached towards the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the administrators.

According to Dabishi Nthambeleni, the corporate has paid R1.2-million as a deposit, indicating R6.nine-million continues to be owed, while there's no payment date established for when this must be paid out.

The Kopano audit and also the close connection in between the companies “indicate to us that there's ‘foul Participate in’ involved with the acquisition on the machinery of your museum workshop”, the investigators reported in the report.

“We discover that it is really probable that CTMCA made use of the funding on the NLC to ‘refund’ certainly one of its primary administrators for the residence at a higher overpriced fee than the particular cost and worth of the property and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant on the CTMCA had been put in.

“In point of fact, a detailed report on how the funding in the NLC was applied, could well be not possible because the CTMCA does not have any receipts, or evidence of payments to verify the amounts expended on Each individual item it requested funding for. The interim report and final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not carried out a web site visit ahead of approving the grant. But this was not common observe at time they usually identified no proof of carelessness by NLC personnel.

At some time, the NLC’s guidelines didn't need funded organisations to post evidence of payment with interim reports, they pointed out. This meant that the CTMCA was capable of get a 2nd tranche of funding without having to offer evidence that it experienced applied the first tranche for its supposed reason.

Next the appointment of a new board, commissioner and senior govt crew, the NLC has tightened up on these together with other troubles.

Dabishi Nthambeleni proposed that

the NLC decrease any foreseeable future funding applications in the CTMCA;
the CTMCA and any associates who have been linked to the grant be subjected for the NLC’s “delinquency” process;
the NLC open a prison case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, in lieu of act on the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, since it had done With all the prior stories into corruption it experienced commissioned.

GroundUp sent concerns to Stemmet and Soeker by way of SMS, and asked for email addresses to send the inquiries by e mail also. But no response were gained at enough time of publication.



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

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