Leaked report exposes abuse of lottery money paid to minstrel team

Leaked report exposes abuse of lottery money paid to minstrel team

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Minstrels execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has observed no evidence that a museum ever existed.
The investigators found which the CTMCA didn't make use of the R5-million allocated to order or produce a museum.
Additionally they located that the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA employed funds in the Lottery to invest in workshop gear from considered one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to arrange a museum to celebrate town’s loaded minstrel heritage went astray. The museum was never established.

The small print in the abuse of a lot of rands of Lottery cash for your museum that never was are exposed within an investigative report commissioned from the NLC in 2021.

The museum grant was part of over R64-million in Lottery resources allotted to your CTMCA in between 2003 and 2017.

The primary A part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which bundled funding with the museum. The accepted budget to the museum was in excess of R12.8-million, with R5-million of that allocated for a developing to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a setting up for your museum and whether or not the museum “really existed”.

The company was also instructed to research

the acquisition with Lottery cash of two vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
several devices “ordered for your production of the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted prison 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 spouse Zainonesa and daughter Raziah ongoing as two of a number of directors with the organisation. Stemmet was reappointed for a director in May well 2021.

The investigation followed intensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated on the CTMCA (see in this article, below and right here) and how the cash probably served finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.



The creating on the right was the supposed website of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to the Parliamentary query, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All 3 assignments had been completed, she told MPs.

But the investigators observed no proof that a museum experienced at any time existed.

At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of the intended Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung within the walls, in addition to a design ship on its plinth in a very corner.

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

Stemmet advised the investigators the museum had been moved because they could no longer afford the lease of R100,000 a month. He claimed the CTMCA experienced ordered property for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and were marketed for the same price. Schaapkraal is inside of a peri-urban region much from town.

Due to this fact, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after checking out the premises, that happen to be within an industrial area, the investigators said they doubted no matter whether a proper museum existed there. Photos hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the ground, without any clarification.

“You will find there's minimum number of goods on the museum [that] under no circumstances depict the greater than one hundred-year heritage in the Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum isn't going to appear to generally be open up to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by going the location of your museum to an alternative area without the need of notifying the NLC.



The Schaapkraal assets, on which no museum was at any time built. Image: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to move from your rented Crete Road premises because it experienced run up a R4-million debt with town of Cape Town and was frightened its gear will be attached.

“As a result of lawful battles as well as debts, the organisation had to move its house from five Crete Highway to steer clear of the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director on the CTMCA, instructed them the two buses acquired with lottery funds were being stored in a mystery site “hidden in the Sheriff”. However the investigators stated they were not able to confirm that any buses experienced at any time been bought.

Stemmet also confirmed which the buses were concealed to stop them staying seized. But in the event the investigators asked for being taken to your put the place the buses have been stored, he instructed them that “the operator of The trick place was not accessible to open up the premises for us”.

“The CTMCA couldn't deliver proof of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators documented.

Soeker also informed them the Schaapkraal home were offered because of the credit card debt.

“Mr Soeker discussed that In line with his comprehension, a result of the debt owed to the town of Cape Town, the CTMCA made a decision It might be very best to offer their [Schaapkraal] house … also to also to cover the assets from the CTMCA to stay away from the sheriff from attaching the home.”

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

“Each and every year like clockwork, as we tactic the tip from the calendar year, the CTMCA picks a authorized fight with the town, in excess of permits or something else. We by no means initiate it. They keep throwing dollars away on vexatious litigation which they drop and have expenditures awarded in opposition to them. This really is solely self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the main position players on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in command of each of the admin, finances and operating ตรวจ หวย the CTMCA.” The investigators mentioned they were struggling to Speak to Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “observed various equipment, some in good condition, some in bad condition and some that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-website storage facility where by “devices and several machinery” ended up stored.

“We asked him to just take us to the facility but he was evasive to our ask for.”

According to pics and invoices in GroundUp’s possession, some, Otherwise all, on the items seem like machines that was illegally removed from the CTMCA’s earlier premises. Stemmet is struggling with expenses for this elimination.

Based on the closing development report submitted towards the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter had been directors at the time.

The investigators found this “alarming”.

“Within the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Street, Wetton, Cape Town, the exact same address on which the museum was intended to be designed and/or transformed,” they noted.

An audit by accountants Kopano Integrated, attached for the investigative report, recorded the CTMCA was in the entire process of obtaining “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was considered one of the administrators.

According to Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, although there's no payment day set for when this has to be paid.

The Kopano audit and the near website link in between the businesses “reveal to us that there is ‘foul Enjoy’ associated with the acquisition of the machinery with the museum workshop”, the investigators said inside the report.

“We discover that it is really possible that CTMCA utilized the funding in the NLC to ‘refund’ amongst its principal administrators with the property at a higher overpriced charge than the actual cost and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA had been used.

“In point of 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 verify the quantities invested on Each individual merchandise it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not executed a website take a look at prior to approving the grant. But this was not common exercise at enough time plus they located no evidence of negligence by NLC employees.

At the time, the NLC’s guidelines did not require funded organisations to post proof of payment with interim experiences, they identified. This meant which the CTMCA was ready to receive a 2nd tranche of funding without needing to provide proof that it experienced made use of the initial tranche for its intended goal.

Following the appointment of a completely new board, commissioner and senior government team, the NLC has tightened up on these and various troubles.

Dabishi Nthambeleni recommended that

the NLC decline any long run funding applications from your CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act over the report’s suggestions, the NLC – under its past administration – chose to suppress it, since it had done Along with the preceding reports into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by using SMS, and asked for e mail addresses to send the concerns by email way too. But no reaction had been acquired at time of publication.



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