Leaked report exposes abuse of lottery cash paid to minstrel team

Leaked report exposes abuse of lottery cash paid to minstrel team

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the National Lotteries Fee towards the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has identified no evidence that a museum at any time existed.
The investigators discovered which the CTMCA did not make use of the R5-million allotted to buy or make a museum.
In addition they found that the CTMCA only bought land really worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA utilised resources in the Lottery to invest in workshop devices from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) from the Countrywide Lotteries Fee (NLC) to set up a museum to rejoice town’s loaded minstrel heritage went astray. The museum was in no way made.

The details of your abuse of numerous rands of Lottery money for your museum that by no means was are discovered in an investigative report commissioned through the NLC in 2021.

The museum grant was Section of in excess of R64-million in Lottery resources allocated for the CTMCA concerning 2003 and 2017.

The primary A part of the investigation, by law company Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding with the museum. The authorized funds to the museum was over R12.8-million, with R5-million of that allocated to get a creating to house the museum.

Study the report (PDF, 7MB)

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

The organization was also instructed to investigate

the purchase with Lottery cash of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
numerous equipment “bought for that manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted criminal 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 of the organisation. Stemmet was reappointed to be a director in Could 2021.

The investigation adopted comprehensive reporting by GroundUp concerning the many rands of Lottery funding allotted for the CTMCA (see here, below and in this article) and the way in which the cash most likely assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.



The creating on the correct was the supposed internet site on the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “jobs” - including the museum - amongst 2012 and 2015. All 3 initiatives were completed, she informed MPs.

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

At first the museum was due to open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp in the intended Wetton museum exhibits a coffee shop with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, along with a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni explained it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.

Stemmet told the investigators the museum were moved because they could now not manage the rent of R100,000 per month. He reported the CTMCA had purchased assets for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been offered for a similar price. Schaapkraal is within a peri-urban place considerably from town.

Because of this, the museum had been moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after checking out the premises, which are in an industrial region, the investigators mentioned they doubted no matter whether a correct museum existed there. Pictures hooked up into the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without rationalization.

“You will find a nominal degree of merchandise for the museum [that] under no circumstances depict the over 100-yr history on the Cape City Carnival, the investigators mentioned, adding that there was “no signage outdoors the premises indicating they housed a museum and … commonly, the museum won't appear to get open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring the location of the museum to another spot devoid of notifying the NLC.



The Schaapkraal home, on which no museum was ever developed. Photo: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA experienced to move with the rented Crete Road premises since it experienced run up a R4-million financial debt with town of Cape Town and was frightened its gear would be connected.

“Mainly because of the authorized battles and also the debts, the organisation had to maneuver its home from 5 Crete Street to avoid the sheriff from attaching the residence in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director from the CTMCA, advised them the two buses purchased with lottery cash had been stored in the solution area “concealed with the Sheriff”. But the investigators said they were being unable to confirm that any buses experienced at any time been acquired.

Stemmet also verified which the buses had been concealed to prevent them staying seized. But once the investigators questioned to get taken towards the put exactly where the buses were stored, he informed them that “the proprietor of The trick place wasn't accessible to open up the premises for us”.

“The CTMCA could not supply proof of payment for two autos that it allegedly acquired with grant income,” the investigators documented.

Soeker also informed them the Schaapkraal assets had been bought due to the debt.

“Mr Soeker stated that In keeping with his being familiar with, a result of the personal debt owed to the City of Cape Town, the CTMCA resolved It will be very best to market their [Schaapkraal] residence … also to also to cover the belongings of your CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for protection and stability, has Beforehand explained to GroundUp which the CTMCA “threw revenue absent” on litigation with town.

“Every year like clockwork, as we approach the top with the 12 months, the CTMCA picks a authorized fight with town, around permits or something else. We in no way initiate it. They maintain throwing dollars away on vexatious litigation which they drop and possess fees awarded from them. This can be entirely self-inflicted,” he reported.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial part gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in control of the many admin, funds and jogging ตรวจ รางวัล the CTMCA.” The investigators claimed they were unable to Get hold of Momberg.

Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “identified several devices, some in very good issue, some in lousy situation and a few that looked rusty and intensely previous”. Stemmet informed the investigators that there was also an off-web page storage facility wherever “instruments and many machinery” ended up stored.

“We questioned him to consider us to the ability but he was evasive to our request.”

Based upon pictures and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise appear to be machines that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing expenses for this elimination.

Based on the closing development report submitted to your NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter have been directors at some time.

The investigators observed this “alarming”.

“With the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Highway, Wetton, Cape Town, a similar deal with on which the museum was meant to be built and/or converted,” they documented.

An audit by accountants Kopano Included, attached to your investigative report, recorded which the CTMCA was in the process of buying “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.

According to Dabishi Nthambeleni, the company has paid R1.two-million for a deposit, this means R6.9-million is still owed, though there is absolutely no payment date established for when this have to be paid.

The Kopano audit as well as near link involving the companies “point out to us that there is ‘foul Engage in’ involved in the purchase on the equipment of your museum workshop”, the investigators stated while in the report.

“We find that it is very probable that CTMCA utilized the funding on the NLC to ‘refund’ considered one of its key administrators for your home at a higher overpriced charge than the actual rate and price of the residence and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been spent.

“The truth is, a detailed report on how the funding on the NLC was used, can be impossible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every item it requested funding for. The interim report and ultimate report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a web site check out ahead of approving the grant. But this was not regular practice at some time plus they identified no evidence of carelessness by NLC staff.

At the time, the NLC’s procedures did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was able to receive a 2nd tranche of funding without having to deliver proof that it had made use of the very first tranche for its supposed purpose.

Adhering to the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these together with other issues.

Dabishi Nthambeleni recommended that

the NLC drop any future funding applications from the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, mainly because it had finished Along with the previous stories into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and requested for e mail addresses to mail the questions by email as well. But no response had been received at the time of publication.



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