Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

Blog Article

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators uncovered the CTMCA didn't utilize the R5-million allotted to get or create a museum.
They also observed which the CTMCA only bought land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilised resources from your Lottery to acquire workshop machines from among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to arrange a museum to rejoice town’s prosperous minstrel heritage went astray. The museum was never ever established.

The main points in the abuse of a lot of rands of Lottery resources for just a museum that hardly ever was are exposed in an investigative report commissioned via the NLC in 2021.

The museum grant was Element of more than R64-million in Lottery resources allotted towards the CTMCA among 2003 and 2017.

The primary Section of the investigation, by legislation business Dabishi Nthambeleni, was done involving September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which included funding for that museum. The accepted spending budget with the museum was a lot more than R12.8-million, with R5-million of that allocated for the building to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a building for that museum and whether the museum “in fact existed”.

The firm was also instructed to research

the acquisition with Lottery resources of two vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of devices “acquired for that producing of your costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous directors of your organisation. Stemmet was reappointed to be a director in May well 2021.

The investigation followed in depth reporting by GroundUp in regards to the numerous rands of Lottery funding allotted for the CTMCA (see in this article, right here and in this article) and the way in which the money probably helped finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.



The creating on the ideal was the meant web site of your minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In response into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “assignments” - including the museum - involving 2012 and 2015. All three jobs had been done, she explained to MPs.

However the investigators found no proof that a museum experienced at any time existed.

To start with the museum was on account of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp with the meant Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the walls, plus a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to substantiate if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum had been moved since they could now not afford to pay for the lease of R100,000 per month. He explained the CTMCA had ordered house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for a similar value. Schaapkraal is in a peri-urban place much from the town.

As a result, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after browsing the premises, which are within an industrial area, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Pics connected on the report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the floor, without explanation.

“You will find there's small volume of products within the museum [that] under no circumstances represent the a lot more than a hundred-calendar year historical past with the Cape Town Carnival, the investigators mentioned, including that there was “no signage outside the house the premises indicating which they housed a museum and … usually, the museum will not glance to generally be open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring The placement of the museum to an alternative location without having notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to move within the rented Crete Highway premises as it had run up a R4-million personal debt with town of Cape Town and was concerned its products could be hooked up.

“Due to legal battles and the debts, the organisation had to maneuver its assets from five Crete Road to steer clear of the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director on the CTMCA, informed them which the two buses purchased with lottery cash had been saved in a mystery locale “hidden with the Sheriff”. Nevertheless the investigators reported they had been unable to substantiate that any buses experienced at any time been purchased.

Stemmet also verified which the buses had been hidden to prevent them staying seized. But once the investigators questioned to get taken for the place wherever the buses were stored, he advised them that “the operator of The trick location was not available to open the premises for us”.

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

Soeker also explained to them the Schaapkraal assets were marketed as a result of credit card debt.

“Mr Soeker discussed that according to his knowing, a result of the financial debt owed to town of Cape Town, the CTMCA decided It could be greatest to sell their [Schaapkraal] house … also to also to hide the property of the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and security, has Formerly instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.

“Each and every year like clockwork, as we solution the top of your year, the CTMCA picks a legal struggle with town, around permits or another thing. We hardly ever initiate it. They continue to keep throwing dollars away on vexatious litigation that they lose and possess charges awarded in opposition to them. This can be entirely self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of all the admin, finances and jogging ruay the CTMCA.” The investigators mentioned they were unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “identified a lot of equipment, some in great affliction, some in bad problem and many that seemed rusty and very outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility where by “devices and many machinery” had been stored.

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

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, from the items seem like gear which was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removal.

Based on the remaining progress report submitted on the NLC by the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter have been directors at time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or transformed,” they noted.

An audit by accountants Kopano Included, attached on the investigative report, recorded that the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the administrators.

In accordance with Dabishi Nthambeleni, the corporate has compensated R1.two-million to be a deposit, meaning R6.nine-million is still owed, though there's no payment date established for when this needs to be compensated.

The Kopano audit plus the near hyperlink in between the businesses “point out to us that there is ‘foul Participate in’ involved with the purchase with the machinery with the museum workshop”, the investigators mentioned in the report.

“We find that it's extremely probable that CTMCA made use of the funding in the NLC to ‘refund’ amongst its principal administrators for that property at a greater overpriced fee than the particular selling price and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been invested.

“In fact, a detailed report on how the funding of the NLC was made use of, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Each and every product it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not carried out a site check out right before approving the grant. But this was not common exercise at some time and they identified no evidence of negligence by NLC personnel.

At enough time, the NLC’s regulations didn't have to have funded organisations to post proof of payment with interim reviews, they pointed out. This intended the CTMCA was capable to receive a second tranche of funding without the need to deliver proof that it experienced applied the 1st tranche for its intended intent.

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

Dabishi Nthambeleni advised that

the NLC decrease any future funding programs within the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected to your NLC’s “delinquency” process;
the NLC open up a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, instead of act around the report’s tips, the NLC – less than its past administration – chose to suppress it, as it experienced completed Using the previous stories into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and asked for e-mail addresses to deliver the concerns by email much too. But no response had been obtained at some time of publication.



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

https://javorka.online
https://ufabetsea.online
https://ufabetwine.online
https://ufabetsc.online
https://ufabethunter.online
https://ufawinbet.site
https://sagaming99.site
https://sagaming93.online
https://sagaming92.online
https://sagaming91.online
https://sagaming90.online
https://javbom.online
https://javcanna.online
https://javmini.online
https://javoops.online
https://javhubs.online
https://javep.online
https://javzooms.online
https://javporns.online
https://javbros.online
https://sagamings.online
https://huaylnw.shop
https://huayka.shop
https://huaynaja.shop
https://huay1.site
https://huay2.site
https://huay3.site
https://huay4.site
https://huay5.site
https://huay6.site
https://edeltanet.com