Leaked report exposes abuse of lottery revenue compensated to minstrel team

Leaked report exposes abuse of lottery revenue compensated to minstrel team

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Minstrels complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Nationwide Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has observed no proof that a museum ever existed.
The investigators found that the CTMCA didn't use the R5-million allocated to order or produce a museum.
In addition they located the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They located the CTMCA made use of money through the Lottery to buy workshop tools from among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to build a museum to rejoice the city’s abundant minstrel background went astray. The museum was never ever developed.

The small print on the abuse of countless rands of Lottery resources for any museum that under no circumstances was are uncovered in an investigative report commissioned from the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery funds allocated into the CTMCA amongst 2003 and 2017.

The primary A part of the investigation, by legislation agency Dabishi Nthambeleni, was done involving September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which integrated funding with the museum. The accredited finances for the museum was more than R12.eight-million, with R5-million of that allotted for any constructing to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a setting up with the museum and whether or not the museum “essentially existed”.

The firm was also instructed to research

the purchase with Lottery money of two autos – a 60-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “purchased for the manufacturing of the costumes and hats” with the minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of directors of the organisation. Stemmet was reappointed for a director in Could 2021.

The investigation adopted considerable reporting by GroundUp concerning the millions of rands of Lottery funding allocated into the CTMCA (see below, below and right here) and just how the money almost certainly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.



The creating on the ideal was the supposed site with the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to your Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All a few tasks had been finished, she explained to MPs.

Even so the investigators observed no evidence that a museum had ever existed.

Initially the museum was due to open in rented premises in Crete Street, Wetton. A photo acquired by GroundUp from the intended Wetton museum demonstrates a coffee store with a few musical instruments and minstrel costumes and collages of pics haphazardly hung around the partitions, in addition to a design ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum were moved because they could no more pay for the lease of R100,000 per month. He stated the CTMCA had procured home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been offered for the same price. Schaapkraal is inside a peri-city spot significantly from the town.

As a result, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following checking out the premises, which are within an industrial location, the investigators explained they doubted irrespective of whether a proper museum existed there. Shots connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the ground, without having explanation.

“You will find there's minimal number of goods within the museum [that] under no circumstances depict the much more than a hundred-year background from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating they housed a museum and … frequently, the museum won't glance for being open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by going The placement of your museum to an alternative locale without the need of notifying the NLC.



The Schaapkraal house, on which no museum was at any time created. Photo: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to move from your rented Crete Road premises since it had run up a R4-million financial debt with town of Cape Town and was worried its gear will be hooked up.

“Because of the lawful battles plus the debts, the organisation had to maneuver its house from 5 Crete Road to stay away from the sheriff from attaching the home from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director in the CTMCA, explained to them which the two buses purchased with lottery resources ended up stored in a secret locale “concealed through the Sheriff”. However the investigators claimed they had been unable to substantiate that any buses had ever been bought.

Stemmet also verified which the buses were concealed to stop them currently being seized. But once the investigators asked for being taken on the put exactly where the buses had been saved, he advised them that “the proprietor of the secret area was not available to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for two automobiles that it allegedly bought with grant funds,” the investigators documented.

Soeker also told them the Schaapkraal property were offered because of the personal debt.

“Mr Soeker spelled out that As outlined by his comprehension, because of the credit card debt owed to town of Cape City, the CTMCA determined It could be very best to provide their [Schaapkraal] home … and to also to cover the belongings in the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for basic safety and protection, has Earlier advised GroundUp that the CTMCA “threw dollars away” on litigation with the town.

“Annually like clockwork, as we technique the tip of the yr, the CTMCA picks a lawful battle with the town, over permits or something else. We under no circumstances initiate it. They maintain throwing dollars away on vexatious litigation that they drop and possess costs awarded towards them. That is totally self-inflicted,” he explained.

Soeker explained to the Dabishi Nthambeleni investigators that the key purpose players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of every one of the admin, finances and running ผล หวย the CTMCA.” The investigators claimed they had been unable to Get in touch with Momberg.

Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “identified many machines, some in good ailment, some in lousy issue and a few that appeared rusty and extremely aged”. Stemmet informed the investigators that there was also an off-web page storage facility in which “devices plus some machinery” had been retained.

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

According to images and invoices in GroundUp’s possession, some, if not all, on the goods look like equipment which was illegally faraway from the CTMCA’s past premises. Stemmet is facing charges for this removing.

Based on the ultimate development report submitted to your NLC because of the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter were being directors at time.

The investigators observed this “alarming”.

“Within the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Road, Wetton, Cape City, the same handle on which the museum was intended to be constructed and/or transformed,” they claimed.

An audit by accountants Kopano Included, attached towards the investigative report, recorded which the CTMCA was in the process of purchasing “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 certainly one of the administrators.

As outlined by Dabishi Nthambeleni, the business has compensated R1.two-million as a deposit, that means R6.9-million continues to be owed, however there isn't any payment day established for when this needs to be compensated.

The Kopano audit plus the near website link among the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition in the equipment on the museum workshop”, the investigators stated during the report.

“We find that it's extremely probable that CTMCA used the funding with the NLC to ‘refund’ one among its primary administrators for the house at a higher overpriced fee than the particular cost and worth of the residence and/or equipment.”

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

“In reality, an in depth report on how the funding of the NLC was used, would be not possible because the CTMCA does not have any receipts, or evidence of payments to verify the quantities expended on Each individual merchandise it requested funding for. The interim report and final report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC experienced not carried out a website visit ahead of approving the grant. But this was not common apply at enough time and they observed no evidence of negligence by NLC employees.

At time, the NLC’s regulations didn't require funded organisations to submit proof of payment with interim reviews, they pointed out. This meant that the CTMCA was capable to get a 2nd tranche of funding without having to supply evidence that it had utilised the first tranche for its supposed intent.

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

Dabishi Nthambeleni suggested that

the NLC decrease any potential funding purposes from your CTMCA;
the CTMCA and any users who had been linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open up a prison case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated resources.
But, rather than act within the report’s suggestions, the NLC – underneath its former administration – selected to suppress it, since it had performed with the prior reports into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker by way of SMS, and asked for email addresses to mail the thoughts by e mail way too. But no response were acquired at some time of publication.



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

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