Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not use the R5-million allotted to acquire or produce a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They located the CTMCA utilized resources from your Lottery to purchase workshop devices from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances established.

The main points of your abuse of millions of rands of Lottery resources for just a museum that never was are disclosed within an investigative report commissioned through the NLC in 2021.

The museum grant was Portion of greater than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.

The main part of the investigation, by law firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which provided funding to the museum. The authorized price range for that museum was a lot more than R12.eight-million, with R5-million of that allocated to get a making to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the building for your museum and whether the museum “truly existed”.

The firm was also instructed to investigate

the acquisition with Lottery money of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
numerous devices “procured for the manufacturing from the costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors from the organisation. Stemmet was reappointed like a director in May possibly 2021.

The investigation followed comprehensive reporting by GroundUp in regards to the numerous rands of Lottery funding allotted on the CTMCA (see in this article, here and here) and just how the cash in all probability assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at enough time by Marius Fransman.



The developing on the right was the intended website with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “jobs” - including the museum - in between 2012 and 2015. All 3 assignments were concluded, she explained to MPs.

But the investigators discovered no evidence that a museum experienced at any time existed.

At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, as well as a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni said it had been “not ready” to confirm if a museum had at any time operated from these premises.

Stemmet explained to the investigators the museum had been moved as they could no longer manage the lease of R100,000 per month. He reported the CTMCA experienced purchased home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is in a peri-city space considerably from the town.

Due to this fact, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be in an industrial place, the investigators mentioned they doubted whether or not a suitable museum existed there. Photos connected into the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find there's negligible quantity of products on the museum [that] by no means symbolize the a lot more than one hundred-year history of your Cape Town Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum won't seem to become open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by relocating The situation from the museum to an alternate locale without having notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to move through the rented Crete Street premises as it had run up a R4-million debt with town of Cape City and was fearful its devices might be connected.

“A result of the legal battles and the debts, the organisation experienced to move its assets from 5 Crete Road to stay away from the sheriff from attaching the home of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director on the CTMCA, told them the two buses purchased with lottery funds have been saved in a mystery locale “hidden from your Sheriff”. Though the investigators said they have been unable to verify that any buses had ever been bought.

Stemmet also confirmed that the buses were concealed to prevent them currently being seized. But if the investigators requested to get taken for the put where by the buses were being stored, he explained to them that “the operator of The trick area was not accessible to open up the premises for us”.

“The CTMCA couldn't give proof of payment for 2 vehicles that it allegedly purchased with grant money,” the investigators documented.

Soeker also advised them the Schaapkraal residence had been offered because of the personal debt.

“Mr Soeker spelled out that Based on his being familiar with, due to financial debt owed to town of Cape City, the CTMCA determined It could be best to offer their [Schaapkraal] residence … also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for protection and stability, has Beforehand advised GroundUp the CTMCA “threw income away” on litigation with the town.

“Each and every year like clockwork, as we solution the tip from the year, the CTMCA picks a authorized battle with town, over permits or another thing. We never ever initiate it. They continue to keep throwing money absent on vexatious litigation which they lose and possess prices awarded against them. This really is completely self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the primary part gamers on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of many of the admin, funds and operating หวย ไทยรัฐ the CTMCA.” The investigators mentioned they had been struggling to Make contact with Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “observed numerous machines, some in great problem, some in undesirable issue and a few that looked rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-web-site storage facility wherever “instruments and a few equipment” had been kept.

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

Determined by photos and invoices in GroundUp’s possession, some, if not all, with the products seem like gear that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with costs for this elimination.

According to the last progress report submitted to the NLC from the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter were administrators at time.

The investigators found this “alarming”.

“Within the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape Town, the same deal with on which the museum was intended to be created and/or transformed,” they described.

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

As outlined by Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, meaning R6.nine-million is still owed, while there isn't a payment date set for when this needs to be paid.

The Kopano audit plus the close website link concerning the companies “show to us that there's ‘foul Participate in’ involved in the purchase from the machinery in the museum workshop”, the investigators claimed during the report.

“We discover that it's remarkably possible that CTMCA utilised the funding with the NLC to ‘refund’ considered one of its key directors for your property at the next overpriced level than the actual cost and price of the house and/or machinery.”

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

“In reality, a detailed report on how the funding of your NLC was employed, could well be unattainable given that the CTMCA does not have any receipts, or proof of payments to confirm the amounts put in on Each individual product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not conducted a site go to just before approving the grant. But this wasn't conventional exercise at time and they uncovered no evidence of carelessness by NLC staff members.

At time, the NLC’s rules didn't need funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a 2nd tranche of funding without having to give evidence that it experienced utilized the 1st tranche for its supposed objective.

Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other problems.

Dabishi Nthambeleni advised that

the NLC decrease any potential funding applications in the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its preceding administration – selected to suppress it, as it had performed Using the preceding stories into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by email as well. But no response were gained at enough time of publication.



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