Leaked report exposes abuse of lottery money compensated to minstrel group

Leaked report exposes abuse of lottery money compensated to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the National Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has uncovered no proof that a museum ever existed.
The investigators identified which the CTMCA did not use the R5-million allotted to get or produce a museum.
They also identified the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA utilized resources within the Lottery to invest in workshop equipment from certainly one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to setup a museum to rejoice the town’s wealthy minstrel record went astray. The museum was under no circumstances established.

The small print of your abuse of many rands of Lottery funds to get a museum that by no means was are revealed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Portion of a lot more than R64-million in Lottery funds allocated on the CTMCA in between 2003 and 2017.

The 1st Section of the investigation, by regulation business Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding for the museum. The approved spending plan to the museum was greater than R12.eight-million, with R5-million of that allocated for the creating to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating with the museum and whether the museum “truly existed”.

The organization was also instructed to analyze

the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
numerous machines “bought for your manufacturing of the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various directors of your organisation. Stemmet was reappointed for a director in Could 2021.

The investigation adopted comprehensive reporting by GroundUp with regards to the countless rands of Lottery funding allotted into the CTMCA (see listed here, in this article and here) and the best way the cash probably helped finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The constructing on the appropriate was the intended internet site with the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph

In response into a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - in between 2012 and 2015. All three assignments had been done, she advised MPs.

Even so the investigators found no proof that a museum had at any time existed.

To start with the museum was as a result of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp from the intended Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, and also a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not ready” to confirm if a museum had ever operated from these premises.

Stemmet informed the investigators the museum were moved simply because they could now not pay for the rent of R100,000 a month. He reported the CTMCA had procured house for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same cost. Schaapkraal is within a peri-urban spot significantly from town.

Consequently, the museum were moved to a new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after viewing the premises, which might be in an industrial region, the investigators claimed they doubted no matter if a proper museum existed there. Pics connected on the report display a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without any explanation.

“There exists a minimum quantity of merchandise on the museum [that] on no account symbolize the more than one hundred-12 months record in the Cape Town Carnival, the investigators claimed, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … usually, the museum will not seem being open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by transferring the location on the museum to another location with out notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Street premises mainly because it had run up a R4-million personal debt with the City of Cape Town and was fearful its equipment can be hooked up.

“Because of the authorized battles plus the debts, the organisation experienced to maneuver its residence from five Crete Street to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery funds were being saved within a magic formula location “concealed from your Sheriff”. Nevertheless the investigators said they ended up unable to verify that any buses experienced ever been purchased.

Stemmet also verified that the buses had been concealed to halt them being seized. But if the investigators questioned for being taken to your place the place the buses ended up saved, he told them that “the owner of the secret area was not available to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for 2 motor vehicles that it allegedly procured with grant money,” the investigators claimed.

Soeker also explained to them the Schaapkraal residence had been sold due to personal debt.

“Mr Soeker discussed that In line with his comprehension, as a result of debt owed to the town of Cape City, the CTMCA made the decision it would be ideal to sell their [Schaapkraal] house … also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the property.”

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

“Yearly like clockwork, as we technique the tip in the yr, the CTMCA picks a legal fight with town, about permits or another thing. We never ever initiate it. They preserve throwing cash absent on vexatious litigation they drop and possess expenditures awarded in opposition to them. This really is solely self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the leading function players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, funds and functioning ผล หวย หุ้น the CTMCA.” The investigators said they had been struggling to Make contact with Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “uncovered several devices, some in superior condition, some in negative issue and a few that seemed rusty and very aged”. Stemmet told the investigators that there was also an off-web-site storage facility where “instruments and a few machinery” had been held.

“We asked him to get us to the ability but he was evasive to our request.”

Dependant on photos and invoices in GroundUp’s possession, some, if not all, from the things appear to be tools which was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing expenses for this removal.

According to the final development report submitted for the NLC from the CTMCA, the equipment was acquired from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter ended up directors at enough time.

The investigators discovered this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape Town, the exact same handle on which the museum was meant to be crafted and/or transformed,” they claimed.

An audit by accountants Kopano Incorporated, attached to the investigative report, recorded which the CTMCA was in the process of purchasing “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the administrators.

According to Dabishi Nthambeleni, the corporate has compensated R1.two-million as being a deposit, indicating R6.nine-million is still owed, while there isn't any payment date set for when this needs to be compensated.

The Kopano audit and also the close hyperlink in between the companies “show to us that there is ‘foul Perform’ involved with the purchase on the machinery of your museum workshop”, the investigators reported from the report.

“We find that it's very probable that CTMCA made use of the funding on the NLC to ‘refund’ among its most important directors to the property at the next overpriced rate than the particular value and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were invested.

“Actually, a detailed report on how the funding on the NLC was used, can be unattainable since the CTMCA does not have any receipts, or evidence of payments to verify the quantities used on Every single item it asked for funding for. The interim report and remaining report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not executed a web site go to just before approving the grant. But this was not conventional follow at the time plus they found no evidence of negligence by NLC employees.

At the time, the NLC’s principles did not have to have funded organisations to post evidence of payment with interim experiences, they identified. This meant that the CTMCA was capable to receive a second tranche of funding without needing to give proof that it experienced made use of the first tranche for its supposed function.

Subsequent the appointment of a fresh board, commissioner and senior executive workforce, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni recommended that

the NLC decrease any future funding programs within the CTMCA;
the CTMCA and any associates who ended up involved in the grant be subjected for the NLC’s “delinquency” process;
the NLC open a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, rather than act on the report’s recommendations, the NLC – under its previous administration – chose to suppress it, mainly because it experienced accomplished Along with the preceding reviews into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by using SMS, and requested for email addresses to mail the inquiries by electronic mail way too. But no reaction had been gained at time of publication.



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

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