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 carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has located no proof that a museum ever existed.
The investigators located the CTMCA didn't make use of the R5-million allotted to purchase or produce a museum.
In addition they uncovered which the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They located the CTMCA made use of resources from the Lottery to acquire workshop equipment from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the city’s abundant minstrel historical past went astray. The museum was by no means made.

The details in the abuse of many rands of Lottery money for the museum that never was are uncovered within an investigative report commissioned via the NLC in 2021.

The museum grant was A part of in excess of R64-million in Lottery money allocated towards the CTMCA amongst 2003 and 2017.

The main part of the investigation, by law business Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which bundled funding for the museum. The accepted spending budget with the museum was over R12.eight-million, with R5-million of that allotted for just a building to accommodate the museum.

Read through the report (PDF, 7MB)

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

The company was also instructed to research

the acquisition with Lottery cash of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of machines “purchased for that production of the costumes and hats” for the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director in 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 ongoing as two of several directors of your organisation. Stemmet was reappointed like a director in May perhaps 2021.

The investigation followed considerable reporting by GroundUp with regard to the numerous rands of Lottery funding allocated to your CTMCA (see listed here, listed here and right here) and the best way the money likely helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The creating on the best was the intended internet site on the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph

In response to the Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “projects” - such as the museum - among 2012 and 2015. All 3 projects had been finished, she explained to MPs.

However the investigators located no evidence that a museum experienced at any time existed.

At the beginning the museum was due to open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp of your meant Wetton museum demonstrates a coffee shop with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, in addition to a design ship on its plinth in the corner.

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

Stemmet explained to the investigators the museum were moved simply because they could no more afford to pay for the hire of R100,000 a month. He reported the CTMCA had purchased residence for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been sold for the same price. Schaapkraal is in a peri-urban space much from the town.

Subsequently, the museum had been moved to a new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after browsing the premises, that happen to be within an industrial location, the investigators mentioned they doubted no matter whether a suitable museum existed there. Pictures attached for the report show a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the floor, without any explanation.

“You will find there's negligible amount of things with the museum [that] under no circumstances stand for the more than one hundred-yr history of your Cape Town Carnival, the investigators stated, adding that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum will not glimpse to become open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by transferring The situation in the museum to an alternative spot without having notifying the NLC.



The Schaapkraal residence, on which no museum was ever created. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators that the CTMCA experienced to move within the rented Crete Highway premises mainly because it experienced run up a R4-million financial debt with the town of Cape Town and was scared its tools could be hooked up.

“As a result of lawful battles plus the debts, the organisation experienced to maneuver its property from 5 Crete Road to stay away from the sheriff from attaching the assets from the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director from the CTMCA, advised them the two buses acquired with lottery funds ended up stored in a key site “concealed in the Sheriff”. Although the investigators stated they had been not able to substantiate that any buses had at any time been purchased.

Stemmet also verified the buses were concealed to halt them currently being seized. But if the investigators questioned to become taken to the position where by the buses ended up saved, he advised them that “the operator of the secret location was not accessible to open up the premises for us”.

“The CTMCA could not give evidence of payment for two cars that it allegedly acquired with grant cash,” the investigators described.

Soeker also told them the Schaapkraal home had been offered due to financial debt.

“Mr Soeker spelled out that In line with his understanding, mainly because of the personal debt owed to town of Cape City, the CTMCA decided It will be finest to offer their [Schaapkraal] home … also to also to hide the belongings on the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and stability, has Formerly informed GroundUp which the CTMCA “threw cash absent” on litigation with the town.

“On a yearly basis like clockwork, as we strategy the tip with the calendar year, the CTMCA picks a authorized combat with town, over permits or something else. We never initiate it. They maintain throwing funds away on vexatious litigation that they shed and have expenses awarded in opposition to them. This is certainly fully self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the primary position players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, funds and jogging ตรวจ หวย ย้อน หลัง the CTMCA.” The investigators said they had been struggling to Speak to Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered quite a few equipment, some in great affliction, some in poor affliction and several that appeared rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-internet site storage facility wherever “devices plus some equipment” have been retained.

“We questioned him to take us to the facility but he was evasive to our ask for.”

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like machines which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.

Based on the remaining progress report submitted for the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter were directors at the time.

The investigators observed this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Notice the following alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is 5 Crete Highway, Wetton, Cape Town, precisely the same address on which the museum was meant to be designed and/or converted,” they reported.

An audit by accountants Kopano Integrated, attached to the investigative report, recorded the CTMCA was in the process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was certainly one of the administrators.

According to Dabishi Nthambeleni, the corporation has paid R1.two-million as being a deposit, which means R6.9-million remains to be owed, though there isn't a payment day set for when this must be paid.

The Kopano audit as well as the close link between the businesses “point out to us that there is ‘foul Perform’ involved in the acquisition of the machinery from the museum workshop”, the investigators claimed while in the report.

“We discover that it's hugely possible that CTMCA employed the funding of your NLC to ‘refund’ amongst its principal administrators for that residence at a higher overpriced fee than the particular rate and value of the property and/or machinery.”

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

“In fact, a detailed report on how the funding of the NLC was made use of, can be extremely hard because the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities invested on Each and every item it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC had not executed a site stop by just before approving the grant. But this wasn't typical observe at time plus they observed no proof of carelessness by NLC workers.

At the time, the NLC’s policies did not need funded organisations to post evidence of payment with interim reviews, they pointed out. This intended which the CTMCA was capable of receive a next tranche of funding without having to offer evidence that it experienced applied the 1st tranche for its intended intent.

Pursuing the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these and various difficulties.

Dabishi Nthambeleni suggested that

the NLC decrease any future funding programs within the CTMCA;
the CTMCA and any customers who were being linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open up a felony scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated funds.
But, as opposed to act around the report’s tips, the NLC – underneath its preceding administration – chose to suppress it, mainly because it experienced accomplished Together with the previous experiences into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker via SMS, and requested for email addresses to ship the questions by e-mail far too. But no response had been gained at some time of publication.



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