Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has observed no proof that a museum ever existed.
The investigators uncovered that the CTMCA did not make use of the R5-million allotted to buy or make a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They observed the CTMCA made use of resources from the Lottery to purchase workshop gear from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Association (CTMCA) with the National Lotteries Commission (NLC) to build a museum to rejoice the city’s loaded minstrel heritage went astray. The museum was never made.

The details of the abuse of millions of rands of Lottery resources for the museum that under no circumstances was are disclosed within an investigative report commissioned by the NLC in 2021.

The museum grant was Section of greater than R64-million in Lottery money allotted on the CTMCA concerning 2003 and 2017.

The initial part of the investigation, by regulation business Dabishi Nthambeleni, was done between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding for that museum. The approved budget for the museum was a lot more than R12.eight-million, with R5-million of that allotted for the constructing to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the building with the museum and whether or not the museum “in fact existed”.

The company was also instructed to research

the acquisition with Lottery funds of two vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
several devices “procured for that production from the costumes and hats” for your minstrels carnival, for R5.4-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 quite a few directors on the organisation. Stemmet was reappointed as a director in May 2021.

The investigation followed intensive reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated into the CTMCA (see here, listed here and listed here) and just how the funds likely assisted finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.



The making on the ideal was the intended website in the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - such as the museum - in between 2012 and 2015. All 3 projects had been concluded, she explained to MPs.

Though the investigators observed no evidence that a museum had at any time existed.

In the beginning the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp in the intended Wetton museum demonstrates a coffee store with a few musical devices and minstrel costumes and collages of images haphazardly hung to the partitions, and also a design ship on its plinth inside a corner.

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

Stemmet explained to the investigators the museum had been moved as they could not pay for the lease of R100,000 per month. He mentioned the CTMCA had ordered house for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been offered for the same selling price. Schaapkraal is inside of a peri-city region far from the town.

Subsequently, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which happen to be in an industrial area, the investigators claimed they doubted irrespective of whether a suitable museum existed there. Images attached to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, displayed on tables and spread out on the ground, with no explanation.

“You will find there's minimal volume of goods for the museum [that] by no means stand for the a lot more than 100-calendar year background from the Cape City Carnival, the investigators explained, including that there was “no signage outside the house the premises indicating they housed a museum and … typically, the museum isn't going to seem to get open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by transferring the location with the museum to an alternative spot with no notifying the NLC.



The Schaapkraal assets, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA had to maneuver from your rented Crete Highway premises because it had run up a R4-million debt with the town of Cape Town and was fearful its equipment could well be hooked up.

“As a result of authorized battles plus the debts, the organisation experienced to move its house from 5 Crete Road to avoid the sheriff from attaching the property of the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of the CTMCA, explained to them that the two buses acquired with lottery cash have been saved in a secret site “hidden within the Sheriff”. Though the investigators reported they were being unable to confirm that any buses had ever been bought.

Stemmet also confirmed which the buses had been hidden to halt them currently being seized. But if the investigators requested being taken on the position where by the buses had been saved, he instructed them that “the proprietor of The trick location was not available to open up the premises for us”.

“The CTMCA couldn't offer evidence of payment for two autos that it allegedly purchased with grant money,” the investigators reported.

Soeker also advised them the Schaapkraal assets had been marketed due to debt.

“Mr Soeker discussed that In accordance with his knowledge, due to debt owed to the City of Cape Town, the CTMCA resolved It might be most effective to sell their [Schaapkraal] property … also to also to cover the belongings of the CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for safety and stability, has Earlier instructed GroundUp that the CTMCA “threw money away” on litigation with town.

“Every year like clockwork, as we approach the top on the year, the CTMCA picks a authorized combat with town, around permits or another thing. We by no means initiate it. They hold throwing income away on vexatious litigation they eliminate and possess expenses awarded versus them. This can be fully self-inflicted,” he mentioned.

Soeker advised the Dabishi Nthambeleni investigators that the main function gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for the many admin, finances and functioning ผล หวย หุ้น the CTMCA.” The investigators explained they had been struggling to Get hold of Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “observed quite a few machines, some in very good situation, some in bad situation and many that looked rusty and extremely outdated”. Stemmet told the investigators that there was also an off-web site storage facility where by “devices and a few machinery” ended up saved.

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

Based upon pics and invoices in GroundUp’s possession, some, if not all, from the products appear to be equipment which was illegally faraway from the CTMCA’s preceding premises. Stemmet is experiencing rates for this removing.

Based on the final development report submitted on the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter ended up directors at time.

The investigators uncovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the company is five Crete Street, Wetton, Cape Town, the identical address on which the museum was meant to be designed and/or converted,” they reported.

An audit by accountants Kopano Included, connected on the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the directors.

As outlined by Dabishi Nthambeleni, the organization has compensated R1.two-million like a deposit, this means R6.nine-million is still owed, even though there is not any payment day established for when this must be paid.

The Kopano audit plus the shut hyperlink among the companies “reveal to us that there is ‘foul Engage in’ involved in the acquisition on the machinery on the museum workshop”, the investigators explained while in the report.

“We find that it's very probable that CTMCA applied the funding from the NLC to ‘refund’ one of its major administrators for your residence at a higher overpriced level than the actual value and price of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to establish how the grant for the CTMCA had been put in.

“Actually, a detailed report on how the funding from the NLC was utilized, will be unattainable because the CTMCA does not have any receipts, or evidence of payments to confirm the quantities put in on Every product it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not conducted a web page check out prior to approving the grant. But this wasn't regular exercise at the time plus they found no proof of carelessness by NLC workers.

At some time, the NLC’s principles didn't have to have funded organisations to post evidence of payment with interim reports, they identified. This intended the CTMCA was in the position to get a 2nd tranche of funding while not having to present proof that it had made use of the main tranche for its supposed reason.

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

Dabishi Nthambeleni advisable that

the NLC decline any upcoming funding programs from your CTMCA;
the CTMCA and any users who had been associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a legal circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, as opposed to act to the report’s tips, the NLC – less than its former administration – chose to suppress it, because it experienced finished With all the earlier studies into corruption it experienced commissioned.

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



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

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