Leaked report exposes abuse of lottery revenue compensated to minstrel team

Leaked report exposes abuse of lottery revenue compensated to minstrel team

Blog Article

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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the Countrywide Lotteries Commission on the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has found no proof that a museum ever existed.
The investigators uncovered the CTMCA didn't make use of the R5-million allocated to acquire or produce a museum.
Additionally they identified the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of cash from your Lottery to purchase workshop machines from considered one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to arrange a museum to celebrate the city’s loaded minstrel background went astray. The museum was under no circumstances produced.

The small print on the abuse of millions of rands of Lottery funds for a museum that by no means was are uncovered in an investigative report commissioned by the NLC in 2021.

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

The 1st A part of the investigation, by legislation organization Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which provided funding with the museum. The authorized finances with the museum was more than R12.eight-million, with R5-million of that allocated for your developing to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a constructing for the museum and whether or not the museum “truly existed”.

The organization was also instructed to investigate

the acquisition with Lottery cash of two vehicles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
various devices “ordered for that producing of the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted legal 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 wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators from the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation followed considerable reporting by GroundUp about the an incredible number of rands of Lottery funding allotted to the CTMCA (see listed here, right here and listed here) and the way in which the resources probably aided finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The making on the correct was the intended web page of the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 jobs were done, she informed MPs.

Although the investigators uncovered no evidence that a museum experienced ever existed.

At the beginning the museum was because of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp of the meant Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung on 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 told the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He said the CTMCA had bought house for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been offered for the same value. Schaapkraal is within a peri-urban region far from town.

As a result, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, which are within an industrial area, the investigators claimed they doubted no matter if a proper museum existed there. Images hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the ground, with no explanation.

“There's a nominal number of goods within the museum [that] on no account stand for the much more than a hundred-12 months 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 does not glance for being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by transferring The situation in the museum to an alternate locale without having notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to move from your rented Crete Road premises since it had operate up a R4-million personal debt with town of Cape Town and was scared its tools will be attached.

“Because of the lawful battles plus the debts, the organisation had to move its home from 5 Crete Road to steer clear of the sheriff from attaching the property on the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director of your CTMCA, instructed them the two buses acquired with lottery money were being stored in the top secret spot “hidden from your Sheriff”. Although the investigators explained they had been not able to substantiate that any buses had ever been purchased.

Stemmet also confirmed the buses were hidden to halt them becoming seized. But when the investigators questioned to generally be taken towards the location where the buses ended up saved, he instructed them that “the owner of The key place wasn't available to open up the premises for us”.

“The CTMCA couldn't deliver proof of payment for 2 autos that it allegedly ordered with grant cash,” the investigators noted.

Soeker also told them the Schaapkraal property had been bought because of the financial debt.

“Mr Soeker stated that according to his comprehending, due to credit card debt owed to the town of Cape City, the CTMCA made a decision It might be best to sell their [Schaapkraal] property … and to also to hide the assets from the CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for security and stability, has Formerly told GroundUp that the CTMCA “threw income away” on litigation with the City.

“Every year like clockwork, as we method the end from the 12 months, the CTMCA picks a authorized battle with the City, above permits or something else. We under no circumstances initiate it. They continue to keep throwing revenue absent on vexatious litigation they drop and possess expenditures awarded in opposition to them. This can be entirely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of the many admin, finances and operating ตัว หวย the CTMCA.” The investigators said they were unable to Get hold of Momberg.

Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified quite a few devices, some in good problem, some in terrible ailment and some that appeared rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-internet site storage facility in which “instruments plus some equipment” have been kept.

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

Depending on pics and invoices in GroundUp’s possession, some, if not all, with the products seem like machines that was illegally removed from the CTMCA’s former premises. Stemmet is dealing with fees for this removing.

In accordance with the final progress report submitted for the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were directors at some time.

The investigators found this “alarming”.

“From the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Observe the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Road, Wetton, Cape Town, exactly the same tackle on which the museum was intended to be developed and/or transformed,” they noted.

An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was considered one of the directors.

In line with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, meaning R6.9-million is still owed, while there is absolutely no 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 is ‘foul Enjoy’ involved in the purchase from the machinery in the museum workshop”, the investigators explained from the report.

“We discover that it is hugely probable that CTMCA employed the funding in the NLC to ‘refund’ among its principal directors with the residence at an increased overpriced charge than the actual selling price and worth of the property and/or equipment.”

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

“Actually, an in depth report on how the funding from the NLC was applied, could be difficult as the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on each item it requested funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC experienced not conducted a site visit before approving the grant. But this wasn't common follow at the time they usually observed no evidence of carelessness by NLC staff.

At the time, the NLC’s regulations did not have to have funded organisations to submit evidence of payment with interim reports, they pointed out. This intended which the CTMCA was capable to get a next tranche of funding while not having to provide proof that it had utilised the main tranche for its intended goal.

Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these along with other concerns.

Dabishi Nthambeleni advisable that

the NLC decrease any potential funding programs in the CTMCA;
the CTMCA and any members who were being 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 – under its preceding administration – selected to suppress it, mainly because it had accomplished with the earlier studies into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the thoughts by electronic mail much too. But no reaction had been obtained at the time of publication.



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