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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has observed no evidence that a museum at any time existed.
The investigators found that the CTMCA did not use the R5-million allotted to purchase or develop a museum.
Additionally they found which the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA employed funds in the Lottery to purchase workshop machines from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Fee (NLC) to setup a museum to celebrate the city’s loaded minstrel heritage went astray. The museum was never established.

The main points with the abuse of countless rands of Lottery funds to get a museum that under no circumstances was are disclosed in an investigative report commissioned from the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.

The 1st Section of the investigation, by law business Dabishi Nthambeleni, was executed between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which incorporated funding for your museum. The accepted price range for your museum was greater than R12.8-million, with R5-million of that allotted for just a creating to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a making for the museum and whether the museum “in fact existed”.

The organization was also instructed to analyze

the acquisition with Lottery money of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
numerous equipment “acquired for the production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted considerable reporting by GroundUp in regards to the many rands of Lottery funding allotted to your CTMCA (see below, below and below) and the best way the funds most likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.



The making on the best was the meant web-site from the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph

In response into a Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were finished, she advised MPs.

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

In the beginning the museum was on account of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung within the partitions, and also a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to substantiate if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum were moved given that they could now not pay for the lease of R100,000 per month. He mentioned the CTMCA experienced purchased residence for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for a similar value. Schaapkraal is inside of a peri-city spot considerably from town.

As a result, the museum had been moved to a different locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after going to the premises, which might be in an industrial location, the investigators explained they doubted no matter if a correct museum existed there. Pics hooked up to the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the floor, without rationalization.

“You will find there's minimal level of things with the museum [that] under no circumstances characterize the in excess of one hundred-yr background from the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating they housed a museum and … usually, the museum does not glance for being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location in the museum to another location with no notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to move with the rented Crete Highway premises as it experienced run up a R4-million financial debt with the City of Cape City and was worried its machines could well be hooked up.

“Due to authorized battles as well as the debts, the organisation had to maneuver its home from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of your CTMCA, advised them which the two buses bought with lottery money ended up saved within a top secret place “hidden with the Sheriff”. But the investigators mentioned they ended up not able to verify that any buses experienced ever been purchased.

Stemmet also confirmed that the buses were concealed to prevent them staying seized. But in the event the investigators requested to get taken for the spot in which the buses had been saved, he instructed them that “the owner of The trick site was not accessible to open the premises for us”.

“The CTMCA couldn't give proof of payment for two vehicles that it allegedly ordered with grant funds,” the investigators claimed.

Soeker also informed them the Schaapkraal assets had been offered due to debt.

“Mr Soeker discussed that according to his comprehension, due to the financial debt owed to the City of Cape Town, the CTMCA made the decision It might be ideal to offer their [Schaapkraal] residence … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for safety and protection, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with town.

“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a legal combat with the City, in excess of permits or another thing. We never ever initiate it. They keep throwing funds absent on vexatious litigation which they lose and have charges awarded versus them. This really is totally self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial part gamers on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for the many admin, funds and running ผล หวย ลาว วัน นี้ the CTMCA.” The investigators explained they were not able to Call Momberg.

Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “located a lot of equipment, some in superior ailment, some in lousy ailment and many that seemed rusty and extremely aged”. Stemmet advised the investigators that there was also an off-web site storage facility exactly where “devices and several equipment” ended up stored.

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

Based upon photos and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be gear which was illegally faraway from the CTMCA’s previous premises. Stemmet is going through prices for this removing.

According to the closing development report submitted to the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his spouse and his daughter were being administrators at time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Street, Wetton, Cape Town, the exact same address on which the museum was intended to be designed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, connected towards the investigative report, recorded that the CTMCA was in the entire process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.

In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million to be a deposit, this means R6.9-million continues to be owed, although there isn't any payment day set for when this must be paid out.

The Kopano audit as well as the shut website link between the companies “indicate to us that there is ‘foul Enjoy’ involved in the purchase on the equipment from the museum workshop”, the investigators explained in the report.

“We find that it is very probable that CTMCA utilised the funding with the NLC to ‘refund’ one of its primary administrators for the property at a higher overpriced rate than the particular selling price and worth of the home and/or equipment.”

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

“In reality, an in depth report on how the funding from the NLC was made use of, can be not possible because the CTMCA does not have any receipts, or proof of payments to verify the quantities put in on Every merchandise it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC had not carried out a site pay a visit to before approving the grant. But this was not typical follow at enough time plus they found no proof of carelessness by NLC staff.

At enough time, the NLC’s procedures didn't have to have funded organisations to submit proof of payment with interim reports, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding without needing to offer evidence that it had used the first tranche for its meant purpose.

Adhering to the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these and other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any long term funding applications through the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, in lieu of act within the report’s tips, the NLC – underneath its prior administration – selected to suppress it, as it had finished Together with the previous studies into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e mail addresses to deliver the inquiries by e mail much too. But no reaction were gained at the time of publication.



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