Leaked report exposes abuse of lottery income paid out to minstrel team

Leaked report exposes abuse of lottery income paid out to minstrel team

Blog Article

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the National Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no evidence that a museum at any time existed.
The investigators discovered which the CTMCA didn't use the R5-million allocated to purchase or produce a museum.
In addition they identified the CTMCA only acquired 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 administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Fee (NLC) to setup a museum to rejoice town’s abundant minstrel historical past went astray. The museum was by no means made.

The details of the abuse of a lot of rands of Lottery funds for any museum that in no way was are revealed in an investigative report commissioned because of the NLC in 2021.

The museum grant was Portion of more than R64-million in Lottery funds allotted to the CTMCA among 2003 and 2017.

The very first Component of the investigation, by regulation firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which provided funding for your museum. The permitted price range for that museum was greater than R12.8-million, with R5-million of that allocated for your developing to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for that museum and if the museum “really existed”.

The organization was also instructed to research

the purchase with Lottery funds of two vehicles – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
various machines “bought for the producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various directors from the organisation. Stemmet was reappointed as a director in May 2021.

The investigation followed in depth reporting by GroundUp concerning the countless rands of Lottery funding allocated on the CTMCA (see listed here, right here and right here) and the way the resources in all probability helped finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.



The creating on the appropriate was the supposed site in the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to your Parliamentary problem, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “initiatives” - including the museum - involving 2012 and 2015. All a few tasks had been concluded, she told MPs.

Even so the investigators found no proof that a museum had ever existed.

At first the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of your meant Wetton museum displays a coffee store with a few musical instruments and minstrel costumes and collages of images haphazardly hung to the walls, plus a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni reported it had been “not able” to confirm if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved given that they could not afford to pay for the lease of R100,000 per month. He explained the CTMCA experienced procured house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for the same selling price. Schaapkraal is inside a peri-urban area far from the city.

Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which are within an industrial place, the investigators claimed they doubted whether a suitable museum existed there. Pics attached into the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the ground, without having explanation.

“You will find a minimal number of items on the museum [that] on no account signify the a lot more than one hundred-yr historical past in the Cape Town Carnival, the investigators said, introducing that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum will not seem to become open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by relocating The situation in the museum to another spot with out notifying the NLC.



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

Buses
Stemmet explained to the investigators the CTMCA experienced to maneuver in the rented Crete Street premises because it had run up a R4-million financial debt with the City of Cape City and was afraid its gear could be connected.

“Due to authorized battles along with the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director from the CTMCA, explained to them which the two buses bought with lottery funds were being saved in the magic formula area “hidden with the Sheriff”. Nevertheless the investigators said they were not able to verify that any buses had at any time been purchased.

Stemmet also confirmed which the buses had been concealed to stop them currently being seized. But when the investigators requested being taken to the put where by the buses were being stored, he instructed them that “the proprietor of The trick locale wasn't accessible to open up the premises for us”.

“The CTMCA could not supply evidence of payment for 2 vehicles that it allegedly bought with grant dollars,” the investigators documented.

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

“Mr Soeker defined that As outlined by his being familiar with, due to the credit card debt owed to the City of Cape City, the CTMCA determined it would be most effective to promote their [Schaapkraal] property … and also to also to hide the property from the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has previously advised GroundUp the CTMCA “threw revenue absent” on litigation with town.

“Each year like clockwork, as we method the end of the calendar year, the CTMCA picks a authorized combat with the town, above permits or something else. We never ever initiate it. They preserve throwing cash absent on vexatious litigation that they reduce and also have expenses awarded versus them. That is entirely self-inflicted,” he claimed.

Soeker told the Dabishi Nthambeleni investigators that the leading part players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of each of the admin, funds and functioning ตรวจ หวย รัฐบาล the CTMCA.” The investigators said they had been not able to Call Momberg.

Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified quite a few devices, some in superior ailment, some in poor situation and some that appeared rusty and very previous”. Stemmet told the investigators that there was also an off-web page storage facility wherever “instruments and some equipment” have been held.

“We asked him to choose us to the power but he was evasive to our request.”

Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, of the things look like tools which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with prices for this removal.

According to the final progress report submitted to your NLC by the CTMCA, the machinery was purchased from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were being administrators at enough time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Highway, Wetton, Cape Town, a similar deal with on which the museum was intended to be crafted and/or converted,” they documented.

An audit by accountants Kopano Included, attached on the investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the directors.

In line with Dabishi Nthambeleni, the business has paid out R1.two-million for a deposit, indicating R6.9-million continues to be owed, though there is no payment day established for when this needs to be paid out.

The Kopano audit as well as the shut url in between the businesses “reveal to us that there's ‘foul Perform’ linked to the acquisition on the equipment on the museum workshop”, the investigators claimed within the report.

“We find that it is hugely possible that CTMCA used the funding in the NLC to ‘refund’ amongst its principal directors for the home at a greater overpriced fee than the actual cost and value of the assets and/or equipment.”

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

“The truth is, a detailed report on how the funding with the NLC was employed, would be unachievable as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts put in on Every single product it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC had not executed a web page visit ahead of approving the grant. But this wasn't conventional observe at some time plus they observed no evidence of carelessness by NLC workforce.

At some time, the NLC’s policies did not need funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was ready to receive a next tranche of funding while not having to supply proof that it had made use of the primary tranche for its supposed objective.

Pursuing the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any potential funding programs 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 start off the entire process of recovering the misappropriated resources.
But, in lieu of act about the report’s tips, the NLC – beneath its previous administration – selected to suppress it, as it had done While using the earlier experiences into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker via SMS, and requested for e-mail addresses to send out the thoughts by email as well. But no response had been obtained at time of publication.



The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph