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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has identified no evidence that a museum ever existed.
The investigators found which the CTMCA did not utilize the R5-million allocated to obtain or produce a museum.
Additionally they found which the CTMCA only bought land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilised resources in the Lottery to invest in workshop gear from certainly one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to set up a museum to rejoice the town’s wealthy minstrel history went astray. The museum was never made.

The small print of the abuse of a lot of rands of Lottery funds for a museum that never was are revealed in an investigative report commissioned by the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery funds allotted on the CTMCA in between 2003 and 2017.

The first Element of the investigation, by regulation company Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which integrated funding for that museum. The accepted budget for your museum was a lot more than R12.8-million, with R5-million of that allocated for the building to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating for the museum and if the museum “actually existed”.

The business was also instructed to analyze

the purchase with Lottery resources of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
numerous machines “procured for that production of your costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many directors with the organisation. Stemmet was reappointed being a director in May possibly 2021.

The investigation adopted comprehensive reporting by GroundUp in regards to the millions of rands of Lottery funding allotted to the CTMCA (see below, right here and listed here) and the way the money possibly assisted finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The constructing on the appropriate was the supposed internet site of your minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to your Parliamentary question, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “tasks” - including the museum - among 2012 and 2015. All a few initiatives had been concluded, she explained to MPs.

Nevertheless the investigators found no proof that a museum experienced at any time existed.

In the beginning the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp on the intended Wetton museum shows a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, and also a model ship on its plinth inside of a corner.

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

Stemmet instructed the investigators the museum were moved given that they could no more afford the hire of R100,000 a month. He mentioned the CTMCA had procured property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were bought for a similar rate. Schaapkraal is in a peri-city region significantly from the town.

Because of this, the museum were moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, which happen to be in an industrial area, the investigators reported they doubted no matter whether a suitable museum existed there. Shots connected for the report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the ground, without having explanation.

“There exists a minimal degree of things within the museum [that] under no circumstances symbolize the much more than a hundred-12 months heritage with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating which they housed a museum and … typically, the museum will not seem being open to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by going The situation in the museum to another locale without notifying the NLC.



The Schaapkraal residence, on which no museum was ever crafted. Image: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver through the rented Crete Highway premises because it experienced operate up a R4-million debt with the City of Cape Town and was afraid its gear will be connected.

“Mainly because of the lawful battles as well as the debts, the organisation had to move its home from 5 Crete Highway to avoid the sheriff from attaching the assets with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director on the CTMCA, informed them the two buses acquired with lottery funds have been saved inside a key spot “hidden with the Sheriff”. However the investigators explained they ended up unable to verify that any buses had at any time been acquired.

Stemmet also verified the buses had been hidden to stop them remaining seized. But if the investigators asked being taken to your area the place the buses have been stored, he explained to them that “the proprietor of The trick spot wasn't available to open up the premises for us”.

“The CTMCA could not present evidence of payment for two motor vehicles that it allegedly procured with grant dollars,” the investigators reported.

Soeker also advised them the Schaapkraal assets had been sold as a result of debt.

“Mr Soeker discussed that In accordance with his comprehension, mainly because of the debt owed to town of Cape City, the CTMCA made the decision it would be best to market their [Schaapkraal] house … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for security and protection, has Earlier explained to GroundUp that the CTMCA “threw revenue away” on litigation with town.

“Each year like clockwork, as we solution the top with the calendar year, the CTMCA picks a authorized battle with the City, about permits or another thing. We hardly ever initiate it. They continue to keep throwing revenue away on vexatious litigation they get rid of and also have costs awarded versus them. That is completely self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the main part players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for all the admin, funds and functioning สลาก กิน รัฐบาล the CTMCA.” The investigators mentioned they had been unable to Make contact with Momberg.

Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified numerous machines, some in great problem, some in negative situation and some that appeared rusty and very outdated”. Stemmet informed the investigators that there was also an off-site storage facility wherever “devices and a few machinery” ended up held.

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

Dependant on pics and invoices in GroundUp’s possession, some, Otherwise all, of your objects look like machines which was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with expenses for this removal.

According to the last progress report submitted towards the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were administrators at the time.

The investigators uncovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Be aware the following alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Highway, Wetton, Cape Town, precisely the same tackle on which the museum was meant to be developed and/or converted,” they reported.

An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded which the CTMCA was in the whole process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.

In line with Dabishi Nthambeleni, the corporate has paid R1.two-million as being a deposit, meaning R6.9-million remains owed, however there's no payment date set for when this have to be paid out.

The Kopano audit as well as near backlink concerning the businesses “point out to us that there is ‘foul play’ linked to the purchase from the equipment from the museum workshop”, the investigators said from the report.

“We find that it's highly probable that CTMCA made use of the funding in the NLC to ‘refund’ one of its major administrators for the home at an increased overpriced level than the particular cost and worth of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were put in.

“Actually, a detailed report on how the funding from the NLC was utilized, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on each merchandise it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not carried out a site check out before approving the grant. But this was not common observe at the time and they identified no evidence of negligence by NLC personnel.

At enough time, the NLC’s procedures didn't involve funded organisations to post evidence of payment with interim stories, they identified. This meant that the CTMCA was in a position to get a next tranche of funding while not having to present proof that it experienced applied the primary tranche for its intended intent.

Adhering to the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these as well as other challenges.

Dabishi Nthambeleni advised that

the NLC drop any long term funding apps from the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open a legal scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, rather then act to the report’s suggestions, the NLC – below its earlier administration – selected to suppress it, since it had done with the past studies into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and asked for e-mail addresses to mail the inquiries by electronic mail also. But no reaction were obtained at enough time of publication.



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

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