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 execute in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA did not use the R5-million allotted to buy or establish a museum.
In addition they identified that the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA used funds from your Lottery to buy workshop gear from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) through the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was never ever produced.

The main points in the abuse of an incredible number of rands of Lottery cash for a museum that never ever was are unveiled in an investigative report commissioned because of the NLC in 2021.

The museum grant was A part of much more than R64-million in Lottery money allocated to the CTMCA between 2003 and 2017.

The primary part of the investigation, by legislation company Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The accredited spending plan with the museum was much more than R12.8-million, with R5-million of that allotted for just a developing to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing to the museum and if the museum “truly existed”.

The company was also instructed to analyze

the acquisition with Lottery money of two automobiles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
many machines “bought for the production from the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors on the organisation. Stemmet was reappointed as a director in Could 2021.

The investigation followed intensive reporting by GroundUp regarding the a lot of rands of Lottery funding allocated for the CTMCA (see listed here, listed here and below) and how the resources likely aided finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.



The setting up on the ideal was the intended web site from the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to your Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “tasks” - including the museum - concerning 2012 and 2015. All a few projects had been finished, she instructed MPs.

Though the investigators located no evidence that a museum experienced at any time existed.

At first the museum was because of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung around the partitions, as well as a product ship on its plinth within a 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 explained to the investigators the museum had been moved given that they could now not pay for the lease of R100,000 a month. He explained the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for the same price tag. Schaapkraal is in the peri-urban location much from the city.

As a result, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following visiting the premises, which are in an industrial space, the investigators explained they doubted no matter whether a proper museum existed there. Images hooked up towards the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, shown on tables and distribute out on the ground, without rationalization.

“There is a minimal level of objects with the museum [that] under no circumstances characterize the in excess of one hundred-yr history of your Cape Town Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum isn't going to appear to be open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by shifting The placement of your museum to an alternative spot without the need of notifying the NLC.



The Schaapkraal home, on which no museum was ever created. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver with the rented Crete Highway premises as it had operate up a R4-million credit card debt with town of Cape City and was worried its equipment would be hooked up.

“A result of the authorized battles plus the debts, the organisation experienced to maneuver its residence from 5 Crete Street to stay away from the sheriff from attaching the house of the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of the CTMCA, explained to them which the two buses acquired with lottery resources had been stored inside of a secret locale “hidden from the Sheriff”. However the investigators mentioned they were being unable to substantiate that any buses experienced ever been bought.

Stemmet also confirmed which the buses had been concealed to halt them remaining seized. But in the event the investigators questioned to get taken on the spot where the buses ended up saved, he told them that “the proprietor of The key location wasn't accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for 2 motor vehicles that it allegedly bought with grant cash,” the investigators reported.

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

“Mr Soeker stated that Based on his being familiar with, a result of the credit card debt owed to the City of Cape Town, the CTMCA made a decision It will be best to sell their [Schaapkraal] home … and 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 security, has Earlier advised GroundUp that the CTMCA “threw revenue away” on litigation with town.

“Annually like clockwork, as we technique the end on the year, the CTMCA picks a authorized struggle with the City, about permits or something else. We under no circumstances initiate it. They maintain throwing income absent on vexatious litigation which they shed and also have expenditures awarded against them. This can be fully self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the key part players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in charge of all the admin, funds and jogging ผล สลาก the CTMCA.” The investigators explained they had been not able to Get hold of Momberg.

Hats
All through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered various devices, some in very good issue, some in undesirable affliction plus some that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-website storage facility in which “devices and several equipment” have been kept.

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

Based on shots and invoices in GroundUp’s possession, some, if not all, of your things look like gear that was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with charges for this elimination.

In accordance with the final progress report submitted to the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been administrators at time.

The investigators observed this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming getting: 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 tackle on which the museum was meant to be developed and/or transformed,” they reported.

An audit by accountants Kopano Included, hooked up on the investigative report, recorded which the CTMCA was in the whole process of purchasing “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.

According to Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, this means R6.nine-million continues to be owed, even though there is no payment day set for when this have to be paid.

The Kopano audit as well as near link involving the companies “reveal to us that there's ‘foul Participate in’ involved in the purchase on the equipment with the museum workshop”, the investigators said within the report.

“We find that it is extremely probable that CTMCA utilized the funding in the NLC to ‘refund’ considered one of its most important administrators with the home at a greater overpriced fee than the actual cost and value of the home and/or machinery.”

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

“In reality, a detailed report on how the funding of the NLC was applied, can be unattainable because the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities used on Just about every item it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not carried out a web-site stop by ahead of approving the grant. But this wasn't common follow at time and they found no proof of negligence by NLC workers.

At some time, the NLC’s regulations did not need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable to get a second tranche of funding without the need to supply evidence that it had made use of the 1st tranche for its intended goal.

Following the appointment of a new board, commissioner and senior govt group, the NLC has tightened up on these as well as other difficulties.

Dabishi Nthambeleni advised that

the NLC decrease any upcoming funding applications from your CTMCA;
the CTMCA and any associates who ended up involved with the grant be subjected to the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – less than its preceding administration – chose to suppress it, since it had performed Together with the prior stories into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for electronic mail addresses to deliver the issues by electronic mail much too. But no reaction were been given at the time of publication.



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