Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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Minstrels perform in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has identified no proof that a museum at any time existed.
The investigators located the CTMCA didn't utilize the R5-million allocated to buy or produce a museum.
In addition they uncovered the CTMCA only acquired land value R1.7-million, not R5-million as allocated.
They identified the CTMCA utilized money in the Lottery to get workshop gear from amongst its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel historical past went astray. The museum was by no means made.

The small print on the abuse of an incredible number of rands of Lottery money to get a museum that hardly ever was are exposed in an investigative report commissioned through the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery resources allotted for the CTMCA among 2003 and 2017.

The very first A part of the investigation, by law agency Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which integrated funding for that museum. The permitted finances with the museum was greater than R12.eight-million, with R5-million of that allotted for any setting up to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the constructing for your museum and if the museum “basically existed”.

The firm was also instructed to investigate

the purchase with Lottery resources of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of equipment “obtained for the producing of your costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of directors in the organisation. Stemmet was reappointed like a director in Might 2021.

The investigation adopted extensive reporting by GroundUp concerning the many rands of Lottery funding allocated on the CTMCA (see right here, right here and right here) and the best way the resources most likely aided finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The developing on the correct was the intended internet site with the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “tasks” - including the museum - between 2012 and 2015. All a few tasks were concluded, she explained to MPs.

Although the investigators identified no evidence that a museum experienced at any time existed.

To start with the museum was as a consequence of open in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp with the intended Wetton museum displays a coffee shop with some musical devices and minstrel costumes and collages of pics haphazardly hung to the partitions, and a product ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum had been moved given that they could no more find the money for the lease of R100,000 a month. He stated the CTMCA experienced ordered home for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been marketed for the same price tag. Schaapkraal is within a peri-city region significantly from the city.

As a result, the museum had been moved to a new spot in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after viewing the premises, which might be within an industrial place, the investigators said they doubted regardless of whether an appropriate museum existed there. Photos attached on the report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, with no rationalization.

“There is a negligible quantity of goods for the museum [that] on no account depict the greater than one hundred-year heritage from the Cape City Carnival, the investigators explained, introducing that there was “no signage outside the premises indicating they housed a museum and … usually, the museum isn't going to glance to become open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by transferring The placement on the museum to an alternate place devoid of notifying the NLC.



The Schaapkraal residence, on which no museum was ever developed. Picture: Raymond Joseph

Buses
Stemmet advised the investigators the CTMCA had to maneuver within the rented Crete Street premises since it experienced run up a R4-million personal debt with the town of Cape City and was worried its products could be connected.

“As a result of authorized battles and also the debts, the organisation had to maneuver its property from 5 Crete Street to steer clear of the sheriff from attaching the home in the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director from the CTMCA, told them which the two buses purchased with lottery cash ended up stored within a mystery area “concealed from the Sheriff”. Though the investigators explained they had been unable to confirm that any buses experienced at any time been bought.

Stemmet also confirmed the buses were hidden to halt them being seized. But if the investigators questioned to get taken into the spot where the buses were stored, he explained to them that “the operator of The trick area was not available to open up the premises for us”.

“The CTMCA could not present evidence of payment for 2 cars that it allegedly purchased with grant revenue,” the investigators claimed.

Soeker also explained to them the Schaapkraal residence had been bought due to credit card debt.

“Mr Soeker defined that Based on his comprehension, due to the debt owed to the City of Cape Town, the CTMCA made the decision It could be greatest to market their [Schaapkraal] house … also to also to hide the belongings on the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for safety and protection, has previously explained to GroundUp that the CTMCA “threw income absent” on litigation with the City.

“Every year like clockwork, as we technique the tip in the yr, the CTMCA picks a legal fight with the City, over permits or something else. We never initiate it. They preserve throwing dollars away on vexatious litigation that they shed and also have charges awarded from them. This is often fully self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the principle part gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of the many admin, funds and managing ตา ว จ หวย the CTMCA.” The investigators mentioned they were struggling to Speak to Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “discovered a lot of equipment, some in superior situation, some in terrible situation and several that seemed rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-website storage facility exactly where “devices and many equipment” have been retained.

“We asked him to take us to the ability but he was evasive to our request.”

According to pics and invoices in GroundUp’s possession, some, if not all, of your items look like products that was illegally removed from the CTMCA’s former premises. Stemmet is facing fees for this removing.

Based on the closing development report submitted towards the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter had been administrators at some time.

The investigators found this “alarming”.

“In the CIPC search of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Highway, Wetton, Cape Town, the identical handle on which the museum was intended to be constructed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, attached on the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the directors.

In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million like a deposit, indicating R6.9-million remains owed, though there's no payment date established for when this need to be paid out.

The Kopano audit plus the close link involving the companies “show to us that there is ‘foul Enjoy’ associated with the acquisition in the equipment from the museum workshop”, the investigators claimed inside the report.

“We discover that it's highly probable that CTMCA made use of the funding from the NLC to ‘refund’ amongst its major administrators with the property at a better overpriced amount than the actual value and worth of the house and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to your CTMCA had been invested.

“In reality, an in depth report on how the funding on the NLC was employed, would be unachievable as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities put in on Every single item it asked for funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not carried out a website check out prior to approving the grant. But this was not normal exercise at some time and they discovered no evidence of negligence by NLC workers.

At the time, the NLC’s guidelines didn't need funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was in a position to get a 2nd tranche of funding without needing to supply evidence that it had applied the very first tranche for its meant objective.

Pursuing the appointment of a whole new board, commissioner and senior executive crew, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni advised that

the NLC decrease any long run funding purposes from the CTMCA;
the CTMCA and any members who were involved in the grant be subjected into the NLC’s “delinquency” process;
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 money.
But, instead of act over the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had done Along with the previous studies into corruption it experienced commissioned.

GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for e-mail addresses to send out the thoughts by email as well. But no response had been received at time of publication.



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