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 conduct in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no proof that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only acquired land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA employed cash within the Lottery to buy workshop tools from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to create a museum to rejoice the city’s prosperous minstrel heritage went astray. The museum was in no way designed.

The small print from the abuse of countless rands of Lottery resources for any museum that by no means was are uncovered in an investigative report commissioned by the NLC in 2021.

The museum grant was part of much more than R64-million in Lottery money allotted towards the CTMCA among 2003 and 2017.

The very first Section of the investigation, by law business Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which incorporated funding with the museum. The approved budget for the museum was a lot more than R12.eight-million, with R5-million of that allocated for just a setting up to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the creating with the museum and if the museum “basically existed”.

The company was also instructed to analyze

the purchase with Lottery resources of two motor vehicles – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of machines “obtained for that production in the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many directors of the organisation. Stemmet was reappointed to be a director in May well 2021.

The investigation followed in depth reporting by GroundUp concerning the many rands of Lottery funding allotted for the CTMCA (see in this article, right here and here) and the way in which the money probably served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.



The making on the best was the supposed web page in the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - between 2012 and 2015. All three assignments were done, she told MPs.

Even so the investigators observed no evidence that a museum experienced at any time existed.

At the outset the museum was due to open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of the meant Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, along with a product ship on its plinth in a very corner.

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

Stemmet told the investigators the museum had been moved because they could not afford to pay for the rent of R100,000 a month. He explained the CTMCA experienced procured home for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were marketed for a similar selling price. Schaapkraal is inside of a peri-city space considerably from town.

As a result, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which might be in an industrial space, the investigators claimed they doubted no matter if a correct museum existed there. Shots connected into the report present a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without any clarification.

“You will find there's minimum volume of goods within the museum [that] in no way represent the over 100-year history of the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to search to become open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of the museum to an alternate locale without having notifying the NLC.



The Schaapkraal assets, on which no museum was at any time developed. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had run up a R4-million financial debt with the City of Cape Town and was frightened its gear will be attached.

“As a result of legal battles and also the debts, the organisation experienced to move its property from five Crete Street to avoid the sheriff from attaching the residence on the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery money were being stored in a very magic formula spot “concealed in the Sheriff”. Although the investigators said they have been unable to verify that any buses experienced ever been purchased.

Stemmet also verified the buses had been hidden to prevent them currently being seized. But if the investigators requested to get taken on the position wherever the buses ended up stored, he told them that “the operator of The key place was not accessible to open the premises for us”.

“The CTMCA could not supply proof of payment for two automobiles that it allegedly obtained with grant funds,” the investigators described.

Soeker also advised them the Schaapkraal residence were sold due to the debt.

“Mr Soeker explained that Based on his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA made the decision It could be greatest to promote their [Schaapkraal] residence … also to also to hide the assets on the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for safety and security, has Beforehand explained to GroundUp the CTMCA “threw funds away” on litigation with the City.

“Yearly like clockwork, as we tactic the top with the yr, the CTMCA picks a authorized combat with the City, above permits or something else. We never ever initiate it. They hold throwing dollars absent on vexatious litigation that they shed and possess expenditures awarded from them. This can be entirely self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the leading position gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of the many admin, finances and working ผล หวย หุ้น the CTMCA.” The investigators mentioned they were struggling to Make contact with Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “located a lot of equipment, some in great situation, some in undesirable affliction and many that seemed rusty and very previous”. Stemmet informed the investigators that there was also an off-website storage facility in which “instruments and some equipment” have been stored.

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

Determined by images and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like equipment that was illegally removed from the CTMCA’s former premises. Stemmet is going through prices for this removing.

According to the last progress report submitted for the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a business during which Stemmet, his spouse and his daughter ended up directors at the time.

The investigators observed this “alarming”.

“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the corporation is 5 Crete Street, Wetton, Cape Town, a similar address on which the museum was intended to be created and/or transformed,” they described.

An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded that the CTMCA was in the 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 certainly one of the administrators.

According to Dabishi Nthambeleni, the company has paid out R1.2-million as a deposit, this means R6.9-million is still owed, while there is absolutely no payment date set for when this must be paid out.

The Kopano audit and the near hyperlink involving the companies “reveal to us that there's ‘foul Perform’ involved with the acquisition from the equipment of your museum workshop”, the investigators mentioned from the report.

“We discover that it's extremely probable that CTMCA employed the funding on the NLC to ‘refund’ one of its main administrators for that house at a greater overpriced rate than the particular price tag and value of the assets and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to establish how the grant into the CTMCA had been expended.

“In fact, an in depth report on how the funding from the NLC was applied, could be difficult as the CTMCA does not have any receipts, or proof of payments to verify the amounts put in on Each individual item it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC experienced not done a site visit prior to approving the grant. But this wasn't typical exercise at time and they uncovered no evidence of negligence by NLC employees.

At some time, the NLC’s policies didn't call for funded organisations to post proof of payment with interim experiences, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding while not having to provide proof that it had applied the very first tranche for its meant intent.

Subsequent the appointment of a completely new board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any associates who had been involved with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated money.
But, instead of act to the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, as it had finished Together with the former studies into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to send the inquiries by e-mail much too. But no reaction were gained at some time of publication.



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