Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they observed the CTMCA only bought land really worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of funds from your Lottery to purchase workshop devices from considered one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Commission (NLC) to setup a museum to celebrate the town’s rich minstrel historical past went astray. The museum was in no way established.

The main points in the abuse of numerous rands of Lottery cash for any museum that by no means was are discovered within an investigative report commissioned through the NLC in 2021.

The museum grant was Portion of greater than R64-million in Lottery funds allotted to your CTMCA concerning 2003 and 2017.

The very first Component of the investigation, by legislation agency Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which integrated funding for the museum. The authorised spending plan for your museum was over R12.8-million, with R5-million of that allocated to get a developing to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating with the museum and whether or not the museum “actually existed”.

The firm was also instructed to analyze

the acquisition with Lottery money of two autos – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
different devices “obtained for the producing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as a director in Might 2021.

The investigation followed substantial reporting by GroundUp about the millions of rands of Lottery funding allotted to your CTMCA (see below, below and listed here) and the way in which the funds probably aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.



The developing on the ideal was the supposed web page from the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 initiatives were concluded, she instructed MPs.

But the investigators found no evidence that a museum experienced ever existed.

In the beginning the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of your intended Wetton museum shows a espresso shop with a few musical devices and minstrel costumes and collages of pics haphazardly hung within the partitions, as well as a product ship on its plinth within a corner.

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

Stemmet instructed the investigators the museum were moved given that they could now not afford the rent of R100,000 a month. He stated the CTMCA had obtained house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar rate. Schaapkraal is in a peri-city spot significantly from the city.

Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, which are in an industrial space, the investigators explained they doubted regardless of whether an appropriate museum existed there. Photographs connected to the report present a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, with no explanation.

“There exists a nominal number of goods for the museum [that] on no account characterize the in excess of one hundred-year history of your Cape City Carnival, the investigators stated, introducing that there was “no signage exterior the premises indicating that they housed a museum and … commonly, the museum will not look being open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring The situation from the museum to an alternate locale without having notifying the NLC.



The Schaapkraal home, on which no museum was at any time constructed. Photo: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA experienced to move from the rented Crete Highway premises mainly because it experienced run up a R4-million personal debt with the town of Cape City and was worried its gear will be attached.

“Due to legal battles and the debts, the organisation had to move its house from five Crete Highway to steer clear of the sheriff from attaching the house of the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them which the two buses purchased with lottery resources were saved within a key place “concealed in the Sheriff”. Nevertheless the investigators said they were being not able to confirm that any buses had ever been acquired.

Stemmet also verified that the buses were hidden to prevent them getting seized. But once the investigators questioned for being taken to the put where by the buses ended up saved, he told them that “the owner of The key area wasn't accessible to open the premises for us”.

“The CTMCA could not deliver evidence of payment for 2 vehicles that it allegedly purchased with grant funds,” the investigators noted.

Soeker also advised them the Schaapkraal house had been bought because of the personal debt.

“Mr Soeker stated that In keeping with his comprehending, because of the financial debt owed to the town of Cape City, the CTMCA made the decision it would be greatest to promote their [Schaapkraal] home … and to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the house.”

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

“On a yearly basis like clockwork, as we method the end from the year, the CTMCA picks a lawful combat with the town, above permits or another thing. We never initiate it. They hold throwing revenue away on vexatious litigation they get rid of and have expenditures awarded towards them. This really is solely self-inflicted,” he mentioned.

Soeker explained to the Dabishi Nthambeleni investigators that the key position gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of all the admin, funds and running ตรวจ รางวัล the CTMCA.” The investigators reported they had been unable to Speak to Momberg.

Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “located a lot of devices, some in fantastic ailment, some in bad situation and some that appeared rusty and very old”. Stemmet told the investigators that there was also an off-web page storage facility wherever “instruments and some machinery” had been kept.

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

Based upon images and invoices in GroundUp’s possession, some, Otherwise all, with the objects look like gear that was illegally removed from the CTMCA’s past premises. Stemmet is dealing with fees for this removing.

In accordance with the final development report submitted into the NLC via the CTMCA, the equipment was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his spouse and his daughter were being administrators at the time.

The investigators found this “alarming”.

“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporation is five Crete Road, Wetton, Cape City, the exact same address on which the museum was intended to be crafted and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected into the investigative report, recorded that the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.

Based on Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, this means R6.9-million is still owed, while there is absolutely no payment date set for when this needs to be paid out.

The Kopano audit as well as close backlink in between the companies “point out to us that there's ‘foul play’ associated with the purchase with the equipment of the museum workshop”, the investigators mentioned from the report.

“We find that it is very probable that CTMCA made use of the funding of your NLC to ‘refund’ certainly one of its primary directors for the assets at the next overpriced amount than the particular selling price and worth of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been used.

“Actually, an in depth report on how the funding in the NLC was made use of, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts invested on Just about every item it asked for funding for. The interim report and final report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not carried out a internet site take a look at right before approving the grant. But this wasn't common follow at time and they uncovered no evidence of carelessness by NLC staff members.

At time, the NLC’s guidelines didn't call for funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was ready to receive a 2nd tranche of funding without needing to deliver proof that it had made use of the primary tranche for its supposed purpose.

Subsequent the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni suggested that

the NLC decline any potential funding programs from your CTMCA;
the CTMCA and any members who were involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, in lieu of act within the report’s tips, the NLC – under its preceding administration – selected to suppress it, because it experienced done Together with the prior studies into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to send the queries by e mail way too. But no response had been received at some time of publication.



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