Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has discovered no proof that a museum ever existed.
The investigators discovered which the CTMCA didn't make use of the R5-million allotted to acquire or develop a museum.
They also found the CTMCA only bought land well worth R1.7-million, not R5-million as allocated.
They observed the CTMCA used money with the Lottery to get workshop tools from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was under no circumstances established.

The main points of the abuse of millions of rands of Lottery funds for a museum that never was are revealed within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of over R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.

The 1st Portion of the investigation, by regulation firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding with the museum. The accepted finances with the museum was greater than R12.8-million, with R5-million of that allotted for a developing to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing to the museum and whether the museum “actually existed”.

The business was also instructed to research

the purchase with Lottery cash of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many machines “procured to the producing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in May possibly 2021.

The investigation adopted intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see right here, here and here) and just how the cash almost certainly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.



The making on the correct was the meant web site of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to the Parliamentary query, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.

But the investigators discovered no proof that a museum experienced at any time existed.

At the outset the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the meant Wetton museum demonstrates 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 ever operated from these premises.

Stemmet explained to the investigators the museum had been moved as they could now not pay for the lease of R100,000 a month. He explained the CTMCA experienced procured property for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for a similar selling price. Schaapkraal is in a very peri-city spot much from the city.

Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, that are within an industrial area, the investigators reported they doubted no matter if a proper museum existed there. Images hooked up towards the report exhibit a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having rationalization.

“There exists a nominal degree of products within the museum [that] on no account stand for the greater than a hundred-calendar year record on the Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating that they housed a museum and … commonly, the museum would not look to become open up to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni noted, by transferring The situation of the museum to an alternate location devoid of notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA had to maneuver in the rented Crete Street premises since it had run up a R4-million debt with town of Cape City and was fearful its devices might be connected.

“Due to authorized battles and also the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the home of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director with the CTMCA, informed them the two buses acquired with lottery money ended up saved inside a solution location “hidden through the Sheriff”. But the investigators mentioned they ended up not able to verify that any buses experienced ever been purchased.

Stemmet also confirmed that the buses had been concealed to halt them remaining seized. But in the event the investigators requested to get taken on the area the place the buses have been stored, he explained to them that “the proprietor of the secret locale was not accessible to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.

Soeker also informed them the Schaapkraal residence were offered as a result of debt.

“Mr Soeker described that according to his knowing, mainly because of the debt owed to the City of Cape Town, the CTMCA determined it would be greatest to promote their [Schaapkraal] house … and to also to hide the belongings with the CTMCA to stay away from the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw income absent” on litigation with the town.

“Yearly like clockwork, as we method the top from the calendar year, the CTMCA picks a legal combat with town, above permits or another thing. We by no means initiate it. They retain throwing cash away on vexatious litigation they reduce and have fees awarded from them. This is often entirely self-inflicted,” he mentioned.

Soeker advised the Dabishi Nthambeleni investigators that the leading purpose gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of many of the admin, funds and working ltpbet the CTMCA.” The investigators mentioned they had been unable to Make contact with Momberg.

Hats
Through their “investigation in loco” for the Primrose Park premises, the investigators “observed a lot of devices, some in great situation, some in bad affliction and several that looked rusty and very old”. Stemmet instructed the investigators that there was also an off-web site storage facility where “instruments plus some machinery” have been saved.

“We asked him to acquire us to the power but he was evasive to our request.”

Depending on shots and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like products which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with rates for this removing.

In accordance with the closing progress report submitted for the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were being administrators at the time.

The investigators uncovered this “alarming”.

“Through the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Be aware the subsequent alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the business is five Crete Highway, Wetton, Cape City, exactly the same deal with on which the museum was intended to be designed and/or converted,” they noted.

An audit by accountants Kopano Incorporated, hooked up on the investigative report, recorded that the CTMCA was in the whole process of getting “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the directors.

According to Dabishi Nthambeleni, the corporate has compensated R1.2-million being a deposit, this means R6.9-million continues to be owed, while there isn't any payment date set for when this have to be compensated.

The Kopano audit as well as shut link in between the companies “indicate to us that there's ‘foul Participate in’ linked to the acquisition on the machinery from the museum workshop”, the investigators said in the report.

“We discover that it is highly possible that CTMCA employed the funding of the NLC to ‘refund’ amongst its key directors for that home at the next overpriced charge than the particular cost and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA were used.

“In reality, a detailed report on how the funding in the NLC was applied, could well be not possible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Just about every merchandise it requested funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located that the NLC experienced not carried out a web site go to before approving the grant. But this wasn't regular observe at time they usually located no proof of negligence by NLC personnel.

At the time, the NLC’s principles didn't require funded organisations to submit proof of payment with interim stories, they identified. This intended that the CTMCA was capable of receive a 2nd tranche of funding while not having to deliver evidence that it experienced made use of the first tranche for its supposed purpose.

Following the appointment of a brand new board, commissioner and senior executive workforce, the NLC has tightened up on these and other issues.

Dabishi Nthambeleni proposed that

the NLC decrease any potential funding applications within the CTMCA;
the CTMCA and any associates who were involved with the grant be subjected for the NLC’s “delinquency” system;
the NLC open a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, rather than act about the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, because it had completed Along with the former experiences into corruption it experienced commissioned.

GroundUp despatched issues to Stemmet and Soeker by means of SMS, and requested for e-mail addresses to deliver the questions by electronic mail far too. But no response had been been given at time of publication.



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