Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

Blog Article

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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Countrywide Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not make use of the R5-million allocated to acquire or establish a museum.
Additionally they discovered that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used funds through the Lottery to get workshop gear from certainly one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to set up a museum to rejoice town’s abundant minstrel historical past went astray. The museum was under no circumstances produced.

The main points of your abuse of a lot of rands of Lottery funds for a museum that by no means was are uncovered within an investigative report commissioned by the NLC in 2021.

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

The primary Portion of the investigation, by regulation organization Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which involved funding for your museum. The authorised price range with the museum was much more than R12.eight-million, with R5-million of that allotted to get a making to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a making with the museum and whether or not the museum “really existed”.

The organization was also instructed to analyze

the purchase with Lottery money of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
many devices “acquired for your producing from the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted legal 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 a number of directors with the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation adopted intensive reporting by GroundUp in regards to the numerous rands of Lottery funding allocated into the CTMCA (see in this article, right here and in this article) and just how the cash likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.



The making on the correct was the supposed web page on the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction into a Parliamentary issue, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - amongst 2012 and 2015. All 3 assignments had been concluded, she explained to MPs.

Nevertheless the investigators observed no proof that a museum experienced ever existed.

To start with the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum demonstrates a espresso store with a few musical instruments and minstrel costumes and collages of pics haphazardly hung around the partitions, along with a model ship on its plinth within a corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to confirm if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum were moved given that they could no more afford the hire of R100,000 per month. He said the CTMCA had obtained property for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been bought for the same selling price. Schaapkraal is within a peri-city area much from town.

Therefore, the museum were moved to a new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following browsing the premises, which are in an industrial area, the investigators stated they doubted regardless of whether a proper museum existed there. Shots connected into the report present a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the ground, without any explanation.

“There's a small number of goods with the museum [that] by no means represent the more than one hundred-yr background of the Cape Town Carnival, the investigators mentioned, including that there was “no signage exterior the premises indicating which they housed a museum and … frequently, the museum doesn't seem being open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement with the museum to another locale without notifying the NLC.



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

Buses
Stemmet instructed the investigators that the CTMCA experienced to maneuver from the rented Crete Road premises because it experienced run up a R4-million debt with town of Cape Town and was frightened its equipment would be connected.

“Mainly because of the authorized battles along with the debts, the organisation had to maneuver its home from five Crete Road to stay away from the sheriff from attaching the property with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director from the CTMCA, informed them that the two buses acquired with lottery resources were being saved in a very secret site “concealed within the Sheriff”. Nevertheless the investigators reported they were being unable to substantiate that any buses had at any time been bought.

Stemmet also confirmed which the buses had been hidden to stop them becoming seized. But in the event the investigators asked to become taken towards the put in which the buses were stored, he told them that “the proprietor of the secret spot wasn't accessible to open up the premises for us”.

“The CTMCA couldn't offer proof of payment for two automobiles that it allegedly purchased with grant income,” the investigators claimed.

Soeker also told them the Schaapkraal house had been offered due to debt.

“Mr Soeker stated that In line with his knowledge, because of the debt owed to town of Cape Town, the CTMCA determined it would be very best to sell their [Schaapkraal] assets … and also to also to hide the property from the CTMCA to avoid the sheriff from attaching the residence.”

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

“Each year like clockwork, as we technique the tip of the yr, the CTMCA picks a authorized combat with town, more than permits or something else. We in no way initiate it. They continue to keep throwing cash away on vexatious litigation which they drop and have costs awarded from them. That is completely self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of every one of the admin, finances and working ตัว หวย the CTMCA.” The investigators said they had been not able to contact Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “identified a lot of equipment, some in good problem, some in undesirable affliction and some that seemed rusty and very aged”. Stemmet informed the investigators that there was also an off-web-site storage facility in which “instruments and a few machinery” were kept.

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

Based upon pics and invoices in GroundUp’s possession, some, if not all, with the objects appear to be devices that was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with charges for this elimination.

In accordance with the ultimate progress report submitted into the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators found this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape City, the same deal with on which the museum was meant to be built and/or converted,” they described.

An audit by accountants Kopano Incorporated, attached to the investigative report, recorded the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the directors.

In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, this means R6.nine-million remains to be owed, while there is not any payment day set for when this has to be compensated.

The Kopano audit as well as near hyperlink concerning the companies “point out to us that there is ‘foul Engage in’ involved in the purchase of your machinery of the museum workshop”, the investigators explained in the report.

“We find that it is really possible that CTMCA utilized the funding in the NLC to ‘refund’ amongst its main directors for the property at a higher overpriced charge than the actual cost and worth of the home and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were put in.

“Actually, a detailed report on how the funding of the NLC was used, could well be extremely hard since the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities expended on Just about every item it requested funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC experienced not done a website check out right before approving the grant. But this wasn't regular apply at the time and so they located no evidence of carelessness by NLC staff members.

At enough time, the NLC’s principles did not require funded organisations to post proof of payment with interim reviews, they identified. This meant the CTMCA was capable to get a second tranche of funding without the need to deliver proof that it experienced utilized the primary tranche for its intended function.

Next the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any future funding applications in the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open up a legal scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, rather than act to the report’s suggestions, the NLC – under its former administration – chose to suppress it, since it had finished with the preceding reports into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to send the queries by e-mail far too. But no reaction were acquired at enough time of publication.



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