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 accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has located no evidence that a museum ever existed.
The investigators located the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they uncovered the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied money from the Lottery to acquire workshop tools from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s loaded minstrel history went astray. The museum was never ever established.

The main points from the abuse of numerous rands of Lottery money for any museum that in no way was are uncovered in an investigative report commissioned by the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery money allotted to the CTMCA among 2003 and 2017.

The first Element of the investigation, by regulation firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The authorised funds for the museum was more than R12.8-million, with R5-million of that allocated to get a making to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a making for the museum and whether the museum “actually existed”.

The business was also instructed to research

the purchase with Lottery money of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
several equipment “obtained for your production of your costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on 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 being a director in May well 2021.

The investigation followed in depth reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allocated towards the CTMCA (see listed here, here and right here) and the way the resources probably served finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.



The setting up on the correct was the supposed web site of your minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction into a Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All three initiatives had been concluded, she informed MPs.

However the investigators found no proof that a museum had at any time existed.

At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp from the supposed Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the partitions, in addition to a design ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not ready” to verify if a museum had at any time operated from these premises.

Stemmet advised the investigators the museum had been moved simply because they could no longer afford the lease of R100,000 per month. He mentioned the CTMCA experienced acquired home for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were offered for a similar value. Schaapkraal is inside of a peri-city region significantly from the city.

Subsequently, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after viewing the premises, which can be within an industrial area, the investigators stated they doubted no matter whether a suitable museum existed there. Pics attached into the report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, with no rationalization.

“There exists a minimum degree of things at the museum [that] under no circumstances symbolize the in excess of 100-yr heritage of your Cape City Carnival, the investigators said, adding that there was “no signage outside the premises indicating that they housed a museum and … frequently, the museum would not glimpse being open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by shifting The situation of the museum to another spot without having notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA had to move within the rented Crete Highway premises because it had run up a R4-million credit card debt with the town of Cape City and was afraid its tools could well be attached.

“A result of the lawful battles as well as the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director in the CTMCA, informed them which the two buses purchased with lottery money were stored inside a magic formula location “hidden within the Sheriff”. Even so the investigators mentioned they were being unable to substantiate that any buses had at any time been bought.

Stemmet also verified that the buses were hidden to stop them currently being seized. But if the investigators questioned for being taken to the spot wherever the buses had been stored, he told them that “the owner of The trick location wasn't available to open the premises for us”.

“The CTMCA couldn't present proof of payment for 2 cars that it allegedly procured with grant dollars,” the investigators described.

Soeker also advised them the Schaapkraal home were marketed due to the debt.

“Mr Soeker stated that Based on his comprehending, mainly because of the credit card debt owed to the City of Cape Town, the CTMCA decided It could be best to promote their [Schaapkraal] residence … also to also to cover the property of the CTMCA to avoid the sheriff from attaching the home.”

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

“Annually like clockwork, as we tactic the tip in the year, the CTMCA picks a lawful struggle with the town, above permits or something else. We by no means initiate it. They keep throwing revenue away on vexatious litigation which they get rid of and have charges awarded against them. That is entirely self-inflicted,” he mentioned.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial part players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, finances and managing ผล หวย หุ้น the CTMCA.” The investigators reported they had been not able to Get hold of Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “identified quite a few devices, some in excellent problem, some in undesirable affliction and many that seemed rusty and extremely old”. Stemmet explained to the investigators that there was also an off-web page storage facility wherever “instruments plus some machinery” had been kept.

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

Determined by photographs and invoices in GroundUp’s possession, some, if not all, on the products seem like tools which was illegally faraway from the CTMCA’s past premises. Stemmet is facing fees for this removing.

In accordance with the ultimate development report submitted into the NLC by the CTMCA, the machinery was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter ended up directors at the time.

The investigators identified this “alarming”.

“In the CIPC search of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Highway, Wetton, Cape Town, the exact same handle on which the museum was intended to be created and/or transformed,” they claimed.

An audit by accountants Kopano Integrated, connected to the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one among the directors.

In keeping with Dabishi Nthambeleni, the company has paid R1.two-million to be a deposit, meaning R6.nine-million remains to be owed, even though there's no payment day set for when this must be compensated.

The Kopano audit as well as the close connection amongst the businesses “point out to us that there is ‘foul Enjoy’ associated with the acquisition from the equipment from the museum workshop”, the investigators reported while in the report.

“We discover that it is very probable that CTMCA used the funding in the NLC to ‘refund’ considered one of its main directors for your home at a better overpriced fee than the actual value and value of the home and/or machinery.”

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

“Actually, a detailed report on how the funding of your NLC was utilised, can be unattainable because the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts expended on Each and every item it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC had not executed a site go to just before approving the grant. But this was not regular apply at the time they usually observed no evidence of carelessness by NLC workforce.

At enough time, the NLC’s principles did not have to have funded organisations to submit proof of payment with interim reports, they pointed out. This intended that the CTMCA was ready to receive a next tranche of funding without needing to provide proof that it had made use of the initial tranche for its meant intent.

Subsequent the appointment of a different board, commissioner and senior executive group, the NLC has tightened up on these and various issues.

Dabishi Nthambeleni advised that

the NLC decline any potential funding programs through the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its past administration – selected to suppress it, because it experienced done Together with the former reviews into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for email addresses to deliver the queries by e mail far too. But no reaction had been obtained at time of publication.



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