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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has discovered no evidence that a museum ever existed.
The investigators found that the CTMCA did not make use of the R5-million allotted to buy or build a museum.
In addition they located the CTMCA only bought land truly worth R1.seven-million, not R5-million as allotted.
They located the CTMCA used money in the Lottery to purchase workshop products from one among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Fee (NLC) to set up a museum to rejoice the town’s prosperous minstrel historical past went astray. The museum was hardly ever made.

The small print with the abuse of numerous rands of Lottery resources for just a museum that never was are revealed within an investigative report commissioned from the NLC in 2021.

The museum grant was Element of over R64-million in Lottery funds allotted into the CTMCA among 2003 and 2017.

The initial Component of the investigation, by law organization Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which provided funding with the museum. The authorized spending plan with the museum was more than R12.8-million, with R5-million of that allotted for your constructing to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing for your museum and whether or not the museum “basically existed”.

The company was also instructed to analyze

the acquisition with Lottery money of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
different devices “purchased for the producing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director of your 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 directors from the organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp with regard to the many rands of Lottery funding allocated for the CTMCA (see here, below and in this article) and how the resources likely assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at the time by Marius Fransman.



The creating on the ideal was the supposed website on the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “projects” - such as the museum - concerning 2012 and 2015. All 3 projects were done, she instructed MPs.

Though the investigators observed no proof that a museum had ever existed.

In the beginning the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp of your supposed Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung about the partitions, along with a model ship on its plinth in the corner.

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

Stemmet explained to the investigators the museum had been moved mainly because they could no more pay for the lease of R100,000 per month. He stated the CTMCA had ordered property for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is inside a peri-urban region much from the city.

Therefore, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, that happen to be in an industrial space, the investigators explained they doubted no matter if a proper museum existed there. Shots attached into the report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without rationalization.

“There's a small amount of objects on the museum [that] in no way symbolize the in excess of a hundred-calendar year heritage with the Cape Town Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum won't glance to get open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by transferring The situation of your museum to an alternative location without having notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver from your rented Crete Street premises because it had operate up a R4-million credit card debt with town of Cape Town and was scared its gear could be connected.

“Because of the legal battles plus the debts, the organisation experienced to maneuver its residence from five Crete Highway to stay away from the sheriff from attaching the home on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director in the CTMCA, told them the two buses bought with lottery cash have been saved within a secret location “hidden from the Sheriff”. Though the investigators explained they ended up unable to substantiate that any buses had at any time been acquired.

Stemmet also confirmed the buses were concealed to halt them staying seized. But when the investigators requested to be taken for the area where by the buses were stored, he advised them that “the proprietor of The trick location was not accessible to open up the premises for us”.

“The CTMCA could not offer evidence of payment for 2 autos that it allegedly procured with grant money,” the investigators claimed.

Soeker also instructed them the Schaapkraal home had been bought due to the credit card debt.

“Mr Soeker defined that Based on his being familiar with, a result of the personal debt owed to town of Cape City, the CTMCA decided it would be very best to promote their [Schaapkraal] house … and to also to cover the belongings with the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for safety and stability, has Earlier informed GroundUp which the CTMCA “threw dollars away” on litigation with town.

“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a legal struggle with the City, about permits or something else. We under no circumstances initiate it. They maintain throwing income absent on vexatious litigation which they drop and also have prices awarded towards them. That is solely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of all the admin, funds and jogging หุ้น ชอง 9 the CTMCA.” The investigators explained they were not able to Get hold of Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “observed a lot of devices, some in excellent situation, some in bad ailment and many that looked rusty and intensely previous”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “devices and some machinery” were being stored.

“We requested him to choose us to the facility but he was evasive to our request.”

Based upon photos and invoices in GroundUp’s possession, some, if not all, in the goods look like machines which was illegally faraway from the CTMCA’s former premises. Stemmet is facing charges for this removal.

In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company wherein Stemmet, his wife and his daughter were administrators at time.

The investigators found this “alarming”.

“With the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice 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, the identical deal with on which the museum was intended to be designed and/or transformed,” they claimed.

An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded that the CTMCA was in the process of acquiring “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.

In keeping with Dabishi Nthambeleni, the corporation has paid out R1.2-million for a deposit, that means R6.nine-million remains to be owed, although there isn't any payment day set for when this have to be compensated.

The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul play’ associated with the purchase with the equipment of your museum workshop”, the investigators stated while in the report.

“We find that it is very probable that CTMCA employed the funding in the NLC to ‘refund’ among its principal directors for the assets at the next overpriced amount than the actual cost and price of the house and/or machinery.”

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

“Actually, an in depth report on how the funding from the NLC was applied, could be unachievable because the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities spent on Every single product it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC experienced not done a site go to prior to approving the grant. But this was not conventional exercise at enough time and so they found no proof of negligence by NLC employees.

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

Next the appointment of a brand new board, commissioner and senior executive crew, the NLC has tightened up on these and various issues.

Dabishi Nthambeleni recommended that

the NLC drop any future funding purposes within the CTMCA;
the CTMCA and any users who have been associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its preceding administration – selected to suppress it, as it had performed With all the past experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e-mail way too. But no response had been received at some time of publication.



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