Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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Minstrels accomplish in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has located no evidence that a museum ever existed.
The investigators located the CTMCA did not utilize the R5-million allotted to acquire or establish a museum.
In addition they observed which the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They observed the CTMCA made use of resources within the Lottery to purchase workshop equipment from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate town’s rich minstrel record went astray. The museum was under no circumstances made.

The small print from the abuse of numerous rands of Lottery funds for your museum that never was are revealed in an investigative report commissioned via the NLC in 2021.

The museum grant was Portion of over R64-million in Lottery money allotted into the CTMCA between 2003 and 2017.

The first part of the investigation, by legislation organization Dabishi Nthambeleni, was performed among September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which involved funding to the museum. The accredited spending budget for that museum was over R12.eight-million, with R5-million of that allocated for just a setting up to house the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a setting up for the museum and if the museum “really existed”.

The organization was also instructed to research

the purchase with Lottery resources of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
various machines “procured to the manufacturing of your costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators with the organisation. Stemmet was reappointed as a director in Might 2021.

The investigation adopted comprehensive reporting by GroundUp concerning the countless rands of Lottery funding allocated towards the CTMCA (see in this article, in this article and here) and the way the funds almost certainly assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at some time by Marius Fransman.



The making on the best was the meant website on the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All a few assignments were finished, she informed MPs.

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

At first the museum was due to open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp with the meant Wetton museum displays a espresso shop with some musical devices and minstrel costumes and collages of shots haphazardly hung within the walls, plus a design ship on its plinth in a corner.

In its report, Dabishi Nthambeleni mentioned it was “not in a position” to substantiate if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved because they could no more find the money for the rent of R100,000 per month. He explained the CTMCA had ordered home for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for the same rate. Schaapkraal is in a very peri-urban area significantly from the town.

Therefore, the museum were moved to a different place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after browsing the premises, which might be in an industrial space, the investigators stated they doubted whether a correct museum existed there. Pics hooked up for the report present a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the ground, with no explanation.

“There exists a nominal number of products on the museum [that] under no circumstances represent the over 100-year history on the Cape Town Carnival, the investigators explained, introducing that there was “no signage outdoors the premises indicating that they housed a museum and … commonly, the museum isn't going to glance to be open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by moving The placement in the museum to an alternate area without having notifying the NLC.



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

Buses
Stemmet instructed the investigators that the CTMCA had to move with the rented Crete Road premises because it experienced operate up a R4-million financial debt with town of Cape City and was scared its tools might be connected.

“A result of the legal battles as well as the debts, the organisation experienced to move its property from 5 Crete Road to steer clear of the sheriff from attaching the home in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director on the CTMCA, explained to them which the two buses acquired with lottery funds were being stored inside a secret site “hidden from the Sheriff”. Even so the investigators stated they were unable to substantiate that any buses experienced ever been bought.

Stemmet also verified the buses had been concealed to prevent them getting seized. But when the investigators questioned to be taken for the position wherever the buses had been saved, he instructed them that “the owner of The key place wasn't available to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for 2 vehicles that it allegedly obtained with grant dollars,” the investigators claimed.

Soeker also told them the Schaapkraal property were offered because of the debt.

“Mr Soeker stated that Based on his knowledge, a result of the financial debt owed to town of Cape Town, the CTMCA made a decision it would be most effective to market their [Schaapkraal] home … also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the residence.”

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

“Annually like clockwork, as we solution the top of the year, the CTMCA picks a legal battle with the City, above permits or another thing. We hardly ever initiate it. They keep throwing income away on vexatious litigation that they shed and have prices awarded versus them. This is certainly totally self-inflicted,” he said.

Soeker explained to the Dabishi Nthambeleni investigators that the principle function players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of every one of the admin, funds and operating ตรวจ หวย ลาว the CTMCA.” The investigators claimed they had been not able to Get in touch with Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered several devices, some in superior situation, some in undesirable affliction and some that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-website storage facility exactly where “instruments plus some equipment” ended up held.

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

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like gear which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with prices for this removal.

Based on the remaining progress report submitted on the NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter had been directors at the time.

The investigators identified this “alarming”.

“Through the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the whole process of getting “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was certainly one of the directors.

In keeping with Dabishi Nthambeleni, the company has paid R1.2-million as being a deposit, that means R6.9-million continues to be owed, even though there isn't a payment day set for when this should be paid.

The Kopano audit and the shut url amongst the companies “suggest to us that there is ‘foul play’ linked to the purchase of your machinery of your museum workshop”, the investigators explained within the report.

“We find that it's extremely possible that CTMCA utilized the funding on the NLC to ‘refund’ one of its major administrators for the home at a better overpriced amount than the particular price and value of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant for the CTMCA had been spent.

“In reality, an in depth report on how the funding of your NLC was made use of, might be unachievable given that the CTMCA does not have any receipts, or proof of payments to verify the amounts spent on Each individual merchandise it asked for funding for. The interim report and last report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not performed a web page check out before approving the grant. But this was not common observe at time plus they observed no proof of negligence by NLC workers.

At time, the NLC’s procedures did not need funded organisations to submit proof of payment with interim studies, they pointed out. This meant the CTMCA was in a position to receive a second tranche of funding without needing to give proof that it experienced used the very first tranche for its supposed reason.

Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni advisable that

the NLC decrease any long term funding purposes through the CTMCA;
the CTMCA and any members who were linked to the grant be subjected for the NLC’s “delinquency” process;
the NLC open a prison case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated resources.
But, in lieu of act around the report’s suggestions, the NLC – underneath its former administration – chose to suppress it, as it had carried out Along with the former stories into corruption it had commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by using SMS, and requested for email addresses to send the thoughts by e-mail as well. But no reaction had been obtained at some time of publication.



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

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