Leaked report exposes abuse of lottery dollars paid out to minstrel group

Leaked report exposes abuse of lottery dollars paid out to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant through the National Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no evidence that a museum ever existed.
The investigators located the CTMCA didn't make use of the R5-million allocated to get or produce a museum.
In addition they uncovered that the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of funds from the Lottery to buy workshop machines from among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to the Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to setup a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was by no means created.

The small print with the abuse of countless rands of Lottery money for just a museum that under no circumstances was are revealed within an investigative report commissioned via the NLC in 2021.

The museum grant was Component of a lot more than R64-million in Lottery money allocated into the CTMCA amongst 2003 and 2017.

The first Portion of the investigation, by legislation company Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which integrated funding for the museum. The accepted spending plan for that museum was a lot more than R12.8-million, with R5-million of that allotted to get a making to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a developing with the museum and whether the museum “essentially existed”.

The agency was also instructed to analyze

the acquisition with Lottery resources of two autos – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
several machines “purchased to the producing from the costumes and hats” with the minstrels carnival, for R5.4-million.
At the time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators with the organisation. Stemmet was reappointed to be a director in May possibly 2021.

The investigation adopted intensive reporting by GroundUp about the millions of rands of Lottery funding allotted into the CTMCA (see right here, right here and here) and the best way the money likely served finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at enough time by Marius Fransman.



The setting up on the appropriate was the intended web site with the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to a Parliamentary question, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - in between 2012 and 2015. All 3 projects had been concluded, she told MPs.

But the investigators uncovered no proof that a museum had at any time existed.

Initially the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of your meant Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of pictures haphazardly hung around the partitions, and also a model ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni reported it had been “not in a position” to substantiate if a museum experienced at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved because they could not afford the rent of R100,000 a month. He stated the CTMCA experienced bought assets for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been bought for a similar rate. Schaapkraal is in the peri-city area far from town.

Consequently, the museum were moved to a new area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after checking out the premises, which can be in an industrial region, the investigators claimed they doubted whether or not an appropriate museum existed there. Photographs hooked up for the report clearly show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and spread out on the floor, without having rationalization.

“There exists a negligible quantity of items on the museum [that] by no means represent the greater than one hundred-year historical past with the Cape Town Carnival, the investigators said, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … usually, the museum won't search to generally be open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving the location with the museum to another locale without having notifying the NLC.



The Schaapkraal house, on which no museum was ever built. Photo: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA experienced to move from your rented Crete Road premises because it experienced run up a R4-million personal debt with the town of Cape City and was scared its tools would be attached.

“Due to authorized battles and the debts, the organisation had to move its residence from five Crete Road to stay away from the sheriff from attaching the home with the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director with the CTMCA, told them the two buses purchased with lottery funds were being stored in a mystery area “concealed with the Sheriff”. Though the investigators claimed they have been not able to confirm that any buses experienced at any time been acquired.

Stemmet also verified which the buses were concealed to prevent them remaining seized. But if the investigators requested being taken to the place exactly where the buses have been stored, he informed them that “the owner of the secret spot was not accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for two automobiles that it allegedly obtained with grant funds,” the investigators reported.

Soeker also instructed them the Schaapkraal house were marketed because of the credit card debt.

“Mr Soeker discussed that In accordance with his comprehending, due to the financial debt owed to the town of Cape City, the CTMCA made the decision It will be ideal to market their [Schaapkraal] assets … and to also to hide the assets from the CTMCA to stay away from the sheriff from attaching the home.”

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

“On a yearly basis like clockwork, as we approach the tip in the calendar year, the CTMCA picks a authorized struggle with the town, around permits or another thing. We by no means initiate it. They preserve throwing funds away on vexatious litigation that they shed and have charges awarded in opposition to them. This is often entirely self-inflicted,” he said.

Soeker told the Dabishi Nthambeleni investigators that the most crucial part players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of all of the admin, funds and operating ตัว หวย the CTMCA.” The investigators reported they were unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “uncovered several devices, some in good problem, some in lousy situation and several that seemed rusty and intensely aged”. Stemmet told the investigators that there was also an off-web-site storage facility where by “devices plus some equipment” were being saved.

“We questioned him to choose us to the ability but he was evasive to our request.”

Determined by pics and invoices in GroundUp’s possession, some, if not all, from the items seem like tools that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing expenses for this removing.

Based on the remaining progress report submitted into the NLC through the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were 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 obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Road, Wetton, Cape City, the exact same tackle on which the museum was intended to be designed and/or converted,” they claimed.

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

In accordance with Dabishi Nthambeleni, the company has paid R1.2-million being a deposit, indicating R6.nine-million remains owed, though there is absolutely no payment day set for when this has to be paid out.

The Kopano audit as well as near url amongst the companies “show to us that there is ‘foul play’ linked to the acquisition in the machinery from the museum workshop”, the investigators mentioned while in the report.

“We find that it is highly possible that CTMCA employed the funding from the NLC to ‘refund’ one of its most important administrators for your assets at an increased overpriced charge than the particular value and worth of the home and/or equipment.”

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

“In point of fact, an in depth report on how the funding of your NLC was used, would be not possible as the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities expended on Just about every merchandise it requested funding for. The interim report and final report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not conducted a website pay a visit to prior to approving the grant. But this was not standard exercise at the time plus they found no evidence of carelessness by NLC workers.

At some time, the NLC’s policies didn't demand funded organisations to submit proof of payment with interim stories, they identified. This intended which the CTMCA was in a position to receive a second tranche of funding while not having to provide evidence that it experienced used the 1st tranche for its meant function.

Pursuing the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these and also other troubles.

Dabishi Nthambeleni advised that

the NLC decline any foreseeable future funding programs from the CTMCA;
the CTMCA and any customers who have been linked to the grant be subjected for the NLC’s “delinquency” system;
the NLC open a legal scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as opposed to act within the report’s recommendations, the NLC – below its preceding administration – chose to suppress it, as it experienced done Together with the preceding studies into corruption it experienced commissioned.

GroundUp sent concerns to Stemmet and Soeker via SMS, and questioned for e-mail addresses to deliver the questions by e mail as well. But no reaction had been gained at time of publication.



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

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