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 perform in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no proof that a museum ever existed.
The investigators identified the CTMCA did not utilize the R5-million allocated to order or produce a museum.
In addition they observed that the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA applied cash from your Lottery to buy workshop equipment from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate town’s rich minstrel historical past went astray. The museum was in no way developed.

The main points of the abuse of an incredible number of rands of Lottery funds for just a museum that never ever was are exposed within an investigative report commissioned from the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery cash allocated into the CTMCA among 2003 and 2017.

The first part of the investigation, by regulation organization Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which integrated funding with the museum. The accepted spending budget for your museum was more than R12.eight-million, with R5-million of that allocated for any making to house the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a building for your museum and if the museum “actually existed”.

The company was also instructed to analyze

the acquisition with Lottery resources of two autos – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of equipment “acquired with the producing in the costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various administrators of your organisation. Stemmet was reappointed being a director in Could 2021.

The investigation adopted intensive reporting by GroundUp in regards to the millions of rands of Lottery funding allotted on the CTMCA (see listed here, below and in this article) and the way the cash most likely assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.



The making on the right was the meant internet site in the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph

In response to a Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “jobs” - including the museum - concerning 2012 and 2015. All a few tasks were finished, she explained to MPs.

Even so the investigators uncovered no evidence that a museum experienced at any time existed.

At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp from the supposed Wetton museum shows a coffee shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung about the partitions, in addition to a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni claimed it was “not ready” to confirm if a museum had ever operated from these premises.

Stemmet advised the investigators the museum were moved given that they could no longer manage the lease of R100,000 a month. He explained the CTMCA had obtained home for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and were marketed for the same selling price. Schaapkraal is in a peri-city space considerably from the town.

Therefore, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after browsing the premises, that happen to be in an industrial spot, the investigators mentioned they doubted no matter whether a suitable museum existed there. Shots attached towards the report present a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the ground, without having clarification.

“There exists a nominal degree of products at the museum [that] on no account characterize the much more than 100-12 months historical past in the Cape Town Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating which they housed a museum and … commonly, the museum doesn't glimpse to become open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by transferring The situation of your museum to another locale with no notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to move from your rented Crete Road premises mainly because it had operate up a R4-million personal debt with the town of Cape City and was fearful its products will be hooked up.

“Mainly because of the legal battles and also the debts, the organisation experienced to move its house from five Crete Highway to stay away from the sheriff from attaching the property on the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them which the two buses bought with lottery cash were stored in the magic formula spot “concealed in the Sheriff”. Although the investigators said they were not able to substantiate that any buses experienced at any time been purchased.

Stemmet also verified the buses had been concealed to halt them being seized. But in the event the investigators asked for being taken for the place exactly where the buses have been stored, he explained to them that “the operator of The trick area wasn't accessible to open the premises for us”.

“The CTMCA could not provide evidence of payment for two cars that it allegedly ordered with grant revenue,” the investigators claimed.

Soeker also advised them the Schaapkraal home were marketed because of the personal debt.

“Mr Soeker stated that In accordance with his understanding, mainly because of the debt owed to the town of Cape City, the CTMCA made the decision It might be ideal to provide their [Schaapkraal] home … and also to also to hide the belongings on the CTMCA to steer clear of the sheriff from attaching the property.”

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

“Annually like clockwork, as we solution the tip in the year, the CTMCA picks a lawful battle with the City, about permits or something else. We by no means initiate it. They hold throwing cash away on vexatious litigation which they get rid of and possess expenses awarded against them. This is certainly entirely self-inflicted,” he explained.

Soeker advised the Dabishi Nthambeleni investigators that the main function players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in command of all of the admin, finances and running ตรวจ the CTMCA.” The investigators claimed they were unable to Get in touch with Momberg.

Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “discovered various machines, some in superior problem, some in negative condition and many that looked rusty and very old”. Stemmet advised the investigators that there was also an off-website storage facility wherever “instruments and many equipment” were being saved.

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

Dependant on photos and invoices in GroundUp’s possession, some, Otherwise all, of your merchandise seem like tools that was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through fees for this removal.

In accordance with the closing development report submitted on the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter were administrators at the time.

The investigators located this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Notice the subsequent alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Street, Wetton, Cape Town, exactly the same deal with on which the museum was intended to be created and/or converted,” they noted.

An audit by accountants Kopano Included, connected to the investigative report, recorded which the CTMCA was in the entire process of purchasing “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the administrators.

In line with Dabishi Nthambeleni, the business has compensated R1.2-million as a deposit, that means R6.nine-million is still owed, however there is absolutely no payment day established for when this must be paid.

The Kopano audit as well as the near url involving the businesses “point out to us that there is ‘foul Perform’ associated with the purchase in the machinery of the museum workshop”, the investigators said inside the report.

“We find that it's very possible that CTMCA utilised the funding in the NLC to ‘refund’ among its primary administrators for that assets at an increased overpriced price than the particular value and price of the property and/or machinery.”

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

“Actually, a detailed report on how the funding of your NLC was used, will be unachievable as the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts spent on Each and every item it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC experienced not carried out a website visit right before approving the grant. But this was not standard follow at some time and so they uncovered no evidence of negligence by NLC staff members.

At some time, the NLC’s guidelines did not have to have funded organisations to post evidence of payment with interim reports, they pointed out. This intended that the CTMCA was capable to get a 2nd tranche of funding while not having to deliver evidence that it had employed the primary tranche for its meant reason.

Pursuing the appointment of a completely new board, commissioner and senior govt crew, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni proposed that

the NLC decrease any future funding apps from your CTMCA;
the CTMCA and any users who had been involved with the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act around the report’s recommendations, the NLC – beneath its former administration – selected to suppress it, since it had accomplished Along with the past stories into corruption it had commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by using SMS, and requested for email addresses to send out the queries by email much too. But no reaction were acquired at the time of publication.



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

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