Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum ever existed.
The investigators discovered the CTMCA didn't use the R5-million allocated to order or build a museum.
Additionally they uncovered which the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They located the CTMCA made use of resources in the Lottery to buy workshop machines from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to build a museum to rejoice the city’s prosperous minstrel heritage went astray. The museum was by no means developed.

The main points from the abuse of a lot of rands of Lottery resources for just a museum that never was are revealed in an investigative report commissioned with the NLC in 2021.

The museum grant was Component of more than R64-million in Lottery funds allotted on the CTMCA in between 2003 and 2017.

The main Section of the investigation, by law business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which provided funding for the museum. The accredited budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for a constructing to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the developing for the museum and whether the museum “in fact existed”.

The business was also instructed to investigate

the acquisition with Lottery resources of two vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
numerous equipment “procured with the producing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors of the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp regarding the millions of rands of Lottery funding allotted into the CTMCA (see below, listed here and here) and the best way the cash possibly aided finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The setting up on the correct was the supposed site on the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to the Parliamentary question, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “assignments” - such as the museum - amongst 2012 and 2015. All a few initiatives had been finished, she instructed MPs.

However the investigators identified no proof that a museum experienced ever existed.

Initially the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photo attained by GroundUp from the intended Wetton museum exhibits a espresso store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung to the walls, plus a product ship on its plinth in a corner.

In its report, Dabishi Nthambeleni mentioned it had been “not ready” to confirm if a museum experienced at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved since they could not manage the rent of R100,000 a month. He explained the CTMCA had bought residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same selling price. Schaapkraal is in a peri-urban area far from the city.

Due to this fact, the museum were moved to a fresh spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after traveling to the premises, which happen to be within an industrial region, the investigators said they doubted no matter whether a proper museum existed there. Pics attached into the report demonstrate a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the ground, without having explanation.

“There exists a negligible volume of goods within the museum [that] on no account signify the a lot more than 100-yr background from the Cape City Carnival, the investigators reported, incorporating that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum won't glance to get open to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation on the museum to an alternate location without the need of notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to move in the rented Crete Street premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear could be attached.

“Because of the legal battles and the debts, the organisation experienced to maneuver its house from five Crete Street to stay away from the sheriff from attaching the property of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director in the CTMCA, told them which the two buses bought with lottery cash have been saved in the key locale “hidden with the Sheriff”. Nevertheless the investigators said they ended up not able to confirm that any buses had ever been purchased.

Stemmet also verified the buses were hidden to prevent them staying seized. But if the investigators requested being taken into the put where the buses were saved, he explained to them that “the operator of The trick spot was not accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for two vehicles that it allegedly procured with grant income,” the investigators noted.

Soeker also explained to them the Schaapkraal house were offered due to financial debt.

“Mr Soeker spelled out that In line with his understanding, a result of the debt owed to the City of Cape Town, the CTMCA resolved it would be ideal to sell their [Schaapkraal] home … and to also to hide the belongings of the CTMCA to avoid the sheriff from attaching the home.”

JP Smith, Cape City’s mayco member for protection and stability, has Earlier advised GroundUp the CTMCA “threw cash absent” on litigation with the town.

“Each and every year like clockwork, as we tactic the tip from the year, the CTMCA picks a lawful battle with town, about permits or something else. We never initiate it. They keep throwing money absent on vexatious litigation which they get rid of and have costs awarded from them. This really is entirely self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the leading role players on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all of the admin, finances and functioning หวย ลาว ล่าสุด the CTMCA.” The investigators reported they had been struggling to Make contact with Momberg.

Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “located many devices, some in fantastic condition, some in undesirable condition and several that seemed rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-site storage facility the place “instruments and some equipment” have been held.

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

Determined by images and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be machines that was illegally removed from the CTMCA’s past premises. Stemmet is going through rates for this removal.

Based on the closing development report submitted to the NLC because of the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter had been directors at time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the company is five Crete Street, Wetton, Cape Town, precisely the same address on which the museum was meant to be designed and/or converted,” they documented.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of acquiring “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.

As outlined by Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, meaning R6.9-million is still owed, though there is absolutely no payment date established for when this must be compensated.

The Kopano audit plus the close url among the businesses “reveal to us that there's ‘foul Enjoy’ involved with the purchase from the equipment from the museum workshop”, the investigators reported inside the report.

“We discover that it's highly probable that CTMCA employed the funding with the NLC to ‘refund’ amongst its main administrators for the home at a greater overpriced charge 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 towards the CTMCA were invested.

“In reality, a detailed report on how the funding of the NLC was made use of, can be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts invested on Each individual item it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not performed a internet site visit ahead of approving the grant. But this was not normal follow at the time they usually uncovered no evidence of negligence by NLC workers.

At the time, the NLC’s rules didn't demand funded organisations to post proof of payment with interim reports, they identified. This intended the CTMCA was capable to get a 2nd tranche of funding without needing to deliver proof that it experienced used the main tranche for its meant purpose.

Pursuing the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other difficulties.

Dabishi Nthambeleni suggested that

the NLC decline any potential funding programs with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, rather than act to the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, as it had finished With all the past experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to mail the concerns by email also. But no response were been given at some time of publication.



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