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 conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has observed no proof that a museum ever existed.
The investigators uncovered which the CTMCA did not utilize the R5-million allocated to obtain or produce a museum.
They also discovered that the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They located the CTMCA applied funds from your Lottery to invest in workshop products from one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to set up a museum to rejoice the town’s prosperous minstrel background went astray. The museum was never ever made.

The small print of your abuse of millions of rands of Lottery resources for your museum that under no circumstances was are exposed in an investigative report commissioned with the NLC in 2021.

The museum grant was Section of over R64-million in Lottery resources allotted for the CTMCA between 2003 and 2017.

The first Portion of the investigation, by law business Dabishi Nthambeleni, was done between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which involved funding for that museum. The accredited spending budget for that museum was greater than R12.8-million, with R5-million of that allotted for a setting up to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing for your museum and if the museum “really existed”.

The business was also instructed to investigate

the purchase with Lottery resources of two cars – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of machines “obtained for that producing on the costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director of 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 ongoing as two of numerous administrators in the organisation. Stemmet was reappointed being a director in May perhaps 2021.

The investigation adopted considerable reporting by GroundUp with regard to the numerous rands of Lottery funding allocated to your CTMCA (see listed here, listed here and below) and the way the funds probably assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The constructing on the right was the meant website on the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph

In response to some Parliamentary issue, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - including the museum - concerning 2012 and 2015. All three assignments were done, she advised MPs.

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

At first the museum was as a result of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp of your meant Wetton museum exhibits a coffee shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung around the walls, and a product ship on its plinth in a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not able” to confirm if a museum experienced at any time operated from these premises.

Stemmet informed the investigators the museum were moved because they could no more manage the lease of R100,000 per month. He explained the CTMCA had procured house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for the same price. Schaapkraal is in the peri-city location considerably from town.

Therefore, the museum were moved to a brand new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after browsing the premises, which happen to be within an industrial area, the investigators said they doubted no matter whether a suitable museum existed there. Images attached towards the report show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the floor, without having clarification.

“There is a minimal amount of merchandise with the museum [that] by no means represent the much more than 100-yr heritage from the Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … usually, the museum will not seem being open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by transferring The placement on the museum to another location with out notifying the NLC.



The Schaapkraal home, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to move from your rented Crete Road premises mainly because it had operate up a R4-million debt with the town of Cape Town and was fearful its tools could well be attached.

“Due to lawful battles as well as the debts, the organisation experienced to maneuver its assets from 5 Crete Road to stay away from the sheriff from attaching the residence of the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them which the two buses acquired with lottery resources were being saved in the key spot “hidden in the Sheriff”. However the investigators said they were being unable to confirm that any buses had at any time been purchased.

Stemmet also verified that the buses were concealed to prevent them remaining seized. But if the investigators asked being taken on the location wherever the buses were stored, he explained to them that “the owner of The key site wasn't accessible to open the premises for us”.

“The CTMCA could not supply proof of payment for 2 motor vehicles that it allegedly purchased with grant cash,” the investigators reported.

Soeker also instructed them the Schaapkraal house had been marketed due to the credit card debt.

“Mr Soeker discussed that In line with his comprehending, due to the financial debt owed to the town of Cape City, the CTMCA decided It might be ideal to offer their [Schaapkraal] assets … also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the house.”

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

“Each year like clockwork, as we tactic the end with the year, the CTMCA picks a legal struggle with town, around permits or another thing. We by no means initiate it. They maintain throwing cash away on vexatious litigation that they shed and also have prices awarded versus them. This really is solely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the key purpose players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all of the admin, funds and operating ผล หวย ลาว วัน นี้ the CTMCA.” The investigators explained they were unable to Speak to Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “located quite a few machines, some in great situation, some in terrible condition and some that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-internet site storage facility where “devices plus some machinery” have been stored.

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

Depending on shots and invoices in GroundUp’s possession, some, if not all, of your merchandise look like products that was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with costs for this removal.

In accordance with the last development report submitted on the NLC through the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization where Stemmet, his wife and his daughter have been administrators at the time.

The investigators located this “alarming”.

“Within the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we note the following alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Road, Wetton, Cape Town, the identical deal with on which the museum was meant to be constructed and/or converted,” they claimed.

An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the whole process of getting “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the directors.

According to Dabishi Nthambeleni, the corporation has paid R1.2-million to be a deposit, which means R6.nine-million remains owed, although there isn't a payment day established for when this must be paid.

The Kopano audit along with the near backlink concerning the businesses “suggest to us that there's ‘foul Enjoy’ involved with the acquisition in the machinery of the museum workshop”, the investigators reported during the report.

“We discover that it is really possible that CTMCA utilized the funding of the NLC to ‘refund’ amongst its major administrators to the property at an increased overpriced price than the particular price and price of the house and/or equipment.”

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

“Actually, an in depth report on how the funding in the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities spent on Every single merchandise it asked for funding for. The interim report and closing report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not performed a internet site take a look at in advance of approving the grant. But this wasn't common exercise at enough time and so they discovered no proof of negligence by NLC employees.

At some time, the NLC’s regulations did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to receive a next tranche of funding while not having to offer evidence that it experienced utilized the 1st tranche for its supposed objective.

Pursuing the appointment of a new board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any customers who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open 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 money.
But, rather than act to the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced done Together with the former reports into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to send the queries by e-mail way too. But no response had been received at the time of publication.



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