Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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Minstrels complete in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Fee to your Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has found no proof that a museum at any time existed.
The investigators found the CTMCA didn't utilize the R5-million allotted to buy or build a museum.
In addition they identified that the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA applied cash in the Lottery to purchase workshop products from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel historical past went astray. The museum was under no circumstances made.

The details in the abuse of many rands of Lottery cash for just a museum that in no way was are discovered within an investigative report commissioned with the NLC in 2021.

The museum grant was part of a lot more than R64-million in Lottery resources allotted to the CTMCA amongst 2003 and 2017.

The 1st Portion of the investigation, by law business Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The accepted funds for your museum was greater than R12.eight-million, with R5-million of that allocated for the making to house the museum.

Read through the report (PDF, 7MB)

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

The company was also instructed to research

the purchase with Lottery funds of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
many devices “bought to the producing with the costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors from the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp with regard to the a lot of rands of Lottery funding allocated to your CTMCA (see right here, listed here and listed here) and how the resources probably helped finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at the time by Marius Fransman.



The developing on the correct was the intended web site in the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In response to a Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “tasks” - such as the museum - involving 2012 and 2015. All a few assignments were done, she advised MPs.

But the investigators observed no evidence that a museum experienced at any time existed.

At the outset the museum was due to open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum reveals a coffee shop with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung over the partitions, along with a model ship on its plinth in the corner.

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

Stemmet informed the investigators the museum were moved since they could now not find the money for the lease of R100,000 per month. He claimed the CTMCA had bought property for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for a similar cost. Schaapkraal is in a very peri-city area far from town.

Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after browsing the premises, that are in an industrial place, the investigators mentioned they doubted no matter whether a proper museum existed there. Images connected into the report present a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and spread out on the floor, with no explanation.

“There exists a minimum level of objects in the museum [that] in no way depict the over a hundred-12 months historical past of the Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum would not seem to become open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation on the museum to an alternative site with no notifying the NLC.



The Schaapkraal assets, on which no museum was ever crafted. Image: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA experienced to move from your rented Crete Street premises since it experienced operate up a R4-million debt with town of Cape City and was fearful its machines would be connected.

“Due to authorized battles as well as the debts, the organisation experienced to maneuver its house from 5 Crete Highway to steer clear of the sheriff from attaching the residence of your organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director in the CTMCA, told them that the two buses purchased with lottery funds ended up saved in a solution area “concealed through the Sheriff”. Even so the investigators reported they were not able to substantiate that any buses experienced ever been acquired.

Stemmet also verified that the buses were concealed to prevent them staying seized. But when the investigators requested being taken to your position where by the buses had been stored, he instructed them that “the operator of The key area wasn't accessible to open the premises for us”.

“The CTMCA couldn't give proof of payment for two automobiles that it allegedly bought with grant money,” the investigators reported.

Soeker also explained to them the Schaapkraal house were bought because of the credit card debt.

“Mr Soeker described that Based on his understanding, a result of the credit card debt owed to the town of Cape City, the CTMCA decided It will be best to provide their [Schaapkraal] home … and to also to cover the assets of the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for basic safety and safety, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with the town.

“Each and every year like clockwork, as we method the tip on the calendar year, the CTMCA picks a legal fight with the City, in excess of permits or another thing. We never initiate it. They hold throwing revenue absent on vexatious litigation which they shed and also have prices awarded towards them. This is certainly fully self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the main job players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for each of the admin, finances and functioning ตรวจ หวย ลาว the CTMCA.” The investigators claimed they had been struggling to Call Momberg.

Hats
Through their “investigation in loco” for the Primrose Park premises, the investigators “identified numerous devices, some in excellent condition, some in undesirable condition and several that appeared rusty and extremely previous”. Stemmet told the investigators that there was also an off-internet site storage facility exactly where “devices plus some equipment” were held.

“We requested him to acquire us to the power but he was evasive to our ask for.”

Determined by shots and invoices in GroundUp’s possession, some, if not all, in the goods seem like products that was illegally removed from the CTMCA’s prior premises. Stemmet is going through expenses for this removal.

In accordance with the closing progress report submitted to the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter had been administrators at some time.

The investigators identified this “alarming”.

“Within the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we note the following alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape Town, the exact same handle on which the museum was intended to be developed and/or converted,” they documented.

An audit by accountants Kopano Integrated, connected for the investigative report, recorded which the CTMCA was in the process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one among the directors.

According to Dabishi Nthambeleni, the corporate has paid R1.2-million to be a deposit, which means R6.9-million remains owed, even though there is no payment day set for when this have to be paid out.

The Kopano audit as well as shut hyperlink amongst the companies “reveal to us that there's ‘foul Enjoy’ involved with the purchase from the equipment on the museum workshop”, the investigators explained within the report.

“We discover that it is very probable that CTMCA made use of the funding with the NLC to ‘refund’ considered one of its major directors with the house at a higher overpriced amount than the actual selling price and value of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant on the CTMCA were put in.

“The truth is, an in depth report on how the funding with the NLC was made use of, could well be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Each individual merchandise it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not done a web site visit ahead of approving the grant. But this wasn't normal exercise at some time and they observed no proof of carelessness by NLC staff members.

At some time, the NLC’s guidelines did not call for funded organisations to post evidence of payment with interim stories, they pointed out. This meant the CTMCA was capable of receive a second tranche of funding without needing to present evidence that it had utilised the primary tranche for its meant goal.

Adhering to the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni recommended that

the NLC decrease any long term funding apps from the CTMCA;
the CTMCA and any associates who ended up involved in the grant be subjected on the NLC’s “delinquency” system;
the NLC open a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated cash.
But, rather than act around the report’s recommendations, the NLC – under its previous administration – selected to suppress it, since it had carried out Together with the earlier reviews into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to mail the queries by electronic mail also. But no reaction had been gained at the time of publication.



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

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