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

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

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not utilize the R5-million allocated to get or build a museum.
In addition they discovered the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA employed resources with the Lottery to get workshop equipment from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to put in place a museum to rejoice the town’s wealthy minstrel background went astray. The museum was in no way designed.

The details of the abuse of millions of rands of Lottery cash for the museum that under no circumstances was are disclosed within an investigative report commissioned through the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery cash allocated to the CTMCA concerning 2003 and 2017.

The 1st Element of the investigation, by legislation company Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which integrated funding for that museum. The accepted spending plan with the museum was a lot more than R12.8-million, with R5-million of that allocated for any creating to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a setting up for the museum and whether or not the museum “in fact existed”.

The agency was also instructed to investigate

the purchase with Lottery resources of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
different devices “procured for the production with the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of administrators with the organisation. Stemmet was reappointed for a director in May possibly 2021.

The investigation followed extensive reporting by GroundUp regarding the countless rands of Lottery funding allotted towards the CTMCA (see listed here, in this article and listed here) and the best way the cash probably aided finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at time by Marius Fransman.



The constructing on the appropriate was the meant web page of your minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to the Parliamentary problem, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All three jobs had been done, she advised MPs.

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

To start with the museum was because of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp with the meant Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung to the partitions, in addition to a product ship on its plinth in a very corner.

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

Stemmet informed the investigators the museum were moved because they could now not afford the hire of R100,000 a month. He said the CTMCA had procured house for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for the same rate. Schaapkraal is within a peri-urban place considerably from the city.

Due to this fact, the museum were moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after viewing the premises, which happen to be within an industrial place, the investigators claimed they doubted whether or not a proper museum existed there. Photographs hooked up to the report display a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, with no rationalization.

“There is a nominal level of merchandise for the museum [that] by no means stand for the in excess of a hundred-yr heritage of the Cape City Carnival, the investigators said, incorporating that there was “no signage outdoors the premises indicating they housed a museum and … frequently, the museum will not look for being open to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement with the museum to an alternative location with out notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA experienced to maneuver through the rented Crete Street premises mainly because it experienced operate up a R4-million personal debt with town of Cape City and was worried its equipment would be attached.

“As a result of legal battles as well as the debts, the organisation had to maneuver its residence from five Crete Road to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director from the CTMCA, advised them the two buses purchased with lottery resources had been saved in a very secret location “concealed in the Sheriff”. Although the investigators reported they ended up not able to verify that any buses experienced ever been acquired.

Stemmet also confirmed which the buses had been concealed to halt them staying seized. But in the event the investigators requested for being taken to the area where by the buses were stored, he instructed them that “the operator of The key place wasn't accessible to open up the premises for us”.

“The CTMCA couldn't provide evidence of payment for two cars that it allegedly purchased with grant funds,” the investigators claimed.

Soeker also told them the Schaapkraal property had been sold due to the personal debt.

“Mr Soeker explained that according to his knowledge, mainly because of the credit card debt owed to the town of Cape Town, the CTMCA determined It could be ideal to offer their [Schaapkraal] house … and to also to hide the assets from the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for safety and safety, has Beforehand advised GroundUp which the CTMCA “threw dollars away” on litigation with the town.

“Each year like clockwork, as we solution the end on the calendar year, the CTMCA picks a legal battle with town, above permits or another thing. We in no way initiate it. They hold throwing income absent on vexatious litigation that they reduce and possess prices awarded versus them. This can be totally self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of the many admin, funds and operating ตรวจ สลาก the CTMCA.” The investigators reported they had been unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “found several machines, some in excellent issue, some in undesirable ailment and a few that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility the place “instruments and many equipment” have been stored.

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

According to pics and invoices in GroundUp’s possession, some, if not all, in the items seem like equipment that was illegally faraway from the CTMCA’s previous premises. Stemmet is going through prices for this removing.

In accordance with the remaining development report submitted into the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter have been directors at the time.

The investigators found this “alarming”.

“Within the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, the identical tackle on which the museum was meant to be built and/or converted,” they noted.

An audit by accountants Kopano Integrated, connected on the investigative report, recorded which 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 an in depth corporation of which Stemmet was among the directors.

In accordance with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, which means R6.nine-million continues to be owed, although there isn't any payment day set for when this need to be paid.

The Kopano audit as well as close backlink in between the companies “point out to us that there is ‘foul Engage in’ linked to the purchase of your machinery of the museum workshop”, the investigators claimed within the report.

“We discover that it's very possible that CTMCA used the funding on the NLC to ‘refund’ certainly one of its key administrators with the house at an increased overpriced level than the particular rate and price of the residence and/or machinery.”

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

“In reality, an in depth report on how the funding in the NLC was used, might be difficult because the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities invested on Each individual merchandise it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not done a site pay a visit to ahead of approving the grant. But this was not common observe at some time they usually discovered no evidence of carelessness by NLC personnel.

At time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim stories, they pointed out. This intended that the CTMCA was in a position to get a 2nd tranche of funding without having to provide proof that it experienced employed the first tranche for its intended function.

Next the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these along with other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected for the NLC’s “delinquency” method;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s tips, the NLC – beneath its previous administration – chose to suppress it, mainly because it had done with the earlier experiences 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 obtained at time of publication.



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