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 Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant through the National Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has identified no proof that a museum at any time existed.
The investigators identified which the CTMCA did not use the R5-million allotted to purchase or build a museum.
Additionally they found the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA used cash in the Lottery to buy workshop products from certainly one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to create a museum to celebrate the town’s rich minstrel record went astray. The museum was hardly ever made.

The details of the abuse of countless rands of Lottery cash for any museum that by no means was are discovered in an investigative report commissioned from the NLC in 2021.

The museum grant was Section of over R64-million in Lottery cash allotted on the CTMCA involving 2003 and 2017.

The main Component of the investigation, by legislation organization Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which incorporated funding to the museum. The approved funds for the museum was much more than R12.eight-million, with R5-million of that allotted for any setting up to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a making for your museum and whether or not the museum “really existed”.

The organization was also instructed to analyze

the acquisition with Lottery funds of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several equipment “acquired with the manufacturing on the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted extensive reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated on the CTMCA (see right here, right here and below) and the best way the money likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.



The making on the correct was the intended website of the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “jobs” - such as the museum - in between 2012 and 2015. All 3 assignments had been completed, she told MPs.

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

At first the museum was because of open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp from the meant Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung on the walls, and also a product ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni claimed it absolutely was “not ready” to substantiate if a museum had at any time operated from these premises.

Stemmet told the investigators the museum were moved simply because they could not pay for the rent of R100,000 per month. He reported the CTMCA experienced obtained home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were marketed for the same rate. Schaapkraal is in a very peri-urban area much from town.

Subsequently, the museum had been moved to a whole new location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after traveling to the premises, that are in an industrial spot, the investigators reported they doubted no matter if an appropriate museum existed there. Pics hooked up to the report present a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the floor, without any rationalization.

“There is a minimum volume of merchandise in the museum [that] on no account represent the a lot more than one hundred-yr historical past on 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 … generally, the museum doesn't search to become open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The placement on the museum to another spot without the need of notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA had to maneuver from your rented Crete Highway premises as it experienced operate up a R4-million debt with town of Cape City and was concerned its tools could well be connected.

“Due to the legal battles as well as debts, the organisation had to maneuver its property from 5 Crete Highway to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director on the CTMCA, explained to them the two buses bought with lottery cash have been stored inside of a top secret location “concealed with the Sheriff”. However the investigators claimed they were unable to confirm that any buses had ever been acquired.

Stemmet also confirmed that the buses had been hidden to prevent them becoming seized. But if the investigators requested for being taken on the area in which the buses had been saved, he advised them that “the operator of the secret locale was not available to open the premises for us”.

“The CTMCA could not present evidence of payment for two motor vehicles that it allegedly acquired with grant dollars,” the investigators documented.

Soeker also explained to them the Schaapkraal property had been bought due to the credit card debt.

“Mr Soeker stated that In line with his being familiar with, because of the financial debt owed to the City of Cape City, the CTMCA made the decision It might be ideal to offer their [Schaapkraal] house … also to also to hide the belongings in the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for security and stability, has Earlier advised GroundUp which the CTMCA “threw money away” on litigation with the City.

“Annually like clockwork, as we approach the end on the calendar year, the CTMCA picks a legal battle with the town, around permits or another thing. We under no circumstances initiate it. They preserve throwing income absent on vexatious litigation that they drop and have fees awarded towards them. This really is solely self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the principle position players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for every one of the admin, funds and managing เช ค หวย the CTMCA.” The investigators mentioned they were unable to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located numerous devices, some in good affliction, some in negative ailment and a few that seemed rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-web site storage facility wherever “devices and some machinery” had been retained.

“We requested him to just take us to the ability but he was evasive to our request.”

Based upon photos and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like products that was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with prices for this elimination.

According to the closing progress report submitted towards the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a business by which Stemmet, his spouse and his daughter had been administrators at the time.

The investigators identified this “alarming”.

“With the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming finding: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Highway, Wetton, Cape City, a similar handle on which the museum was intended to be constructed and/or transformed,” they claimed.

An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded 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 corporation of which Stemmet was considered one of the directors.

In keeping with Dabishi Nthambeleni, the organization has paid R1.2-million being a deposit, indicating R6.nine-million remains owed, though there's no payment date established for when this should be compensated.

The Kopano audit and the shut backlink involving the companies “indicate to us that there's ‘foul Engage in’ involved in the acquisition in the equipment on the museum workshop”, the investigators said from the report.

“We find that it is really probable that CTMCA applied the funding from the NLC to ‘refund’ considered one of its main directors for that assets at a higher overpriced fee than the particular selling price and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were put in.

“Actually, a detailed report on how the funding from the NLC was employed, will be difficult as being the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts invested on Every product it asked for funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC experienced not performed a web page check out prior to approving the grant. But this wasn't normal observe at time they usually discovered no evidence of negligence by NLC staff.

At enough time, the NLC’s procedures didn't involve funded organisations to post evidence of payment with interim stories, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding while not having to present proof that it experienced applied the main tranche for its meant goal.

Pursuing the appointment of a completely new board, commissioner and senior government workforce, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding programs through the CTMCA;
the CTMCA and any customers who have been linked to the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated resources.
But, as an alternative to act on the report’s recommendations, the NLC – beneath its earlier administration – selected to suppress it, as it experienced done Together with the earlier reviews into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to send the issues by email far too. But no response were acquired at time of publication.



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

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