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 complete in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has found no evidence that a museum ever existed.
The investigators observed that the CTMCA did not utilize the R5-million allotted to acquire or develop a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of resources from the Lottery to acquire workshop devices from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.

The small print on the abuse of a lot of rands of Lottery cash for the museum that under no circumstances was are unveiled in an investigative report commissioned from the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery resources allotted for the CTMCA in between 2003 and 2017.

The main Section of the investigation, by regulation agency Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which involved funding for the museum. The accredited finances with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making for that museum and if the museum “really existed”.

The firm was also instructed to analyze

the purchase with Lottery funds of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous equipment “bought with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as a director in Might 2021.

The investigation followed substantial reporting by GroundUp about the countless rands of Lottery funding allocated into the CTMCA (see in this article, below and below) and the best way the funds probably served finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.



The creating on the proper was the intended website with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.

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

At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung within the partitions, and also a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to substantiate if a museum experienced at any time operated from these premises.

Stemmet told the investigators the museum were moved because they could no more pay for the hire of R100,000 a month. He reported the CTMCA experienced purchased residence for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been bought for a similar price tag. Schaapkraal is in a peri-urban location significantly from town.

Because of this, the museum had been moved to a different site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following checking out the premises, which might be within an industrial place, the investigators stated they doubted whether an appropriate museum existed there. Shots attached into the report demonstrate a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the ground, with no explanation.

“You will find there's minimum quantity of items with the museum [that] in no way signify the a lot more than one hundred-yr heritage with the Cape City Carnival, the investigators reported, introducing that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum will not seem for being open up to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by going the location from the museum to an alternative locale with out notifying the NLC.



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

Buses
Stemmet instructed the investigators that the CTMCA had to move with the rented Crete Street premises since it experienced run up a R4-million financial debt with town of Cape City and was afraid its gear might be attached.

“A result of the legal battles and also 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 explained to the investigators.

Sedrick Soeker, The existing director on the CTMCA, explained to them which the two buses acquired with lottery cash have been stored in the mystery spot “hidden from the Sheriff”. But the investigators said they were being not able to substantiate that any buses had at any time been bought.

Stemmet also verified which the buses had been concealed to stop them remaining seized. But in the event the investigators asked to be taken for the put in which the buses ended up saved, he informed them that “the owner of The key locale wasn't accessible to open the premises for us”.

“The CTMCA could not present evidence of payment for 2 motor vehicles that it allegedly purchased with grant income,” the investigators claimed.

Soeker also informed them the Schaapkraal residence were marketed due to personal debt.

“Mr Soeker discussed that In line with his understanding, as a result of debt owed to the town of Cape City, the CTMCA made a decision It might be greatest to sell their [Schaapkraal] residence … and to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the home.”

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

“Each year like clockwork, as we strategy the top from the year, the CTMCA picks a lawful fight with town, more than permits or another thing. We in no way initiate it. They preserve throwing money absent on vexatious litigation which they eliminate and also have costs awarded from them. That is completely self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the principle part gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and operating หวย วัน นี้ the CTMCA.” The investigators stated they were struggling to Speak to Momberg.

Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “found several devices, some in excellent issue, some in terrible condition and a few that looked rusty and extremely old”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “instruments and a few equipment” were held.

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

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, with the things look like products which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing rates for this removal.

Based on the remaining progress report submitted to your NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization by which Stemmet, his wife and his daughter have been administrators at enough time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Notice the next alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, precisely the same address on which the museum was intended to be crafted and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, hooked up towards the investigative report, recorded the CTMCA was in the whole process of buying “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the directors.

In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million to be a deposit, this means R6.nine-million remains to be owed, however there is no payment day set for when this should be paid.

The Kopano audit plus the near link involving the companies “reveal to us that there is ‘foul Enjoy’ involved in the acquisition of the machinery of the museum workshop”, the investigators claimed inside the report.

“We find that it is highly probable that CTMCA utilised the funding of your NLC to ‘refund’ certainly one of its primary directors for your home at a greater overpriced price than the particular rate and worth of the house and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been expended.

“Actually, an in depth report on how the funding in the NLC was used, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities spent on Every single product it asked for funding for. The interim report and final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not executed a web-site visit prior to approving the grant. But this was not standard apply at the time they usually uncovered no proof of negligence by NLC employees.

At enough time, the NLC’s policies did not involve funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was capable to get a second tranche of funding without the need to give evidence that it experienced utilized the main tranche for its meant reason.

Following the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni advised that

the NLC decline any potential funding programs in the CTMCA;
the CTMCA and any members who were involved in the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, since it experienced accomplished with the earlier experiences into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for email addresses to send the queries by e mail far too. But no reaction had been obtained at the time of publication.



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