Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the Countrywide Lotteries Fee for the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators observed which the CTMCA didn't use the R5-million allocated to purchase or develop a museum.
They also observed that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allocated.
They found the CTMCA utilized funds from your Lottery to purchase workshop products from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Countrywide Lotteries Fee (NLC) to build a museum to celebrate the town’s wealthy minstrel heritage went astray. The museum was by no means created.

The small print in the abuse of countless rands of Lottery cash for a museum that hardly ever was are unveiled within an investigative report commissioned because of the NLC in 2021.

The museum grant was Portion of more than R64-million in Lottery cash allocated for the CTMCA between 2003 and 2017.

The 1st part of the investigation, by law agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which integrated funding to the museum. The approved funds for your museum was much more than R12.8-million, with R5-million of that allotted for the making to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the developing to the museum and if the museum “basically existed”.

The firm was also instructed to research

the acquisition with Lottery money of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “ordered to the production in the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous directors on the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation adopted comprehensive reporting by GroundUp about the an incredible number of rands of Lottery funding allotted into the CTMCA (see below, listed here and listed here) and the way in which the money likely helped finance the ANC’s 2014 election campaign within the Western Cape, led by at time by Marius Fransman.



The constructing on the appropriate was the meant web-site with the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to some Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “jobs” - including the museum - between 2012 and 2015. All 3 tasks were finished, she explained to MPs.

Even so the investigators found no proof that a museum experienced at any time existed.

Initially the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp on the meant Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung about the partitions, as well as a model ship on its plinth in a corner.

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

Stemmet told the investigators the museum had been moved given that they could no more find the money for the lease of R100,000 a month. He reported the CTMCA had bought residence for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were bought for the same rate. Schaapkraal is within a peri-city area significantly from town.

Because of this, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, that happen to be in an industrial location, the investigators explained they doubted whether an appropriate museum existed there. Shots connected on the report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed to the wall, exhibited on tables and spread out on the ground, without any rationalization.

“There exists a minimal number of things within the museum [that] by no means stand for the over one hundred-calendar year background of the Cape Town Carnival, the investigators said, introducing that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum isn't going to glance being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring The placement in the museum to an alternative locale without the need of notifying the NLC.



The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA had to move through the rented Crete Street premises as it had run up a R4-million personal debt with the City of Cape Town and was concerned its products will be attached.

“A result of the lawful battles and also the debts, the organisation had to move its home from 5 Crete Highway to stay away from the sheriff from attaching the home from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director in the CTMCA, told them the two buses acquired with lottery funds were stored inside a solution locale “concealed through the Sheriff”. Nevertheless the investigators stated they were not able to confirm that any buses experienced at any time been bought.

Stemmet also verified that the buses had been hidden to prevent them getting seized. But if the investigators requested to be taken towards the spot wherever the buses were being stored, he advised them that “the proprietor of The key site wasn't accessible to open the premises for us”.

“The CTMCA could not present proof of payment for 2 motor vehicles that it allegedly procured with grant revenue,” the investigators described.

Soeker also explained to them the Schaapkraal home were offered as a result of financial debt.

“Mr Soeker defined that In line with his knowing, because of the financial debt owed to the town of Cape Town, the CTMCA decided it would be very best to sell their [Schaapkraal] assets … and also to also to hide the assets of your CTMCA to avoid the sheriff from attaching the residence.”

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

“Each year like clockwork, as we tactic the top from the calendar year, the CTMCA picks a authorized combat with the City, above permits or another thing. We never ever initiate it. They retain throwing revenue away on vexatious litigation they reduce and have expenditures awarded from them. This is often fully self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the most crucial function players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been in control of each of the admin, funds and jogging ตรวจ ล้อ ต เต อ รี่ the CTMCA.” The investigators stated they were unable to Call Momberg.

Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “discovered numerous devices, some in very good affliction, some in lousy issue and some that seemed rusty and extremely outdated”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “instruments and some machinery” were stored.

“We requested him to choose us to the facility but he was evasive to our request.”

Dependant on photos and invoices in GroundUp’s possession, some, Otherwise all, with the merchandise seem like tools that was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with rates for this elimination.

In accordance with the closing progress report submitted on the NLC from the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter have been administrators at some time.

The investigators discovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Observe the subsequent alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Highway, Wetton, Cape City, the identical deal with on which the museum was meant to be created and/or converted,” they reported.

An audit by accountants Kopano Incorporated, hooked up into the investigative report, recorded which the CTMCA was in the entire process of getting “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the administrators.

In keeping with Dabishi Nthambeleni, the corporate has paid R1.2-million like a deposit, indicating R6.nine-million is still owed, even though there is not any payment day established for when this need to be paid out.

The Kopano audit along with the close hyperlink between the businesses “reveal to us that there is ‘foul Participate in’ linked to the acquisition on the machinery of your museum workshop”, the investigators reported from the report.

“We find that it's extremely possible that CTMCA used the funding with the NLC to ‘refund’ certainly one of its key administrators for your house at the next overpriced price than the actual price tag and worth of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant for the CTMCA had been spent.

“In fact, an in depth report on how the funding of your NLC was made use of, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities put in on Every product it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not conducted a web-site go to in advance of approving the grant. But this wasn't regular follow at enough time plus they found no proof of carelessness by NLC employees.

At the time, the NLC’s principles did not demand funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was in a position to get a 2nd tranche of funding while not having to supply proof that it experienced employed the initial tranche for its supposed reason.

Subsequent the appointment of a new board, commissioner and senior government team, the NLC has tightened up on these and other troubles.

Dabishi Nthambeleni suggested that

the NLC decrease any upcoming funding applications through the CTMCA;
the CTMCA and any users who had been associated with the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a prison case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, instead of act on the report’s tips, the NLC – underneath its past administration – chose to suppress it, mainly because it experienced completed Using the previous stories into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and asked for e mail addresses to send the inquiries by electronic mail also. But no reaction were acquired at some time of publication.



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

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