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

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

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed which the CTMCA didn't use the R5-million allocated to acquire or develop a museum.
In addition they found that the CTMCA only acquired land worth R1.7-million, not R5-million as allotted.
They observed the CTMCA utilised money in the Lottery to purchase workshop devices from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Commission (NLC) to build a museum to celebrate the city’s abundant minstrel historical past went astray. The museum was hardly ever designed.

The main points of the abuse of millions of rands of Lottery funds for any museum that in no way was are disclosed in an investigative report commissioned through the NLC in 2021.

The museum grant was part of a lot more than R64-million in Lottery resources allocated into the CTMCA in between 2003 and 2017.

The initial Section of the investigation, by legislation agency Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding with the museum. The accredited price range with the museum was a lot more than R12.eight-million, with R5-million of that allocated for your building to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a constructing for the museum and if the museum “essentially existed”.

The organization was also instructed to research

the purchase with Lottery cash of two cars – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
many equipment “procured for the producing with the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors from the organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted substantial reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated for the CTMCA (see below, below and in this article) and the best way the money probably aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.



The creating on the ideal was the meant website on the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to your Parliamentary question, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “initiatives” - including the museum - between 2012 and 2015. All 3 assignments had been completed, she instructed MPs.

Nevertheless the investigators located no proof that a museum had ever existed.

Initially the museum was because of open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp from the intended Wetton museum exhibits a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung on the partitions, plus a model ship on its plinth within a corner.

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

Stemmet informed the investigators the museum had been moved mainly because they could no longer find the money for the rent of R100,000 a month. He explained the CTMCA experienced ordered residence for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for the same value. Schaapkraal is in a very peri-urban region considerably from the city.

Because of this, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following traveling to the premises, which can be within an industrial region, the investigators said they doubted whether a proper museum existed there. Photographs connected into the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, without explanation.

“You will find a nominal amount of merchandise within the museum [that] on no account depict the over a hundred-yr record on the Cape City Carnival, the investigators reported, adding that there was “no signage exterior the premises indicating they housed a museum and … usually, the museum won't glance to be open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by transferring the location of the museum to an alternate spot without having notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA had to maneuver within the rented Crete Street premises because it experienced run up a R4-million credit card debt with town of Cape City and was scared its equipment might be attached.

“Because of the authorized battles as well as debts, the organisation experienced to move its home from 5 Crete Road to avoid the sheriff from attaching the property in the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director of the CTMCA, told them the two buses acquired with lottery resources were stored in the top secret place “concealed through the Sheriff”. Even so the investigators stated they were being unable to substantiate that any buses had ever been bought.

Stemmet also confirmed the buses were hidden to halt them getting seized. But in the event the investigators asked to get taken into the location the place the buses were saved, he told them that “the owner of the secret area wasn't available to open the premises for us”.

“The CTMCA couldn't deliver evidence of payment for two vehicles that it allegedly procured with grant dollars,” the investigators documented.

Soeker also advised them the Schaapkraal home were marketed because of the personal debt.

“Mr Soeker stated that In line with his comprehension, as a result of personal debt owed to the City of Cape City, the CTMCA determined It could be best to offer their [Schaapkraal] assets … and to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the home.”

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

“On a yearly basis like clockwork, as we method the end from the year, the CTMCA picks a lawful battle with the City, more than permits or another thing. We never initiate it. They continue to keep throwing dollars away on vexatious litigation which they shed and have expenses awarded against them. This is certainly completely self-inflicted,” he claimed.

Soeker told the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for many of the admin, funds and functioning fox888 the CTMCA.” The investigators said they had been unable to Get hold of Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “located quite a few devices, some in very good issue, some in undesirable issue and many that appeared rusty and very old”. Stemmet told the investigators that there was also an off-web page storage facility wherever “instruments and many equipment” had been retained.

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

Depending on photos and invoices in GroundUp’s possession, some, Otherwise all, on the products look like gear that was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with charges for this elimination.

In accordance with the ultimate development report submitted to the NLC through the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter had been administrators at the time.

The investigators observed this “alarming”.

“From your CIPC research of Martin-Conne Milliners and also the invoices submitted, we Be aware the subsequent alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is five Crete Street, Wetton, Cape City, the same handle on which the museum was intended to be constructed and/or converted,” they described.

An audit by accountants Kopano Integrated, hooked up on the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was considered one of the administrators.

In keeping with Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, this means R6.9-million continues to be owed, even though there is absolutely no payment day established for when this has to be paid.

The Kopano audit and also the shut url in between the businesses “indicate to us that there's ‘foul Perform’ linked to the acquisition from the equipment in the museum workshop”, the investigators stated in the report.

“We discover that it's very probable that CTMCA applied the funding of the NLC to ‘refund’ considered one of its most important administrators for the property at a higher overpriced price than the actual price and price of the assets and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were put in.

“In fact, an in depth report on how the funding with the NLC was applied, might be impossible since the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts expended on Just about every merchandise it requested funding for. The interim report and final report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC had not carried out a web-site go to ahead of approving the grant. But this was not normal exercise at enough time plus they uncovered no proof of carelessness by NLC personnel.

At enough time, the NLC’s rules didn't have to have funded organisations to submit evidence of payment with interim stories, they pointed out. This intended that the CTMCA was able to get a next tranche of funding without needing to offer proof that it experienced applied the primary tranche for its intended reason.

Subsequent the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni recommended that

the NLC drop any long term funding applications in the CTMCA;
the CTMCA and any members who were involved in the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, in lieu of act within the report’s tips, the NLC – beneath its previous administration – selected to suppress it, mainly because it had finished Along with the prior studies into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to deliver the inquiries by electronic mail much too. But no reaction were gained at enough time of publication.



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