Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission for the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators discovered that the CTMCA did not use the R5-million allotted to buy or develop a museum.
Additionally they located the CTMCA only bought land well worth R1.7-million, not R5-million as allotted.
They identified the CTMCA applied cash in the Lottery to buy workshop tools from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) from the Nationwide Lotteries Fee (NLC) to create a museum to rejoice town’s wealthy minstrel heritage went astray. The museum was by no means produced.

The main points from the abuse of millions of rands of Lottery resources to get a museum that never ever was are uncovered within an investigative report commissioned by the NLC in 2021.

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

The main Element of the investigation, by legislation company Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which integrated funding to the museum. The permitted price range for your museum was a lot more than R12.8-million, with R5-million of that allocated for just a making to accommodate the museum.

Go through the report (PDF, 7MB)

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

The agency was also instructed to analyze

the acquisition with Lottery money of two autos – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
many equipment “obtained for the manufacturing of your costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few directors on the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation followed intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated on the CTMCA (see right here, below and right here) and how the cash in all probability aided finance the ANC’s 2014 election campaign inside 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 course of an industrial spot in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response into a Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All three tasks were done, she informed MPs.

However the investigators identified no proof that a museum had ever existed.

To start with the museum was due to open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp from the supposed Wetton museum displays a coffee store with a few musical devices and minstrel costumes and collages of shots haphazardly hung around the partitions, and 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 had ever operated from these premises.

Stemmet told the investigators the museum had been moved since they could no more afford the lease of R100,000 per month. He explained the CTMCA experienced bought residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is inside a peri-urban spot considerably from town.

Subsequently, the museum were moved to a brand new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after going to the premises, which can be within an industrial spot, the investigators mentioned they doubted no matter whether a proper museum existed there. Pics attached to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, displayed on tables and unfold out on the ground, without having explanation.

“There exists a negligible level of goods at the museum [that] by no means stand for the greater than 100-yr heritage in the Cape City Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not appear to be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to an alternate locale without having notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to move through the rented Crete Street premises since it had run up a R4-million debt with town of Cape City and was concerned its products can be connected.

“As a result of legal battles and the debts, the organisation had to move its assets from 5 Crete Street to steer clear of the sheriff from attaching the residence with the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director from the CTMCA, advised them which the two buses acquired with lottery resources were stored inside a secret location “concealed with the Sheriff”. But the investigators claimed they have been not able to confirm that any buses had at any time been acquired.

Stemmet also confirmed which the buses had been hidden to stop them getting seized. But in the event the investigators asked for being taken into the location the place the buses ended up saved, he informed them that “the proprietor of The trick spot wasn't available to open the premises for us”.

“The CTMCA could not supply evidence of payment for 2 motor vehicles that it allegedly purchased with grant funds,” the investigators described.

Soeker also instructed them the Schaapkraal residence were marketed as a result of debt.

“Mr Soeker described that In keeping with his comprehending, because of the debt owed to the town of Cape City, the CTMCA resolved It could be greatest to market their [Schaapkraal] home … and to also to hide the belongings of your CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for protection and security, has Earlier advised GroundUp which the CTMCA “threw income absent” on litigation with the City.

“On a yearly basis like clockwork, as we method the end on the 12 months, the CTMCA picks a legal struggle with the town, in excess of permits or something else. We in no way initiate it. They preserve throwing cash absent on vexatious litigation that they get rid of and have expenditures awarded against them. This is certainly entirely self-inflicted,” he explained.

Soeker explained to the Dabishi Nthambeleni investigators that the key position players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of many of the admin, funds and managing หวย ลาว วัน นี้ the CTMCA.” The investigators said they had been struggling to Get in touch with Momberg.

Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “located quite a few devices, some in great situation, some in bad ailment and many that seemed rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and a few equipment” were retained.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like products which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with charges for this removing.

In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, a company in which Stemmet, his spouse and his daughter have been administrators at enough time.

The investigators identified this “alarming”.

“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be crafted and/or transformed,” they reported.

An audit by accountants Kopano Incorporated, attached for the investigative report, recorded the CTMCA was in the entire process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the directors.

In accordance with Dabishi Nthambeleni, the organization has paid R1.two-million as being a deposit, meaning R6.9-million is still owed, nevertheless there is not any payment date established for when this should be compensated.

The Kopano audit and also the near link amongst the businesses “show to us that there is ‘foul Enjoy’ linked to the purchase in the machinery on the museum workshop”, the investigators reported in the report.

“We find that it's highly possible that CTMCA made use of the funding of the NLC to ‘refund’ one of its primary administrators with the residence at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”

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

“Actually, an in depth report on how the funding in the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts invested on Just about every product it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC had not conducted a web site check out ahead of approving the grant. But this was not regular practice at some time plus they identified no proof of carelessness by NLC staff.

At the time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was able to receive a 2nd tranche of funding without having to give evidence that it experienced utilized the 1st tranche for its supposed objective.

Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any long run funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated money.
But, instead of act to the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced carried out While using the prior studies into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to deliver the queries by e-mail way too. But no response had been received at some time of publication.



The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph