Leaked report exposes abuse of lottery dollars paid to minstrel group

Leaked report exposes abuse of lottery dollars paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant through the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has found no proof that a museum ever existed.
The investigators observed the CTMCA didn't utilize the R5-million allotted to get or establish a museum.
In addition they discovered which the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They found the CTMCA utilised resources from your Lottery to invest in workshop equipment from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s wealthy minstrel history went astray. The museum was hardly ever made.

The details on the abuse of many rands of Lottery funds for the museum that under no circumstances was are disclosed in an investigative report commissioned because of the NLC in 2021.

The museum grant was Portion of over R64-million in Lottery funds allotted for the CTMCA among 2003 and 2017.

The initial Section of the investigation, by legislation firm Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which incorporated funding to the museum. The permitted budget for your museum was in excess of R12.eight-million, with R5-million of that allocated for just a developing to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the creating for that museum and whether or not the museum “actually existed”.

The agency was also instructed to research

the acquisition with Lottery cash of two autos – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
various machines “ordered for that production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators in the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed extensive reporting by GroundUp with regards to the an incredible number of rands of Lottery funding allotted into the CTMCA (see here, here and here) and how the funds probably assisted finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.



The constructing on the right was the intended website of your minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph

In reaction into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “assignments” - including the museum - involving 2012 and 2015. All 3 tasks were accomplished, she informed MPs.

However the investigators uncovered no proof that a museum experienced ever existed.

At the beginning the museum was resulting from open up in rented premises in Crete Road, Wetton. A photo received by GroundUp of your supposed Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung around the walls, as well as a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni claimed it had been “not able” to confirm if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved as they could not pay for the hire of R100,000 a month. He stated the CTMCA experienced acquired home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been marketed for a similar price tag. Schaapkraal is inside a peri-urban space much from town.

Consequently, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following browsing the premises, which happen to be within an industrial area, the investigators stated they doubted no matter whether a suitable museum existed there. Images connected for the report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the ground, without any explanation.

“There is a minimum quantity of items within the museum [that] under no circumstances characterize the a lot more than 100-year background on the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outside the premises indicating which they housed a museum and … frequently, the museum does not appear to become open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by going the location with the museum to another place without the need of notifying the NLC.



The Schaapkraal property, on which no museum was ever crafted. Image: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA experienced to maneuver within the rented Crete Street premises because it experienced operate up a R4-million financial debt with the City of Cape City and was scared its tools could be hooked up.

“Due to authorized battles as well as debts, the organisation had to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the home on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director on the CTMCA, informed them the two buses acquired with lottery funds were stored in a mystery locale “concealed from the Sheriff”. But the investigators explained they were being not able to substantiate that any buses experienced at any time been purchased.

Stemmet also confirmed that the buses had been concealed to halt them currently being seized. But when the investigators asked being taken towards the put in which the buses were stored, he explained to them that “the owner of The key location was not available to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for two autos that it allegedly ordered with grant revenue,” the investigators claimed.

Soeker also explained to them the Schaapkraal residence had been sold due to personal debt.

“Mr Soeker spelled out that according to his being familiar with, due to the credit card debt owed to the City of Cape City, the CTMCA decided It could be very best to offer their [Schaapkraal] home … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and protection, has Earlier explained to GroundUp that the CTMCA “threw cash away” on litigation with the City.

“Yearly like clockwork, as we technique the tip on the yr, the CTMCA picks a legal fight with town, around permits or another thing. We under no circumstances initiate it. They retain throwing income away on vexatious litigation which they get rid of and have prices awarded from them. This can be entirely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of the many admin, funds and operating luckyvip77 the CTMCA.” The investigators claimed they had been not able to contact Momberg.

Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “located various machines, some in excellent affliction, some in lousy situation and a few that seemed rusty and extremely previous”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “instruments and some equipment” ended up retained.

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

Depending on photos and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like equipment that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing fees for this removing.

According to the closing development report submitted towards the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter ended up administrators at some time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners and also the invoices submitted, we note the following alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was intended to be designed and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the directors.

In line with Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, which means R6.9-million is still owed, although there is absolutely no payment date set for when this must be compensated.

The Kopano audit plus the near website link in between the businesses “reveal to us that there is ‘foul Enjoy’ associated with the acquisition on the equipment on the museum workshop”, the investigators stated during the report.

“We find that it is really probable that CTMCA utilised the funding of the NLC to ‘refund’ one among its most important directors to the residence at the next overpriced price than the actual value and worth of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were used.

“In point of fact, an in depth report on how the funding on the NLC was employed, will be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Every single item it requested funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not carried out a site check out right before approving the grant. But this was not normal exercise at some time they usually found no evidence of negligence by NLC workers.

At the time, the NLC’s principles did not need funded organisations to submit evidence of payment with interim experiences, they identified. This meant which the CTMCA was able to get a 2nd tranche of funding without needing to provide evidence that it had used the main tranche for its meant function.

Subsequent the appointment of a different board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni advised that

the NLC decline any long run funding applications through the CTMCA;
the CTMCA and any users who had been involved with the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open up a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as an alternative to act over the report’s tips, the NLC – underneath its prior administration – selected to suppress it, since it had accomplished Along with the preceding reviews into corruption it had commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for e-mail addresses to send the issues by e-mail much too. But no response were received at enough time of publication.



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

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