Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds 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 into a R27.3-million grant with the Countrywide Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has identified no evidence that a museum ever existed.
The investigators located which the CTMCA didn't utilize the R5-million allocated to buy or create a museum.
In addition they found the CTMCA only purchased land worthy of R1.7-million, not R5-million as allocated.
They uncovered the CTMCA applied cash from the Lottery to acquire workshop devices from one among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Fee (NLC) to create a museum to celebrate the town’s wealthy minstrel heritage went astray. The museum was by no means developed.

The details of the abuse of a lot of rands of Lottery cash for your museum that never was are revealed in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of over R64-million in Lottery resources allocated on the CTMCA involving 2003 and 2017.

The first Portion of the investigation, by law firm Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which bundled funding with the museum. The accredited price range to the museum was more than R12.eight-million, with R5-million of that allotted for a making to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a making for the museum and whether the museum “basically existed”.

The company was also instructed to investigate

the acquisition with Lottery cash of two autos – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of machines “procured with the production in the costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators of the organisation. Stemmet was reappointed as being a director in May well 2021.

The investigation adopted in depth reporting by GroundUp in regards to the countless rands of Lottery funding allotted towards the CTMCA (see in this article, below and right here) and the best way the resources in all probability helped finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at time by Marius Fransman.



The constructing on the proper was the supposed internet site on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All a few initiatives were finished, she advised MPs.

Although the investigators found no proof that a museum experienced ever existed.

In the beginning the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp with the supposed Wetton museum displays a espresso store with a few musical instruments and minstrel costumes and collages of images haphazardly hung within the partitions, and also a model ship on its plinth in the corner.

In its report, Dabishi Nthambeleni said it had been “not able” to verify if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum were moved simply because they could not pay for the hire of R100,000 per month. He claimed the CTMCA had acquired house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were bought for a similar selling price. Schaapkraal is in the peri-urban spot far from the town.

Consequently, the museum were moved to a new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after going to the premises, which are in an industrial region, the investigators claimed they doubted regardless of whether a suitable museum existed there. Pics connected into the report clearly show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the ground, without having clarification.

“There's a minimal quantity of items with the museum [that] on no account characterize the much more than a hundred-year history from the Cape Town Carnival, the investigators stated, adding that there was “no signage exterior the premises indicating which they housed a museum and … frequently, the museum won't search to be open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by going The situation of the museum to an alternative area without the need of notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA had to move from your rented Crete Road premises because it had operate up a R4-million financial debt with the City of Cape Town and was fearful its devices can be connected.

“Mainly because of the authorized battles along with the debts, the organisation had to move its assets from five Crete Road to stay away from the sheriff from attaching the house from the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director in the CTMCA, instructed them the two buses acquired with lottery resources were being saved in a very mystery spot “concealed from your Sheriff”. However the investigators claimed they were being not able to confirm that any buses experienced ever been purchased.

Stemmet also confirmed that the buses were concealed to stop them getting seized. But once the investigators asked to become taken towards the spot wherever the buses have been stored, he advised them that “the owner of the secret site was not accessible to open up the premises for us”.

“The CTMCA could not offer proof of payment for 2 automobiles that it allegedly bought with grant money,” the investigators described.

Soeker also told them the Schaapkraal home had been offered due to the financial debt.

“Mr Soeker described that according to his comprehension, a result of the financial debt owed to the City of Cape City, the CTMCA made the decision It might be best to offer their [Schaapkraal] property … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for protection and security, has Formerly explained to GroundUp that the CTMCA “threw dollars absent” on litigation with the City.

“Annually like clockwork, as we technique the tip of your year, the CTMCA picks a legal fight with town, above permits or something else. We in no way initiate it. They preserve throwing funds away on vexatious litigation which they eliminate and also have charges awarded in opposition to them. That is totally self-inflicted,” he stated.

Soeker instructed 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 being in command of all of the admin, finances and managing ตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด the CTMCA.” The investigators explained they were unable to Get hold of Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “found quite a few devices, some in fantastic condition, some in poor problem and several that seemed rusty and very aged”. Stemmet explained to the investigators that there was also an off-web page storage facility where by “devices and several machinery” had been stored.

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

Based on photos and invoices in GroundUp’s possession, some, if not all, of the items seem like equipment which was illegally faraway from the CTMCA’s former premises. Stemmet is going through rates for this removal.

Based on the remaining development report submitted into the NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter were directors at the time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, the identical address on which the museum was intended to be crafted and/or converted,” they reported.

An audit by accountants Kopano Integrated, connected towards the investigative report, recorded the CTMCA was in the whole process of acquiring “machinery, 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 among the directors.

In keeping with Dabishi Nthambeleni, the company has paid R1.2-million to be a deposit, this means R6.nine-million continues to be owed, even though there is absolutely no payment date established for when this have to be paid.

The Kopano audit as well as the shut website link between the companies “suggest to us that there is ‘foul Enjoy’ involved in the purchase on the equipment of your museum workshop”, the investigators stated while in the report.

“We discover that it's really probable that CTMCA utilised the funding with the NLC to ‘refund’ amongst its most important administrators for the property at a greater overpriced charge than the actual rate and price of the house and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were invested.

“In reality, a detailed report on how the funding in the NLC was employed, could well be difficult since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a internet site check out right before approving the grant. But this wasn't typical observe at some time plus they located no evidence of carelessness by NLC workforce.

At enough time, the NLC’s policies did not demand funded organisations to post proof of payment with interim reviews, they identified. This meant which the CTMCA was capable of get a second tranche of funding without the need to present proof that it had employed the first tranche for its meant purpose.

Adhering to the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni advisable that

the NLC decrease any future funding programs in the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected to the NLC’s “delinquency” approach;
the NLC open up a prison scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, rather then act about the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, since it experienced finished Together with the prior stories into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker through SMS, and requested for e mail addresses to mail the queries by e-mail too. But no reaction had been gained at some time of publication.



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