Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators observed the CTMCA did not use the R5-million allotted to obtain or produce a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allocated.
They discovered the CTMCA made use of money in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s loaded minstrel history went astray. The museum was never ever established.

The main points of your abuse of millions of rands of Lottery resources for just a museum that hardly ever was are disclosed within an investigative report commissioned through the NLC in 2021.

The museum grant was A part of greater than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.

The initial part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding for that museum. The approved price range to the museum was much more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether the museum “basically existed”.

The organization was also instructed to research

the acquisition with Lottery cash of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several machines “ordered for your producing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director with 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 directors with the organisation. Stemmet was reappointed being a director in Might 2021.

The investigation adopted in depth reporting by GroundUp with regards to the numerous rands of Lottery funding allocated on the CTMCA (see below, listed here and here) and the way the funds likely aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.



The developing on the correct was the meant web page with the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph

In response to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All 3 tasks were finished, she explained to MPs.

However the investigators discovered no proof that a museum experienced at any time existed.

Initially the museum was on account of open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of shots haphazardly hung to the partitions, plus a product ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni explained it was “not in a position” to confirm if a museum experienced at any time operated from these premises.

Stemmet explained to the investigators the museum were moved simply because they could no longer manage the rent of R100,000 per month. He claimed the CTMCA experienced purchased residence for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been marketed for the same value. Schaapkraal is in a very peri-urban spot much from town.

Therefore, the museum were moved to a new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following 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 into the report demonstrate a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the ground, with no clarification.

“There is a nominal amount of objects at the museum [that] under no circumstances represent the much more than a hundred-12 months historical past in the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not appear to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by transferring The situation on the museum to another place devoid of notifying the NLC.



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

Buses
Stemmet told the investigators that the CTMCA had to maneuver in the rented Crete Road premises since it had run up a R4-million debt with town of Cape City and was fearful its devices might be connected.

“Due to authorized battles as well as the debts, the organisation had to maneuver its home from five Crete Street to avoid the sheriff from attaching the residence on the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director from the CTMCA, explained to them that the two buses purchased with lottery resources had been saved inside of a key locale “hidden from your Sheriff”. Though the investigators stated they have been not able to substantiate that any buses experienced at any time been purchased.

Stemmet also confirmed the buses had been hidden to stop them becoming seized. But when the investigators asked to be taken to the place exactly where the buses were saved, he advised them that “the owner of The trick site was not accessible to open the premises for us”.

“The CTMCA couldn't give proof of payment for 2 automobiles that it allegedly procured with grant income,” the investigators noted.

Soeker also instructed them the Schaapkraal home were bought due to the credit card debt.

“Mr Soeker explained that As outlined by his comprehending, due to personal debt owed to town of Cape City, the CTMCA decided It might be greatest to market their [Schaapkraal] residence … and also to also to hide the assets of the CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for security and security, has Beforehand instructed GroundUp the CTMCA “threw cash absent” on litigation with the City.

“Every year like clockwork, as we solution the end of your yr, the CTMCA picks a legal combat with town, in excess of permits or another thing. We in no way initiate it. They retain throwing revenue absent on vexatious litigation they drop and possess prices awarded versus them. This is certainly totally self-inflicted,” he reported.

Soeker informed the Dabishi Nthambeleni investigators that the principle part gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of every one of the admin, funds and jogging หวย วัน นี้ the CTMCA.” The investigators explained they were struggling to Make contact with Momberg.

Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “discovered several devices, some in excellent problem, some in negative condition plus some that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-site storage facility wherever “instruments plus some machinery” were being held.

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

Determined by photos and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like tools which was illegally removed from the CTMCA’s earlier premises. Stemmet is struggling with expenses for this elimination.

In accordance with the final progress report submitted for the NLC with the CTMCA, the equipment was acquired from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter have been directors at time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the same tackle on which the museum was meant to be built 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 buying “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the administrators.

In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million to be a deposit, this means R6.nine-million remains to be owed, nevertheless there isn't any payment day established for when this has to be paid.

The Kopano audit and the near connection involving the companies “point out to us that there's ‘foul Perform’ involved with the acquisition in the equipment of the museum workshop”, the investigators mentioned from the report.

“We discover that it's highly probable that CTMCA used the funding on the NLC to ‘refund’ one of its main directors for your home at a greater overpriced price than the particular rate and worth of the house and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant for the CTMCA were invested.

“In reality, a detailed report on how the funding from the NLC was made use of, can be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on each item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not executed a web-site stop by right before approving the grant. But this wasn't common apply at the time they usually observed no evidence of carelessness by NLC staff members.

At time, the NLC’s rules didn't need funded organisations to post proof of payment with interim stories, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to deliver proof that it had applied the first tranche for its intended function.

Next the appointment of a brand new board, commissioner and senior government crew, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advised that

the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, instead of act over the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced done Together with the former reviews into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the issues by e mail far too. But no response had been received at the time of publication.



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