Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum ever existed.
The investigators located the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they observed the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA made use of money in the Lottery to buy workshop equipment from amongst its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate town’s prosperous minstrel history went astray. The museum was by no means produced.

The small print of your abuse of numerous rands of Lottery resources for any museum that by no means was are discovered in an investigative report commissioned because of the NLC in 2021.

The museum grant was Element of greater than R64-million in Lottery funds allotted into the CTMCA between 2003 and 2017.

The primary Portion of the investigation, by law business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which bundled funding for your museum. The permitted spending budget for your museum was in excess of R12.8-million, with R5-million of that allotted for a creating to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the building for that museum and whether the museum “actually existed”.

The agency was also instructed to research

the acquisition with Lottery money of two vehicles – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of devices “obtained for that production in the costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of your 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 a number of administrators on the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp regarding the many rands of Lottery funding allotted to the CTMCA (see right here, right here and listed here) and the best way the money likely aided finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The setting up on the appropriate was the intended website of your minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In response to your Parliamentary query, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 jobs had been concluded, she informed MPs.

Although the investigators uncovered no evidence that a museum experienced at any time existed.

Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of your meant Wetton museum demonstrates a coffee store with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, as well as a product ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni explained it was “not ready” to verify if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum had been moved as they could no longer afford to pay for the hire of R100,000 a month. He claimed the CTMCA had ordered property for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were sold for the same price. Schaapkraal is in the peri-city area far from the city.

Therefore, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after browsing the premises, that happen to be in an industrial area, the investigators said they doubted whether or not an appropriate museum existed there. Pics connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, displayed on tables and distribute out on the ground, without any clarification.

“There's a small level of goods at the museum [that] by no means stand for the over one hundred-calendar year history of the Cape City Carnival, the investigators claimed, introducing that there was “no signage exterior the premises indicating they housed a museum and … usually, the museum does not glimpse being open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by transferring the location with the museum to an alternative spot with out notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA had to move from your rented Crete Street premises mainly because it experienced run up a R4-million financial debt with the town of Cape City and was fearful its products might be attached.

“A result of the authorized battles along with the debts, the organisation had to maneuver its residence from five Crete Street to avoid the sheriff from attaching the property of the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses bought with lottery funds had been saved in the magic formula place “hidden in the Sheriff”. But the investigators mentioned they have been unable to substantiate that any buses experienced ever been purchased.

Stemmet also confirmed that the buses were hidden to prevent them remaining seized. But once the investigators questioned being taken to your position the place the buses had been stored, he explained to them that “the proprietor of The key location was not available to open up the premises for us”.

“The CTMCA could not give evidence of payment for two motor vehicles that it allegedly bought with grant money,” the investigators documented.

Soeker also advised them the Schaapkraal house were marketed as a result of financial debt.

“Mr Soeker described that according to his being familiar with, due to the debt owed to the town of Cape City, the CTMCA decided it would be most effective to sell their [Schaapkraal] residence … and to also to hide the belongings from the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for protection and security, has Earlier told GroundUp that the CTMCA “threw funds away” on litigation with town.

“On a yearly basis like clockwork, as we solution the top of the year, the CTMCA picks a lawful combat with the City, over permits or another thing. We hardly ever initiate it. They retain throwing dollars away on vexatious litigation they lose and also have prices awarded towards them. This is often completely self-inflicted,” he reported.

Soeker told 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 accountable for the many admin, finances and operating หวย ลาว ย้อน หลัง the CTMCA.” The investigators claimed they were struggling to contact Momberg.

Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “identified several machines, 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 several equipment” had been saved.

“We asked him to acquire us to the facility but he was evasive to our request.”

Based upon photos and invoices in GroundUp’s possession, some, if not all, on the merchandise look like gear that was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.

Based on the closing progress report submitted for the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, a corporation wherein Stemmet, his wife and his daughter had been administrators at time.

The investigators discovered 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 Town, precisely the same handle on which the museum was meant to be constructed and/or converted,” they documented.

An audit by accountants Kopano Included, hooked up to the investigative report, recorded that the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the administrators.

According to Dabishi Nthambeleni, the company has compensated R1.2-million as a deposit, this means R6.nine-million is still owed, nevertheless there is not any payment date established for when this have to be compensated.

The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul play’ involved with the acquisition of the machinery in the museum workshop”, the investigators claimed within the report.

“We find that it is extremely probable that CTMCA employed the funding on the NLC to ‘refund’ one among its key administrators to the home at a greater overpriced rate than the particular price tag and worth of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant for the CTMCA were put in.

“In reality, a detailed report on how the funding of your NLC was utilised, would be difficult because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities invested on Just about every product it asked for funding for. The interim report and final report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC had not performed a internet site check out in advance of approving the grant. But this was not normal apply at the time they usually found no proof of negligence by NLC workers.

At the time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim reviews, they identified. This intended the CTMCA was able to receive a next tranche of funding without needing to deliver proof that it had made use of the initial tranche for its supposed purpose.

Adhering to the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these together with other issues.

Dabishi Nthambeleni suggested that

the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected on the NLC’s “delinquency” method;
the NLC open a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had performed Using the preceding experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the issues 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