Leaked report exposes abuse of lottery income paid out to minstrel group

Leaked report exposes abuse of lottery income paid out to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the Nationwide Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has found no evidence that a museum at any time existed.
The investigators identified that the CTMCA did not utilize the R5-million allotted to order or create a museum.
In addition they discovered the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They identified the CTMCA utilized resources from the Lottery to invest in workshop equipment from amongst its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to the Cape Town Minstrel Carnival Association (CTMCA) with the National Lotteries Commission (NLC) to create a museum to rejoice the town’s prosperous minstrel background went astray. The museum was in no way developed.

The main points of your abuse of countless rands of Lottery money for any museum that never ever was are revealed within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery money allocated towards the CTMCA amongst 2003 and 2017.

The 1st Component of the investigation, by legislation agency Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which bundled funding for your museum. The accepted price range to the museum was in excess of R12.8-million, with R5-million of that allotted for any developing to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a making to the museum and whether or not the museum “truly existed”.

The firm was also instructed to analyze

the acquisition with Lottery funds of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
different equipment “acquired for your production with the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors in the organisation. Stemmet was reappointed for a director in Could 2021.

The investigation adopted comprehensive reporting by GroundUp in regards to the countless rands of Lottery funding allotted for the CTMCA (see below, below and listed here) and the best way the money most likely helped finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.



The constructing on the right was the supposed web-site from the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to a Parliamentary issue, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “assignments” - including the museum - in between 2012 and 2015. All three assignments had been accomplished, she instructed MPs.

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

At the beginning the museum was resulting from open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung within the partitions, as well as a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not able” to verify if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved because they could not find the money for the rent of R100,000 a month. He said the CTMCA had acquired residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for a similar cost. Schaapkraal is within a peri-city space significantly from the city.

As a result, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after viewing the premises, which are within an industrial area, the investigators explained they doubted regardless of whether an appropriate museum existed there. Photographs connected to your report clearly show a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, displayed on tables and spread out on the ground, without explanation.

“There is a negligible number of objects on the museum [that] by no means characterize the greater than a hundred-yr history of the Cape City Carnival, the investigators reported, including that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum doesn't search for being open up to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni mentioned, by moving The situation in the museum to an alternative locale with no notifying the NLC.



The Schaapkraal assets, on which no museum was ever designed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA had to maneuver through the rented Crete Highway premises because it had operate up a R4-million personal debt with town of Cape City and was worried its devices can be hooked up.

“As a result of authorized battles plus the debts, the organisation had to move its house from five Crete Road to steer clear of the sheriff from attaching the residence of the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director from the CTMCA, informed them which the two buses acquired with lottery cash have been saved inside a mystery location “hidden from your Sheriff”. Nevertheless the investigators reported they ended up not able to confirm that any buses had ever been purchased.

Stemmet also confirmed which the buses had been hidden to halt them becoming seized. But once the investigators asked to become taken on the location where the buses were being saved, he informed them that “the proprietor of the secret locale wasn't available to open the premises for us”.

“The CTMCA couldn't give proof of payment for 2 autos that it allegedly purchased with grant income,” the investigators reported.

Soeker also informed them the Schaapkraal residence were marketed as a result of credit card debt.

“Mr Soeker spelled out that In accordance with his being familiar with, due to the credit card debt owed to the City of Cape City, the CTMCA made a decision It might be very best to provide their [Schaapkraal] residence … and to also to cover the assets with the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for basic safety and security, has Formerly explained to GroundUp that the CTMCA “threw revenue away” on litigation with the town.

“Every year like clockwork, as we technique the top in the 12 months, the CTMCA picks a legal fight with the town, in excess of permits or another thing. We never initiate it. They maintain throwing funds away on vexatious litigation that they shed and have costs awarded versus them. This is solely self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of every one of the admin, finances and running หวย the CTMCA.” The investigators reported they had been struggling to Make contact with Momberg.

Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “discovered numerous devices, some in good affliction, some in undesirable situation and many that looked rusty and very aged”. Stemmet advised the investigators that there was also an off-website storage facility where “instruments and many equipment” were held.

“We requested him to choose us to the ability but he was evasive to our request.”

Dependant on photographs and invoices in GroundUp’s possession, some, if not all, of your items look like gear that was illegally faraway from the CTMCA’s past premises. Stemmet is dealing with expenses for this removal.

In accordance with the remaining development report submitted on the NLC because of the CTMCA, the machinery was procured from Martin-Conne Milliners, a business by which Stemmet, his spouse and his daughter had been administrators at time.

The investigators observed this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Road, Wetton, Cape City, a similar handle on which the museum was meant to be designed and/or converted,” they reported.

An audit by accountants Kopano Incorporated, connected on the investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.

In line with Dabishi Nthambeleni, the organization has paid out R1.two-million like a deposit, meaning R6.9-million remains to be owed, though there isn't a payment day established for when this should be paid out.

The Kopano audit along with the near connection concerning the businesses “indicate to us that there's ‘foul Participate in’ linked to the purchase from the equipment of your museum workshop”, the investigators reported during the report.

“We discover that it is extremely possible that CTMCA utilized the funding of the NLC to ‘refund’ one of its key directors with the residence at a greater overpriced price than the particular cost and worth of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant to the CTMCA had been expended.

“In reality, a detailed report on how the funding in the NLC was used, could be extremely hard as being the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Each individual product it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not done a internet site stop by right before approving the grant. But this was not normal observe at time plus they found no evidence of carelessness by NLC employees.

At the time, the NLC’s policies didn't have to have funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was in the position to get a 2nd tranche of funding without needing to give proof that it experienced applied the 1st tranche for its meant objective.

Following the appointment of a new board, commissioner and senior government team, the NLC has tightened up on these as well as other challenges.

Dabishi Nthambeleni advisable that

the NLC drop any foreseeable future funding purposes from your CTMCA;
the CTMCA and any customers who were associated with the grant be subjected to your NLC’s “delinquency” process;
the NLC open a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, rather then act over the report’s tips, the NLC – less than its former administration – selected to suppress it, because it had finished While using the former stories into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for email addresses to send out the concerns by electronic mail also. But no reaction were acquired at time of publication.



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

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