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

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

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Minstrels conduct in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the National Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has located no evidence that a museum at any time existed.
The investigators found which the CTMCA did not make use of the R5-million allocated to buy or develop a museum.
In addition they found that the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilised funds from your Lottery to purchase workshop devices from amongst its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the town’s loaded minstrel historical past went astray. The museum was hardly ever developed.

The main points of your abuse of countless rands of Lottery resources for the museum that by no means was are discovered in an investigative report commissioned from the NLC in 2021.

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

The first part of the investigation, by regulation business Dabishi Nthambeleni, was executed among September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which integrated funding for the museum. The accredited spending budget for the museum was more than R12.eight-million, with R5-million of that allocated for just a making to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a making for the museum and whether the museum “truly existed”.

The organization was also instructed to research

the acquisition with Lottery resources of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
a variety of devices “purchased with the production with the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors from the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation adopted extensive reporting by GroundUp in regards to the many rands of Lottery funding allotted to the CTMCA (see right here, listed here and below) and the best way the funds in all probability aided finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at the time by Marius Fransman.



The creating on the best was the intended web site in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to the Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “initiatives” - such as the museum - between 2012 and 2015. All 3 initiatives had been done, she advised MPs.

But the investigators identified no evidence that a museum experienced ever existed.

Initially the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp with the intended Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of photos haphazardly hung to the partitions, along with a product ship on its plinth in a corner.

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

Stemmet informed the investigators the museum were moved since they could now not find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced procured residence for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been offered for the same price. Schaapkraal is in a peri-city space considerably from town.

Therefore, the museum had been moved to a fresh site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after browsing the premises, which can be within an industrial place, the investigators mentioned they doubted whether a correct museum existed there. Pics attached on the report present a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find there's small amount of merchandise on the museum [that] by no means depict the more than a hundred-calendar year heritage with the Cape City Carnival, the investigators explained, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum does not look being open to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The situation on the museum to an alternative locale with no notifying the NLC.



The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had operate up a R4-million debt with the town of Cape Town and was scared its machines will be attached.

“A result of the authorized battles as well as debts, the organisation experienced to maneuver its house from 5 Crete Road to steer clear of the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director from the CTMCA, told them the two buses bought with lottery funds have been stored inside of a secret spot “concealed from the Sheriff”. Although the investigators said they ended up not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified the buses had been hidden to stop them getting seized. But if the investigators requested to get taken towards the location in which the buses were saved, he instructed them that “the owner of The key place wasn't available to open up the premises for us”.

“The CTMCA couldn't give proof of payment for 2 cars that it allegedly acquired with grant money,” the investigators reported.

Soeker also advised them the Schaapkraal property had been offered as a result of debt.

“Mr Soeker discussed that Based on his knowledge, because of the financial debt owed to the City of Cape Town, the CTMCA made a decision it would be greatest to provide their [Schaapkraal] property … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and safety, has previously explained to GroundUp the CTMCA “threw cash absent” on litigation with the town.

“Yearly like clockwork, as we strategy the tip in the calendar year, the CTMCA picks a legal battle with the town, more than permits or something else. We by no means initiate it. They keep throwing income absent on vexatious litigation which they drop and also have expenditures awarded against them. That is entirely self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the key purpose players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of many of the admin, finances and operating ตรวจ หวย รัฐบาล the CTMCA.” The investigators stated they were not able to Speak to Momberg.

Hats
For the duration of their “investigation in loco” with the Primrose Park premises, the investigators “discovered many devices, some in good affliction, some in negative affliction and a few that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility where “devices and some machinery” had been retained.

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

Based on pictures and invoices in GroundUp’s possession, some, if not all, of your merchandise seem like gear which was illegally removed from the CTMCA’s preceding premises. Stemmet is going through expenses for this removal.

In accordance with the closing progress report submitted for the NLC through the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization wherein Stemmet, his wife and his daughter were being directors at enough time.

The investigators found this “alarming”.

“With the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporate is 5 Crete Road, Wetton, Cape Town, the identical address on which the museum was meant to be crafted and/or converted,” they reported.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of getting “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was certainly one of the directors.

In line with Dabishi Nthambeleni, the business has paid out R1.two-million like a deposit, meaning R6.9-million continues to be owed, while there's no payment date set for when this has to be paid out.

The Kopano audit along with the near backlink concerning the businesses “show to us that there is ‘foul play’ involved in the acquisition with the machinery in the museum workshop”, the investigators stated inside the report.

“We discover that it is extremely possible that CTMCA applied the funding in the NLC to ‘refund’ one among its principal administrators to the property at a better overpriced rate than the actual price tag and price of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA had been invested.

“Actually, a detailed report on how the funding in the NLC was utilised, could well be extremely hard since the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts invested on Each individual item it asked for funding for. The interim report and closing report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC experienced not executed a web-site take a look at right before approving the grant. But this wasn't normal practice at some time and so they found no proof of carelessness by NLC workforce.

At enough time, the NLC’s policies did not involve funded organisations to submit proof of payment with interim stories, they identified. This meant the CTMCA was in a position to receive a second tranche of funding without needing to give evidence that it had utilised the primary tranche for its meant function.

Pursuing the appointment of a completely new board, commissioner and senior govt staff, the NLC has tightened up on these and various difficulties.

Dabishi Nthambeleni advisable that

the NLC decline any upcoming funding apps from your CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected for the NLC’s “delinquency” process;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated resources.
But, instead of act within the report’s suggestions, the NLC – beneath its past administration – selected to suppress it, because it had accomplished While using the previous experiences into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker by way of SMS, and asked for e mail addresses to ship the queries by e-mail too. But no reaction were acquired at the time of publication.



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

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