Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Commission into the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has discovered no evidence that a museum at any time existed.
The investigators located that the CTMCA didn't use the R5-million allocated to acquire or create a museum.
In addition they found which the CTMCA only acquired land well worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilized cash with the Lottery to purchase workshop products from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to put in place a museum to celebrate town’s loaded minstrel heritage went astray. The museum was under no circumstances developed.

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

The museum grant was Section of much more than R64-million in Lottery resources allotted into the CTMCA in between 2003 and 2017.

The very first A part of the investigation, by regulation organization Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which provided funding for the museum. The accredited budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for a developing to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the building with the museum and whether or not the museum “essentially existed”.

The organization was also instructed to research

the purchase with Lottery resources of two autos – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous equipment “obtained for the production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted considerable reporting by GroundUp in regards to the a lot of rands of Lottery funding allotted to your CTMCA (see below, below and below) and the best way the money most likely helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.



The setting up on the appropriate was the supposed web page on the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three assignments were done, she told MPs.

But the investigators observed no evidence that a museum had ever existed.

To start with the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photo received by GroundUp with the supposed Wetton museum shows a coffee shop with some musical instruments and minstrel costumes and collages of images haphazardly hung on the walls, plus a product ship on its plinth within a corner.

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

Stemmet instructed the investigators the museum had been moved since they could no longer pay for the hire of R100,000 a month. He reported the CTMCA had ordered property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for the same value. Schaapkraal is in the peri-urban location much from the city.

Because of this, the museum had been moved to a brand new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after traveling to the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter if a proper museum existed there. Pics attached on the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find there's negligible quantity of things with the museum [that] under no circumstances depict the in excess of one hundred-yr background of the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating which they housed a museum and … typically, the museum doesn't glimpse to get open to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternative spot without having notifying the NLC.



The Schaapkraal home, on which no museum was at any time developed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA experienced to move through the rented Crete Road premises as it experienced run up a R4-million credit card debt with town of Cape Town and was fearful its gear might be hooked up.

“As a result of authorized battles and the debts, the organisation had to move its home from 5 Crete Road to stay away from the sheriff from attaching the house with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses purchased with lottery funds were saved in a very mystery spot “hidden within the Sheriff”. Though the investigators explained they had been not able to confirm that any buses experienced ever been purchased.

Stemmet also verified the buses were hidden to prevent them being seized. But once the investigators questioned to become taken to your place the place the buses were being stored, he informed them that “the proprietor of The key locale wasn't accessible to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators documented.

Soeker also advised them the Schaapkraal house had been sold due to personal debt.

“Mr Soeker spelled out that As outlined by his knowledge, due to financial debt owed to town of Cape Town, the CTMCA decided It could be greatest to provide their [Schaapkraal] house … also to also to hide the property of your CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and safety, has Earlier told GroundUp that the CTMCA “threw income absent” on litigation with the town.

“Every year like clockwork, as we method the end in the yr, the CTMCA picks a authorized battle with the City, more than permits or something else. We in no way initiate it. They preserve throwing cash away on vexatious litigation which they eliminate and also have expenses awarded against them. This is solely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the main purpose players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in control of many of the admin, finances and managing cat888 the CTMCA.” The investigators explained they had been struggling to Speak to Momberg.

Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located many devices, some in good issue, some in lousy problem and many that appeared rusty and extremely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where “instruments and some machinery” were stored.

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

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removal.

In accordance with the ultimate development report submitted for the NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter ended up administrators at the time.

The investigators located this “alarming”.

“From the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape Town, the same address on which the museum was meant to be created and/or transformed,” they described.

An audit by accountants Kopano Included, connected to the investigative report, recorded that the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was certainly one of the directors.

According to Dabishi Nthambeleni, the organization has paid R1.two-million as a deposit, this means R6.nine-million continues to be owed, although there is no payment day set for when this must be paid out.

The Kopano audit and also the near hyperlink involving the companies “point out to us that there is ‘foul play’ involved with the acquisition on the machinery on the museum workshop”, the investigators stated during the report.

“We find that it's extremely possible that CTMCA utilised the funding of the NLC to ‘refund’ amongst its main directors to the residence at a higher overpriced rate than the particular cost and worth of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were put in.

“In fact, an in depth report on how the funding with the NLC was employed, would be impossible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Every single product it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not executed a web page visit before approving the grant. But this wasn't conventional exercise at enough time and so they found no proof of negligence by NLC employees.

At enough time, the NLC’s principles didn't call for funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding without needing to deliver proof that it had utilised the first tranche for its intended function.

Pursuing the appointment of a new board, commissioner and senior executive team, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any long run funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated cash.
But, as opposed to act over the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced done Together with the former reports into corruption it had commissioned.

GroundUp sent concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e-mail way too. But no response were been given at enough time of publication.



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