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

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

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Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant with the National Lotteries Commission on the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has found no proof that a museum ever existed.
The investigators uncovered that the CTMCA didn't utilize the R5-million allocated to get or establish a museum.
They also identified the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilised money from your Lottery to get workshop tools from among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Commission (NLC) to setup a museum to rejoice town’s rich minstrel history went astray. The museum was hardly ever established.

The small print in the abuse of an incredible number of rands of Lottery resources for your museum that in no way was are disclosed in an investigative report commissioned via the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery money allotted towards the CTMCA between 2003 and 2017.

The 1st Section of the investigation, by legislation business Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which integrated funding with the museum. The accepted finances for that museum was more than R12.eight-million, with R5-million of that allocated for the making to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making with the museum and whether or not the museum “basically existed”.

The business was also instructed to investigate

the acquisition with Lottery money of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
many machines “purchased for your producing on the costumes and hats” with 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 wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators with the organisation. Stemmet was reappointed for a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp concerning the an incredible number of rands of Lottery funding allotted for the CTMCA (see in this article, here and right here) and the way in which the funds in all probability aided finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The making on the ideal was the intended web site from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to a Parliamentary query, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - such as the museum - between 2012 and 2015. All a few assignments had been finished, she informed MPs.

Though the investigators found no proof that a museum experienced ever existed.

At the beginning the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of your intended Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung about the walls, in addition to a product ship on its plinth in a corner.

In its report, Dabishi Nthambeleni reported it had been “not in a position” to verify if a museum had ever operated from these premises.

Stemmet told the investigators the museum had been moved simply because they could now not find the money for the rent of R100,000 a month. He reported the CTMCA had purchased house for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for the same price tag. Schaapkraal is in a peri-urban location significantly from town.

Consequently, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, which might be in an industrial area, the investigators claimed they doubted whether a suitable museum existed there. Photographs hooked up for the report display a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the ground, without having explanation.

“You will find a minimal number of items on the museum [that] under no circumstances represent the over one hundred-12 months heritage of your Cape City Carnival, the investigators said, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum won't glance to get open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by going the location of your museum to an alternate locale with no notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA experienced to maneuver in the rented Crete Street premises because it experienced operate up a R4-million personal debt with the City of Cape Town and was afraid its devices would be hooked up.

“Mainly because of the lawful battles as well as the debts, the organisation had to move its home from five Crete Highway to steer clear of the sheriff from attaching the home with the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of your CTMCA, advised them which the two buses acquired with lottery resources have been stored in a very top secret site “concealed in the Sheriff”. Though the investigators said they had been unable to confirm that any buses had at any time been purchased.

Stemmet also confirmed that the buses were hidden to halt them currently being seized. But if the investigators questioned being taken into the spot wherever the buses ended up stored, he advised them that “the operator of the secret location wasn't available to open the premises for us”.

“The CTMCA could not offer evidence of payment for two cars that it allegedly acquired with grant funds,” the investigators reported.

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

“Mr Soeker spelled out that according to his comprehension, as a result of credit card debt owed to the town of Cape Town, the CTMCA decided It could be very best to provide their [Schaapkraal] house … also to also to cover the assets of your CTMCA to avoid the sheriff from attaching the house.”

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

“Annually like clockwork, as we tactic the tip on the yr, the CTMCA picks a legal struggle with town, about permits or something else. We by no means initiate it. They preserve throwing money absent on vexatious litigation they drop and have prices awarded in opposition to them. This can be entirely self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the key part gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for each of the admin, funds and working หวย วัน นี้ the CTMCA.” The investigators explained they were unable to Speak to Momberg.

Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “identified a lot of devices, some in fantastic ailment, some in lousy affliction and many that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility in which “devices and several equipment” have been kept.

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

Depending on shots and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be products that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing expenses for this elimination.

In accordance with the remaining development report submitted to the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter have been directors at the time.

The investigators found this “alarming”.

“From the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Notice the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Street, Wetton, Cape City, the identical tackle on which the museum was meant to be constructed and/or converted,” they documented.

An audit by accountants Kopano Included, hooked up towards the investigative report, recorded the CTMCA was in the entire process of paying for “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 Company of which Stemmet was one of the directors.

According to Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, indicating R6.9-million is still owed, even though there is absolutely no payment date established for when this need to be paid.

The Kopano audit as well as near hyperlink involving the companies “point out to us that there is ‘foul Participate in’ associated with the acquisition of the machinery with the museum workshop”, the investigators stated from the report.

“We discover that it's remarkably possible that CTMCA made use of the funding of the NLC to ‘refund’ among its principal directors for your home at a greater overpriced charge than the actual price and price of the house and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been unable to determine how the grant on the CTMCA had been spent.

“In reality, an in depth report on how the funding on the NLC was employed, could be impossible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent 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 observed which the NLC experienced not executed a web page go to just before approving the grant. But this was not common follow at time and so they discovered no proof of carelessness by NLC personnel.

At time, the NLC’s rules didn't demand funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to get a second tranche of funding without the need to present evidence that it had made use of the initial tranche for its meant purpose.

Subsequent the appointment of a different board, commissioner and senior govt group, the NLC has tightened up on these together with other issues.

Dabishi Nthambeleni advised that

the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who have been involved with the grant be subjected for 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 start off the entire process of recovering the misappropriated resources.
But, as an alternative to act around the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it had accomplished with the preceding experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to mail the questions by email as well. But no response were been given at enough time of publication.



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