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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Nationwide Lotteries Fee into the Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has located no evidence that a museum ever existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to obtain or make a museum.
They also uncovered the CTMCA only purchased land value R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilised cash from your Lottery to buy workshop tools from among its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to setup a museum to rejoice the town’s rich minstrel heritage went astray. The museum was by no means produced.

The small print from the abuse of countless rands of Lottery resources for your museum that by no means was are unveiled in an investigative report commissioned with the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery money allotted into the CTMCA amongst 2003 and 2017.

The main A part of the investigation, by law business Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which integrated funding for the museum. The accepted price range to the museum was in excess of R12.eight-million, with R5-million of that allocated to get a creating to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the creating for the museum and whether the museum “really existed”.

The agency was also instructed to research

the purchase with Lottery resources of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
many machines “purchased for the production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several administrators on the organisation. Stemmet was reappointed as being a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp about the many rands of Lottery funding allocated to the CTMCA (see listed here, here and right here) and just how the cash almost certainly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.



The developing on the appropriate was the meant site from the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to your Parliamentary problem, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “projects” - such as the museum - in between 2012 and 2015. All 3 assignments had been concluded, she explained to MPs.

However the investigators located no proof that a museum experienced at any time existed.

To start with the museum was on account of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp of the meant Wetton museum shows a espresso store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung within the walls, and a product ship on its plinth in a very corner.

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

Stemmet told the investigators the museum had been moved since they could no longer afford to pay for the lease of R100,000 per month. He explained the CTMCA had procured assets for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been offered for a similar cost. Schaapkraal is in the peri-city space far from the city.

Because of this, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after browsing the premises, that happen to be in an industrial space, the investigators claimed they doubted no matter if a correct museum existed there. Shots attached to your report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the ground, without any rationalization.

“There exists a negligible volume of merchandise in the museum [that] under no circumstances stand for the over one hundred-12 months heritage of your Cape City Carnival, the investigators said, adding that there was “no signage outside the house the premises indicating they housed a museum and … frequently, the museum doesn't appear for being open to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by going The situation with the museum to an alternate place with no notifying the NLC.



The Schaapkraal home, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to maneuver through the rented Crete Road premises mainly because it experienced run up a R4-million personal debt with the town of Cape City and was fearful its tools would be connected.

“As a result of lawful battles as well as debts, the organisation had to maneuver its assets from five Crete Highway to steer clear of the sheriff from attaching the assets in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director from the CTMCA, instructed them which the two buses purchased with lottery cash were saved inside of a secret location “concealed from the Sheriff”. Though the investigators claimed they were being unable to substantiate that any buses had at any time been purchased.

Stemmet also verified the buses were concealed to stop them being seized. But if the investigators questioned to get taken for the put the place the buses were stored, he explained to them that “the operator of The trick area was not available to open the premises for us”.

“The CTMCA couldn't present proof of payment for two vehicles that it allegedly purchased with grant dollars,” the investigators documented.

Soeker also informed them the Schaapkraal home were offered due to financial debt.

“Mr Soeker defined that In accordance with his comprehension, a result of the credit card debt owed to the City of Cape City, the CTMCA resolved It will be very best to market their [Schaapkraal] residence … also to also to cover the belongings of your CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for protection and stability, has Earlier advised GroundUp that the CTMCA “threw cash absent” on litigation with the town.

“Yearly like clockwork, as we strategy the top with the yr, the CTMCA picks a lawful battle with town, above permits or another thing. We in no way initiate it. They continue to keep throwing funds absent on vexatious litigation which they drop and also have prices awarded in opposition to them. This really is fully self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the primary position gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for many of the admin, funds and jogging ตรวจ หวย รัฐบาล the CTMCA.” The investigators reported they had been unable to Make contact with Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “found several machines, some in great issue, some in undesirable problem and a few that appeared rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-web site storage facility exactly where “devices and a few equipment” had been saved.

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

Based upon pictures and invoices in GroundUp’s possession, some, if not all, of your things seem like equipment that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing charges for this removal.

According to the last progress report submitted towards the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter had been directors at the time.

The investigators uncovered this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming getting: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Street, Wetton, Cape City, 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 into 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 among the directors.

In line with Dabishi Nthambeleni, the business has paid R1.two-million for a deposit, that means R6.9-million remains to be owed, however there is absolutely no payment date set for when this needs to be paid out.

The Kopano audit and the near connection among the businesses “indicate to us that there is ‘foul Enjoy’ linked to the purchase in the machinery with the museum workshop”, the investigators said inside the report.

“We find that it is extremely probable that CTMCA utilized the funding from the NLC to ‘refund’ among its principal directors for the assets at an increased overpriced amount than the actual cost and price of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.

“In fact, an in depth report on how the funding from the NLC was utilized, might be extremely hard as the CTMCA does not have any receipts, or proof of payments to verify the quantities expended on Every item it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not carried out a internet site check out in advance of approving the grant. But this wasn't normal follow at the time they usually observed no evidence of carelessness by NLC staff members.

At time, the NLC’s guidelines didn't need funded organisations to post proof of payment with interim experiences, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding while not having to offer proof that it had made use of the very first tranche for its meant reason.

Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni advisable that

the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, in lieu of act around the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the inquiries by e mail way too. But no reaction had been obtained at the time of publication.



The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph