Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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Minstrels carry out in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission on the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no proof that a museum at any time existed.
The investigators uncovered that the CTMCA didn't make use of the R5-million allocated to purchase or build a museum.
In addition they located the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They located the CTMCA made use of money through the Lottery to get workshop tools from amongst its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to create a museum to rejoice the town’s abundant minstrel historical past went astray. The museum was hardly ever established.

The small print from the abuse of millions of rands of Lottery resources to get a museum that hardly ever was are discovered in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of more than R64-million in Lottery resources allotted on the CTMCA among 2003 and 2017.

The first A part of the investigation, by legislation agency Dabishi Nthambeleni, was done involving September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which included funding to the museum. The accredited budget for the museum was a lot more than R12.eight-million, with R5-million of that allotted for your setting up to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the 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 cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
several equipment “procured for the manufacturing from the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted legal 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 quite a few directors with the organisation. Stemmet was reappointed like a director in May perhaps 2021.

The investigation adopted considerable reporting by GroundUp about the many rands of Lottery funding allotted to your CTMCA (see listed here, in this article and right here) and the best way the cash in all probability aided finance the ANC’s 2014 election campaign in the Western Cape, led by at the time by Marius Fransman.



The building on the right was the meant web page with the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph

In response into a Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “initiatives” - including the museum - among 2012 and 2015. All 3 tasks were completed, she instructed MPs.

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

To start with the museum was as a result of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp from the meant Wetton museum reveals a espresso store with a few musical instruments and minstrel costumes and collages of images haphazardly hung to the walls, and a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni mentioned it had been “not in a position” to verify if a museum experienced at any time operated from these premises.

Stemmet instructed the investigators the museum were moved given that they could now not pay for the hire of R100,000 per month. He said the CTMCA had bought property for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for a similar rate. Schaapkraal is in a peri-city location significantly from the city.

Due to this fact, the museum were moved to a brand new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after viewing the premises, which can be in an industrial location, the investigators stated they doubted no matter if a correct museum existed there. Photos hooked up on the report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, with no explanation.

“You will find a minimal number of merchandise at the museum [that] in no way symbolize the a lot more than one hundred-yr history in the Cape Town Carnival, the investigators reported, incorporating that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum would not glimpse to get open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to an alternative area without notifying the NLC.



The Schaapkraal assets, on which no museum was ever developed. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA had to move within the rented Crete Road premises because it had run up a R4-million credit card debt with the town of Cape Town and was frightened its gear can be connected.

“Because of the lawful battles and also the debts, the organisation had to move its house from 5 Crete Highway to stay away from the sheriff from attaching the assets with the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director with the CTMCA, instructed them the two buses acquired with lottery funds were being stored inside of a key location “hidden from the Sheriff”. Even so the investigators stated they ended up not able to confirm that any buses experienced ever been acquired.

Stemmet also verified which the buses had been concealed to prevent them currently being seized. But when the investigators questioned to be taken on the position in which the buses were stored, he informed them that “the owner of the secret place wasn't accessible to open up the premises for us”.

“The CTMCA couldn't supply evidence of payment for two motor vehicles that it allegedly procured with grant dollars,” the investigators noted.

Soeker also explained to them the Schaapkraal house were marketed because of the debt.

“Mr Soeker defined that according to his being familiar with, mainly because of the financial debt owed to town of Cape City, the CTMCA made the decision It will be finest to sell their [Schaapkraal] home … also to also to cover the property of your CTMCA to steer clear of the sheriff from attaching the assets.”

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

“Each and every year like clockwork, as we strategy the tip in the year, the CTMCA picks a authorized struggle with town, around permits or another thing. We under no circumstances initiate it. They keep throwing cash away on vexatious litigation they eliminate and possess expenses awarded towards them. This can be totally self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the key position players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for every one of the admin, finances and running ผล หวย ลาว the CTMCA.” The investigators mentioned they had been struggling to Call Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “found a lot of machines, some in good ailment, some in terrible situation and some that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web site storage facility exactly where “devices and some machinery” have been saved.

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

Determined by pics and invoices in GroundUp’s possession, some, Otherwise all, of your items look like gear which was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing charges for this removing.

In accordance with the final development report submitted to your NLC with the CTMCA, the equipment was acquired from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter had been directors at enough time.

The investigators discovered this “alarming”.

“With the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape City, precisely the same tackle on which the museum was intended to be developed and/or converted,” they noted.

An audit by accountants Kopano Included, connected on the investigative report, recorded that the CTMCA was in the process of paying for “machinery, plant and stock” 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.

As outlined by Dabishi Nthambeleni, the business has paid R1.two-million as being a deposit, this means R6.9-million continues to be owed, although there is no payment day established for when this must be compensated.

The Kopano audit and the shut link in between the businesses “point out to us that there is ‘foul Perform’ associated with the purchase of your equipment with the museum workshop”, the investigators claimed while in the report.

“We find that it's extremely possible that CTMCA employed the funding of the NLC to ‘refund’ amongst its principal administrators for your property at an increased overpriced amount than the actual rate and worth of the property and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant to the CTMCA had been put in.

“In fact, a detailed report on how the funding in the NLC was used, can be unachievable given that the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts used on each product it asked for funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not carried out a web site go to right before approving the grant. But this was not standard observe at time plus they found no evidence of negligence by NLC employees.

At time, the NLC’s procedures didn't demand funded organisations to submit proof of payment with interim reviews, they pointed out. This meant that the CTMCA was in the position to get a next tranche of funding without having to deliver proof that it experienced utilized the initial tranche for its intended objective.

Following the appointment of a fresh board, commissioner and senior executive crew, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni recommended that

the NLC decrease any long term funding apps in the CTMCA;
the CTMCA and any members who have been involved in the grant be subjected to your NLC’s “delinquency” method;
the NLC open up a prison circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated cash.
But, rather then act around the report’s recommendations, the NLC – under its previous administration – selected to suppress it, since it had completed With all the prior experiences into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and requested for email addresses to mail the inquiries by email much too. But no reaction were acquired at some time of publication.



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

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