Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Fee into the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators found that the CTMCA did not make use of the R5-million allocated to order or establish a museum.
They also discovered that the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA utilised money through the Lottery to get workshop tools from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to arrange a museum to celebrate the city’s abundant minstrel history went astray. The museum was never ever created.

The details from the abuse of an incredible number of rands of Lottery cash for your museum that under no circumstances was are disclosed within an investigative report commissioned with the NLC in 2021.

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

The primary Section of the investigation, by legislation organization Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which provided funding for the museum. The accredited budget for that museum was greater than R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating with the museum and whether or not the museum “basically existed”.

The agency was also instructed to investigate

the purchase with Lottery cash of two cars – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
numerous machines “bought for the manufacturing of the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators on the organisation. Stemmet was reappointed to be a director in May 2021.

The investigation followed intensive reporting by GroundUp in regards to the countless rands of Lottery funding allocated towards the CTMCA (see below, in this article and below) and how the resources most likely served finance the ANC’s 2014 election campaign inside the Western Cape, led by at some time by Marius Fransman.



The constructing on the right was the intended website with the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction into a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “initiatives” - including the museum - in between 2012 and 2015. All a few jobs were accomplished, she advised MPs.

Nevertheless the investigators discovered no proof that a museum experienced ever existed.

At first the museum was due to open in rented premises in Crete Highway, Wetton. A photo attained by GroundUp on the supposed Wetton museum displays a espresso shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung to the partitions, as well as a model ship on its plinth in a very corner.

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

Stemmet explained to the investigators the museum had been moved simply because they could no longer afford the hire of R100,000 a month. He said the CTMCA had acquired property for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for the same rate. Schaapkraal is inside a peri-urban location significantly from the town.

Consequently, the museum had been moved to a completely new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, that are within an industrial region, the investigators mentioned they doubted whether an appropriate museum existed there. Pictures hooked up to the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and unfold out on the floor, without having clarification.

“There exists a nominal level of items for the museum [that] under no circumstances signify the much more than 100-12 months history from the Cape Town Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum isn't going to glimpse to generally be open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating the location on the museum to an alternate location without notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises since it experienced run up a R4-million credit card debt with the City of Cape Town and was worried its machines might be hooked up.

“As a result of authorized battles and also the debts, the organisation had to move its house from five Crete Highway to avoid the sheriff from attaching the home in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director with the CTMCA, advised them that the two buses acquired with lottery money had been saved inside of a secret location “concealed with the Sheriff”. Though the investigators reported they ended up unable to verify that any buses experienced ever been acquired.

Stemmet also verified the buses had been concealed to prevent them remaining seized. But once the investigators asked to generally be taken to your spot in which the buses were stored, he explained to them that “the owner of The key locale wasn't available to open up the premises for us”.

“The CTMCA could not provide proof of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.

Soeker also informed them the Schaapkraal house were bought because of the debt.

“Mr Soeker discussed that As outlined by his understanding, because of the financial debt owed to town of Cape City, the CTMCA resolved it would be very best to market their [Schaapkraal] home … also to also to cover the property in the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for safety and safety, has Beforehand advised GroundUp which the CTMCA “threw income absent” on litigation with the City.

“On a yearly basis like clockwork, as we technique the top of the yr, the CTMCA picks a authorized battle with the town, about permits or another thing. We by no means initiate it. They preserve throwing income absent on vexatious litigation they eliminate and have prices awarded in opposition to them. This is totally self-inflicted,” he reported.

Soeker informed the Dabishi Nthambeleni investigators that the primary role players on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of all the admin, finances and functioning lottovip the CTMCA.” The investigators explained they were unable to Speak to Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “observed various equipment, some in good problem, some in undesirable condition and many that seemed rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-internet site storage facility the place “instruments plus some machinery” had been kept.

“We questioned him to acquire us to the ability but he was evasive to our ask for.”

Based upon photographs and invoices in GroundUp’s possession, some, if not all, with the objects appear to be devices that was illegally removed from the CTMCA’s former premises. Stemmet is dealing with prices for this removing.

According to the closing development report submitted towards the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter ended up directors at time.

The investigators uncovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we note the following alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the corporation is five Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be created and/or transformed,” they described.

An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the administrators.

According to Dabishi Nthambeleni, the company has compensated R1.2-million being a deposit, which means R6.9-million is still owed, while there isn't a payment date established for when this have to be paid.

The Kopano audit as well as near link amongst the businesses “show to us that there's ‘foul Participate in’ linked to the purchase of your machinery of the museum workshop”, the investigators explained during the report.

“We discover that it's very probable that CTMCA made use of the funding of the NLC to ‘refund’ one among its key administrators with the property at a higher overpriced charge than the actual value and value of the property and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant to the CTMCA were used.

“In point of fact, an in depth report on how the funding from the NLC was used, might be extremely hard because the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Each individual merchandise it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC experienced not done a website check out before approving the grant. But this was not normal follow at time and so they discovered no evidence of carelessness by NLC personnel.

At time, the NLC’s rules didn't demand funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was capable of get a second tranche of funding without the need to give evidence that it had employed the first tranche for its intended function.

Next the appointment of a brand new board, commissioner and senior government crew, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advisable that

the NLC decrease any potential funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced carried out While using the earlier stories into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the issues by electronic mail much too. But no reaction were been given at some time of publication.



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