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 complete in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant through the Countrywide Lotteries Fee on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no proof that a museum ever existed.
The investigators uncovered which the CTMCA didn't use the R5-million allotted to acquire or establish a museum.
Additionally they found the CTMCA only acquired land really worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used funds from your Lottery to get workshop devices from certainly one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the town’s loaded minstrel history went astray. The museum was in no way developed.

The small print of the abuse of many rands of Lottery funds to get a museum that never ever was are discovered in an investigative report commissioned from the NLC in 2021.

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

The main Element of the investigation, by regulation business Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which integrated funding for the museum. The approved spending plan for that museum was a lot more than R12.8-million, with R5-million of that allocated to get a setting up to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the constructing with the museum and whether the museum “actually existed”.

The organization was also instructed to investigate

the acquisition with Lottery resources of two autos – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
many devices “acquired to the manufacturing of the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of administrators in the organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed extensive reporting by GroundUp with regards to the countless rands of Lottery funding allotted for the CTMCA (see here, below and listed here) and how the resources likely aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.



The setting up on the appropriate was the meant internet site of your minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to your Parliamentary query, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “jobs” - such as the museum - in between 2012 and 2015. All three projects had been done, she advised MPs.

But the investigators uncovered no proof that a museum had at any time existed.

To start with the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph received by GroundUp in the supposed Wetton museum exhibits a espresso store with some musical instruments and minstrel costumes and collages of pictures haphazardly hung over the walls, plus a product ship on its plinth in a corner.

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

Stemmet informed the investigators the museum were moved simply because they could now not pay for the rent of R100,000 per month. He reported the CTMCA experienced procured assets for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were bought for a similar cost. Schaapkraal is inside a peri-city place far from the town.

Consequently, the museum were moved to a brand new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after going to the premises, which might be within an industrial area, the investigators explained they doubted whether a proper museum existed there. Pictures connected to your report display a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, without any explanation.

“You will find there's nominal volume of products at the museum [that] on no account symbolize the more than one hundred-calendar year historical past of the Cape City Carnival, the investigators said, including that there was “no signage outdoors the premises indicating which they housed a museum and … generally, the museum doesn't seem to generally be open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement of your museum to an alternate site without notifying the NLC.



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

Buses
Stemmet instructed the investigators that the CTMCA experienced to move from the rented Crete Highway premises as it had run up a R4-million debt with town of Cape City and was concerned its tools could be hooked up.

“A result of the legal battles along with the debts, the organisation experienced to move its home from 5 Crete Street to avoid the sheriff from attaching the assets in the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director of the CTMCA, informed them the two buses acquired with lottery cash ended up stored in the mystery spot “hidden from your Sheriff”. Although the investigators reported they were being unable to substantiate that any buses experienced ever been purchased.

Stemmet also confirmed which the buses were concealed to prevent them remaining seized. But in the event the investigators requested for being taken to the location where the buses have been saved, he informed them that “the proprietor of The trick place was not accessible to open up the premises for us”.

“The CTMCA could not deliver evidence of payment for two cars that it allegedly purchased with grant funds,” the investigators described.

Soeker also told them the Schaapkraal assets were bought as a result of personal debt.

“Mr Soeker discussed that Based on his understanding, mainly because of the personal debt owed to the City of Cape City, the CTMCA made the decision It could be very best to market their [Schaapkraal] property … and to also to hide the belongings of the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for security and security, has Beforehand told GroundUp which the CTMCA “threw revenue absent” on litigation with the town.

“On a yearly basis like clockwork, as we approach the top with the 12 months, the CTMCA picks a lawful struggle with the town, over permits or something else. We by no means initiate it. They keep throwing revenue away on vexatious litigation they lose and have prices awarded from them. This really is totally self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the leading function gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up answerable for all of the admin, finances and operating fox888 the CTMCA.” The investigators stated they had been unable to Make contact with Momberg.

Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “identified many machines, some in excellent problem, some in undesirable condition and some that seemed rusty and extremely outdated”. Stemmet instructed the investigators that there was also an off-web site storage facility where “instruments and several equipment” had been held.

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

Based on images and invoices in GroundUp’s possession, some, Otherwise all, with the items appear to be gear which was illegally faraway from the CTMCA’s previous premises. Stemmet is facing rates for this removing.

According to the final development report submitted for the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter were being directors at time.

The investigators located this “alarming”.

“From the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Take note the subsequent alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is five Crete Street, Wetton, Cape City, exactly the same deal with on which the museum was meant to be crafted and/or transformed,” they documented.

An audit by accountants Kopano Incorporated, connected for the investigative report, recorded which the CTMCA was in the whole process of obtaining “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was certainly one of the administrators.

In accordance with Dabishi Nthambeleni, the corporation has compensated R1.2-million like a deposit, this means R6.nine-million is still owed, however there isn't any payment date set for when this has to be paid.

The Kopano audit and also the close link concerning the businesses “show to us that there is ‘foul Participate in’ involved in the acquisition of your machinery from the museum workshop”, the investigators reported from the report.

“We find that it's hugely probable that CTMCA applied the funding on the NLC to ‘refund’ among its main directors for the house at the next overpriced charge than the particular price and value of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant to your CTMCA were spent.

“In fact, a detailed report on how the funding with the NLC was used, could be extremely hard as being the CTMCA does not have any receipts, or evidence of payments to verify the amounts used on each product it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC had not done a web-site pay a visit to before approving the grant. But this was not standard follow at some time plus they located no proof of carelessness by NLC employees.

At the time, the NLC’s principles did not call for funded organisations to submit proof of payment with interim reviews, they identified. This intended the CTMCA was in the position to get a second tranche of funding without needing to offer evidence that it had employed the very first tranche for its supposed reason.

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

Dabishi Nthambeleni proposed that

the NLC decline any long run funding applications from your CTMCA;
the CTMCA and any users who were associated with the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a prison case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated resources.
But, rather than act on the report’s tips, the NLC – less than its past administration – chose to suppress it, as it experienced performed Along with the preceding reviews into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and asked for e-mail addresses to mail the inquiries by electronic mail also. But no reaction were obtained at enough time of publication.



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

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