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 accomplish in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the National Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has identified no proof that a museum at any time existed.
The investigators located that the CTMCA did not utilize the R5-million allocated to acquire or establish a museum.
They also found which the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They identified the CTMCA used funds from the Lottery to get workshop machines from one among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to arrange a museum to celebrate the city’s rich minstrel history went astray. The museum was never ever produced.

The small print in the abuse of many rands of Lottery cash for the museum that in no way was are discovered within an investigative report commissioned with the NLC in 2021.

The museum grant was part of more than R64-million in Lottery money allocated on the CTMCA among 2003 and 2017.

The 1st Element of the investigation, by law organization Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which bundled funding for your museum. The accredited funds for that museum was more than R12.8-million, with R5-million of that allocated for your building to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for your museum and whether or not the museum “in fact existed”.

The agency was also instructed to investigate

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

The investigation followed considerable reporting by GroundUp in regards to the many rands of Lottery funding allotted on the CTMCA (see here, below and listed here) and the way the money most likely assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.



The creating on the ideal was the meant web page of your minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to the Parliamentary question, previous NLC Commissioner Thabang Mampane shown grants to a few CTMCA “projects” - including the museum - in between 2012 and 2015. All a few jobs had been completed, she explained to MPs.

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

At the outset the museum was resulting from open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of the supposed Wetton museum exhibits a coffee shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung to the partitions, and also a product ship on its plinth in a corner.

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

Stemmet advised the investigators the museum were moved because they could no more pay for the hire of R100,000 a month. He explained the CTMCA experienced obtained assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were offered for a similar rate. Schaapkraal is inside of a peri-urban area much from the town.

Therefore, the museum were moved to a new site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which can be in an industrial place, the investigators said they doubted no matter whether a correct museum existed there. Pictures hooked up on the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the ground, with no rationalization.

“There is a negligible volume of products for the museum [that] on no account depict the greater than one hundred-year historical past with the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … usually, the museum doesn't search being open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting The placement of your museum to an alternate spot without the need of notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA had to move within the rented Crete Road premises since it had run up a R4-million credit card debt with the City of Cape Town and was frightened its machines can be attached.

“As a result of lawful battles as well as the debts, the organisation experienced to move its residence from five Crete Street to steer clear of the sheriff from attaching the assets from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director on the CTMCA, explained to them that the two buses acquired with lottery cash were being stored in the magic formula locale “hidden in the Sheriff”. Though the investigators reported they ended up unable to substantiate that any buses experienced ever been acquired.

Stemmet also verified that the buses were concealed to halt them becoming seized. But if the investigators asked for being taken to the area exactly where the buses ended up stored, he told them that “the operator of the secret spot was not accessible to open the premises for us”.

“The CTMCA could not present proof of payment for two motor vehicles that it allegedly bought with grant income,” the investigators claimed.

Soeker also told them the Schaapkraal property were offered due to the financial debt.

“Mr Soeker discussed that according to his comprehending, as a result of personal debt owed to the town of Cape City, the CTMCA resolved It might be most effective to promote their [Schaapkraal] assets … and to also to hide the assets in the CTMCA to steer clear of the sheriff from attaching the property.”

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

“Annually like clockwork, as we tactic the top of the yr, the CTMCA picks a legal battle with the City, in excess of permits or something else. We in no way initiate it. They hold throwing funds away on vexatious litigation that they shed and possess prices awarded from them. That is completely self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the key role players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were answerable for every one of the admin, finances and jogging ผล หวย ลาว วัน นี้ the CTMCA.” The investigators said they had been struggling to Make contact with Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “located a lot of equipment, some in great problem, some in negative issue and several that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-website storage facility in which “instruments and some equipment” had been saved.

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

According to shots and invoices in GroundUp’s possession, some, if not all, from the goods appear to be machines that was illegally removed from the CTMCA’s past premises. Stemmet is going through charges for this elimination.

In accordance with the final development report submitted towards the NLC with the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company through which Stemmet, his wife and his daughter have been directors at time.

The investigators discovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Observe the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be constructed and/or transformed,” they reported.

An audit by accountants Kopano Incorporated, connected to your investigative report, recorded which the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the administrators.

In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million like a deposit, meaning R6.nine-million remains to be owed, even though there is absolutely no payment date set for when this should be compensated.

The Kopano audit along with the shut backlink in between the businesses “show to us that there's ‘foul Enjoy’ associated with the acquisition of your machinery with the museum workshop”, the investigators stated during the report.

“We find that it is remarkably probable that CTMCA utilised the funding of your NLC to ‘refund’ among its key administrators for that home at an increased overpriced rate than the particular price and value of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been spent.

“In point of fact, a detailed report on how the funding of the NLC was made use of, might be unattainable as the CTMCA doesn't have any receipts, or proof of payments to verify the amounts expended on Every single product it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not carried out a web site visit right before approving the grant. But this was not common observe at the time and they uncovered no proof of negligence by NLC personnel.

At enough time, the NLC’s procedures didn't involve funded organisations to post proof of payment with interim reviews, they pointed out. This intended the CTMCA was in the position to receive a next tranche of funding without having to provide evidence that it had made use of the 1st tranche for its intended function.

Next the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.

Dabishi Nthambeleni encouraged that

the NLC drop any potential funding programs through the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a legal case 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, instead of act on the report’s suggestions, the NLC – under its past administration – selected to suppress it, because it experienced accomplished While using the previous studies into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for e mail addresses to send out the inquiries by e-mail also. But no reaction were acquired at time of publication.



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