Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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Minstrels accomplish in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Countrywide Lotteries Commission into the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no proof that a museum at any time existed.
The investigators discovered which the CTMCA did not make use of the R5-million allotted to acquire or produce a museum.
Additionally they located that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They located the CTMCA employed resources with the Lottery to get workshop equipment from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to create a museum to rejoice town’s rich minstrel historical past went astray. The museum was never produced.

The details in the abuse of numerous rands of Lottery money to get a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery funds allotted for the CTMCA between 2003 and 2017.

The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding with the museum. The accepted finances with the museum was over R12.8-million, with R5-million of that allocated to get a constructing to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up with the museum and if the museum “in fact existed”.

The company was also instructed to analyze

the acquisition with Lottery funds of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “obtained for the production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation followed comprehensive reporting by GroundUp with regards to the countless rands of Lottery funding allotted into the CTMCA (see listed here, below and here) and the best way the cash most likely assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at enough time by Marius Fransman.



The constructing on the ideal was the meant website of the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to your Parliamentary issue, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “tasks” - such as the museum - among 2012 and 2015. All a few tasks were concluded, she informed MPs.

Though the investigators identified no evidence that a museum experienced ever existed.

In the beginning the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp from the meant Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, and a design ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni claimed it was “not in a position” to substantiate if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum were moved simply because they could no more afford to pay for the rent of R100,000 a month. He mentioned the CTMCA had ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar price tag. Schaapkraal is in a very peri-urban spot much from the city.

Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after browsing the premises, which can be within an industrial spot, the investigators stated they doubted whether or not a suitable museum existed there. Pictures connected into the report present a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without having rationalization.

“There is a minimum volume of goods within the museum [that] on no account stand for the much more than a hundred-12 months historical past from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum does not glimpse being open to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by going the location with the museum to another area without the need of notifying the NLC.



The Schaapkraal property, on which no museum was ever created. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear could be attached.

“Due to the lawful battles plus the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director from the CTMCA, instructed them that the two buses purchased with lottery resources had been stored inside of a key site “concealed in the Sheriff”. Even so the investigators reported they were unable to confirm that any buses had at any time been acquired.

Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators asked to become taken towards the location where the buses were being saved, he informed them that “the owner of The key area wasn't available to open up the premises for us”.

“The CTMCA could not provide proof of payment for 2 autos that it allegedly bought with grant dollars,” the investigators noted.

Soeker also explained to them the Schaapkraal home were bought because of the credit card debt.

“Mr Soeker explained that In line with his understanding, a result of the personal debt owed to town of Cape City, the CTMCA resolved It will be best to sell their [Schaapkraal] property … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for protection and safety, has previously explained to GroundUp the CTMCA “threw cash absent” on litigation with the town.

“Every year like clockwork, as we tactic the end of your yr, the CTMCA picks a lawful fight with the town, over permits or something else. We hardly ever initiate it. They preserve throwing revenue away on vexatious litigation that they get rid of and possess costs awarded towards them. This is certainly solely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of each of the admin, finances and working ผล หวย ลาว วัน นี้ the CTMCA.” The investigators mentioned they were not able to Get hold of Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “identified several devices, some in excellent situation, some in negative problem and a few that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-internet site storage facility exactly where “instruments and some equipment” were being saved.

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

Depending on photos and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be products which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with prices for this removing.

In accordance with the remaining development report submitted to your NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter had been directors at some time.

The investigators uncovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape City, precisely the same handle on which the museum was meant to be crafted and/or converted,” they described.

An audit by accountants Kopano Included, connected to your investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing 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 corporate has paid out R1.2-million like a deposit, that means R6.9-million continues to be owed, however there is no payment day established for when this has to be paid.

The Kopano audit as well as the close hyperlink concerning the companies “suggest to us that there is ‘foul Enjoy’ involved in the purchase of your machinery on the museum workshop”, the investigators said inside the report.

“We discover that it's highly probable that CTMCA employed the funding on the NLC to ‘refund’ amongst its main administrators with the assets at the next overpriced rate than the particular price tag and value of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant towards the CTMCA were invested.

“In point of fact, a detailed report on how the funding with the NLC was employed, could well be extremely hard given that 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 ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not carried out a internet site stop by right before approving the grant. But this wasn't common follow at time and they uncovered no proof of negligence by NLC workforce.

At enough time, the NLC’s principles didn't call for 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 without the need to supply evidence that it experienced used the primary tranche for its supposed purpose.

Adhering to the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni encouraged that

the NLC drop any long run funding apps through the CTMCA;
the CTMCA and any customers who had been associated with the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act about the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced carried out Along with the previous studies into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to send the concerns by email as well. But no response were been given at some time of publication.



The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph