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 on the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has discovered no proof that a museum ever existed.
The investigators located the CTMCA didn't make use of the R5-million allocated to order or produce a museum.
They also identified the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA utilised money within the Lottery to purchase workshop gear from one among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) via the Countrywide Lotteries Fee (NLC) to put in place a museum to celebrate the town’s wealthy minstrel history went astray. The museum was in no way established.

The details from the abuse of an incredible number of rands of Lottery cash for just a museum that never ever was are uncovered within an investigative report commissioned from the NLC in 2021.

The museum grant was A part of over R64-million in Lottery money allotted to the CTMCA in between 2003 and 2017.

The first Section of the investigation, by legislation firm Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which bundled funding with the museum. The permitted price range with the museum was over R12.8-million, with R5-million of that allocated for a setting up to accommodate the museum.

Read through the report (PDF, 7MB)

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

The organization was also instructed to research

the purchase with Lottery funds of two autos – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
numerous machines “procured to the production of the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors of your organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed extensive reporting by GroundUp concerning the many rands of Lottery funding allocated for the CTMCA (see right here, below and right here) and just how the funds possibly served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.



The building on the right was the meant internet site in the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph

In response to the Parliamentary problem, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “tasks” - such as the museum - between 2012 and 2015. All three assignments were concluded, she explained to MPs.

Nevertheless the investigators located no proof that a museum had ever existed.

To start with the museum was as a consequence of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp from the supposed Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, and also a model ship on its plinth inside of a corner.

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

Stemmet told the investigators the museum had been moved because they could no more afford to pay for the rent of R100,000 a month. He explained the CTMCA experienced procured property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for a similar price. Schaapkraal is inside a peri-urban area far from the city.

Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, that happen to be in an industrial place, the investigators explained they doubted no matter whether a proper museum existed there. Images hooked up for the report clearly show a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, displayed on tables and unfold out on the floor, without rationalization.

“There is a minimum volume of goods within the museum [that] on no account represent the greater than 100-calendar year record with the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum does not glance for being open up to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternative spot with out notifying the NLC.



The Schaapkraal house, on which no museum was at any time crafted. Photo: Raymond Joseph

Buses
Stemmet advised the investigators the CTMCA experienced to maneuver with 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 scared its products might be hooked up.

“Due to lawful battles and the debts, the organisation had to move its property from five Crete Highway to avoid the sheriff from attaching the home on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director on the CTMCA, informed them that the two buses bought with lottery funds ended up stored in the top secret location “concealed in the Sheriff”. Though the investigators stated they had been unable to confirm that any buses experienced ever been bought.

Stemmet also verified which the buses had been concealed to prevent them being seized. But when the investigators questioned for being taken towards the spot in which the buses had been saved, he informed them that “the operator of the secret site wasn't accessible to open up the premises for us”.

“The CTMCA couldn't supply proof of payment for 2 autos that it allegedly ordered with grant cash,” the investigators claimed.

Soeker also informed them the Schaapkraal assets were marketed due to personal debt.

“Mr Soeker discussed that In line with his being familiar with, due to the credit card debt owed to the City of Cape City, the CTMCA made the decision It might be best to provide their [Schaapkraal] home … also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and security, has Formerly told GroundUp which the CTMCA “threw income absent” on litigation with the City.

“Annually like clockwork, as we strategy the tip of the yr, the CTMCA picks a authorized combat with town, over permits or something else. We by no means initiate it. They keep throwing money absent on vexatious litigation they reduce and possess expenditures awarded towards them. This is certainly fully self-inflicted,” he mentioned.

Soeker advised the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of all the admin, funds and operating ตัว หวย the CTMCA.” The investigators claimed they were unable to Make contact with Momberg.

Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “discovered several equipment, some in excellent problem, some in negative issue and many that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-web site storage facility exactly where “devices and many machinery” ended up held.

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

Determined by images and invoices in GroundUp’s possession, some, if not all, on the products seem like machines that was illegally removed from the CTMCA’s former premises. Stemmet is dealing with prices for this removal.

Based on the closing development report submitted towards the NLC through the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business in which Stemmet, his spouse and his daughter were directors at the time.

The investigators found this “alarming”.

“Within the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be built and/or converted,” they reported.

An audit by accountants Kopano Incorporated, connected into the 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 an in depth Company of which Stemmet was one of the administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million for a deposit, indicating R6.9-million is still owed, nevertheless there is no payment day set for when this should be compensated.

The Kopano audit along with the shut connection involving the companies “suggest to us that there is ‘foul Enjoy’ associated with the acquisition of your machinery with the museum workshop”, the investigators mentioned from the report.

“We discover that it's extremely probable that CTMCA employed the funding with the NLC to ‘refund’ one of its primary directors for your residence at an increased overpriced amount than the particular rate and worth of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to determine how the grant to the CTMCA were invested.

“In reality, a detailed report on how the funding of the NLC was applied, can be unattainable as being the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on Every merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not executed a web-site stop by right before approving the grant. But this wasn't typical exercise at time and so they identified no proof of negligence by NLC workers.

At some time, the NLC’s policies did not have to have funded organisations to submit proof of payment with interim reports, they pointed out. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to present evidence that it had utilised the first tranche for its intended reason.

Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni advisable that

the NLC decrease any foreseeable future funding programs in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a legal case of fraud with SAPS or perhaps 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 tips, the NLC – below its past administration – selected to suppress it, because it had finished Using the past experiences into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the issues by e mail much too. But no reaction had been acquired at time of publication.



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