Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant from the National Lotteries Fee on the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has located no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to buy or create a museum.
They also found which the CTMCA only purchased land value R1.7-million, not R5-million as allocated.
They observed the CTMCA used funds with the Lottery to buy workshop machines from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Fee (NLC) to arrange a museum to rejoice the city’s wealthy minstrel background went astray. The museum was never ever produced.

The main points in the abuse of countless rands of Lottery cash to get a museum that under no circumstances was are uncovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Section of much more than R64-million in Lottery funds allocated on the CTMCA involving 2003 and 2017.

The first Portion of the investigation, by law company Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which included funding for the museum. The approved budget for that museum was a lot more than R12.8-million, with R5-million of that allotted to get a building to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a making for your museum and if the museum “actually existed”.

The agency was also instructed to investigate

the purchase with Lottery money of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
several machines “obtained to the production of the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous directors from the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation adopted considerable reporting by GroundUp regarding the an incredible number of rands of Lottery funding allotted towards the CTMCA (see here, in this article and right here) and the best way the cash most likely aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The creating on the correct was the meant internet site in the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to your Parliamentary query, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “assignments” - including the museum - between 2012 and 2015. All a few assignments were concluded, she instructed MPs.

But the investigators discovered no proof that a museum had ever existed.

At first the museum was as a result of open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp of your intended Wetton museum reveals a coffee shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung about the walls, and also a product ship on its plinth in a corner.

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

Stemmet informed the investigators the museum had been moved since they could no longer afford to pay for the lease of R100,000 a month. He reported the CTMCA had bought assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were offered for a similar cost. Schaapkraal is inside of a peri-urban place far from the town.

As a result, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after going to the premises, which might be within an industrial place, the investigators said they doubted no matter whether a suitable museum existed there. Images connected towards the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the ground, without explanation.

“You will find there's nominal level of items for the museum [that] by no means characterize the over one hundred-year historical past with the Cape City Carnival, the investigators stated, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … frequently, the museum doesn't search to get open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by going The situation with the museum to an alternate area without having notifying the NLC.



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

Buses
Stemmet explained to the investigators the CTMCA experienced to move within the rented Crete Street premises mainly because it had operate up a R4-million debt with the town of Cape City and was afraid its products would be connected.

“Due to the authorized battles as well as the debts, the organisation had to move its property from 5 Crete Highway to avoid the sheriff from attaching the assets in the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director of your CTMCA, explained to them which the two buses purchased with lottery cash ended up saved in a magic formula place “hidden in the Sheriff”. Nevertheless the investigators mentioned they were not able to confirm that any buses experienced ever been purchased.

Stemmet also verified that the buses were hidden to prevent them remaining seized. But once the investigators questioned being taken to your area in which the buses had been saved, he instructed them that “the owner of the secret site was not accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for two automobiles that it allegedly purchased with grant dollars,” the investigators reported.

Soeker also advised them the Schaapkraal assets had been offered as a result of personal debt.

“Mr Soeker defined that according to his knowledge, mainly because of the credit card debt owed to town of Cape City, the CTMCA resolved it would be very best to promote their [Schaapkraal] assets … and also to also to hide the belongings of the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for protection and safety, has Formerly instructed GroundUp which the CTMCA “threw revenue absent” on litigation with the town.

“On a yearly basis like clockwork, as we solution the top from the year, the CTMCA picks a authorized battle with town, in excess of permits or something else. We in no way initiate it. They maintain throwing revenue away on vexatious litigation they shed and possess fees awarded versus them. That is entirely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the main function players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being in charge of every one of the admin, funds and jogging lottovip the CTMCA.” The investigators mentioned they had been unable to Call Momberg.

Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “discovered several equipment, some in superior affliction, some in negative condition and many that looked rusty and extremely outdated”. Stemmet explained to the investigators that there was also an off-web site storage facility wherever “instruments and several equipment” ended up kept.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like devices which was illegally faraway from the CTMCA’s preceding premises. Stemmet is facing charges for this elimination.

Based on the ultimate progress report submitted into the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a company during which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators located this “alarming”.

“From the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the organization is 5 Crete Street, Wetton, Cape Town, a similar tackle on which the museum was intended to be built and/or transformed,” they described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded which the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.

In accordance with Dabishi Nthambeleni, the company has compensated R1.2-million to be a deposit, which means R6.nine-million remains owed, while there's no payment date set for when this need to be paid out.

The Kopano audit and the shut hyperlink amongst the businesses “suggest to us that there's ‘foul Enjoy’ associated with the acquisition on the machinery with the museum workshop”, the investigators mentioned in the report.

“We find that it's extremely probable that CTMCA made use of the funding in the NLC to ‘refund’ one among its principal administrators for the home at the next overpriced price than the actual rate and value of the house and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was not able to establish how the grant on the CTMCA were used.

“In reality, a detailed report on how the funding of the NLC was utilized, could be extremely hard because the CTMCA does not have any receipts, or evidence of payments to confirm the quantities put in on Each and every product it requested funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not executed a web site stop by just before approving the grant. But this wasn't conventional apply at time plus they uncovered no evidence of negligence by NLC staff.

At enough time, the NLC’s guidelines did not demand funded organisations to submit proof of payment with interim reports, they identified. This intended the CTMCA was in the position to get a second tranche of funding without having to provide evidence that it had made use of the main tranche for its meant purpose.

Next the appointment of a completely new board, commissioner and senior executive staff, the NLC has tightened up on these together with other problems.

Dabishi Nthambeleni encouraged that

the NLC drop any foreseeable future funding purposes in the CTMCA;
the CTMCA and any customers who ended up involved in the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a felony circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, rather than act on the report’s tips, the NLC – underneath its earlier administration – chose to suppress it, since it had done While using the preceding reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the questions by e-mail much too. But no response had been been given at the time of publication.



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

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