Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They observed the CTMCA utilised funds within the Lottery to get workshop gear from one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to create a museum to celebrate the town’s loaded minstrel history went astray. The museum was never ever made.

The small print with the abuse of many rands of Lottery resources for your museum that hardly ever was are discovered in an investigative report commissioned through the NLC in 2021.

The museum grant was A part of greater than R64-million in Lottery resources allocated into the CTMCA involving 2003 and 2017.

The initial part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding with the museum. The authorized funds with the museum was greater than 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 building with the museum and whether or not the museum “in fact existed”.

The agency was also instructed to investigate

the acquisition with Lottery money of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
several machines “procured to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous directors on the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed in depth reporting by GroundUp with regard to the countless rands of Lottery funding allocated to the CTMCA (see here, in this article and in this article) and how the money almost certainly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.



The making on the best was the supposed internet site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 initiatives were finished, she explained to MPs.

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

In the beginning the museum was due to open up in rented premises in Crete Road, Wetton. A photo received by GroundUp from the meant Wetton museum shows a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung to the partitions, in addition to a product ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not ready” to confirm if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum were moved as they could no longer manage the lease of R100,000 per month. He reported the CTMCA experienced purchased home for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is in a peri-city space significantly from the town.

Therefore, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after traveling to the premises, which might be in an industrial space, the investigators mentioned they doubted regardless of whether an appropriate museum existed there. Pictures hooked up to the report demonstrate 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 minimal level of objects with the museum [that] under no circumstances depict the in excess of one hundred-year history of your Cape City Carnival, the investigators stated, adding that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum won't seem to become open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by relocating The situation from the museum to an alternate locale without having notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to move from your rented Crete Street premises since it had run up a R4-million debt with town of Cape City and was concerned its products can be connected.

“As a result of legal battles and the debts, the organisation experienced to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the property with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources have been stored in a secret locale “concealed from your Sheriff”. However the investigators said they ended up unable to verify that any buses experienced ever been acquired.

Stemmet also confirmed the buses were hidden to prevent them becoming seized. But if the investigators questioned for being taken into the spot wherever the buses were stored, he advised them that “the operator of The trick location was not available to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators documented.

Soeker also advised them the Schaapkraal house had been sold due to credit card debt.

“Mr Soeker discussed that As outlined by his comprehension, a result of the financial debt owed to town of Cape Town, the CTMCA resolved It might be best to offer their [Schaapkraal] property … and also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for protection and security, has Formerly instructed GroundUp which the CTMCA “threw money away” on litigation with the City.

“Yearly like clockwork, as we tactic the top with the calendar year, the CTMCA picks a lawful combat with the town, in excess of permits or something else. We never ever initiate it. They hold throwing income away on vexatious litigation which they eliminate and also have fees awarded against them. This is fully self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of the many admin, funds and operating หวย ลาว ย้อน หลัง the CTMCA.” The investigators said they were unable to contact Momberg.

Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “discovered various machines, some in fantastic situation, some in terrible situation and several that appeared rusty and intensely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where “instruments and some machinery” were stored.

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

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, with the goods seem like gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this elimination.

According to the closing progress report submitted to your NLC through the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter were directors at enough time.

The investigators found this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Notice the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Highway, Wetton, Cape City, the same handle on which the museum was meant to be created and/or transformed,” they claimed.

An audit by accountants Kopano Included, hooked up for the investigative report, recorded that the CTMCA was in the process of buying “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the administrators.

Based on Dabishi Nthambeleni, the corporation has paid R1.2-million for a deposit, which means R6.nine-million continues to be owed, even though there is absolutely no payment date established for when this has to be paid.

The Kopano audit along with the close website link concerning the businesses “suggest to us that there's ‘foul Participate in’ associated with the acquisition of the machinery from the museum workshop”, the investigators mentioned from the report.

“We discover that it's hugely probable that CTMCA used the funding of the NLC to ‘refund’ among its principal directors to the assets at a higher overpriced rate than the actual price tag and worth of the residence and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been used.

“Actually, an in depth report on how the funding in the NLC was used, might be unattainable as being the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on each item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not conducted a website check out before approving the grant. But this wasn't standard apply at time and so they located no evidence of carelessness by NLC workforce.

At enough time, the NLC’s principles didn't call for funded organisations to submit proof of payment with interim experiences, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding while not having to provide proof that it had made use of the very first tranche for its meant reason.

Next the appointment of a brand new board, commissioner and senior government crew, the NLC has tightened up on these and other issues.

Dabishi Nthambeleni suggested that

the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its past administration – selected to suppress it, as it had performed Using the preceding stories into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by e-mail as well. But no response were gained at enough time of publication.



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