Leaked report exposes abuse of lottery income paid out to minstrel group

Leaked report exposes abuse of lottery income paid out to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no proof that a museum at any time existed.
The investigators identified that the CTMCA did not utilize the R5-million allotted to buy or develop a museum.
Additionally they observed that the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used resources from your Lottery to get workshop products from one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to build a museum to rejoice town’s wealthy minstrel heritage went astray. The museum was by no means developed.

The small print with the abuse of millions of rands of Lottery funds to get a museum that in no way was are discovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Section of in excess of R64-million in Lottery cash allocated to the CTMCA between 2003 and 2017.

The main Component of the investigation, by legislation firm Dabishi Nthambeleni, was done among September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which incorporated funding with the museum. The permitted spending budget to the museum was more than R12.8-million, with R5-million of that allotted to get a creating to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a creating for that museum and if the museum “basically existed”.

The agency was also instructed to analyze

the acquisition with Lottery resources of two vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
many equipment “ordered to the production from the costumes and hats” for your minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director from 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 quite a few directors of your organisation. Stemmet was reappointed being a director in May perhaps 2021.

The investigation adopted substantial reporting by GroundUp about the numerous rands of Lottery funding allotted into the CTMCA (see right here, here and right here) and the way the cash possibly served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.



The setting up on the best was the meant site from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to a Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - between 2012 and 2015. All a few projects had been concluded, she advised MPs.

Although the investigators located no evidence that a museum had ever existed.

In the beginning the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photo attained by GroundUp of your supposed Wetton museum reveals a espresso store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung to the partitions, and also a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni stated it absolutely was “not ready” to confirm if a museum had at any time operated from these premises.

Stemmet told the investigators the museum were moved as they could no more find the money for the lease of R100,000 a month. He mentioned the CTMCA had purchased home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for the same cost. Schaapkraal is inside a peri-city space much from the town.

Therefore, the museum were moved to a whole new locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following viewing the premises, which happen to be in an industrial area, the investigators stated they doubted no matter if an appropriate museum existed there. Pics connected for the report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and spread out on the floor, without having clarification.

“You will find there's minimum quantity of merchandise at the museum [that] in no way represent the much more than one hundred-12 months background with the Cape City Carnival, the investigators reported, adding that there was “no signage exterior the premises indicating they housed a museum and … generally, the museum will not seem to generally be open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by moving the location on the museum to another spot without the need of notifying the NLC.



The Schaapkraal assets, on which no museum was ever crafted. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators that the CTMCA had to maneuver from your rented Crete Street premises as it experienced operate up a R4-million personal debt with town of Cape City and was scared its equipment will be connected.

“Mainly because of the lawful battles and the debts, the organisation experienced to move its house from 5 Crete Road to steer clear of the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director from the CTMCA, told them which the two buses bought with lottery resources ended up stored in a very magic formula site “hidden with the Sheriff”. Nevertheless the investigators claimed they had been unable to verify that any buses had ever been purchased.

Stemmet also confirmed the buses had been hidden to stop them becoming seized. But when the investigators asked to become taken to your place the place the buses have been stored, he informed them that “the operator of The trick locale wasn't accessible to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for two vehicles that it allegedly obtained with grant revenue,” the investigators reported.

Soeker also explained to them the Schaapkraal house were offered because of the personal debt.

“Mr Soeker spelled out that In keeping with his being familiar with, a result of the personal debt owed to the City of Cape Town, the CTMCA decided It might be best to promote their [Schaapkraal] assets … also to also to cover the property with the CTMCA to steer clear of the sheriff from attaching the property.”

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

“Each year like clockwork, as we strategy the tip from the year, the CTMCA picks a lawful combat with the City, around permits or something else. We never ever initiate it. They preserve throwing money absent on vexatious litigation that they reduce and also have prices awarded towards them. This is completely self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the primary part gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and functioning ผล หวย ลาว the CTMCA.” The investigators mentioned they were not able to Call Momberg.

Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “observed various devices, some in fantastic issue, some in undesirable issue and many that seemed rusty and extremely aged”. Stemmet advised the investigators that there was also an off-website storage facility where “instruments plus some machinery” were being held.

“We asked him to just take us to the power but he was evasive to our request.”

Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, in the merchandise appear to be tools which was illegally faraway from the CTMCA’s earlier premises. Stemmet is struggling with expenses for this elimination.

Based on the ultimate progress report submitted to your NLC from the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter were administrators at time.

The investigators identified this “alarming”.

“In the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Road, Wetton, Cape City, the exact same address on which the museum was meant to be built and/or converted,” they described.

An audit by accountants Kopano Incorporated, attached for the investigative report, recorded which the CTMCA was in the process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the directors.

As outlined by Dabishi Nthambeleni, the corporate has paid out R1.2-million like a deposit, which means R6.9-million remains owed, nevertheless there isn't a payment date established for when this need to be paid.

The Kopano audit and the near hyperlink between the companies “indicate to us that there's ‘foul Participate in’ associated with the purchase of your machinery on the museum workshop”, the investigators said from the report.

“We find that it is hugely possible that CTMCA made use of the funding of the NLC to ‘refund’ among its major administrators for that residence at the next overpriced level than the particular price tag and value of the property and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant towards the CTMCA had been invested.

“The truth is, an in depth report on how the funding in the NLC was employed, would be unachievable since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC experienced not performed a web-site visit prior to approving the grant. But this wasn't standard practice at some time plus they located no evidence of carelessness by NLC personnel.

At the time, the NLC’s rules didn't need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without having to give evidence that it experienced employed the main tranche for its intended goal.

Pursuing the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as an alternative to act around the report’s suggestions, the NLC – below its former administration – chose to suppress it, because it experienced done Along with the prior studies into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the issues by electronic mail much too. But no reaction were acquired at time of publication.



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