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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant with the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has located no evidence that a museum at any time existed.
The investigators identified which the CTMCA didn't use the R5-million allocated to order or build a museum.
They also identified the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA made use of resources from the Lottery to purchase workshop gear from among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to set up a museum to celebrate town’s prosperous minstrel background went astray. The museum was never made.

The details on the abuse of millions of rands of Lottery money for your museum that by no means was are unveiled within an investigative report commissioned via the NLC in 2021.

The museum grant was A part of a lot more than R64-million in Lottery cash allotted on the CTMCA involving 2003 and 2017.

The main Element of the investigation, by regulation organization Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which incorporated funding for the museum. The approved finances to the museum was greater than R12.eight-million, with R5-million of that allotted for any setting up to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a building for your museum and if the museum “really existed”.

The business was also instructed to research

the acquisition with Lottery cash of two automobiles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
numerous devices “ordered for the manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director of 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 a number of directors on the organisation. Stemmet was reappointed like a director in May perhaps 2021.

The investigation followed intensive reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allotted to your CTMCA (see here, below and right here) and how the resources in all probability served finance the ANC’s 2014 election campaign within the Western Cape, led by at enough time by Marius Fransman.



The constructing on the appropriate was the supposed site of the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “tasks” - including the museum - amongst 2012 and 2015. All a few projects were finished, she advised MPs.

Nevertheless the investigators identified no evidence that a museum experienced at any time existed.

To start with the museum was due to open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, and also a product ship on its plinth inside a corner.

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

Stemmet informed the investigators the museum had been moved mainly because they could no longer manage the rent of R100,000 per month. He explained the CTMCA had ordered assets for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been bought for the same price. Schaapkraal is in a very peri-city spot far from town.

Therefore, the museum were moved to a different area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after browsing the premises, which can be within an industrial space, the investigators said they doubted no matter if a suitable museum existed there. Shots hooked up to your report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without any rationalization.

“You will find a minimum level of items for the museum [that] by no means stand for the a lot more than a hundred-year historical past of your Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … usually, the museum isn't going to glimpse to be open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by relocating The placement in the museum to an alternative place with out 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 in the rented Crete Street premises because it experienced operate up a R4-million financial debt with town of Cape Town and was concerned its gear might be attached.

“A result of the lawful battles and also the debts, the organisation had to move its residence from five Crete Highway to steer clear of the sheriff from attaching the property in the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director on the CTMCA, instructed them the two buses purchased with lottery money had been saved inside of a top secret site “hidden from your Sheriff”. However the investigators said they were being unable to substantiate that any buses had at any time been purchased.

Stemmet also verified that the buses were concealed to prevent them remaining seized. But once the investigators questioned for being taken into the spot where by the buses have been saved, he explained to them that “the owner of The key area wasn't accessible to open the premises for us”.

“The CTMCA could not present evidence of payment for 2 vehicles that it allegedly acquired with grant money,” the investigators described.

Soeker also informed them the Schaapkraal assets were sold because of the credit card debt.

“Mr Soeker described that Based on his comprehension, a result of the credit card debt owed to the City of Cape City, the CTMCA made the decision it would be best to sell their [Schaapkraal] residence … and to also to cover the belongings with the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for safety and stability, has Earlier informed GroundUp which the CTMCA “threw income away” on litigation with town.

“Annually like clockwork, as we method the tip of the 12 months, the CTMCA picks a lawful fight with the City, above permits or another thing. We hardly ever initiate it. They continue to keep throwing cash away on vexatious litigation that they shed and possess fees awarded against them. That is solely self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the leading role players on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of each of the admin, finances and running หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators mentioned they had been struggling to Speak to Momberg.

Hats
Throughout their “investigation in loco” at the Primrose Park premises, the investigators “located numerous machines, some in very good condition, some in poor issue and many that seemed rusty and very outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility where by “devices and many machinery” had been kept.

“We questioned him to acquire us to the ability but he was evasive to our request.”

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your goods appear to be devices that was illegally faraway from the CTMCA’s prior premises. Stemmet is experiencing expenses for this elimination.

According to the ultimate development report submitted to the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators found this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Notice the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the corporation is five Crete Road, Wetton, Cape City, precisely the same deal with on which the museum was meant to be developed and/or transformed,” they documented.

An audit by accountants Kopano Included, connected into the investigative report, recorded that the CTMCA was in the whole 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 amongst the directors.

In line with Dabishi Nthambeleni, the company has paid R1.2-million as being a deposit, which means R6.9-million continues to be owed, even though there isn't a payment day set for when this has to be paid.

The Kopano audit and the shut backlink amongst the companies “suggest to us that there is ‘foul play’ linked to the purchase of the machinery of the museum workshop”, the investigators claimed inside the report.

“We discover that it's hugely possible that CTMCA utilized the funding with the NLC to ‘refund’ certainly one of its key administrators for the home at an increased overpriced level than the particular cost and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to determine how the grant to the CTMCA were used.

“In point of fact, an in depth report on how the funding on the NLC was utilised, will be unattainable because the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on Each individual 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 had not done a web site stop by prior to approving the grant. But this was not typical practice at time and so they observed no proof of carelessness by NLC staff members.

At some time, the NLC’s procedures didn't involve funded organisations to post proof of payment with interim studies, they pointed out. This intended which the CTMCA was in the position to receive a second tranche of funding without having to deliver evidence that it had made use of the main tranche for its meant purpose.

Next the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these along with other challenges.

Dabishi Nthambeleni advised that

the NLC drop any long term funding apps from the CTMCA;
the CTMCA and any associates who have been linked to the grant be subjected to the NLC’s “delinquency” method;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as an alternative to act about the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it had finished Along with the earlier reports into corruption it experienced commissioned.

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



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

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