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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has uncovered no proof that a museum ever existed.
The investigators found that the CTMCA didn't utilize the R5-million allocated to get or establish a museum.
They also identified the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA employed money with the Lottery to invest in workshop machines from one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the city’s loaded minstrel heritage went astray. The museum was never ever produced.

The main points from the abuse of many rands of Lottery money for your museum that by no means was are discovered in an investigative report commissioned via the NLC in 2021.

The museum grant was Component of over R64-million in Lottery resources allocated to your CTMCA among 2003 and 2017.

The initial Portion of the investigation, by law organization Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which involved funding for your museum. The permitted budget for that museum was greater than R12.8-million, with R5-million of that allocated to get a making to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a building with the museum and whether or not the museum “essentially existed”.

The company was also instructed to analyze

the purchase with Lottery funds of two autos – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
numerous equipment “purchased with the production with the costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director on the 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 administrators in the organisation. Stemmet was reappointed as being a director in May 2021.

The investigation adopted substantial reporting by GroundUp about the many rands of Lottery funding allotted to your CTMCA (see listed here, right here and below) and the way the money almost certainly aided finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.



The constructing on the correct was the meant website on the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction into a Parliamentary issue, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “projects” - such as the museum - in between 2012 and 2015. All a few assignments were accomplished, she told MPs.

Though the investigators identified no evidence that a museum experienced ever existed.

At the outset the museum was as a result of open in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp from the intended Wetton museum displays a espresso store with some musical instruments and minstrel costumes and collages of images haphazardly hung over the partitions, in addition to a product ship on its plinth in a very corner.

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

Stemmet advised the investigators the museum had been moved since they could now not afford to pay for the lease of R100,000 per month. He explained the CTMCA had ordered home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar cost. Schaapkraal is in a very peri-city location considerably from town.

Therefore, the museum were moved to a new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial spot, the investigators claimed they doubted whether an appropriate museum existed there. Shots hooked up on the report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, without any rationalization.

“There exists a minimal degree of objects at the museum [that] under no circumstances represent the a lot more than a hundred-year historical past with the Cape City Carnival, the investigators said, adding that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't glimpse to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation with the museum to an alternate place with out notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA had to maneuver from your rented Crete Highway premises since it experienced operate up a R4-million financial debt with the town of Cape City and was frightened its products would be attached.

“Mainly because of the lawful battles as well as the debts, the organisation had to move its house from five Crete Street to stay away from the sheriff from attaching the residence of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of your CTMCA, explained to them which the two buses purchased with lottery money were saved in the key locale “concealed with the Sheriff”. Although the investigators stated they ended up unable to verify that any buses had ever been purchased.

Stemmet also verified which the buses were concealed to prevent them currently being seized. But in the event the investigators questioned being taken on the place where by the buses have been saved, he instructed them that “the proprietor of The trick place was not accessible to open up the premises for us”.

“The CTMCA couldn't give evidence of payment for two cars that it allegedly obtained with grant dollars,” the investigators noted.

Soeker also informed them the Schaapkraal home had been bought as a result of debt.

“Mr Soeker described that according to his knowledge, mainly because of the personal debt owed to the town of Cape Town, the CTMCA decided It might be best to sell their [Schaapkraal] property … and to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the house.”

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

“Yearly like clockwork, as we strategy the top on the year, the CTMCA picks a authorized struggle with town, about permits or another thing. We in no way initiate it. They continue to keep throwing revenue away on vexatious litigation they lose and possess fees awarded in opposition to them. This is certainly completely self-inflicted,” he explained.

Soeker advised the Dabishi Nthambeleni investigators that the leading position gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, finances and running lottovip the CTMCA.” The investigators reported they had been struggling to Speak to Momberg.

Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “identified a lot of machines, some in excellent affliction, some in bad problem and many that seemed rusty and intensely old”. Stemmet told the investigators that there was also an off-internet site storage facility wherever “devices and some equipment” were saved.

“We questioned him to choose us to the power but he was evasive to our request.”

Determined by images and invoices in GroundUp’s possession, some, if not all, from the merchandise seem like machines that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with expenses for this removing.

In accordance with the last development report submitted into the NLC through the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been directors at time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be developed and/or transformed,” they noted.

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

According to Dabishi Nthambeleni, the organization has paid out R1.2-million like a deposit, indicating R6.9-million continues to be owed, however there is not any payment day set for when this should be paid.

The Kopano audit and the shut url among the businesses “point out to us that there is ‘foul Participate in’ involved with the purchase with the machinery on the museum workshop”, the investigators stated during the report.

“We find that it is really probable that CTMCA utilised the funding of the NLC to ‘refund’ one among its most important directors for your residence at the next overpriced rate than the actual cost and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant into the CTMCA were put in.

“Actually, a detailed report on how the funding of the NLC was used, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on each merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not done a website stop by prior to approving the grant. But this was not common observe at the time and they identified no evidence of negligence by NLC staff.

At time, the NLC’s policies did not call for funded organisations to submit proof of payment with interim reports, they identified. This meant that the CTMCA was in a position to get a 2nd tranche of funding without needing to offer evidence that it had used the main tranche for its meant objective.

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

Dabishi Nthambeleni advised that

the NLC decrease any future funding programs with the CTMCA;
the CTMCA and any users who were associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, as an alternative to act about the report’s recommendations, the NLC – under its former administration – selected to suppress it, as it experienced completed With all the previous stories into corruption it had commissioned.

GroundUp sent questions to Stemmet and Soeker through SMS, and questioned for e-mail addresses to send out the concerns by e mail too. But no response had been gained at some time of publication.



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

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