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 perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no evidence that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allocated to get or develop a museum.
They also found which the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied cash through the Lottery to invest in workshop devices from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to set up a museum to celebrate the town’s rich minstrel heritage went astray. The museum was by no means designed.

The small print with the abuse of millions of rands of Lottery funds for a museum that by no means was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery cash allocated to your CTMCA in between 2003 and 2017.

The primary A part of the investigation, by law firm Dabishi Nthambeleni, was performed among September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which involved funding to the museum. The authorised finances for your museum was over R12.8-million, with R5-million of that allotted for just a making to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the developing for the museum and whether or not the museum “basically existed”.

The firm was also instructed to research

the purchase with Lottery funds of two automobiles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
several equipment “procured for your production on the costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from 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 of the organisation. Stemmet was reappointed to be a director in May perhaps 2021.

The investigation followed in depth reporting by GroundUp about the countless rands of Lottery funding allocated for the CTMCA (see listed here, listed here and below) and the way the money in all probability assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.



The creating on the correct was the supposed website on the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 initiatives were concluded, she told MPs.

Though the investigators found no proof that a museum experienced at any time existed.

At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung about the walls, and also a model ship on its plinth inside of a corner.

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

Stemmet advised the investigators the museum were moved simply because they could no more afford to pay for the rent of R100,000 a month. He mentioned the CTMCA had ordered assets for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were marketed for a similar selling price. Schaapkraal is inside of a peri-city spot significantly from the town.

Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after browsing the premises, which can be within an industrial spot, the investigators stated they doubted whether or not a suitable museum existed there. Pictures connected into the report present a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without having rationalization.

“There is a minimum volume of items within the museum [that] by no means represent the much more than 100-yr heritage on the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum will not glance to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by relocating The situation in the museum to an alternate location with no notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver with the rented Crete Street premises because it experienced run up a R4-million personal debt with the City of Cape City and was concerned its devices can be attached.

“A result of the legal battles and also the debts, the organisation had to move its property from 5 Crete Road to avoid the sheriff from attaching the home in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director on the CTMCA, advised them that the two buses acquired with lottery money had been saved within a secret spot “concealed from your Sheriff”. However the investigators claimed they were unable to confirm that any buses had at any time been purchased.

Stemmet also verified that the buses had been concealed to halt them becoming seized. But if the investigators requested being taken into the place exactly where the buses had been saved, he explained to them that “the proprietor of the secret place wasn't available to open up the premises for us”.

“The CTMCA could not offer evidence of payment for two vehicles that it allegedly procured with grant income,” the investigators noted.

Soeker also explained to them the Schaapkraal house were sold due to financial debt.

“Mr Soeker stated that In keeping with his knowledge, as a result of personal debt owed to town of Cape City, the CTMCA determined It might be finest to provide their [Schaapkraal] property … and to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for safety and security, has previously informed GroundUp the CTMCA “threw funds absent” on litigation with the town.

“Each and every year like clockwork, as we strategy the end with the yr, the CTMCA picks a lawful battle with town, in excess of permits or another thing. We never ever initiate it. They maintain throwing dollars absent on vexatious litigation that they eliminate and possess fees awarded from them. This really is totally self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the key purpose gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for every one of the admin, finances and working หวย the CTMCA.” The investigators said they had been unable to Make contact with Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered various equipment, some in fantastic issue, some in undesirable problem and a few that appeared rusty and very old”. Stemmet instructed the investigators that there was also an off-web site storage facility exactly where “devices and some equipment” were held.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like equipment that was illegally removed from the CTMCA’s former premises. Stemmet is going through costs for this elimination.

In accordance with the final progress report submitted for the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a firm in which Stemmet, his spouse and his daughter ended up directors at some time.

The investigators uncovered this “alarming”.

“With the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Highway, Wetton, Cape City, the exact same address on which the museum was intended to be created and/or transformed,” they reported.

An audit by accountants Kopano Incorporated, connected to your investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.

As outlined by Dabishi Nthambeleni, the corporate has paid out R1.two-million like a deposit, which means R6.nine-million continues to be owed, though there is not any payment date established for when this should be compensated.

The Kopano audit and also the near hyperlink involving the businesses “show to us that there's ‘foul play’ involved with the purchase on the equipment from the museum workshop”, the investigators claimed inside the report.

“We discover that it's really possible that CTMCA used the funding from the NLC to ‘refund’ one among its major directors for that assets at a higher overpriced price than the particular selling price and worth of the home and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant towards the CTMCA were expended.

“Actually, a detailed report on how the funding of the NLC was used, would be impossible given that the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in 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 which the NLC experienced not conducted a web site take a look at prior to approving the grant. But this was not normal apply at time and so they observed no proof of negligence by NLC employees.

At some time, the NLC’s policies did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to receive a next tranche of funding while not having to give proof that it had applied the initial tranche for its supposed purpose.

Adhering to the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni encouraged that

the NLC drop any future funding applications through the CTMCA;
the CTMCA and any users who had been involved in the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated money.
But, instead of act to the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, mainly because it had accomplished with the preceding experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for electronic mail addresses to mail the questions by email also. But no response had been received at the time of publication.



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