Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum at any time existed.
The investigators identified that the CTMCA didn't use the R5-million allocated to order or make a museum.
In addition they located which the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They found the CTMCA employed funds within the Lottery to invest in workshop machines from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Fee (NLC) to create a museum to rejoice the town’s prosperous minstrel history went astray. The museum was never established.

The details with the abuse of a lot of rands of Lottery funds to get a museum that hardly ever was are disclosed in an investigative report commissioned from the NLC in 2021.

The museum grant was Component of more than R64-million in Lottery resources allocated into the CTMCA among 2003 and 2017.

The very first Element of the investigation, by legislation organization Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which involved funding for that museum. The authorised budget with the museum was more than R12.eight-million, with R5-million of that allotted for the setting up to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a developing for your museum and if the museum “really existed”.

The company was also instructed to investigate

the acquisition with Lottery cash of two autos – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
several devices “bought with the production of your costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few directors in the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed intensive reporting by GroundUp in regards to the many rands of Lottery funding allotted to the CTMCA (see here, here and here) and the way the resources probably aided finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.



The making on the appropriate was the supposed web page on the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “projects” - including the museum - involving 2012 and 2015. All a few projects had been finished, she advised MPs.

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

At first the museum was as a result of open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung within the partitions, and also a model ship on its plinth inside of a corner.

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

Stemmet told the investigators the museum had been moved because they could not afford to pay for the rent of R100,000 a month. He explained the CTMCA experienced purchased home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for a similar selling price. Schaapkraal is in a peri-city space considerably from town.

Subsequently, the museum were moved to a different site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after browsing the premises, that happen to be in an industrial place, the investigators explained they doubted no matter whether a proper museum existed there. Images attached on the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without having explanation.

“There exists a small degree of items on the museum [that] under no circumstances depict the much more than 100-calendar year background in the Cape City Carnival, the investigators reported, incorporating that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum does not look to be open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by going The situation with the museum to an alternative place with out notifying the NLC.



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

Buses
Stemmet told the investigators which the CTMCA had to move from your rented Crete Street premises because it had operate up a R4-million credit card debt with the City of Cape Town and was fearful its machines will be connected.

“Because of the legal battles plus the debts, the organisation had to move its assets from five Crete Street to stay away from the sheriff from attaching the assets in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director in the CTMCA, explained to them which the two buses purchased with lottery resources had been saved in a very mystery area “hidden through the Sheriff”. However the investigators said they were unable to verify that any buses experienced at any time been bought.

Stemmet also verified that the buses were concealed to halt them staying seized. But in the event the investigators questioned to be taken towards the location in which the buses had been saved, he instructed them that “the owner of The trick locale was not accessible to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.

Soeker also informed them the Schaapkraal residence were offered as a result of debt.

“Mr Soeker discussed that Based on his knowledge, because of the financial debt owed to the town of Cape Town, the CTMCA made the decision It could be finest to offer their [Schaapkraal] residence … and also to also to hide the assets of the CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for security and stability, has Earlier advised GroundUp that the CTMCA “threw dollars away” on litigation with town.

“Annually like clockwork, as we strategy the top in the calendar year, the CTMCA picks a legal combat with town, above permits or another thing. We in no way initiate it. They continue to keep throwing cash away on vexatious litigation they reduce and have fees awarded from them. This is completely self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial job gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been in control of all of the admin, funds and jogging ผล หวย หุ้น the CTMCA.” The investigators reported they were struggling to Call Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “discovered many equipment, some in fantastic issue, some in negative situation plus some that seemed rusty and intensely outdated”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and a few equipment” were held.

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

Based on photographs and invoices in GroundUp’s possession, some, if not all, with the merchandise appear to be gear that was illegally removed from the CTMCA’s earlier premises. Stemmet is going through prices for this elimination.

Based on the ultimate progress report submitted to the NLC by the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm during which Stemmet, his wife and his daughter ended up directors at some time.

The investigators located this “alarming”.

“In the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape Town, a similar address on which the museum was intended to be developed and/or converted,” they documented.

An audit by accountants Kopano Included, hooked up to your investigative report, recorded which the CTMCA was in the whole process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the administrators.

In keeping with Dabishi Nthambeleni, the corporation has paid out R1.two-million for a deposit, that means R6.nine-million remains to be owed, although there is no payment date established for when this should be paid out.

The Kopano audit and the near connection in between the companies “suggest to us that there's ‘foul play’ associated with the acquisition with the equipment of your museum workshop”, the investigators said inside the report.

“We find that it is extremely possible that CTMCA used the funding of the NLC to ‘refund’ one of its main administrators for that house at a greater overpriced price than the particular price tag and value of the assets and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to establish how the grant into the CTMCA had been used.

“In fact, an in depth report on how the funding of the NLC was utilised, could be difficult as the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on each item it requested funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC experienced not done a web page visit before approving the grant. But this wasn't common apply at the time they usually located no evidence of carelessness by NLC staff.

At the time, the NLC’s regulations did not have to have funded organisations to submit proof of payment with interim reports, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding without needing to deliver evidence that it had employed the main tranche for its intended objective.

Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni encouraged that

the NLC decrease any foreseeable future funding programs in the CTMCA;
the CTMCA and any members who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather then act about 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 issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by email too. But no reaction were acquired at time of publication.



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