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 carry out in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators found which the CTMCA didn't make use of the R5-million allotted to get or establish a museum.
They also located the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They found the CTMCA utilized money from your Lottery to acquire workshop gear from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to rejoice town’s loaded minstrel record went astray. The museum was in no way produced.

The main points of the abuse of millions of rands of Lottery funds for a museum that hardly ever was are uncovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery funds allocated towards the CTMCA among 2003 and 2017.

The primary Component of the investigation, by law business Dabishi Nthambeleni, was carried out involving September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which provided funding for that museum. The accredited price range with the museum was over R12.8-million, with R5-million of that allotted for any creating to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the building for your museum and whether the museum “in fact existed”.

The company was also instructed to investigate

the purchase with Lottery money of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
different machines “acquired to the producing of your costumes and hats” with the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various administrators of your organisation. Stemmet was reappointed as a director in Might 2021.

The investigation adopted in depth reporting by GroundUp with regard to the a lot of rands of Lottery funding allocated towards the CTMCA (see in this article, listed here and here) and how the money almost certainly helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.



The developing on the right was the intended internet site on the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to some Parliamentary dilemma, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - among 2012 and 2015. All a few jobs were finished, she explained to MPs.

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

To start with the museum was due to open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp on the supposed Wetton museum exhibits a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung to the partitions, and also a model ship on its plinth in the corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not ready” to verify if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum were moved mainly because they could no longer afford to pay for the hire of R100,000 a month. He explained the CTMCA experienced obtained residence for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same value. Schaapkraal is inside a peri-urban location significantly from the town.

Subsequently, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, which are in an industrial area, the investigators claimed they doubted no matter if a correct museum existed there. Pics attached into the report present a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, without any explanation.

“There exists a negligible amount of merchandise within the museum [that] on no account represent the more than a hundred-12 months historical past from the Cape City Carnival, the investigators explained, including that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum won't search to generally be open to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by moving the location of your museum to an alternate place without notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises because it experienced operate up a R4-million credit card debt with the City of Cape Town and was concerned its devices might be connected.

“Due to the lawful battles as well as the debts, the organisation had to maneuver its residence from 5 Crete Highway to avoid the sheriff from attaching the assets in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them the two buses purchased with lottery resources were stored within a solution locale “hidden with the Sheriff”. Even so the investigators said they have been not able to substantiate that any buses experienced ever been bought.

Stemmet also confirmed which the buses were hidden to prevent them currently being seized. But in the event the investigators questioned for being taken into the place where the buses were being saved, he informed them that “the operator of The key locale was not accessible to open the premises for us”.

“The CTMCA couldn't deliver evidence of payment for two autos that it allegedly procured with grant money,” the investigators claimed.

Soeker also told them the Schaapkraal assets had been bought as a result of financial debt.

“Mr Soeker described that As outlined by his knowing, a result of the debt owed to town of Cape City, the CTMCA decided It might be best to promote their [Schaapkraal] property … also to also to cover the property in the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for basic safety and security, has previously advised GroundUp that the CTMCA “threw income away” on litigation with town.

“Each and every year like clockwork, as we technique the end of your 12 months, the CTMCA picks a legal struggle with the town, above permits or something else. We never ever initiate it. They preserve throwing money away on vexatious litigation which they shed and also have expenses awarded from them. This really is solely self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the key job players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all the admin, finances and operating ตัว หวย the CTMCA.” The investigators said they were not able to Get hold of Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered a lot of machines, some in good condition, some in bad ailment and many that looked rusty and intensely old”. Stemmet told the investigators that there was also an off-site storage facility where by “instruments plus some machinery” ended up stored.

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

Determined by photographs and invoices in GroundUp’s possession, some, Otherwise all, of your products appear to be devices which was illegally removed from the CTMCA’s preceding premises. Stemmet is experiencing prices for this removing.

Based on the closing progress report submitted to the NLC through the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm where Stemmet, his spouse and his daughter were being directors at some time.

The investigators uncovered this “alarming”.

“Through the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, exactly the same address on which the museum was intended to be constructed and/or transformed,” they claimed.

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

In keeping with Dabishi Nthambeleni, the corporate has compensated R1.2-million to be a deposit, this means R6.9-million remains owed, even though there isn't any payment date set for when this needs to be compensated.

The Kopano audit and also the near connection amongst the businesses “suggest to us that there's ‘foul Participate in’ linked to the acquisition of the machinery from the museum workshop”, the investigators said in the report.

“We discover that it is remarkably probable that CTMCA used the funding of your NLC to ‘refund’ amongst its principal administrators for that home at a higher overpriced rate than the particular value and price of the home and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant into the CTMCA were spent.

“In fact, a detailed report on how the funding with the NLC was made use of, could well be unattainable as being the CTMCA does not have any receipts, or proof of payments to substantiate the quantities put in on Each and every product it requested funding for. The interim report and final report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC had not done a internet site check out prior to approving the grant. But this wasn't normal observe at the time plus they found no evidence of negligence by NLC personnel.

At enough time, the NLC’s procedures didn't require funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was capable to receive a second tranche of funding without having to provide evidence that it had utilized the initial tranche for its intended intent.

Pursuing the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni proposed that

the NLC decrease any upcoming funding applications with the CTMCA;
the CTMCA and any users who have been linked to the grant be subjected to the NLC’s “delinquency” approach;
the NLC open up a felony circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as opposed to act about the report’s suggestions, the NLC – beneath its earlier administration – chose to suppress it, as it experienced completed Together with the earlier studies into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker by using SMS, and requested for electronic mail addresses to ship the questions by e mail too. But no reaction were obtained at some time of publication.



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

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