Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the Countrywide Lotteries Fee to your Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum ever existed.
The investigators found that the CTMCA did not utilize the R5-million allotted to obtain or build a museum.
They also located the CTMCA only acquired land truly worth R1.7-million, not R5-million as allotted.
They located the CTMCA employed resources in the Lottery to invest in workshop products from among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Fee (NLC) to arrange a museum to rejoice town’s abundant minstrel historical past went astray. The museum was under no circumstances developed.

The main points on the abuse of many rands of Lottery resources for just a museum that under no circumstances was are uncovered within an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of much more than R64-million in Lottery money allotted on the CTMCA among 2003 and 2017.

The 1st Element of the investigation, by regulation business Dabishi Nthambeleni, was conducted in between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which bundled funding with the museum. The permitted finances to the museum was over R12.eight-million, with R5-million of that allocated for a setting up to house the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a making for the museum and if the museum “basically existed”.

The company was also instructed to research

the acquisition with Lottery resources of two vehicles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
many equipment “bought for your production in the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of administrators on the organisation. Stemmet was reappointed being a director in Could 2021.

The investigation adopted comprehensive reporting by GroundUp with regards to the numerous rands of Lottery funding allotted for the CTMCA (see in this article, right here and below) and the way the cash likely helped finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The making on the ideal was the meant site from the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “initiatives” - including the museum - between 2012 and 2015. All a few assignments had been done, she advised MPs.

However the investigators uncovered no proof that a museum experienced at any time existed.

To start with the museum was because of open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp on the meant Wetton museum shows a coffee shop with some musical instruments and minstrel costumes and collages of images haphazardly hung about the partitions, in addition to a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni said it was “not in a position” to substantiate if a museum experienced at any time operated from these premises.

Stemmet instructed the investigators the museum were moved given that they could not afford the rent of R100,000 per month. He mentioned the CTMCA experienced obtained assets for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been offered for a similar rate. Schaapkraal is in a peri-city area considerably from the town.

Therefore, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after viewing the premises, which happen to be within an industrial location, the investigators reported they doubted no matter if an appropriate museum existed there. Photos hooked up on the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the floor, without having rationalization.

“There's a minimum amount of things in the museum [that] by no means represent the greater than one hundred-yr historical past on the Cape City Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum does not glance to get open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by relocating The situation from the museum to an alternate site without notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to move from your rented Crete Road premises mainly because it had run up a R4-million personal debt with the town of Cape City and was concerned its equipment might be hooked up.

“A result of the lawful battles and also the debts, the organisation had to move its house from five Crete Street to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses acquired with lottery cash have been stored inside a secret locale “concealed from your Sheriff”. Nevertheless the investigators stated they were being unable to substantiate that any buses had at any time been bought.

Stemmet also confirmed which the buses had been hidden to halt them getting seized. But in the event the investigators asked being taken towards the position exactly where the buses have been saved, he explained to them that “the owner of the secret area was not available to open the premises for us”.

“The CTMCA could not give evidence of payment for two autos that it allegedly ordered with grant dollars,” the investigators claimed.

Soeker also explained to them the Schaapkraal assets were offered due to the debt.

“Mr Soeker explained that according to his understanding, due to the credit card debt owed to the City of Cape Town, the CTMCA determined It will be most effective to sell their [Schaapkraal] assets … and to also to cover the belongings from the CTMCA to stay away from the sheriff from attaching the assets.”

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

“On a yearly basis like clockwork, as we approach the top from the yr, the CTMCA picks a legal fight with town, around permits or another thing. We hardly ever initiate it. They continue to keep throwing dollars away on vexatious litigation that they reduce and also have fees awarded against them. This is fully self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the most crucial part gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all of the admin, finances and managing หวย หุ้น ช่อง 9 the CTMCA.” The investigators reported they had been struggling to Make contact with Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “discovered a lot of equipment, some in excellent affliction, some in bad problem and many that seemed rusty and very outdated”. Stemmet explained to the investigators that there was also an off-site storage facility exactly where “instruments and some equipment” were being saved.

“We requested him to just take us to the facility but he was evasive to our ask for.”

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of the merchandise seem like gear which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with rates for this elimination.

In accordance with the last development report submitted to the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were directors at time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they claimed.

An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.

In accordance with Dabishi Nthambeleni, the organization has compensated R1.2-million as being a deposit, which means R6.nine-million continues to be owed, while there is absolutely no payment day established for when this should be paid out.

The Kopano audit along with the near website link amongst the companies “show to us that there's ‘foul Enjoy’ involved with the acquisition from the equipment on the museum workshop”, the investigators mentioned in the report.

“We find that it's remarkably probable that CTMCA made use of the funding on the NLC to ‘refund’ among its most important directors for your residence at a higher overpriced level than the actual price tag and price of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to establish how the grant towards the CTMCA had been invested.

“In fact, a detailed report on how the funding in the NLC was utilised, could well be extremely hard since the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities expended on Every single item it asked for funding for. The interim report and closing report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not executed a web-site check out just before approving the grant. But this wasn't regular follow at the time and so they uncovered no proof of negligence by NLC personnel.

At some time, the NLC’s rules did not need funded organisations to submit evidence of payment with interim experiences, they identified. This intended the CTMCA was able to get a 2nd tranche of funding without the need to provide evidence that it experienced used the initial tranche for its meant reason.

Pursuing the appointment of a new board, commissioner and senior govt crew, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni proposed that

the NLC decline any long run funding applications with the CTMCA;
the CTMCA and any members who have been linked to the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated resources.
But, as opposed to act about the report’s tips, the NLC – below its preceding administration – chose to suppress it, because it had carried out With all the earlier reviews into corruption it had commissioned.

GroundUp sent concerns to Stemmet and Soeker by way of SMS, and questioned for electronic mail addresses to ship the queries by electronic mail far too. But no response were obtained at the time of publication.



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

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