Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant through the Countrywide Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has found no proof that a museum ever existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allocated to get or make a museum.
Additionally they observed the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA made use of cash within the Lottery to purchase workshop equipment from among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Fee (NLC) to create a museum to rejoice the city’s abundant minstrel heritage went astray. The museum was under no circumstances established.

The details on the abuse of an incredible number of rands of Lottery money to get a museum that never was are discovered in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of more than R64-million in Lottery money allocated to the CTMCA amongst 2003 and 2017.

The first Portion of the investigation, by legislation business Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding for your museum. The accredited price range for the museum was more than R12.eight-million, with R5-million of that allotted for the creating to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the creating with the museum and whether the museum “in fact existed”.

The firm was also instructed to investigate

the purchase with Lottery money of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
a variety of equipment “bought with the production in the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors on the organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted in depth reporting by GroundUp about the numerous rands of Lottery funding allocated towards the CTMCA (see right here, below and here) and the way in which the money in all probability served finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The constructing on the appropriate was the intended web-site from the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph

In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “projects” - including the museum - involving 2012 and 2015. All a few assignments had been accomplished, she informed MPs.

Nevertheless the investigators located no evidence that a museum had ever existed.

At the beginning the museum was as a result of open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp in the meant Wetton museum reveals a espresso store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung to the walls, along with a design ship on its plinth within a corner.

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

Stemmet informed the investigators the museum were moved mainly because they could no more pay for the hire of R100,000 a month. He explained the CTMCA had bought home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside of a peri-urban space significantly from the town.

Therefore, the museum had been moved to a different spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are within an industrial place, the investigators reported they doubted no matter if a suitable museum existed there. Pics connected to your report clearly show a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, exhibited on tables and unfold out on the floor, without having explanation.

“You will find there's nominal quantity of merchandise in the museum [that] on no account characterize the greater than 100-yr record from the Cape Town Carnival, the investigators explained, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … generally, the museum will not glance to generally be open up to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by going The placement with the museum to an alternate site without notifying the NLC.



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

Buses
Stemmet explained to the investigators which the CTMCA had to move in the rented Crete Highway premises since it experienced run up a R4-million personal debt with the City of Cape City and was scared its gear would be attached.

“Mainly because of the lawful battles and also the debts, the organisation had to move its house from 5 Crete Road to avoid the sheriff from attaching the home with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director with the CTMCA, explained to them which the two buses purchased with lottery money have been saved in a very solution locale “concealed within the Sheriff”. But the investigators said they ended up unable to substantiate that any buses had at any time been bought.

Stemmet also confirmed that the buses had been concealed to stop them getting seized. But once the investigators questioned to become taken to the area the place the buses were stored, he advised them that “the operator of The trick area wasn't available to open the premises for us”.

“The CTMCA could not deliver proof of payment for two cars that it allegedly obtained with grant revenue,” the investigators reported.

Soeker also instructed them the Schaapkraal assets were bought due to the debt.

“Mr Soeker explained that according to his understanding, because of the debt owed to the town of Cape City, the CTMCA made the decision it would be most effective to provide their [Schaapkraal] house … also to also to hide the property from the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Beforehand informed GroundUp which the CTMCA “threw funds away” on litigation with the town.

“Each year like clockwork, as we tactic the top from the year, the CTMCA picks a legal fight with the City, more than permits or something else. We never ever initiate it. They hold throwing revenue absent on vexatious litigation they shed and have costs awarded from them. This can be solely self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of all the admin, finances and managing หวย ลาว ย้อน หลัง the CTMCA.” The investigators mentioned they were not able to Call Momberg.

Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “found many machines, some in good condition, some in bad situation and many that seemed rusty and extremely old”. Stemmet told the investigators that there was also an off-website storage facility exactly where “devices and several machinery” were kept.

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

According to photos and invoices in GroundUp’s possession, some, Otherwise all, in the products appear to be machines that was illegally faraway from the CTMCA’s prior premises. Stemmet is dealing with rates for this removal.

Based on the remaining development report submitted into the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter ended up administrators at enough time.

The investigators uncovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Street, Wetton, Cape Town, the identical tackle on which the museum was intended to be designed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, connected towards the investigative report, recorded that the CTMCA was in the entire process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.

According to Dabishi Nthambeleni, the business has compensated R1.two-million to be a deposit, this means R6.nine-million remains to be owed, while there is no payment day set for when this has to be paid.

The Kopano audit and also the close link involving the companies “indicate to us that there's ‘foul play’ linked to the purchase with the equipment from the museum workshop”, the investigators explained during the report.

“We discover that it's extremely probable that CTMCA utilized the funding in the NLC to ‘refund’ amongst its main directors with the property at a higher overpriced level than the particular price tag and value of the property and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant towards the CTMCA were expended.

“Actually, a detailed report on how the funding with the NLC was employed, would be unachievable since the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities spent on Each individual item it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not carried out a web page pay a visit to in advance of approving the grant. But this wasn't typical exercise at some time plus they uncovered no proof of negligence by NLC personnel.

At enough time, the NLC’s regulations did not need funded organisations to post proof of payment with interim stories, they pointed out. This intended the CTMCA was capable of receive a 2nd tranche of funding without needing to supply evidence that it had applied the initial tranche for its meant objective.

Adhering to the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these along with other difficulties.

Dabishi Nthambeleni recommended that

the NLC decline any foreseeable future funding apps within the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, in lieu of act about the report’s suggestions, the NLC – under its past administration – chose to suppress it, mainly because it had performed With all the previous stories into corruption it experienced commissioned.

GroundUp sent inquiries to Stemmet and Soeker by using SMS, and asked for email addresses to deliver the queries by e-mail way too. But no reaction had been acquired at enough time of publication.



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