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 conduct in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed which the CTMCA didn't make use of the R5-million allocated to get or make a museum.
Additionally they identified that the CTMCA only acquired land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA applied money in the Lottery to purchase workshop devices from one among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the town’s loaded minstrel history went astray. The museum was never ever established.

The details from the abuse of an incredible number of rands of Lottery money for the museum that under no circumstances was are discovered within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery funds allotted to your CTMCA among 2003 and 2017.

The very first part of the investigation, by legislation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which integrated funding for that museum. The authorized funds with the museum was over R12.8-million, with R5-million of that allocated for your setting up to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building for the museum and whether or not the museum “actually existed”.

The business was also instructed to analyze

the purchase with Lottery funds of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
many devices “bought with the production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your 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 to be a director in Might 2021.

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



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

In reaction into a Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “initiatives” - such as the museum - involving 2012 and 2015. All three tasks were done, she informed MPs.

Nevertheless the investigators found no proof that a museum had ever existed.

At first the museum was as a result of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp from the supposed Wetton museum exhibits a espresso store with a few musical instruments and minstrel costumes and collages of pics haphazardly hung over the partitions, in addition to a product ship on its plinth within a corner.

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

Stemmet instructed the investigators the museum had been moved given that they could no longer afford to pay for the rent of R100,000 a month. He mentioned the CTMCA had acquired residence for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and were marketed for the same price. Schaapkraal is in the peri-city spot considerably from the city.

As a result, the museum were moved to a fresh spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which happen to be within an industrial place, the investigators explained they doubted no matter if a proper museum existed there. Pics attached to your report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.

“There is a nominal amount of things within the museum [that] on no account depict the much more than 100-yr heritage of your Cape City Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not appear to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by shifting The placement of the museum to an alternate locale without having notifying the NLC.



The Schaapkraal assets, on which no museum was ever crafted. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators which the CTMCA had to maneuver from the rented Crete Street premises as it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its tools will be connected.

“Due to legal battles as well as the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets in the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses bought with lottery cash were stored in the secret spot “concealed within the Sheriff”. Nevertheless the investigators claimed they were being not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified the buses had been hidden to halt them being seized. But in the event the investigators questioned being taken to your area the place the buses have been stored, he explained to them that “the proprietor of the secret locale wasn't available to open up the premises for us”.

“The CTMCA could not present proof of payment for 2 vehicles that it allegedly ordered with grant funds,” the investigators reported.

Soeker also advised them the Schaapkraal property had been marketed due to financial debt.

“Mr Soeker spelled out that Based on his knowledge, due to the debt owed to the City of Cape Town, the CTMCA determined It might be ideal to market their [Schaapkraal] house … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for safety and protection, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with the town.

“Yearly like clockwork, as we approach the tip from the 12 months, the CTMCA picks a legal battle with town, more than permits or another thing. We by no means initiate it. They retain throwing money away on vexatious litigation that they get rid of and possess costs awarded towards them. This is certainly solely self-inflicted,” he stated.

Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being answerable for many of the admin, finances and working หวย the CTMCA.” The investigators reported they were not able to Call Momberg.

Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “found various devices, some in very good problem, some in poor condition and many that looked rusty and intensely old”. Stemmet explained to the investigators that there was also an off-internet site storage facility where “instruments plus some machinery” have been saved.

“We asked him to acquire us to the power but he was evasive to our request.”

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, of the things look like products that was illegally removed from the CTMCA’s past premises. Stemmet is dealing with prices for this removal.

According to the closing development report submitted towards the NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization where Stemmet, his wife and his daughter ended up administrators at time.

The investigators uncovered this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Observe the following alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Street, Wetton, Cape City, the identical tackle on which the museum was meant to be constructed and/or converted,” they claimed.

An audit by accountants Kopano Included, hooked up to the investigative report, recorded that the CTMCA was in the entire process of getting “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.

As outlined by Dabishi Nthambeleni, the corporate has paid out R1.two-million to be a deposit, indicating R6.9-million remains to be owed, even though there's no payment day established for when this have to be paid.

The Kopano audit along with the close url in between the businesses “show to us that there's ‘foul Participate in’ involved in the purchase with the equipment of your museum workshop”, the investigators said inside the report.

“We find that it is really probable that CTMCA made use of the funding of your NLC to ‘refund’ certainly one of its primary administrators with the home at a greater overpriced price than the particular price and price of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant to your CTMCA had been expended.

“Actually, an in depth report on how the funding on the NLC was employed, could well be difficult because the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts spent on Just about every merchandise it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not conducted a web site take a look at prior to approving the grant. But this was not standard observe at some time plus they observed no proof of negligence by NLC employees.

At some time, the NLC’s policies did not involve funded organisations to submit proof of payment with interim reports, they identified. This meant which the CTMCA was in a position to get a next tranche of funding while not having to supply evidence that it had utilised the very first tranche for its meant intent.

Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any customers who ended up associated with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal case 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 on the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had performed Using the preceding experiences into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to mail the concerns by e-mail also. But no response had been obtained at the time of publication.



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