Leaked report exposes abuse of lottery dollars paid out to minstrel group

Leaked report exposes abuse of lottery dollars paid out to minstrel group

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Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no evidence that a museum ever existed.
The investigators located the CTMCA did not use the R5-million allocated to buy or develop a museum.
Additionally they identified that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They uncovered the CTMCA applied money from your Lottery to purchase workshop machines from considered one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel history went astray. The museum was under no circumstances produced.

The details in the abuse of a lot of rands of Lottery cash for your museum that never was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was part of more than R64-million in Lottery resources allocated towards the CTMCA between 2003 and 2017.

The main Component of the investigation, by law business Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which provided funding for the museum. The accredited budget to the museum was much more than R12.eight-million, with R5-million of that allocated to get a constructing to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the constructing to the museum and if the museum “truly existed”.

The agency was also instructed to investigate

the acquisition with Lottery cash of two cars – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of machines “procured for that manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director from 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 continued as two of various administrators from the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed comprehensive reporting by GroundUp regarding the a lot of rands of Lottery funding allotted into the CTMCA (see in this article, here and in this article) 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. Picture: Raymond Joseph

In reaction to some Parliamentary dilemma, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “tasks” - including the museum - concerning 2012 and 2015. All three tasks had been concluded, she explained to MPs.

However the investigators located no proof that a museum had ever existed.

In the beginning the museum was on account of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp with the intended Wetton museum exhibits a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung to the partitions, as well as a product ship on its plinth inside a corner.

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

Stemmet explained to the investigators the museum had been moved as they could no more find the money for the rent of R100,000 a month. He said the CTMCA had ordered house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been offered for a similar rate. Schaapkraal is within a peri-urban place considerably from town.

Because of this, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after going to the premises, which can be within an industrial spot, the investigators mentioned they doubted regardless of whether an appropriate museum existed there. Photographs hooked up to the report exhibit a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the ground, without having rationalization.

“There's a nominal number of merchandise within the museum [that] on no account represent the greater than 100-calendar year heritage on the Cape Town Carnival, the investigators said, introducing that there was “no signage outdoors the premises indicating that they housed a museum and … commonly, the museum isn't going to appear to generally be open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement of the museum to an alternative site with out notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA had to move in the rented Crete Road premises because it had operate up a R4-million personal debt with the town of Cape Town and was scared its tools could be attached.

“Due to the lawful battles plus the debts, the organisation had to maneuver its home from five Crete Street to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director of your CTMCA, advised them which the two buses bought with lottery cash were being stored in the top secret area “concealed with the Sheriff”. However the investigators explained they were being not able to substantiate that any buses experienced at any time been purchased.

Stemmet also confirmed that the buses had been concealed to halt them being seized. But in the event the investigators questioned to generally be taken into the put where by the buses ended up stored, he told them that “the operator of The key location wasn't available to open up the premises for us”.

“The CTMCA could not present proof of payment for 2 automobiles that it allegedly procured with grant income,” the investigators reported.

Soeker also instructed them the Schaapkraal property had been marketed because of the financial debt.

“Mr Soeker stated that In accordance with his being familiar with, as a result of credit card debt owed to the town of Cape City, the CTMCA made a decision It will be most effective to sell their [Schaapkraal] property … also to also to cover the property on the CTMCA to stay away from the sheriff from attaching the home.”

JP Smith, Cape City’s mayco member for basic safety and safety, has previously explained to GroundUp the CTMCA “threw funds absent” on litigation with the town.

“Yearly like clockwork, as we approach the tip from the 12 months, the CTMCA picks a legal combat with town, in excess of permits or another thing. We never ever initiate it. They keep throwing funds absent on vexatious litigation which they lose and also have expenditures awarded against them. This can be fully self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the primary part players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and operating หวย the CTMCA.” The investigators reported they were struggling to Call Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “found numerous equipment, some in fantastic issue, some in negative situation and some that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “devices plus some equipment” were being saved.

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

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is facing prices for this removal.

In accordance with the ultimate development report submitted on the NLC from the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation during which Stemmet, his spouse and his daughter were directors at enough time.

The investigators uncovered this “alarming”.

“From your CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming obtaining: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape City, precisely the same tackle on which the museum was intended to be constructed and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached to the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was considered one of the directors.

In keeping with Dabishi Nthambeleni, the business has compensated R1.2-million as a deposit, meaning R6.nine-million remains owed, nevertheless there isn't any payment day set for when this need to be paid.

The Kopano audit and the shut website link involving the businesses “indicate to us that there's ‘foul Perform’ associated with the purchase of the equipment of the museum workshop”, the investigators claimed within the report.

“We find that it's highly probable that CTMCA employed the funding with the NLC to ‘refund’ one among its key administrators for that house at a better overpriced rate than the particular rate and price of the assets and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to determine how the grant to the CTMCA had been used.

“Actually, a detailed report on how the funding of the NLC was used, can be unattainable because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts invested on Each and every merchandise it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC had not executed a web page go to just before approving the grant. But this was not normal apply at enough time and so they found no evidence of carelessness by NLC employees.

At enough time, the NLC’s policies didn't involve funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was able to receive a 2nd tranche of funding without needing to deliver proof that it had utilised the first tranche for its meant intent.

Subsequent the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni suggested that

the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any members who were linked to the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a legal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, because it experienced accomplished Using the preceding stories into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by email also. But no response had been acquired at time of publication.



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