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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the National Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has identified no evidence that a museum ever existed.
The investigators located that the CTMCA didn't use the R5-million allocated to buy or establish a museum.
Additionally they uncovered the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA applied resources in the Lottery to buy workshop products from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Association (CTMCA) through the National Lotteries Commission (NLC) to arrange a museum to rejoice the city’s rich minstrel heritage went astray. The museum was never ever created.

The small print on the abuse of a lot of rands of Lottery funds for just a museum that under no circumstances was are uncovered within an investigative report commissioned through the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery money allotted towards the CTMCA between 2003 and 2017.

The initial Portion of the investigation, by law company Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which bundled funding for that museum. The accepted price range to the museum was a lot more than R12.8-million, with R5-million of that allotted for your creating to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing for your museum and if the museum “basically existed”.

The firm was also instructed to investigate

the acquisition with Lottery cash of two automobiles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
many equipment “procured for that manufacturing of the costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted criminal 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 continued as two of a number of administrators of the organisation. Stemmet was reappointed as being a director in Could 2021.

The investigation followed intensive reporting by GroundUp about the an incredible number of rands of Lottery funding allocated to the CTMCA (see listed here, here and here) and just how the cash likely served finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.



The developing on the appropriate was the intended internet site in the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to a Parliamentary concern, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “jobs” - such as the museum - between 2012 and 2015. All three projects had been done, she instructed MPs.

Nevertheless the investigators located no proof that a museum had at any time existed.

In the beginning the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp from the supposed Wetton museum shows a espresso store with some musical devices and minstrel costumes and collages of shots haphazardly hung on the walls, and also a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to verify if a museum experienced ever operated from these premises.

Stemmet told the investigators the museum had been moved because they could no longer pay for the rent of R100,000 a month. He stated the CTMCA experienced procured assets for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar value. Schaapkraal is in the peri-urban area far from the town.

Due to this fact, the museum were moved to a new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after visiting the premises, which happen to be within an industrial area, the investigators mentioned they doubted whether or not a suitable museum existed there. Pictures connected to your report clearly show a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and spread out on the ground, with no rationalization.

“You will find a minimum amount of objects in the museum [that] on no account characterize the over a hundred-year heritage on the Cape City Carnival, the investigators said, adding that there was “no signage outside the premises indicating which they housed a museum and … generally, the museum does not appear to get open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by moving The placement of the museum to another spot without notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA experienced to move from your rented Crete Highway premises as it experienced run up a R4-million personal debt with the town of Cape Town and was worried its gear will be attached.

“A result of the lawful battles along with the debts, the organisation experienced to maneuver its house from 5 Crete Highway to stay away from the sheriff from attaching the assets from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director with the CTMCA, advised them which the two buses purchased with lottery money ended up stored inside of a solution area “concealed within the Sheriff”. But the investigators said they ended up unable to substantiate that any buses had at any time been acquired.

Stemmet also confirmed the buses were concealed to stop them getting seized. But if the investigators questioned to become taken to the location in which the buses were being saved, he told them that “the operator of The trick locale wasn't accessible to open the premises for us”.

“The CTMCA could not supply proof of payment for 2 cars that it allegedly acquired with grant income,” the investigators claimed.

Soeker also explained to them the Schaapkraal house were bought due to credit card debt.

“Mr Soeker discussed that In keeping with his being familiar with, a result of the personal debt owed to the City of Cape Town, the CTMCA resolved It might be ideal to promote their [Schaapkraal] assets … and to also to hide the property of your CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for basic safety and protection, has previously instructed GroundUp which the CTMCA “threw revenue absent” on litigation with town.

“On a yearly basis like clockwork, as we technique the top in the year, the CTMCA picks a lawful combat with the City, in excess of permits or another thing. We in no way initiate it. They preserve throwing cash absent on vexatious litigation they drop and possess prices awarded against them. This is solely self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the principle position gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for all the admin, finances and managing หวย วัน นี้ the CTMCA.” The investigators stated they were unable to Call Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “discovered numerous machines, some in great problem, some in lousy condition and some that appeared rusty and intensely outdated”. Stemmet told the investigators that there was also an off-web site storage facility where “instruments and some machinery” were saved.

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

Based upon pics and invoices in GroundUp’s possession, some, Otherwise all, on the things look like products which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with costs 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 corporation during which Stemmet, his spouse and his daughter were directors at the time.

The investigators identified this “alarming”.

“With the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Highway, Wetton, Cape Town, the identical handle on which the museum was intended to be created and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, connected on the investigative report, recorded the CTMCA was in the whole process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was among the directors.

As outlined by Dabishi Nthambeleni, the company has paid R1.two-million for a deposit, this means R6.nine-million is still owed, though there's no payment day set for when this must be compensated.

The Kopano audit as well as near link involving the companies “point out to us that there's ‘foul Perform’ involved with the acquisition from the machinery of your museum workshop”, the investigators mentioned during the report.

“We discover that it's really possible that CTMCA used the funding from the NLC to ‘refund’ considered one of its primary directors with the property at a greater overpriced fee than the particular selling price and worth of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant for the CTMCA were used.

“The truth is, an in depth report on how the funding with the NLC was utilised, will be unattainable given that the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities spent on Each individual item it asked for funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not performed a internet site stop by before approving the grant. But this wasn't typical observe at enough time plus they located no evidence of carelessness by NLC staff members.

At time, the NLC’s rules did not require funded organisations to post evidence of payment with interim stories, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to deliver proof that it had applied the first tranche for its intended function.

Next the appointment of a fresh board, commissioner and senior government crew, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advisable that

the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, in lieu of act to the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, as it experienced done While using the prior stories into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to send the concerns by e-mail way too. But no response had been obtained at the time of publication.



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