Leaked report exposes abuse of lottery funds paid to minstrel team

Leaked report exposes abuse of lottery funds paid to minstrel team

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Minstrels conduct in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has uncovered no evidence that a museum ever existed.
The investigators identified the CTMCA did not utilize the R5-million allocated to get or develop a museum.
They also uncovered the CTMCA only bought land well worth R1.seven-million, not R5-million as allotted.
They located the CTMCA used resources from the Lottery to acquire workshop products from considered one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Fee (NLC) to arrange a museum to rejoice the city’s wealthy minstrel record went astray. The museum was never designed.

The main points in the abuse of many rands of Lottery resources for just a museum that never was are exposed within an investigative report commissioned via the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.

The very first Element of the investigation, by law organization Dabishi Nthambeleni, was performed involving 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 permitted budget for your museum was a lot more than R12.eight-million, with R5-million of that allotted for your making to deal with the museum.

Examine the report (PDF, 7MB)

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

The agency was also instructed to investigate

the acquisition with Lottery money of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
several machines “ordered for your producing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few administrators from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted considerable reporting by GroundUp with regards to the many rands of Lottery funding allotted on the CTMCA (see below, listed here and listed here) and the way in which the resources likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.



The building on the ideal was the supposed web-site in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All a few projects had been finished, she advised MPs.

Even so the investigators observed no evidence that a museum had ever existed.

Initially the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of your intended Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung to the walls, and also a model ship on its plinth inside of a corner.

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

Stemmet told the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He reported the CTMCA experienced purchased property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is inside of a peri-city spot significantly from the city.

Because of this, the museum had been moved to a completely new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after checking out the premises, that are within an industrial region, the investigators reported they doubted no matter if a proper museum existed there. Pics hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having rationalization.

“There's a minimum volume of objects for the museum [that] under no circumstances characterize the much more than one hundred-yr background of the Cape City Carnival, the investigators explained, adding that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum would not search to be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation of the museum to an alternate site with no notifying the NLC.



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

Buses
Stemmet explained to the investigators the CTMCA experienced to maneuver from the rented Crete Street premises because it had run up a R4-million personal debt with the town of Cape City and was scared its devices would be attached.

“Due to authorized battles plus the debts, the organisation experienced to move its home from 5 Crete Highway to steer clear of the sheriff from attaching the assets with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director on the CTMCA, told them the two buses acquired with lottery money were being stored in a very magic formula locale “hidden with the Sheriff”. However the investigators claimed they were being not able to confirm that any buses had ever been bought.

Stemmet also confirmed which the buses were concealed to halt them remaining seized. But in the event the investigators questioned to generally be taken to the place where the buses were saved, he advised them that “the owner of The trick site was not accessible to open the premises for us”.

“The CTMCA couldn't present proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators documented.

Soeker also explained to them the Schaapkraal house were offered as a result of debt.

“Mr Soeker discussed that In accordance with his being familiar with, as a result of credit card debt owed to town of Cape City, the CTMCA decided it would be very best to market their [Schaapkraal] house … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the assets.”

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

“Each and every year like clockwork, as we strategy the top on the year, the CTMCA picks a authorized fight with the town, over permits or something else. We never initiate it. They hold throwing money away on vexatious litigation they reduce and have charges awarded versus them. This really is totally self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the primary part players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being answerable for all the admin, funds and managing lottovip the CTMCA.” The investigators explained they had been struggling to Get hold of Momberg.

Hats
For the duration of their “investigation in loco” on the Primrose Park premises, the investigators “found quite a few machines, some in very good situation, some in terrible situation and many that appeared rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-site storage facility exactly where “instruments and several machinery” ended up saved.

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

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, with the goods seem like tools which was illegally faraway from the CTMCA’s earlier premises. Stemmet is going through costs for this removing.

Based on the final development report submitted for the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm 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 acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, a similar handle on which the museum was meant to be created and/or converted,” they noted.

An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the administrators.

As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as being a deposit, indicating R6.nine-million continues to be owed, while there isn't any payment date set for when this need to be compensated.

The Kopano audit and the close website link amongst the businesses “reveal to us that there is ‘foul Engage in’ associated with the purchase from the equipment of your museum workshop”, the investigators claimed from the report.

“We find that it's really probable that CTMCA utilized the funding of the NLC to ‘refund’ amongst its major directors for that home at the next overpriced fee than the particular price tag and price of the home and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant into the CTMCA had been invested.

“The truth is, an in depth report on how the funding of the NLC was utilized, can be unachievable as the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Just about every merchandise it requested funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not done a web-site check out just before approving the grant. But this wasn't normal practice at enough time and they observed no evidence of negligence by NLC employees.

At time, the NLC’s procedures did not call for funded organisations to post evidence of payment with interim reviews, they identified. This intended which the CTMCA was able to receive a second tranche of funding while not having to present evidence that it experienced applied the first tranche for its intended purpose.

Following the appointment of a brand new board, commissioner and senior executive team, the NLC has tightened up on these as well as other problems.

Dabishi Nthambeleni suggested that

the NLC drop any long run funding programs from the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected on the NLC’s “delinquency” procedure;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated funds.
But, as an alternative to act over the report’s recommendations, the NLC – beneath its past administration – selected to suppress it, mainly because it experienced done With all the preceding stories into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker through SMS, and asked for email addresses to send the thoughts by electronic mail way too. But no response were gained at time of publication.



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