Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no proof that a museum at any time existed.
The investigators found which the CTMCA didn't use the R5-million allotted to order or create a museum.
Additionally they uncovered which the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA used cash within the Lottery to purchase workshop equipment from one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to create a museum to rejoice the city’s loaded minstrel historical past went astray. The museum was by no means designed.

The small print on the abuse of countless rands of Lottery resources for any museum that never ever was are exposed within an investigative report commissioned from the NLC in 2021.

The museum grant was A part of more than R64-million in Lottery funds allotted on the CTMCA between 2003 and 2017.

The 1st Section of the investigation, by law organization Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which included funding to the museum. The authorised finances with the museum was a lot more than R12.eight-million, with R5-million of that allotted for any setting up to accommodate the museum.

Read through the report (PDF, 7MB)

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

The company was also instructed to research

the acquisition with Lottery resources of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous equipment “purchased for that manufacturing of the costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted legal 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 spouse Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed for a director in May well 2021.

The investigation followed substantial reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated to your CTMCA (see right here, right here and here) and just how the cash possibly served finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.



The constructing on the correct was the intended web page of the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to your Parliamentary issue, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All 3 assignments had been completed, she instructed MPs.

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

Initially the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp in the supposed Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, and a model ship on its plinth in a corner.

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

Stemmet advised the investigators the museum had been moved simply because they could not manage the hire of R100,000 a month. He said the CTMCA had ordered residence for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar price. Schaapkraal is within a peri-urban place much from the town.

Subsequently, the museum were moved to a new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, that happen to be within an industrial place, the investigators stated they doubted regardless of whether a correct museum existed there. Photos hooked up into the report clearly show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the floor, without having clarification.

“There exists a minimum quantity of goods in the museum [that] by no means characterize the more than 100-year background in the Cape City Carnival, the investigators reported, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … usually, the museum isn't going to glance being open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by going The situation of the museum to another site without the need of notifying the NLC.



The Schaapkraal residence, on which no museum was ever created. Photo: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA had to move within the rented Crete Street premises as it experienced operate up a R4-million debt with the town of Cape Town and was scared its products might be hooked up.

“Because of the lawful battles as well as debts, the organisation had to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director on the CTMCA, informed them the two buses bought with lottery funds were saved inside of a key place “concealed with the Sheriff”. Nevertheless the investigators stated they were being unable to verify that any buses experienced at any time been acquired.

Stemmet also confirmed that the buses were hidden to stop them currently being seized. But if the investigators questioned to become taken to your location the place the buses were stored, he told them that “the owner of the secret location wasn't available to open up the premises for us”.

“The CTMCA could not deliver proof of payment for two automobiles that it allegedly bought with grant dollars,” the investigators claimed.

Soeker also told them the Schaapkraal home were offered due to personal debt.

“Mr Soeker described that Based on his knowing, as a result of personal debt owed to the town of Cape City, the CTMCA resolved It could be best to promote their [Schaapkraal] assets … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the house.”

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

“Every year like clockwork, as we method the top of your calendar year, the CTMCA picks a authorized fight with town, about permits or something else. We hardly ever initiate it. They hold throwing money away on vexatious litigation they eliminate and possess expenses awarded in opposition to them. This is often entirely self-inflicted,” he stated.

Soeker informed the Dabishi Nthambeleni investigators that the principle purpose players on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being answerable for all the admin, funds and managing หุ้น ชอง 9 the CTMCA.” The investigators mentioned they had been not able to Speak to Momberg.

Hats
Through their “investigation in loco” for the Primrose Park premises, the investigators “observed quite a few devices, some in great condition, some in lousy ailment and many that looked rusty and intensely old”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “devices and some machinery” ended up kept.

“We requested him to choose us to the facility but he was evasive to our request.”

Based upon photos and invoices in GroundUp’s possession, some, if not all, in the objects look like machines which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with costs for this removal.

According to the final development report submitted to the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter ended up administrators at enough time.

The investigators identified this “alarming”.

“Through the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be constructed and/or converted,” they claimed.

An audit by accountants Kopano Included, hooked up towards the investigative report, recorded that the CTMCA was in the process of getting “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.

In line with Dabishi Nthambeleni, the business has paid R1.2-million as being a deposit, meaning R6.nine-million is still owed, nevertheless there isn't a payment date set for when this needs to be paid out.

The Kopano audit as well as close url concerning the companies “reveal to us that there's ‘foul Participate in’ involved in the purchase from the machinery in the museum workshop”, the investigators explained during the report.

“We discover that it's hugely probable that CTMCA employed the funding in the NLC to ‘refund’ among its principal directors with the assets at an increased overpriced fee than the actual rate and worth of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant to the CTMCA had been used.

“Actually, an in depth report on how the funding from the NLC was applied, could be unachievable because the CTMCA does not have any receipts, or proof of payments to verify the quantities expended on each item it requested funding for. The interim report and last report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not done a web page visit before approving the grant. But this wasn't common follow at the time they usually located no evidence of carelessness by NLC personnel.

At the time, the NLC’s procedures didn't need funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was capable to get a second tranche of funding while not having to provide proof that it had applied the first tranche for its intended function.

Pursuing the appointment of a new board, commissioner and senior executive team, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni encouraged that

the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any members who were being involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated funds.
But, in lieu of act within the report’s tips, the NLC – under its preceding administration – selected to suppress it, mainly because it had accomplished While using the prior studies into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and requested for e mail addresses to send out the issues by e mail way too. But no response had been been given at some time of publication.



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