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 accomplish in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no evidence that a museum ever existed.
The investigators identified which the CTMCA didn't utilize the R5-million allotted to purchase or produce a museum.
In addition they found that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They uncovered the CTMCA applied cash through the Lottery to buy workshop equipment from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to create a museum to rejoice town’s wealthy minstrel historical past went astray. The museum was never developed.

The small print with the abuse of millions of rands of Lottery resources for a museum that by no means was are uncovered in an investigative report commissioned by the NLC in 2021.

The museum grant was part of greater than R64-million in Lottery resources allotted for the CTMCA in between 2003 and 2017.

The first Component of the investigation, by law business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for your museum. The permitted spending budget to the museum was more than R12.8-million, with R5-million of that allocated for any making to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the making for that museum and whether or not the museum “essentially existed”.

The organization was also instructed to research

the purchase with Lottery resources 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” to the minstrels carnival, for R5.four-million.
At time, convicted felony 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 various administrators from the organisation. Stemmet was reappointed being a director in May perhaps 2021.

The investigation adopted substantial reporting by GroundUp about the numerous rands of Lottery funding allocated for the CTMCA (see listed here, listed here and listed here) and the best way the money most likely helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.



The developing on the right was the intended website of your minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - between 2012 and 2015. All three assignments were done, she told MPs.

Even so the investigators observed no evidence that a museum experienced at any time existed.

At the outset the museum was due to open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp from the supposed Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the partitions, as well as a product ship on its plinth in a very corner.

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

Stemmet told the investigators the museum had been moved since they could no more afford the rent of R100,000 a month. He claimed the CTMCA experienced purchased house for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is in a peri-city area far from town.

As a result, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after viewing the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter if a correct museum existed there. Shots attached into the report present a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without any explanation.

“There exists a minimum level of merchandise with the museum [that] by no means symbolize the much more than a hundred-12 months history with the Cape City Carnival, the investigators mentioned, including that there was “no signage exterior the premises indicating which they housed a museum and … normally, the museum does not glance to become open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by going the location on the museum to an alternate place devoid of notifying the NLC.



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

Buses
Stemmet explained to the investigators which the CTMCA had to maneuver from the rented Crete Highway premises as it experienced run up a R4-million financial debt with the town of Cape City and was afraid its machines could be connected.

“Because of the legal battles and the debts, the organisation experienced to move its property from five Crete Highway to steer clear of the sheriff from attaching the assets from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director on the CTMCA, told them the two buses acquired with lottery money were being stored inside of a key location “hidden within the Sheriff”. Even so the investigators reported they had been not able to confirm that any buses had ever been purchased.

Stemmet also confirmed that the buses were concealed to stop them becoming seized. But in the event the investigators questioned to become taken on the put exactly where the buses had been stored, he explained to them that “the operator of The key area was not accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for 2 autos that it allegedly ordered with grant revenue,” the investigators reported.

Soeker also told them the Schaapkraal property had been bought as a result of debt.

“Mr Soeker described that Based on his knowing, as a result of personal debt owed to the town of Cape City, the CTMCA decided It could be very best to provide their [Schaapkraal] home … also to also to hide the belongings in the CTMCA to steer clear of the sheriff from attaching the home.”

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

“Yearly like clockwork, as we approach the end of the yr, the CTMCA picks a authorized battle with the City, about permits or another thing. We by no means initiate it. They maintain throwing cash away on vexatious litigation which they get rid of and have expenditures awarded in opposition to them. This can be solely self-inflicted,” he explained.

Soeker explained to the Dabishi Nthambeleni investigators that the principle job players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for all the admin, finances and running ตรวจ หวย the CTMCA.” The investigators reported they were not able to Get in touch with Momberg.

Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located several machines, some in fantastic situation, some in lousy problem and some that looked rusty and very old”. Stemmet instructed the investigators that there was also an off-website storage facility the place “devices and some machinery” were stored.

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

Dependant on photos and invoices in GroundUp’s possession, some, Otherwise all, of your merchandise look like products that was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through expenses for this removing.

Based on the final development report submitted towards the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter were being directors at time.

The investigators uncovered this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we note the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Street, Wetton, Cape Town, the exact same tackle on which the museum was intended to be constructed and/or converted,” they claimed.

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

Based on Dabishi Nthambeleni, the corporation has paid R1.2-million to be a deposit, which means R6.9-million remains owed, although there isn't a payment day established for when this should be paid.

The Kopano audit along with the near connection between the businesses “suggest to us that there's ‘foul Participate in’ linked to the acquisition on the machinery from the museum workshop”, the investigators said in the report.

“We discover that it is extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its most important directors with the house at a higher overpriced amount than the actual price tag and price of the house and/or equipment.”

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

“In point of fact, an in depth report on how the funding of the NLC was employed, might be impossible because the CTMCA does not have any receipts, or proof of payments to substantiate the quantities expended on Each individual product it requested funding for. The interim report and ultimate report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC had not done a web-site check out just before approving the grant. But this wasn't common apply at some time and so they uncovered no evidence of carelessness by NLC employees.

At time, the NLC’s rules did not have to have funded organisations to post evidence of payment with interim reviews, they pointed out. This intended the CTMCA was able to receive a second tranche of funding while not having to deliver evidence that it experienced made use of the very first tranche for its intended objective.

Subsequent the appointment of a fresh 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 in the CTMCA;
the CTMCA and any users who have been involved in the grant be subjected to your NLC’s “delinquency” method;
the NLC open up a legal circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, rather then act around the report’s suggestions, the NLC – underneath its previous administration – chose to suppress it, as it had completed Along with the past experiences into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by means of SMS, and requested for e-mail addresses to send the questions by electronic mail far too. But no response were gained at time of publication.



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