Leaked report exposes abuse of lottery income paid out to minstrel team

Leaked report exposes abuse of lottery income paid out to minstrel team

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Minstrels perform in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has uncovered no proof that a museum at any time existed.
The investigators identified which the CTMCA did not make use of the R5-million allotted to obtain or establish a museum.
They also located that the CTMCA only acquired land really worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA employed money within the Lottery to invest in workshop devices from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Fee (NLC) to arrange a museum to rejoice town’s abundant minstrel history went astray. The museum was by no means created.

The details with the abuse of many rands of Lottery money for any museum that in no way was are uncovered within an investigative report commissioned with the NLC in 2021.

The museum grant was A part of in excess of R64-million in Lottery cash allocated to your CTMCA between 2003 and 2017.

The first Portion of the investigation, by regulation agency Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which bundled funding to the museum. The approved budget to the museum was greater than R12.8-million, with R5-million of that allocated for any creating to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up for your museum and if the museum “actually existed”.

The firm was also instructed to investigate

the acquisition with Lottery money of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
a variety of equipment “purchased to the production with the costumes and hats” with the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors of the organisation. Stemmet was reappointed to be a director in May well 2021.

The investigation followed in depth reporting by GroundUp in regards to the countless rands of Lottery funding allotted towards the CTMCA (see in this article, right here and below) and the way the money probably helped finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.



The developing on the appropriate was the meant site of the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph

In reaction into a Parliamentary issue, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - in between 2012 and 2015. All a few initiatives had been done, she advised MPs.

However the investigators uncovered no proof that a museum experienced at any time existed.

To start with the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp with the meant Wetton museum exhibits a coffee shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, plus a design ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to substantiate if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved since they could no longer afford to pay for the lease of R100,000 a month. He reported the CTMCA experienced bought assets for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and were offered for a similar price tag. Schaapkraal is in a peri-urban area much from town.

Because of this, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after traveling to the premises, which are in an industrial region, the investigators mentioned they doubted no matter if an appropriate museum existed there. Shots hooked up to your report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, with no rationalization.

“You will find a minimum amount of goods on the museum [that] on no account depict the greater than one hundred-calendar year background with the Cape Town Carnival, the investigators reported, adding that there was “no signage outdoors the premises indicating which they housed a museum and … generally, the museum doesn't seem to generally be open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni observed, by transferring The situation on the museum to an alternative spot without having notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators the CTMCA had to maneuver in the rented Crete Road premises mainly because it had run up a R4-million personal debt with the City of Cape Town and was frightened its machines can be attached.

“Due to the authorized battles along with the debts, the organisation had to move its property from five Crete Highway to stay away from the sheriff from attaching the house of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director on the CTMCA, instructed them which the two buses acquired with lottery funds had been stored in the secret area “hidden through the Sheriff”. Although the investigators reported they were unable to confirm that any buses had ever been bought.

Stemmet also confirmed which the buses had been hidden to prevent them getting seized. But if the investigators asked to generally be taken to your spot the place the buses were being saved, he instructed them that “the proprietor of The trick spot was not available to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for two automobiles that it allegedly acquired with grant dollars,” the investigators claimed.

Soeker also told them the Schaapkraal home had been offered due to the credit card debt.

“Mr Soeker spelled out that In accordance with his being familiar with, because of the financial debt owed to town of Cape Town, the CTMCA determined It will be finest to offer their [Schaapkraal] home … and also to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and protection, has Earlier explained to GroundUp that the CTMCA “threw cash away” on litigation with the City.

“Yearly like clockwork, as we technique the tip on the 12 months, the CTMCA picks a authorized fight with town, around permits or another thing. We under no circumstances initiate it. They retain throwing income away on vexatious litigation which they get rid of and have costs awarded versus them. This is certainly completely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all the admin, finances and managing ruay the CTMCA.” The investigators mentioned they were not able to contact Momberg.

Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “observed many devices, some in superior situation, some in undesirable ailment and some that looked rusty and extremely old”. Stemmet informed the investigators that there was also an off-web site storage facility the place “instruments and a few machinery” were saved.

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

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of the goods appear to be machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing prices for this removal.

Based on the final progress report submitted to your NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators found this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape Town, the same handle on which the museum was intended to be built and/or converted,” they reported.

An audit by accountants Kopano Integrated, attached on the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the administrators.

In accordance with Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, indicating R6.nine-million remains to be owed, however there is not any payment day set for when this has to be paid.

The Kopano audit and the shut url among the businesses “point out to us that there is ‘foul Participate in’ involved with the acquisition on the equipment on the museum workshop”, the investigators stated from the report.

“We find that it is remarkably probable that CTMCA utilised the funding of your NLC to ‘refund’ among its key administrators for the home at an increased overpriced level than the particular price and value of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA had been invested.

“In fact, a detailed report on how the funding of the NLC was made use of, could well be difficult since the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Each individual merchandise it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not executed a website take a look at before approving the grant. But this was not normal exercise at some time and they discovered no evidence of negligence by NLC workers.

At time, the NLC’s policies did not demand funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was able to get a 2nd tranche of funding without needing to offer evidence that it had used the main tranche for its meant purpose.

Next the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these as well as other challenges.

Dabishi Nthambeleni advised that

the NLC drop any future funding programs with the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had performed Together with the prior experiences into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for e mail addresses to mail the queries by e mail as well. But no response had been been given at the time of publication.



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

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