Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has identified no evidence that a museum ever existed.
The investigators discovered that the CTMCA did not utilize the R5-million allocated to order or make a museum.
They also found that the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They located the CTMCA applied cash with the Lottery to get workshop gear from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to arrange a museum to rejoice the town’s prosperous minstrel heritage went astray. The museum was hardly ever created.

The main points of your abuse of millions of rands of Lottery money for the museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.

The museum grant was Component of over R64-million in Lottery resources allotted to the CTMCA in between 2003 and 2017.

The main Portion of the investigation, by law agency Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which integrated funding with the museum. The permitted funds for your museum was greater than R12.8-million, with R5-million of that allocated for just a creating to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing for your museum and if the museum “in fact existed”.

The business was also instructed to analyze

the acquisition with Lottery resources of two vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
several devices “ordered for that production on the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several administrators from the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation followed intensive reporting by GroundUp about the an incredible number of rands of Lottery funding allotted towards the CTMCA (see listed here, in this article and here) and the best way the cash probably helped finance the ANC’s 2014 election campaign within the Western Cape, led by at time by Marius Fransman.



The creating on the best was the intended internet site on the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to some Parliamentary question, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “jobs” - including the museum - in between 2012 and 2015. All a few assignments were accomplished, she told MPs.

Though the investigators identified no evidence that a museum experienced ever existed.

At the outset the museum was as a result of open in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp from the intended Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of pics haphazardly hung on the partitions, as well as a model ship on its plinth within a corner.

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

Stemmet told the investigators the museum were moved because they could now not manage the rent of R100,000 per month. He mentioned the CTMCA experienced acquired property for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same price. Schaapkraal is in the peri-city region significantly from town.

Because of this, the museum were moved to a new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial place, the investigators claimed they doubted whether or not an appropriate museum existed there. Photos attached on the report display a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the ground, without any rationalization.

“There exists a minimum quantity of merchandise with the museum [that] in no way stand for the greater than 100-calendar year history of the Cape City Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … frequently, the museum would not appear to generally be open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by moving The placement of your museum to an alternative site with no notifying the NLC.



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

Buses
Stemmet told the investigators the CTMCA experienced to maneuver through the rented Crete Highway premises as it experienced run up a R4-million financial debt with the City of Cape Town and was scared its machines would be attached.

“Due to authorized battles as well as the debts, the organisation experienced to maneuver its house from 5 Crete Highway to steer clear of the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director with the CTMCA, advised them which the two buses acquired with lottery money were stored in a very magic formula site “concealed through the Sheriff”. However the investigators reported they have been not able to verify that any buses experienced ever been acquired.

Stemmet also verified that the buses had been concealed to halt them currently being seized. But when the investigators questioned being taken into the position wherever the buses have been stored, he explained to them that “the proprietor of the secret place wasn't available to open the premises for us”.

“The CTMCA couldn't give proof of payment for two vehicles that it allegedly ordered with grant dollars,” the investigators documented.

Soeker also told them the Schaapkraal residence had been marketed due to the debt.

“Mr Soeker discussed that As outlined by his knowing, because of the debt owed to the City of Cape City, the CTMCA resolved It might be best to provide their [Schaapkraal] house … also to also to hide the property of the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for security and protection, has previously informed GroundUp the CTMCA “threw income absent” on litigation with the town.

“Every year like clockwork, as we method the end on the 12 months, the CTMCA picks a authorized battle with the City, more than permits or something else. We by no means initiate it. They maintain throwing money absent on vexatious litigation they drop and have prices awarded versus them. This is certainly totally self-inflicted,” he stated.

Soeker explained to the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of every one of the admin, finances and jogging ตรวจ หวย ลาว the CTMCA.” The investigators claimed they had been not able to Make contact with Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “observed many devices, some in great affliction, some in poor issue and some that looked rusty and extremely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where by “devices and some machinery” were kept.

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

According to photographs and invoices in GroundUp’s possession, some, if not all, from the products look like tools which was illegally removed from the CTMCA’s former premises. Stemmet is going through rates for this removal.

Based on the final progress report submitted on the NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter had been directors at time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the company is five Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the directors.

In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, meaning R6.nine-million remains owed, though there is absolutely no payment date set for when this should be compensated.

The Kopano audit as well as near website link among the businesses “point out to us that there is ‘foul Participate in’ associated with the acquisition on the machinery on the museum workshop”, the investigators stated during the report.

“We find that it is highly probable that CTMCA applied the funding of the NLC to ‘refund’ one among its main directors for your residence at the next overpriced price than the actual value and worth of the house and/or machinery.”

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

“In point of fact, an in depth report on how the funding on the NLC was employed, will be unattainable as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Just about every item it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not carried out a site check out before approving the grant. But this was not normal exercise at some time and they discovered no proof of negligence by NLC employees.

At time, the NLC’s rules did not call for funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was in a position to receive a next tranche of funding without the need to provide evidence that it had utilised the initial tranche for its intended purpose.

Adhering to the appointment of a completely new board, commissioner and senior executive workforce, the NLC has tightened up on these and other concerns.

Dabishi Nthambeleni recommended that

the NLC decrease any long term funding purposes with the CTMCA;
the CTMCA and any associates who were being linked to the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated resources.
But, as opposed to act about the report’s suggestions, the NLC – beneath its earlier administration – chose to suppress it, because it had finished with the previous experiences into corruption it experienced commissioned.

GroundUp despatched issues to Stemmet and Soeker through SMS, and asked for email addresses to mail the inquiries by email way too. But no reaction had been acquired at some time of publication.



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

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