Leaked report exposes abuse of lottery money compensated to minstrel group

Leaked report exposes abuse of lottery money compensated to minstrel group

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Fee to the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has located no evidence that a museum ever existed.
The investigators located which the CTMCA didn't use the R5-million allotted to acquire or build a museum.
Additionally they observed that the CTMCA only bought land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA employed cash in the Lottery to get workshop tools from certainly one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to setup a museum to celebrate town’s loaded minstrel heritage went astray. The museum was never ever produced.

The main points on the abuse of an incredible number of rands of Lottery funds for your museum that never was are unveiled within an investigative report commissioned from the NLC in 2021.

The museum grant was Component of over R64-million in Lottery funds allotted to your CTMCA among 2003 and 2017.

The first Element of the investigation, by legislation agency Dabishi Nthambeleni, was executed involving September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which incorporated funding for the museum. The accredited spending plan to the museum was much more than R12.8-million, with R5-million of that allotted for a constructing to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a constructing to the museum and if the museum “in fact existed”.

The business was also instructed to analyze

the acquisition with Lottery cash of two cars – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
many equipment “acquired to the production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several administrators in the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation followed comprehensive reporting by GroundUp about the many rands of Lottery funding allotted for the CTMCA (see right here, right here and right here) and the way the resources most likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at enough time by Marius Fransman.



The creating on the right was the supposed web-site from the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Image: Raymond Joseph

In reaction into a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - including the museum - among 2012 and 2015. All 3 jobs were finished, she instructed MPs.

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

At the beginning the museum was on account of open up in rented premises in Crete Highway, Wetton. A photo acquired by GroundUp of your supposed Wetton museum displays a coffee shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung over the partitions, and a model ship on its plinth within a corner.

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

Stemmet told the investigators the museum were moved because they could now not find the money for the lease of R100,000 a month. He reported the CTMCA experienced obtained property for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is in a peri-city area far from the town.

Therefore, the museum were moved to a fresh location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after going to the premises, which might be within an industrial space, the investigators said they doubted regardless of whether a proper museum existed there. Photographs connected to the report demonstrate a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without clarification.

“There's a nominal degree of goods within the museum [that] under no circumstances characterize the in excess of 100-calendar year historical past in the Cape Town Carnival, the investigators said, including that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum won't glimpse being open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to an alternative site with out notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA had to move within the rented Crete Highway premises mainly because it experienced run up a R4-million debt with the City of Cape Town and was scared its gear would be hooked up.

“Because of the lawful battles as well as debts, the organisation had to maneuver its house from 5 Crete Highway to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director of your CTMCA, advised them that the two buses acquired with lottery funds ended up stored inside of a top secret spot “hidden from the Sheriff”. Though the investigators mentioned they had been not able to verify that any buses experienced at any time been bought.

Stemmet also confirmed that the buses were hidden to prevent them remaining seized. But when the investigators asked to become taken to your put exactly where the buses had been stored, he informed them that “the owner of The trick place wasn't available to open up the premises for us”.

“The CTMCA could not offer proof of payment for two automobiles that it allegedly purchased with grant income,” the investigators reported.

Soeker also advised them the Schaapkraal assets had been offered due to financial debt.

“Mr Soeker stated that In keeping with his being familiar with, a result of the debt owed to the City of Cape City, the CTMCA resolved it would be greatest to provide their [Schaapkraal] home … and to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the house.”

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

“Every year like clockwork, as we solution the end of the 12 months, the CTMCA picks a legal battle with the City, around permits or something else. We hardly ever initiate it. They hold throwing cash absent on vexatious litigation which they shed and possess expenses awarded in opposition to them. This is often solely self-inflicted,” he said.

Soeker told the Dabishi Nthambeleni investigators that the principle purpose gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in charge of each of the admin, funds and operating หวย หุ้น the CTMCA.” The investigators mentioned they had been struggling to contact Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “discovered many devices, some in great condition, some in terrible situation plus some that seemed rusty and intensely old”. Stemmet instructed the investigators that there was also an off-site storage facility the place “devices and some equipment” were being held.

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

Based upon shots and invoices in GroundUp’s possession, some, Otherwise all, of the products look like machines that was illegally removed from the CTMCA’s past premises. Stemmet is experiencing expenses for this removing.

Based on the last development report submitted to your NLC with the CTMCA, the machinery was ordered from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were directors at time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Take note the subsequent alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Road, Wetton, Cape City, precisely the same address on which the museum was meant to be constructed and/or transformed,” they noted.

An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the administrators.

Based on Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, indicating R6.nine-million remains to be owed, while there is no payment day established for when this have to be paid.

The Kopano audit and also the close connection involving the companies “indicate to us that there's ‘foul Perform’ linked to the purchase of the machinery of the museum workshop”, the investigators explained within the report.

“We discover that it's extremely possible that CTMCA made use of the funding in the NLC to ‘refund’ amongst its primary directors for that assets at a higher 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 expended.

“The truth is, a detailed report on how the funding from the NLC was used, would be impossible as being the CTMCA does not have any receipts, or evidence of payments to confirm the quantities put in on Every product it requested funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not executed a site take a look at in advance of approving the grant. But this wasn't normal observe at the time plus they found no evidence of negligence by NLC personnel.

At some time, the NLC’s guidelines did not call for funded organisations to submit proof of payment with interim experiences, they pointed out. This meant the CTMCA was capable of get a 2nd tranche of funding without the need to provide evidence that it experienced utilized the main tranche for its meant goal.

Subsequent the appointment of a fresh board, commissioner and senior govt staff, the NLC has tightened up on these and various difficulties.

Dabishi Nthambeleni advised that

the NLC drop any foreseeable future funding applications with the CTMCA;
the CTMCA and any members who have been linked to the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open a criminal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated resources.
But, as opposed to act to the report’s suggestions, the NLC – underneath its previous administration – selected to suppress it, since it had accomplished Along with the past studies into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker through SMS, and asked for e mail addresses to ship the queries by e-mail way too. But no response were obtained at the time of publication.



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

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