Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the Countrywide Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators identified which the CTMCA did not make use of the R5-million allocated to acquire or build a museum.
They also located that the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA made use of cash with the Lottery to purchase workshop gear from one among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Commission (NLC) to create a museum to celebrate town’s prosperous minstrel historical past went astray. The museum was never ever developed.

The details on the abuse of a lot of rands of Lottery resources for your museum that never ever was are exposed within an investigative report commissioned from the NLC in 2021.

The museum grant was part of more than R64-million in Lottery cash allotted towards the CTMCA involving 2003 and 2017.

The initial part of the investigation, by law company Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which provided funding for that museum. The accepted spending budget with the museum was a lot more than R12.8-million, with R5-million of that allocated for your setting up to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the building to the museum and whether the museum “basically existed”.

The agency was also instructed to research

the purchase with Lottery money of two vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different devices “purchased to the producing on the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director of your 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 numerous administrators from the organisation. Stemmet was reappointed as a director in Might 2021.

The investigation adopted intensive reporting by GroundUp concerning the an incredible number of rands of Lottery funding allotted towards the CTMCA (see below, here and listed here) and the best way the resources possibly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.



The developing on the appropriate was the supposed internet site from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to some Parliamentary concern, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - concerning 2012 and 2015. All 3 initiatives were completed, she told MPs.

Although the investigators discovered no proof that a museum had at any time existed.

At first the museum was because of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a espresso store with some musical devices and minstrel costumes and collages of photos haphazardly hung to the walls, in addition to a model ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum were moved mainly because they could now not afford to pay for the hire of R100,000 per month. He reported the CTMCA had obtained residence for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been bought for the same price tag. Schaapkraal is within a peri-city place much from the city.

Therefore, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, that happen to be within an industrial region, the investigators reported they doubted whether an appropriate museum existed there. Photographs connected into the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and spread out on the floor, with no explanation.

“There exists a nominal degree of merchandise at the museum [that] by no means depict the in excess of one hundred-year history of the Cape Town Carnival, the investigators stated, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … usually, the museum would not seem to be open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to another spot without notifying the NLC.



The Schaapkraal home, on which no museum was ever designed. Picture: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to maneuver from the rented Crete Highway premises as it had operate up a R4-million personal debt with the town of Cape Town and was afraid its gear will be hooked up.

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

Sedrick Soeker, the current director with the CTMCA, told them the two buses acquired with lottery money had been saved inside a solution place “hidden through the Sheriff”. Even so the investigators reported they were not able to verify that any buses experienced at any time been purchased.

Stemmet also confirmed that the buses were concealed to halt them being seized. But when the investigators questioned to get taken to the location exactly where the buses had been saved, he advised them that “the proprietor of The trick area was not available to open up the premises for us”.

“The CTMCA couldn't present proof of payment for two motor vehicles that it allegedly acquired with grant income,” the investigators documented.

Soeker also informed them the Schaapkraal assets were marketed due to credit card debt.

“Mr Soeker discussed that In keeping with his knowing, due to the debt owed to the City of Cape City, the CTMCA decided It might be greatest to promote their [Schaapkraal] property … also to also to hide the property in the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and safety, has previously told GroundUp the CTMCA “threw dollars away” on litigation with the town.

“Annually like clockwork, as we strategy the top on the year, the CTMCA picks a legal combat with the town, over permits or something else. We under no circumstances initiate it. They hold throwing money away on vexatious litigation they drop and possess expenditures awarded versus them. This really is totally self-inflicted,” he reported.

Soeker informed the Dabishi Nthambeleni investigators that the leading purpose gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of all the admin, funds and running หุ้น ชอง 9 the CTMCA.” The investigators claimed they were not able to Call Momberg.

Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “observed various machines, some in good situation, some in bad ailment and many that appeared rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-internet site storage facility wherever “devices and some machinery” have been kept.

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

Dependant on pictures and invoices in GroundUp’s possession, some, if not all, with the merchandise look like machines which was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing fees for this elimination.

In accordance with the closing progress report submitted on the NLC with the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation through which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators discovered this “alarming”.

“Through the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the corporate is 5 Crete Street, Wetton, Cape Town, a similar handle on which the museum was intended to be crafted and/or transformed,” they described.

An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the process of paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the directors.

Based on Dabishi Nthambeleni, the corporation has paid R1.2-million being a deposit, which means R6.nine-million continues to be owed, though there isn't any payment day established for when this have to be paid out.

The Kopano audit and the close website link involving the businesses “point out to us that there's ‘foul Enjoy’ involved with the purchase from the machinery from the museum workshop”, the investigators reported during the report.

“We discover that it is really probable that CTMCA made use of the funding in the NLC to ‘refund’ certainly one of its most important administrators for the residence at a greater overpriced amount than the actual rate and value of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant for the CTMCA had been invested.

“Actually, a detailed report on how the funding in the NLC was utilised, can be difficult because the CTMCA does not have any receipts, or proof of payments to substantiate the quantities put in on Every single item it asked for funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not executed a web site stop by ahead of approving the grant. But this wasn't regular exercise at the time plus they discovered no evidence of carelessness by NLC personnel.

At some time, the NLC’s policies didn't require funded organisations to submit proof of payment with interim studies, they pointed out. This meant that the CTMCA was in the position to get a 2nd tranche of funding while not having to deliver evidence that it had utilized the initial tranche for its intended objective.

Following the appointment of a fresh board, commissioner and senior executive staff, the NLC has tightened up on these and various troubles.

Dabishi Nthambeleni advised that

the NLC drop any potential funding apps in the CTMCA;
the CTMCA and any customers who were associated with the grant be subjected to your NLC’s “delinquency” procedure;
the NLC open a legal scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated cash.
But, rather than act around the report’s suggestions, the NLC – below its prior administration – chose to suppress it, mainly because it had completed With all the prior experiences into corruption it had commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and questioned for email addresses to send out the concerns by e mail too. But no response were received at time of publication.



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

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