Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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Minstrels execute in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators discovered that the CTMCA did not use the R5-million allocated to buy or produce a museum.
In addition they discovered which the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allocated.
They discovered the CTMCA applied funds from the Lottery to purchase workshop machines from one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice the city’s prosperous minstrel history went astray. The museum was hardly ever developed.

The main points with the abuse of an incredible number of rands of Lottery resources for the museum that never was are discovered within an investigative report commissioned with the NLC in 2021.

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

The primary Element of the investigation, by regulation business Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which integrated funding for the museum. The approved budget with the museum was in excess of R12.8-million, with R5-million of that allotted to get a setting up to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing for that museum and whether the museum “essentially existed”.

The business was also instructed to investigate

the purchase with Lottery money of two motor vehicles – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
different equipment “bought to the producing of your costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many directors with the organisation. Stemmet was reappointed being a director in Could 2021.

The investigation adopted intensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted to your CTMCA (see listed here, here and listed here) and just how the funds possibly aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.



The making on the right was the meant site of the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 projects had been finished, she instructed MPs.

Although the investigators located no proof that a museum experienced ever existed.

At the outset the museum was because of open in rented premises in Crete Road, Wetton. A photo acquired by GroundUp on the intended Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of photos haphazardly hung over the partitions, as well as a design ship on its plinth in a very corner.

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

Stemmet told the investigators the museum had been moved as they could no more pay for the hire of R100,000 a month. He said the CTMCA had purchased house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for a similar price tag. Schaapkraal is in a very peri-city location much from the city.

Subsequently, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after visiting the premises, that are in an industrial space, the investigators claimed they doubted whether or not an appropriate museum existed there. Images hooked up on the report present a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the floor, without any clarification.

“You will find there's nominal amount of things with the museum [that] on no account represent the more than 100-12 months record of your Cape Town Carnival, the investigators explained, incorporating that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum will not search to become open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni observed, by moving The placement of the museum to an alternative area with no notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to move from your rented Crete Street premises as it experienced operate up a R4-million debt with town of Cape City and was scared its equipment might be attached.

“Due to legal battles along with the debts, the organisation experienced to maneuver its assets from five Crete Highway to steer clear of the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director on the CTMCA, instructed them the two buses bought with lottery funds were saved in a very top secret site “hidden in the Sheriff”. However the investigators said they ended up unable to verify that any buses experienced ever been acquired.

Stemmet also confirmed the buses were hidden to prevent them being seized. But if the investigators questioned to get taken into the spot where by the buses had been stored, he instructed them that “the operator of The trick location was not available to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for 2 motor vehicles that it allegedly purchased with grant cash,” the investigators noted.

Soeker also told them the Schaapkraal home were bought as a result of personal debt.

“Mr Soeker stated that Based on his knowledge, because of the credit card debt owed to town of Cape City, the CTMCA resolved It could be ideal to promote their [Schaapkraal] property … also to also to cover the belongings of the CTMCA to steer clear of the sheriff from attaching the home.”

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

“Annually like clockwork, as we technique the top with the yr, the CTMCA picks a lawful fight with the City, in excess of permits or another thing. We by no means initiate it. They hold throwing money absent on vexatious litigation which they reduce and possess costs awarded against them. This is certainly solely self-inflicted,” he reported.

Soeker explained to the Dabishi Nthambeleni investigators that the most crucial purpose players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, funds and functioning ตัว หวย the CTMCA.” The investigators mentioned they were unable to Call Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “located various machines, some in excellent affliction, some in poor issue and many that appeared rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-web page storage facility where by “devices plus some equipment” ended up kept.

“We asked him to get us to the ability but he was evasive to our request.”

Based upon shots and invoices in GroundUp’s possession, some, Otherwise all, of your items appear to be devices which was illegally removed from the CTMCA’s prior premises. Stemmet is going through expenses for this removing.

Based on the remaining progress report submitted for the NLC through the CTMCA, the equipment was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter had been administrators at the time.

The investigators located this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Observe the subsequent alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Highway, Wetton, Cape Town, a similar address on which the museum was meant to be crafted and/or converted,” they noted.

An audit by accountants Kopano Incorporated, connected on the investigative report, recorded that the CTMCA was in the process of purchasing “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.

In line with Dabishi Nthambeleni, the company has paid R1.2-million for a deposit, that means R6.9-million remains to be owed, although there is no payment date set for when this needs to be compensated.

The Kopano audit plus the near connection between the businesses “show to us that there is ‘foul Engage in’ associated with the purchase on the machinery from the museum workshop”, the investigators said during the report.

“We discover that it's hugely probable that CTMCA used the funding of your NLC to ‘refund’ one of its major administrators for your residence at a higher overpriced fee than the particular price tag and worth of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to determine how the grant for the CTMCA were used.

“In fact, an in depth report on how the funding of the NLC was used, can be difficult as being the CTMCA does not have any receipts, or proof of payments to confirm the amounts used on Every product it asked for funding for. The interim report and closing report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC experienced not done a web-site take a look at in advance of approving the grant. But this was not typical apply at some time and so they identified no proof of negligence by NLC personnel.

At some time, the NLC’s policies didn't have to have funded organisations to post evidence of payment with interim reports, they pointed out. This meant that the CTMCA was capable to get a second tranche of funding without the need to supply proof that it had employed the 1st tranche for its meant function.

Adhering to the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these and other challenges.

Dabishi Nthambeleni advisable that

the NLC decline any upcoming funding programs from the CTMCA;
the CTMCA and any users who were involved with the grant be subjected towards the NLC’s “delinquency” course of action;
the NLC open up a legal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, rather than act within the report’s recommendations, the NLC – below its past administration – chose to suppress it, because it had carried out Using the prior reports into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker via SMS, and questioned for e mail addresses to send the thoughts by e-mail much too. But no response were been given at time of publication.



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

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