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 complete in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has located no evidence that a museum at any time existed.
The investigators identified that the CTMCA did not utilize the R5-million allocated to get or establish a museum.
In addition they located which the CTMCA only acquired land well worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of funds within the Lottery to acquire workshop equipment from among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) through the Countrywide Lotteries Commission (NLC) to build a museum to rejoice town’s loaded minstrel record went astray. The museum was by no means designed.

The details with the abuse of millions of rands of Lottery cash to get a museum that in no way was are revealed in an investigative report commissioned by the NLC in 2021.

The museum grant was Section of greater than R64-million in Lottery cash allotted to your CTMCA amongst 2003 and 2017.

The initial Portion of the investigation, by law firm Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which bundled funding with the museum. The authorized price range for your museum was greater than R12.8-million, with R5-million of that allocated for any building to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up for that museum and whether or not the museum “really existed”.

The firm was also instructed to investigate

the purchase with Lottery money of two automobiles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
various equipment “ordered for that production in the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted criminal 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 administrators in the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed intensive reporting by GroundUp in regards to the many rands of Lottery funding allocated into the CTMCA (see here, here and listed here) and the way the cash likely helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.



The developing on the appropriate was the supposed site from the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to some Parliamentary issue, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “assignments” - including the museum - among 2012 and 2015. All three projects were completed, she informed MPs.

But the investigators uncovered no evidence that a museum had at any time existed.

Initially the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photo acquired by GroundUp in the supposed Wetton museum exhibits a espresso store with some musical instruments and minstrel costumes and collages of photos haphazardly hung within the walls, along with a model ship on its plinth inside a corner.

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

Stemmet explained to the investigators the museum had been moved mainly because they could not pay for the rent of R100,000 per month. He reported the CTMCA had bought property for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were offered for the same price. Schaapkraal is inside of a peri-city location considerably from town.

Therefore, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which happen to be within an industrial area, the investigators reported they doubted irrespective of whether a correct museum existed there. Photos hooked up to your report display a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed to the wall, displayed on tables and distribute out on the ground, without having rationalization.

“There is a minimal volume of goods for the museum [that] under no circumstances depict the over a hundred-yr history of your Cape Town Carnival, the investigators claimed, adding that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum would not appear to generally be open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by shifting The placement on the museum to an alternate area devoid of notifying the NLC.



The Schaapkraal residence, on which no museum was ever created. Photograph: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver from your rented Crete Road premises mainly because it had operate up a R4-million financial debt with the City of Cape Town and was frightened its gear could well be connected.

“A result of the legal battles as well as debts, the organisation had to move its property from 5 Crete Street to avoid the sheriff from attaching the home of your organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director on the CTMCA, instructed them which the two buses acquired with lottery cash were saved in a magic formula area “hidden from your Sheriff”. Although the investigators claimed they were being unable to confirm that any buses had ever been acquired.

Stemmet also confirmed which the buses were hidden to halt them staying seized. But once the investigators questioned for being taken to the position in which the buses were being stored, he instructed them that “the operator of the secret site was not available to open up the premises for us”.

“The CTMCA couldn't offer proof of payment for 2 vehicles that it allegedly acquired with grant money,” the investigators noted.

Soeker also advised them the Schaapkraal residence were marketed as a result of personal debt.

“Mr Soeker explained that As outlined by his being familiar with, due to the debt owed to town of Cape Town, the CTMCA determined It will be most effective to offer their [Schaapkraal] house … and to also to cover the assets with the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for security and stability, has Earlier told GroundUp the CTMCA “threw revenue away” on litigation with the town.

“On a yearly basis like clockwork, as we method the tip with the year, the CTMCA picks a legal fight with town, above permits or something else. We in no way initiate it. They preserve throwing money absent on vexatious litigation which they lose and possess expenditures awarded from them. That is totally self-inflicted,” he mentioned.

Soeker advised the Dabishi Nthambeleni investigators that the primary function players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for every one of the admin, finances and functioning hihuay the CTMCA.” The investigators said they were not able to Speak to Momberg.

Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “discovered various devices, some in good ailment, some in undesirable problem plus some that seemed rusty and extremely outdated”. Stemmet explained to the investigators that there was also an off-web site storage facility exactly where “instruments and many equipment” had been held.

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

According to images and invoices in GroundUp’s possession, some, if not all, with the products appear to be tools which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with charges for this removing.

Based on the last development report submitted for the NLC from the CTMCA, the equipment was acquired from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter had been directors at time.

The investigators discovered this “alarming”.

“In the CIPC search of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape Town, precisely the same tackle on which the museum was intended to be constructed and/or transformed,” they claimed.

An audit by accountants Kopano Integrated, attached to your investigative report, recorded the CTMCA was in the entire process of buying “equipment, plant and inventory” 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 among the administrators.

According to Dabishi Nthambeleni, the corporate has compensated R1.two-million as being a deposit, that means R6.nine-million remains owed, although there is not any payment date established for when this must be paid.

The Kopano audit along with the near connection in between the companies “show to us that there is ‘foul Participate in’ linked to the acquisition on the machinery of your museum workshop”, the investigators reported from the report.

“We find that it's hugely probable that CTMCA made use of the funding with the NLC to ‘refund’ considered one of its primary directors with the home at the next overpriced fee than the actual selling price and price of the home and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant on the CTMCA were spent.

“Actually, a detailed report on how the funding of your NLC was used, could be difficult given that the CTMCA doesn't have any receipts, or proof of payments to verify the amounts used on Each and every item it asked for funding for. The interim report and remaining report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC had not performed a website stop by ahead of approving the grant. But this wasn't regular exercise at some time and so they uncovered no proof of negligence by NLC staff.

At some time, the NLC’s guidelines did not call for funded organisations to post evidence of payment with interim experiences, they identified. This meant the CTMCA was ready to get a second tranche of funding without having to offer proof that it experienced used the very first tranche for its intended objective.

Subsequent the appointment of a whole new board, commissioner and senior executive workforce, the NLC has tightened up on these as well as other issues.

Dabishi Nthambeleni proposed that

the NLC decline any upcoming funding programs from the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected into the NLC’s “delinquency” method;
the NLC open a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated cash.
But, rather then act around the report’s recommendations, the NLC – under its former administration – selected to suppress it, since it had completed With all the earlier studies into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to deliver the questions by e mail as well. But no reaction were acquired at some time of publication.



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

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