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 Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Nationwide Lotteries Commission on the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has located no proof that a museum ever existed.
The investigators discovered which the CTMCA didn't utilize the R5-million allotted to buy or create a museum.
In addition they discovered that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They found the CTMCA applied money in the Lottery to buy workshop gear from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) by the National Lotteries Fee (NLC) to setup a museum to celebrate town’s loaded minstrel heritage went astray. The museum was hardly ever designed.

The main points with the abuse of a lot of rands of Lottery resources for any museum that under no circumstances was are unveiled within an investigative report commissioned with the NLC in 2021.

The museum grant was part of a lot more than R64-million in Lottery funds allocated to the CTMCA amongst 2003 and 2017.

The first Portion of the investigation, by legislation organization Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which included funding for your museum. The permitted budget to the museum was more than R12.eight-million, with R5-million of that allocated for any creating to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing to the museum and if the museum “actually existed”.

The organization was also instructed to analyze

the purchase with Lottery money of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several machines “acquired for the manufacturing of your costumes and hats” for your minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many directors in the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation followed comprehensive reporting by GroundUp concerning the countless rands of Lottery funding allotted into the CTMCA (see in this article, right here and in this article) and how the funds almost certainly helped finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at the time by Marius Fransman.



The constructing on the proper was the intended site of your minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Picture: Raymond Joseph

In response to your Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “initiatives” - such as the museum - amongst 2012 and 2015. All three initiatives were concluded, she instructed MPs.

Though the investigators found no evidence that a museum had ever existed.

At the outset the museum was resulting from open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung on the walls, and also a product ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni stated it absolutely was “not ready” to verify if a museum had at any time operated from these premises.

Stemmet explained to the investigators the museum had been moved as they could no more pay for the rent of R100,000 per month. He mentioned the CTMCA experienced obtained home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar price tag. Schaapkraal is inside a peri-urban spot far from the city.

Subsequently, the museum were moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after viewing the premises, which can be within an industrial region, the investigators stated they doubted irrespective of whether an appropriate museum existed there. Photos attached for the report demonstrate a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to your wall, shown on tables and distribute out on the ground, with no explanation.

“There exists a negligible degree of merchandise in the museum [that] on no account stand for the more than one hundred-year record on the Cape City Carnival, the investigators explained, adding that there was “no signage outside the premises indicating that they housed a museum and … generally, the museum isn't going to search being open up to the general public.”

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



The Schaapkraal property, on which no museum was ever built. Image: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA had to maneuver from your rented Crete Street premises since it experienced run up a R4-million financial debt with the City of Cape City and was frightened its tools will be connected.

“A result of the lawful battles as well as debts, the organisation had to move its house from 5 Crete Street to avoid the sheriff from attaching the property on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of your CTMCA, told them which the two buses bought with lottery resources ended up stored in a very solution site “concealed with the Sheriff”. But the investigators stated they have been unable to confirm that any buses had at any time been purchased.

Stemmet also confirmed that the buses were hidden to prevent them remaining seized. But if the investigators requested to become taken to the location where by the buses were stored, he told them that “the operator of the secret spot wasn't accessible to open up the premises for us”.

“The CTMCA couldn't supply evidence of payment for 2 vehicles that it allegedly obtained with grant dollars,” the investigators described.

Soeker also explained to them the Schaapkraal property were bought due to financial debt.

“Mr Soeker discussed that according to his knowing, due to personal debt owed to town of Cape Town, the CTMCA resolved It could be greatest to market their [Schaapkraal] home … also to also to hide the belongings in the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for security and stability, has Formerly instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.

“Each and every year like clockwork, as we solution the tip with the year, the CTMCA picks a legal fight with the City, over permits or another thing. We hardly ever initiate it. They keep throwing revenue away on vexatious litigation that they lose and also have expenses awarded versus them. This is certainly entirely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing luckyvip77 the CTMCA.” The investigators reported they had been not able to contact Momberg.

Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “identified various equipment, some in good problem, some in lousy ailment and some that looked rusty and extremely old”. Stemmet told the investigators that there was also an off-web page storage facility where “devices and many machinery” had been stored.

“We questioned him to just take us to the facility but he was evasive to our request.”

Based on images and invoices in GroundUp’s possession, some, Otherwise all, from the goods look like equipment that was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with costs for this removal.

Based on the closing progress report submitted for the NLC with the CTMCA, the equipment was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter had been directors at the time.

The investigators discovered this “alarming”.

“From your CIPC research of Martin-Conne Milliners along with the invoices submitted, we Observe the following alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was meant to be developed and/or converted,” they described.

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

As outlined by Dabishi Nthambeleni, the company has paid R1.two-million as a deposit, meaning R6.nine-million remains to be owed, however there is not any payment day set for when this has to be paid.

The Kopano audit as well as shut connection involving the companies “indicate to us that there's ‘foul play’ involved with the acquisition with the machinery on the museum workshop”, the investigators stated in the report.

“We find that it is remarkably possible that CTMCA utilized the funding on the NLC to ‘refund’ one of its principal directors to the residence at the next overpriced price than the actual price and price of the residence and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant on the CTMCA had been spent.

“In fact, an in depth report on how the funding with the NLC was employed, could well be unachievable because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts spent on Each individual merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC experienced not done a website take a look at before approving the grant. But this was not normal exercise at enough time plus they found no evidence of negligence by NLC staff.

At time, the NLC’s regulations did not need funded organisations to post evidence of payment with interim studies, they pointed out. This intended the CTMCA was capable to receive a 2nd tranche of funding without needing to provide evidence that it experienced used the primary tranche for its intended goal.

Following the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni advisable that

the NLC decrease any future funding applications with the CTMCA;
the CTMCA and any associates who were involved in the grant be subjected towards the NLC’s “delinquency” approach;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, instead of act over the report’s suggestions, the NLC – less than its past administration – selected to suppress it, since it experienced accomplished While using the past reviews into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to send the queries by e mail far too. But no reaction were gained at some time of publication.



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