Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Countrywide Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no proof that a museum at any time existed.
The investigators discovered the CTMCA didn't utilize the R5-million allocated to get or establish a museum.
They also identified the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They observed the CTMCA made use of funds in the Lottery to buy workshop tools from one among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to put in place a museum to rejoice the town’s rich minstrel heritage went astray. The museum was never ever created.

The small print of the abuse of an incredible number of rands of Lottery resources for just a museum that under no circumstances was are exposed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Component of much more than R64-million in Lottery cash allocated on the CTMCA amongst 2003 and 2017.

The very first Portion of the investigation, by law firm Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which bundled funding for your museum. The accepted funds to the museum was more than R12.8-million, with R5-million of that allotted for a setting up to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing for that museum and if the museum “basically existed”.

The business was also instructed to investigate

the purchase with Lottery money of two cars – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous devices “procured for the manufacturing with the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with 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 like a director in May 2021.

The investigation adopted in depth reporting by GroundUp regarding the many rands of Lottery funding allocated on the CTMCA (see in this article, right here and below) and just how the funds almost certainly aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The making on the right was the meant web page of your minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction into a Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 jobs had been done, she advised MPs.

But the investigators located no evidence that a museum experienced ever existed.

At the outset the museum was because of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp of your supposed Wetton museum exhibits a coffee shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung around the partitions, and a product ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved mainly because 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 had been offered for a similar price. Schaapkraal is in the peri-city region significantly from town.

Consequently, the museum had been moved to a different locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which are within an industrial space, the investigators said they doubted whether or not a proper museum existed there. Photos hooked up on the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, without having explanation.

“You will find there's nominal amount of objects at the museum [that] under no circumstances represent the a lot more than a hundred-calendar year background in the Cape Town Carnival, the investigators claimed, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … generally, the museum doesn't appear for being open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting The situation of your museum to an alternate area with out notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises mainly because it had run up a R4-million credit card debt with town of Cape Town and was scared its machines will be connected.

“Due to the legal battles as well as the debts, the organisation had to move its house from 5 Crete Road to stay away from the sheriff from attaching the home in the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director from the CTMCA, told them that the two buses bought with lottery cash had been stored in the solution site “concealed from the Sheriff”. Although the investigators said they had been unable to confirm that any buses had at any time been purchased.

Stemmet also confirmed the buses were hidden to halt them remaining seized. But if the investigators asked to be taken to your spot exactly where the buses had been stored, he advised them that “the proprietor of the secret area wasn't available to open the premises for us”.

“The CTMCA couldn't offer evidence of payment for 2 motor vehicles that it allegedly bought with grant income,” the investigators reported.

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

“Mr Soeker discussed that according to his knowledge, mainly because of the financial debt owed to the town of Cape Town, the CTMCA made a decision it would be best to sell their [Schaapkraal] property … also to also to hide the assets in the CTMCA to steer clear of the sheriff from attaching the property.”

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

“Every year like clockwork, as we technique the top of your yr, the CTMCA picks a authorized struggle with the City, over permits or another thing. We never ever initiate it. They continue to keep throwing revenue absent on vexatious litigation that they shed and also have charges awarded from them. This is certainly fully self-inflicted,” he explained.

Soeker advised the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of many of the admin, finances and working หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators explained they were not able to Get in touch with Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered several devices, some in good issue, some in negative affliction and a few that seemed rusty and intensely aged”. Stemmet advised the investigators that there was also an off-website storage facility wherever “devices and some equipment” had been retained.

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

Depending on images and invoices in GroundUp’s possession, some, if not all, of your goods appear to be gear which was illegally removed from the CTMCA’s former premises. Stemmet is struggling with expenses for this removing.

According to the remaining progress report submitted towards the NLC from the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were directors at enough time.

The investigators found this “alarming”.

“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Be aware the subsequent alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the company is five Crete Road, Wetton, Cape City, a similar handle on which the museum was meant to be created and/or converted,” they reported.

An audit by accountants Kopano Included, attached to the investigative report, recorded the CTMCA was in the entire process of getting “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the administrators.

In keeping with Dabishi Nthambeleni, the business has compensated R1.2-million as a deposit, that means R6.nine-million is still owed, however there isn't any payment day set for when this have to be paid out.

The Kopano audit and the close hyperlink among the companies “point out to us that there is ‘foul play’ associated with the purchase with the equipment with the museum workshop”, the investigators reported from the report.

“We discover that it is extremely possible that CTMCA made use of the funding with the NLC to ‘refund’ considered one of its key administrators for your property at an increased overpriced charge than the particular rate and value of the home and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA were expended.

“In point of fact, an in depth report on how the funding of the NLC was employed, will be unachievable as the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Just about every item it asked for funding for. The interim report and ultimate report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not executed a web site visit ahead of approving the grant. But this wasn't regular exercise at some time they usually discovered no evidence of negligence by NLC personnel.

At some time, the NLC’s rules didn't require funded organisations to submit evidence of payment with interim reports, they identified. This intended the CTMCA was in the position to get a 2nd tranche of funding without needing to supply proof that it experienced utilised the primary tranche for its intended purpose.

Next the appointment of a new board, commissioner and senior govt crew, the NLC has tightened up on these along with other issues.

Dabishi Nthambeleni encouraged that

the NLC decline any foreseeable future funding purposes in the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, as an alternative to act about the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had done While using the past reviews into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker through SMS, and asked for e-mail addresses to mail the queries by electronic mail as well. But no reaction were received at time of publication.



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

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