Leaked report exposes abuse of lottery income paid out to minstrel group

Leaked report exposes abuse of lottery income paid out to minstrel group

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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to buy or build a museum.
In addition they observed the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They observed the CTMCA employed funds with the Lottery to buy workshop machines from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to arrange a museum to rejoice the city’s wealthy minstrel historical past went astray. The museum was under no circumstances created.

The details of the abuse of countless rands of Lottery funds for a museum that by no means was are revealed within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of over R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.

The primary A part of the investigation, by legislation firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding to the museum. The authorised spending budget to the museum was in excess of R12.eight-million, with R5-million of that allotted for your setting up to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for the museum and whether or not the museum “essentially existed”.

The organization was also instructed to research

the acquisition with Lottery money of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of machines “ordered for the production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few directors from the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation adopted considerable reporting by GroundUp in regards to the a lot of rands of Lottery funding allocated for the CTMCA (see listed here, right here and here) and the way the cash possibly assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.



The setting up on the best was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to the Parliamentary question, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “initiatives” - such as the museum - among 2012 and 2015. All three assignments were done, she told MPs.

Although the investigators discovered no evidence that a museum had ever existed.

At first the museum was on account of open up in rented premises in Crete Street, Wetton. A photograph attained by GroundUp from the supposed Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung around the partitions, plus a model ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum were moved given that they could now not pay for the lease of R100,000 a month. He claimed the CTMCA experienced purchased home for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been offered for the same value. Schaapkraal is in the peri-urban location much from the city.

Because of this, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be in an industrial place, the investigators mentioned they doubted regardless of whether an appropriate museum existed there. Photographs hooked up towards the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without any clarification.

“You will find a negligible quantity of things on the museum [that] under no circumstances depict the in excess of one hundred-yr background from the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to another location devoid of notifying the NLC.



The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver from the rented Crete Road premises because it had operate up a R4-million personal debt with town of Cape City and was fearful its devices could well be connected.

“Due to authorized battles as well as the debts, the organisation had to maneuver its house from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery funds ended up saved within a top secret place “concealed within the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses had ever been bought.

Stemmet also verified which the buses were concealed to prevent them staying seized. But in the event the investigators questioned being taken to your position wherever the buses ended up stored, he told them that “the operator of The key area was not accessible to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for two vehicles that it allegedly ordered with grant funds,” the investigators claimed.

Soeker also advised them the Schaapkraal property had been bought due to the credit card debt.

“Mr Soeker explained that As outlined by his comprehending, a result of the personal debt owed to town of Cape City, the CTMCA decided It could be greatest to sell their [Schaapkraal] house … and to also to hide the belongings from the CTMCA to stay away from the sheriff from attaching the property.”

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

“Annually like clockwork, as we approach the end in the yr, the CTMCA picks a authorized battle with the City, above permits or something else. We never ever initiate it. They hold throwing income away on vexatious litigation that they lose and possess expenditures awarded from them. That is completely self-inflicted,” he stated.

Soeker explained to the Dabishi Nthambeleni investigators that the leading part gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and jogging สลาก กิน the CTMCA.” The investigators mentioned they were not able to Make contact with Momberg.

Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located many devices, some in great affliction, some in poor issue and some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility the place “devices and many equipment” were being saved.

“We questioned him to choose us to the power but he was evasive to our ask for.”

Based upon pics and invoices in GroundUp’s possession, some, Otherwise all, in the things appear to be equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with prices for this removal.

According to the ultimate development report submitted into the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter had been directors at some time.

The investigators observed this “alarming”.

“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Observe the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Road, Wetton, Cape City, the identical handle on which the museum was intended to be designed and/or converted,” they described.

An audit by accountants Kopano Incorporated, hooked up on the investigative report, recorded the CTMCA was in the 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 an in depth corporation of which Stemmet was one among the administrators.

According to Dabishi Nthambeleni, the company has compensated R1.2-million like a deposit, which means R6.nine-million remains owed, however there is absolutely no payment day set for when this must be paid out.

The Kopano audit and also the near link concerning the companies “point out to us that there is ‘foul Perform’ involved with the acquisition of the machinery on the museum workshop”, the investigators reported inside the report.

“We find that it is remarkably possible that CTMCA made use of the funding of your NLC to ‘refund’ certainly one of its major directors to the residence at a better overpriced charge than the actual price and price of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA had been spent.

“The truth is, a detailed report on how the funding with the NLC was utilized, could well be extremely hard given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Each and every merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not performed a web site check out in advance of approving the grant. But this was not normal apply at the time they usually observed no evidence of carelessness by NLC workforce.

At enough time, the NLC’s principles didn't call for funded organisations to post proof of payment with interim reports, they pointed out. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to give evidence that it had employed the main tranche for its intended goal.

Next the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these and various issues.

Dabishi Nthambeleni suggested that

the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – under its past administration – selected to suppress it, as it had finished With all the past reports into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to mail the questions by email as well. But no response were been given at enough time of publication.



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