Leaked report exposes abuse of lottery cash compensated to minstrel team

Leaked report exposes abuse of lottery cash compensated to minstrel team

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Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the National Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no proof that a museum ever existed.
The investigators located which the CTMCA didn't utilize the R5-million allotted to acquire or produce a museum.
In addition they discovered which the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA applied money in the Lottery to invest in workshop tools from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice town’s wealthy minstrel historical past went astray. The museum was hardly ever created.

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

The museum grant was Component of a lot more than R64-million in Lottery money allotted for the CTMCA between 2003 and 2017.

The main Section of the investigation, by regulation agency Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for the museum. The accredited spending plan for the museum was over R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a building with the museum and whether or not the museum “in fact existed”.

The organization was also instructed to analyze

the purchase with Lottery funds of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous equipment “obtained for the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed as being a director in Could 2021.

The investigation followed comprehensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated to the CTMCA (see here, in this article and in this article) and how the money most likely served finance the ANC’s 2014 election campaign from the Western Cape, led by at time by Marius Fransman.



The making on the proper was the supposed site in the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photo: Raymond Joseph

In response to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “projects” - such as the museum - concerning 2012 and 2015. All a few assignments had been completed, she instructed MPs.

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

Initially the museum was because of open up in rented premises in Crete Street, Wetton. A photograph received by GroundUp in the meant Wetton museum displays a espresso store with a few musical instruments and minstrel costumes and collages of photos haphazardly hung within the partitions, plus a design ship on its plinth within a corner.

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

Stemmet instructed the investigators the museum were moved mainly because they could now not afford the lease of R100,000 a month. He claimed the CTMCA had obtained residence for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and were marketed for the same rate. Schaapkraal is inside of a peri-urban space much from the town.

Subsequently, the museum had been moved to a new place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following checking out the premises, that are in an industrial spot, the investigators reported they doubted no matter whether a suitable museum existed there. Photographs hooked up on the report display a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the floor, without any clarification.

“You will find there's minimum number of items on the museum [that] under no circumstances stand for the greater than 100-year history of the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to seem for being open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by relocating The situation in the museum to another site with out notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA experienced to move from the rented Crete Street premises because it experienced operate up a R4-million financial debt with the City of Cape Town and was afraid its machines could be connected.

“Due to the lawful battles and the debts, the organisation experienced to maneuver its assets from five Crete Street to stay away from the sheriff from attaching the residence on the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director with the CTMCA, advised them the two buses bought with lottery funds have been stored in the top secret place “concealed from your Sheriff”. Although the investigators reported they have been unable to substantiate that any buses had at any time been purchased.

Stemmet also verified that the buses had been hidden to halt them currently being seized. But in the event the investigators asked to get taken to the area in which the buses were stored, he instructed them that “the operator of the secret spot was not accessible to open the premises for us”.

“The CTMCA couldn't offer proof of payment for two vehicles that it allegedly obtained with grant cash,” the investigators documented.

Soeker also explained to them the Schaapkraal residence had been bought due to personal debt.

“Mr Soeker explained that As outlined by his knowledge, as a result of debt owed to the town of Cape Town, the CTMCA made the decision it would be finest to sell their [Schaapkraal] residence … and also to also to cover the belongings of the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for basic safety and protection, has Earlier instructed GroundUp the CTMCA “threw funds away” on litigation with town.

“Every year like clockwork, as we method the end in the 12 months, the CTMCA picks a authorized battle with the City, around permits or another thing. We in no way initiate it. They keep throwing dollars absent on vexatious litigation they reduce and also have costs awarded in opposition to them. This is totally self-inflicted,” he reported.

Soeker informed the Dabishi Nthambeleni investigators that the key function gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of many of the admin, finances and operating ruay the CTMCA.” The investigators explained they were struggling to Get hold of Momberg.

Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “found many machines, some in excellent problem, some in undesirable problem and several that seemed rusty and extremely old”. Stemmet advised the investigators that there was also an off-web site storage facility the place “instruments and many machinery” were stored.

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

Dependant on shots and invoices in GroundUp’s possession, some, if not all, with the products seem like devices which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing fees for this removing.

Based on the ultimate development report submitted to the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter were being administrators at enough time.

The investigators uncovered this “alarming”.

“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming obtaining: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, the identical deal with on which the museum was meant to be constructed and/or converted,” they reported.

An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was certainly one of the administrators.

According to Dabishi Nthambeleni, the organization has compensated R1.two-million as being a deposit, indicating R6.9-million remains to be owed, nevertheless there isn't any payment date established for when this must be paid.

The Kopano audit and the shut link concerning the businesses “show to us that there's ‘foul Enjoy’ linked to the purchase of the machinery of the museum workshop”, the investigators reported while in the report.

“We find that it is really possible that CTMCA utilized the funding of your NLC to ‘refund’ amongst its main administrators for the property at a higher overpriced charge than the actual value and value of the home and/or machinery.”

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

“In fact, an in depth report on how the funding with the NLC was utilised, will be not possible given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts expended on Each and every product it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not executed a site pay a visit to ahead of approving the grant. But this was not regular practice at the time they usually uncovered no proof of carelessness by NLC staff members.

At enough time, the NLC’s policies did not need funded organisations to post proof of payment with interim reviews, they identified. This meant which the CTMCA was ready to receive a next tranche of funding without the need to present proof that it had made use of the 1st tranche for its meant purpose.

Next the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these and various concerns.

Dabishi Nthambeleni proposed that

the NLC decline any long term funding programs through the CTMCA;
the CTMCA and any associates who have been associated with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, as an alternative to act around the report’s suggestions, the NLC – under its former administration – chose to suppress it, because it experienced completed While using the earlier stories into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for e mail addresses to mail the concerns by e-mail also. But no response were received at some time of publication.



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