Leaked report exposes abuse of lottery income paid to minstrel team

Leaked report exposes abuse of lottery income paid to minstrel team

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Minstrels conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum ever existed.
The investigators located the CTMCA did not utilize the R5-million allotted to acquire or make a museum.
Additionally they identified that the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of cash in the Lottery to invest in workshop products from certainly one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel history went astray. The museum was never ever made.

The main points with the abuse of many rands of Lottery cash for your museum that hardly ever was are disclosed in an investigative report commissioned through the NLC in 2021.

The museum grant was A part of greater than R64-million in Lottery resources allocated to the CTMCA concerning 2003 and 2017.

The 1st Portion of the investigation, by regulation agency Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding with the museum. The authorized funds for that museum was more than R12.8-million, with R5-million of that allotted for a developing to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing to the museum and if the museum “really existed”.

The business was also instructed to research

the purchase with Lottery resources of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “purchased to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At 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 continued as two of several directors from the organisation. Stemmet was reappointed as being a director in May well 2021.

The investigation followed considerable reporting by GroundUp with regard to the countless rands of Lottery funding allocated towards the CTMCA (see right here, listed here and listed here) and how the cash probably served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.



The developing on the appropriate was the meant web-site from the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph

In response to some Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “initiatives” - including the museum - between 2012 and 2015. All 3 initiatives had been concluded, she advised MPs.

Though the investigators discovered no evidence that a museum experienced at any time existed.

At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung about the partitions, and also a model ship on its plinth in a very corner.

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

Stemmet told the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He said the CTMCA had bought house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for the same price. Schaapkraal is inside a peri-city area considerably from town.

Due to this fact, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be in an industrial spot, the investigators stated they doubted whether or not a suitable museum existed there. Photos connected into the report present a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find a negligible amount of products in the museum [that] by no means signify the over 100-calendar year heritage on the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum doesn't glance for being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by transferring The situation from the museum to an alternate locale without having notifying the NLC.



The Schaapkraal residence, on which no museum was at any time built. Photo: Raymond Joseph

Buses
Stemmet advised the investigators the CTMCA had to move from your rented Crete Road premises since it had operate up a R4-million personal debt with the town of Cape Town and was scared its gear could be attached.

“Due to the lawful battles along with the debts, the organisation had to maneuver its home from five Crete Road to steer clear of the sheriff from attaching the house of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director with the CTMCA, told them the two buses acquired with lottery funds have been saved in a key site “concealed in the Sheriff”. Even so the investigators reported they were not able to substantiate that any buses experienced at any time been purchased.

Stemmet also confirmed the buses had been concealed to halt them remaining seized. But in the event the investigators questioned to get taken on the area in which the buses had been saved, he instructed them that “the owner of The trick spot was not available to open up the premises for us”.

“The CTMCA could not provide proof of payment for 2 autos that it allegedly purchased with grant dollars,” the investigators reported.

Soeker also instructed them the Schaapkraal property had been marketed due to financial debt.

“Mr Soeker spelled out that Based on his knowledge, due to the financial debt owed to the City of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] house … and also to also to hide the belongings with the CTMCA to stay away from the sheriff from attaching the house.”

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

“Every year like clockwork, as we tactic the end with the year, the CTMCA picks a authorized struggle with the City, about permits or another thing. We never ever initiate it. They retain throwing revenue absent on vexatious litigation that they lose and possess fees awarded versus them. This can be solely self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the main function gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of many of the admin, finances and running เช ค หวย the CTMCA.” The investigators reported they were unable to Make contact with Momberg.

Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “discovered many machines, some in good ailment, some in poor situation and some that seemed rusty and intensely old”. Stemmet informed the investigators that there was also an off-web site storage facility exactly where “instruments and some machinery” had been stored.

“We asked him to take us to the power but he was evasive to our request.”

Based upon pics and invoices in GroundUp’s possession, some, if not all, from the merchandise seem like gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is facing prices for this removal.

According to the remaining progress report submitted into the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a company in which Stemmet, his spouse and his daughter ended up directors at some time.

The investigators uncovered this “alarming”.

“From your CIPC search of Martin-Conne Milliners and also the invoices submitted, we note the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape City, the identical handle on which the museum was intended to be crafted and/or converted,” they noted.

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

In accordance with Dabishi Nthambeleni, the organization has compensated R1.2-million as a deposit, this means R6.9-million remains owed, however there's no payment day set for when this have to be compensated.

The Kopano audit as well as the near link amongst the businesses “suggest to us that there is ‘foul Perform’ involved with the acquisition of your equipment of the museum workshop”, the investigators stated inside the report.

“We find that it is highly possible that CTMCA made use of the funding of your NLC to ‘refund’ one of its main administrators to the home at a higher overpriced level than the particular cost and price of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant for the CTMCA were invested.

“The truth is, a detailed report on how the funding on the NLC was used, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities used on Every merchandise it requested funding for. The interim report and last report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not conducted a site go to prior to approving the grant. But this wasn't typical follow at time they usually observed no evidence of carelessness by NLC staff.

At the time, the NLC’s regulations did not have to have funded organisations to submit proof of payment with interim experiences, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding without needing to deliver proof that it had utilised the main tranche for its intended objective.

Adhering to the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni advised that

the NLC decline any potential funding applications from the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, since it experienced carried out Along with the previous reviews into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e mail addresses to ship the inquiries by e-mail way too. But no response were been given at enough time of publication.



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