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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has uncovered no proof that a museum at any time existed.
The investigators observed the CTMCA didn't use the R5-million allocated to acquire or build a museum.
In addition they identified which the CTMCA only bought land value R1.seven-million, not R5-million as allotted.
They found the CTMCA used cash with the Lottery to invest in workshop devices from certainly one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape City Minstrel Carnival Association (CTMCA) because of the Nationwide Lotteries Fee (NLC) to create a museum to celebrate the city’s rich minstrel record went astray. The museum was hardly ever produced.

The main points on the abuse of a lot of rands of Lottery cash to get a museum that by no means was are uncovered within an investigative report commissioned via the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery money allotted to the CTMCA between 2003 and 2017.

The initial A part of the investigation, by law business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which bundled funding to the museum. The accredited spending plan for the museum was over R12.8-million, with R5-million of that allotted for the making to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing for your museum and if the museum “really existed”.

The agency was also instructed to analyze

the purchase with Lottery cash of two cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
several machines “procured for that manufacturing with the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of various directors of the organisation. Stemmet was reappointed as a director in May 2021.

The investigation adopted substantial reporting by GroundUp about the many rands of Lottery funding allocated to your CTMCA (see listed here, in this article and listed here) and the way in which the cash in all probability assisted finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at time by Marius Fransman.



The setting up on the appropriate was the meant site from the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction into a Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “jobs” - including the museum - amongst 2012 and 2015. All a few tasks were accomplished, she told MPs.

Even so the investigators identified no evidence that a museum experienced at any time existed.

Initially the museum was as a result of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the meant Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of pics haphazardly hung on the walls, as well as a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni claimed it was “not ready” to confirm if a museum had ever operated from these premises.

Stemmet informed the investigators the museum had been moved as they could no longer manage the lease of R100,000 a month. He stated the CTMCA experienced ordered house for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were sold for a similar selling price. Schaapkraal is inside a peri-urban space considerably from town.

Therefore, the museum had been moved to a different area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after viewing the premises, that happen to be in an industrial place, the investigators reported they doubted regardless of whether a suitable museum existed there. Pics connected for the report demonstrate a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, without clarification.

“You will find a minimum quantity of items for the museum [that] under no circumstances signify the more than one hundred-calendar year historical past with the Cape City Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating which they housed a museum and … usually, the museum doesn't glimpse being open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting the location of your museum to an alternate place without the need of notifying the NLC.



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

Buses
Stemmet advised the investigators the CTMCA had to maneuver from the rented Crete Highway premises mainly because it had operate up a R4-million credit card debt with the City of Cape City and was worried its equipment will be attached.

“As a result of lawful battles plus the debts, the organisation experienced to maneuver its property from 5 Crete Highway to avoid the sheriff from attaching the property from the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses acquired with lottery cash had been saved in a magic formula area “hidden from the Sheriff”. Though the investigators said they ended up unable to substantiate that any buses had at any time been purchased.

Stemmet also confirmed that the buses were concealed to stop them currently being seized. But once the investigators requested to generally be taken on the location exactly where the buses were saved, he advised them that “the operator of the secret locale was not accessible to open up the premises for us”.

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

Soeker also instructed them the Schaapkraal property had been bought because of the personal debt.

“Mr Soeker described that In keeping with his being familiar with, mainly because of the credit card debt owed to the City of Cape City, the CTMCA resolved It might be finest to sell their [Schaapkraal] house … also to also to hide the property from the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for protection and security, has previously told GroundUp the CTMCA “threw cash away” on litigation with the town.

“Yearly like clockwork, as we method the end on the 12 months, the CTMCA picks a lawful struggle with the City, above permits or something else. We under no circumstances initiate it. They keep throwing dollars away on vexatious litigation which they get rid of and have expenditures awarded towards them. This is totally self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial function players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, finances and working ตรวจ the CTMCA.” The investigators reported they had been not able to Get hold of Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “observed numerous machines, some in great problem, some in terrible ailment plus some that appeared rusty and very outdated”. Stemmet advised the investigators that there was also an off-web site storage facility in which “instruments and some equipment” had been kept.

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

According to photos and invoices in GroundUp’s possession, some, Otherwise all, from the goods appear to be products which was illegally removed from the CTMCA’s earlier premises. Stemmet is facing fees for this removing.

According to the closing development report submitted towards the NLC by the CTMCA, the machinery was bought from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter were being administrators at time.

The investigators identified this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the business is five Crete Road, Wetton, Cape City, the identical tackle on which the museum was intended to be designed and/or transformed,” they documented.

An audit by accountants Kopano Included, attached into the investigative report, recorded that the CTMCA was in the entire process of getting “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.

As outlined by Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, this means R6.9-million is still owed, though there isn't any payment date set for when this should be compensated.

The Kopano audit plus the close hyperlink involving the companies “suggest to us that there is ‘foul Participate in’ involved with the acquisition in the equipment of your museum workshop”, the investigators stated from the report.

“We discover that it's really possible that CTMCA used the funding from the NLC to ‘refund’ among its major directors for your home at a higher overpriced rate than the particular price tag and value of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to the CTMCA were expended.

“In fact, an in depth report on how the funding on the NLC was utilized, might be unattainable 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 last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC experienced not performed a internet site go to ahead of approving the grant. But this was not normal follow at time and so they identified no evidence of carelessness by NLC personnel.

At time, the NLC’s policies did not require funded organisations to post evidence of payment with interim studies, they pointed out. This intended the CTMCA was capable of get a 2nd tranche of funding without needing to supply evidence that it had used the 1st tranche for its intended reason.

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

Dabishi Nthambeleni recommended that

the NLC decline any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who were being involved with the grant be subjected on 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 start the whole process of recovering the misappropriated money.
But, instead of act over the report’s suggestions, the NLC – less than its preceding administration – selected to suppress it, as it had done Along with the previous studies into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker by using SMS, and questioned for email addresses to deliver the inquiries by e mail far too. But no reaction were acquired at enough time of publication.



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