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

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

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Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators identified which the CTMCA didn't use the R5-million allocated to acquire or establish a museum.
They also identified the CTMCA only purchased land value R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA utilised money through the Lottery to get workshop tools from amongst its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to build a museum to celebrate town’s abundant minstrel history went astray. The museum was in no way produced.

The small print with the abuse of millions of rands of Lottery money for any museum that under no circumstances was are discovered within an investigative report commissioned by the NLC in 2021.

The museum grant was part of over R64-million in Lottery cash allocated to your CTMCA between 2003 and 2017.

The first Element of the investigation, by legislation business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which included funding with the museum. The accredited budget for that museum was greater than R12.8-million, with R5-million of that allotted for your creating to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the building for that museum and whether or not the museum “in fact existed”.

The business was also instructed to research

the acquisition with Lottery money of two automobiles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
several machines “obtained with the manufacturing on the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators of the organisation. Stemmet was reappointed for a director in May possibly 2021.

The investigation adopted considerable reporting by GroundUp in regards to the many rands of Lottery funding allotted to your CTMCA (see right here, here and right here) and the best way the money in all probability assisted 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 intended internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction into a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - such as the museum - amongst 2012 and 2015. All 3 assignments were done, she explained to MPs.

Although the investigators identified no evidence that a museum experienced ever existed.

To start with the museum was due to open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp of the intended Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of photographs haphazardly hung over the partitions, and a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni stated it was “not ready” to substantiate if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum were moved because they could no more manage the hire of R100,000 a month. He claimed the CTMCA experienced acquired assets for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were marketed for the same selling price. Schaapkraal is inside a peri-urban space far from the town.

Because of this, the museum had been moved to a new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after traveling to the premises, which can be within an industrial place, the investigators reported they doubted irrespective of whether an appropriate museum existed there. Pictures hooked up into the report show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, displayed on tables and spread out on the ground, without any explanation.

“There is a small volume of items on the museum [that] on no account symbolize the more than 100-yr record on the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outside the premises indicating they housed a museum and … commonly, the museum would not glimpse for being open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by transferring The placement in the museum to another spot devoid of notifying the NLC.



The Schaapkraal home, on which no museum was ever crafted. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Road premises since it had run up a R4-million debt with the City of Cape Town and was fearful its machines could well be hooked up.

“Because of the lawful battles and the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director from the CTMCA, instructed them that the two buses purchased with lottery resources have been saved in a solution location “hidden with the Sheriff”. However the investigators explained they were being not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified which the buses were concealed to prevent them currently being seized. But if the investigators requested being taken to your position where by the buses ended up stored, he informed them that “the operator of the secret location was not available to open the premises for us”.

“The CTMCA could not offer evidence of payment for 2 cars that it allegedly ordered with grant dollars,” the investigators reported.

Soeker also explained to them the Schaapkraal house had been sold because of the debt.

“Mr Soeker described that As outlined by his knowledge, due to the debt owed to the City of Cape City, the CTMCA decided it would be best to sell their [Schaapkraal] property … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the home.”

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

“Each and every year like clockwork, as we strategy the tip with the calendar year, the CTMCA picks a lawful struggle with town, around permits or something else. We never ever initiate it. They continue to keep throwing dollars absent on vexatious litigation which they drop and have expenses awarded in opposition to them. This can be completely self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the leading job players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for all the admin, finances and managing หวย the CTMCA.” The investigators reported they had been unable to Call Momberg.

Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “discovered several devices, some in fantastic ailment, some in poor situation and a few that looked rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility where by “devices and many machinery” have been stored.

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

According to pictures and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be machines that was illegally removed from the CTMCA’s prior premises. Stemmet is dealing with expenses for this elimination.

Based on the closing development report submitted into the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, a company through which Stemmet, his wife and his daughter had been directors at the time.

The investigators identified this “alarming”.

“Through the CIPC research of Martin-Conne Milliners and the invoices submitted, we Notice the next alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape Town, the identical address on which the museum was meant to be constructed and/or transformed,” they noted.

An audit by accountants Kopano Included, attached for the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the administrators.

According to Dabishi Nthambeleni, the company has paid R1.two-million as a deposit, which means R6.9-million is still owed, though there is absolutely no payment date established for when this needs to be paid out.

The Kopano audit along with the close hyperlink concerning the businesses “indicate to us that there's ‘foul Engage in’ involved in the purchase of the machinery with the museum workshop”, the investigators mentioned during the report.

“We find that it is very probable that CTMCA applied the funding of your NLC to ‘refund’ among its key administrators with the assets at a higher overpriced charge than the actual cost and value of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant into the CTMCA had been spent.

“In point of fact, a detailed report on how the funding of the NLC was applied, might be unattainable because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Each and every merchandise it asked for funding for. The interim report and remaining report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not performed a web-site stop by before approving the grant. But this wasn't conventional practice at the time they usually uncovered no evidence of negligence by NLC employees.

At some time, the NLC’s procedures didn't need funded organisations to post proof of payment with interim reports, they identified. This meant the CTMCA was in a position to get a second tranche of funding without the need to give proof that it had used the main tranche for its intended goal.

Next the appointment of a whole new board, commissioner and senior govt group, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni encouraged that

the NLC drop any future funding applications in the CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, as an alternative to act within the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it experienced performed Using the past reviews into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by using SMS, and asked for email addresses to deliver the inquiries by electronic mail as well. But no response had been received at the time of publication.



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