Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators observed which the CTMCA did not use the R5-million allocated to obtain or produce a museum.
In addition they uncovered the CTMCA only acquired land well worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA employed funds from your Lottery to invest in workshop tools from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted for the Cape Town Minstrel Carnival Association (CTMCA) through the National Lotteries Fee (NLC) to build a museum to rejoice the town’s abundant minstrel record went astray. The museum was in no way designed.

The small print of your abuse of countless rands of Lottery cash for your museum that hardly ever was are revealed in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of greater than R64-million in Lottery cash allotted towards the CTMCA involving 2003 and 2017.

The initial Element of the investigation, by law agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which included funding for the museum. The accepted price range for the museum was in excess of R12.eight-million, with R5-million of that allocated for the setting up to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up with the museum and whether or not the museum “actually existed”.

The firm was also instructed to investigate

the purchase with Lottery resources of two autos – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
different machines “purchased to the producing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators on the organisation. Stemmet was reappointed like a director in May possibly 2021.

The investigation adopted extensive reporting by GroundUp with regard to the countless rands of Lottery funding allotted towards the CTMCA (see here, here and listed here) and the way the cash most likely aided finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at time by Marius Fransman.



The creating on the correct was the meant web-site in the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photo: Raymond Joseph

In response to some Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to three CTMCA “tasks” - including the museum - in between 2012 and 2015. All a few assignments were finished, she explained to MPs.

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

To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photo attained by GroundUp on the supposed Wetton museum displays a espresso store with a few musical instruments and minstrel costumes and collages of pics haphazardly hung on the walls, and also a product ship on its plinth in the corner.

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

Stemmet explained to the investigators the museum were moved mainly because they could no more pay for the hire of R100,000 a month. He reported the CTMCA had purchased residence for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar cost. Schaapkraal is in a very peri-city region significantly from town.

Consequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which are within an industrial space, the investigators reported they doubted whether or not a proper museum existed there. Photos hooked up on the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, without explanation.

“You will find there's nominal amount of objects at the museum [that] under no circumstances stand for the a lot more than one hundred-calendar year history in the Cape City Carnival, the investigators explained, including that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum isn't going to search to become open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by relocating the location from the museum to an alternative area without having notifying the NLC.



The Schaapkraal house, on which no museum was ever built. Image: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA experienced to maneuver from the rented Crete Street premises as it had operate up a R4-million financial debt with the town of Cape Town and was worried its devices will be hooked up.

“A result of the lawful battles along with the debts, the organisation experienced to maneuver its residence from 5 Crete Highway to steer clear of the sheriff from attaching the home of the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of the CTMCA, instructed them the two buses acquired with lottery money ended up saved in a magic formula site “hidden with the Sheriff”. Although the investigators reported they were unable to verify that any buses had ever been purchased.

Stemmet also verified the buses had been concealed to prevent them becoming seized. But once the investigators questioned to get taken for the place where by the buses were being saved, he explained to them that “the proprietor of the secret location wasn't accessible to open up the premises for us”.

“The CTMCA couldn't supply evidence of payment for 2 vehicles that it allegedly obtained with grant income,” the investigators claimed.

Soeker also told them the Schaapkraal property had been offered due to the financial debt.

“Mr Soeker described that according to his comprehending, a result of the credit card debt owed to the town of Cape Town, the CTMCA determined It will be greatest to offer their [Schaapkraal] house … and also to also to hide the property of the CTMCA to stay away from the sheriff from attaching the house.”

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

“Every year like clockwork, as we method the end of the calendar year, the CTMCA picks a lawful combat with town, over permits or something else. We never initiate it. They preserve throwing income away on vexatious litigation which they reduce and also have fees awarded towards them. This really is entirely self-inflicted,” he stated.

Soeker informed the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and working หวย ลาว วัน นี้ the CTMCA.” The investigators mentioned they were unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “discovered quite a few equipment, some in good situation, some in undesirable affliction and some that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-site storage facility where “devices and many equipment” had been stored.

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

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your goods appear to be machines which was illegally removed from the CTMCA’s former premises. Stemmet is struggling with prices for this removing.

Based on the ultimate development report submitted on the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm during which Stemmet, his wife and his daughter ended up administrators at some time.

The investigators found this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Notice the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the corporation is 5 Crete Road, Wetton, Cape City, the identical address on which the museum was intended to be built and/or transformed,” they reported.

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

Based on Dabishi Nthambeleni, the corporate has compensated R1.two-million like a deposit, this means R6.nine-million is still owed, however there is not any payment date established for when this has to be paid out.

The Kopano audit and the shut connection concerning the businesses “reveal to us that there is ‘foul Enjoy’ associated with the acquisition with the machinery of your museum workshop”, the investigators explained within the report.

“We discover that it's very possible that CTMCA utilised the funding of the NLC to ‘refund’ considered one of its primary directors for that assets at a greater overpriced fee than the particular selling price and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA had been invested.

“Actually, a detailed report on how the funding of the NLC was made use of, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every product it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not performed a web-site go to in advance of approving the grant. But this wasn't standard follow at enough time they usually found no proof of carelessness by NLC employees.

At the time, the NLC’s guidelines did not need funded organisations to submit evidence of payment with interim stories, they identified. This meant which the CTMCA was able to get a 2nd tranche of funding without needing to offer evidence that it experienced employed the very first tranche for its supposed reason.

Pursuing the appointment of a different board, commissioner and senior government group, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni advised that

the NLC drop any long term funding purposes in the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a felony circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated resources.
But, rather then act over the report’s tips, the NLC – beneath its earlier administration – chose to suppress it, mainly because it had carried out Using the former studies into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker by means of SMS, and asked for e-mail addresses to mail the queries by electronic mail as well. But no response were received at time of publication.



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

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