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 photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant with the National Lotteries Fee on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has identified no proof that a museum at any time existed.
The investigators observed the CTMCA didn't utilize the R5-million allotted to buy or create a museum.
Additionally they located which the CTMCA only acquired land value R1.7-million, not R5-million as allocated.
They observed the CTMCA made use of resources from the Lottery to purchase workshop gear from among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to set up a museum to rejoice the city’s abundant minstrel historical past went astray. The museum was by no means made.

The details with the abuse of countless rands of Lottery cash for just a museum that by no means was are unveiled within an investigative report commissioned by the NLC in 2021.

The museum grant was Portion of a lot more than R64-million in Lottery cash allotted on the CTMCA involving 2003 and 2017.

The 1st Element of the investigation, by legislation agency Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which involved funding for the museum. The permitted budget with the museum was a lot more than R12.8-million, with R5-million of that allocated for any developing to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the creating to the museum and whether or not the museum “actually existed”.

The firm was also instructed to investigate

the purchase with Lottery funds of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
many machines “bought to the manufacturing 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 on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several administrators on the organisation. Stemmet was reappointed as being a director in May 2021.

The investigation adopted comprehensive reporting by GroundUp with regard to the millions of rands of Lottery funding allocated towards the CTMCA (see in this article, here and below) and the way the cash probably assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.



The setting up on the correct was the intended web-site in the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to a Parliamentary question, former NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - such as the museum - in between 2012 and 2015. All 3 projects had been finished, she explained to MPs.

But the investigators located no evidence that a museum had ever existed.

At first the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp in the supposed Wetton museum shows a coffee shop with some musical devices and minstrel costumes and collages of photos haphazardly hung on the partitions, plus a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to verify if a museum had ever operated from these premises.

Stemmet instructed the investigators the museum had been moved given that they could no longer pay for the lease of R100,000 per month. He claimed the CTMCA had procured residence for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for the same price. Schaapkraal is in the peri-urban spot much from the town.

Subsequently, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, which can be within an industrial location, the investigators claimed they doubted whether a correct museum existed there. Images connected to the report exhibit a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed on the wall, shown on tables and spread out on the floor, with no rationalization.

“You will find there's small degree of goods with the museum [that] in no way characterize the in excess of 100-calendar year background of your Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum won't look to become open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by transferring The situation with the museum to another locale without having notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to move in the rented Crete Highway premises since it experienced run up a R4-million credit card debt with the City of Cape City and was frightened its products would be attached.

“Mainly because of the legal battles as well as the debts, the organisation had to move its house from five Crete Street to steer clear of the sheriff from attaching the home on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director of the CTMCA, advised them the two buses purchased with lottery money ended up stored in a very solution spot “hidden with the Sheriff”. Nevertheless the investigators said they were being not able to substantiate that any buses had ever been acquired.

Stemmet also confirmed the buses were hidden to stop them currently being seized. But if the investigators asked to become taken towards the spot the place the buses ended up saved, he told them that “the owner of The trick area was not available to open up the premises for us”.

“The CTMCA could not deliver proof of payment for two automobiles that it allegedly obtained with grant income,” the investigators noted.

Soeker also explained to them the Schaapkraal house had been offered due to debt.

“Mr Soeker discussed that In line with his being familiar with, a result of the credit card debt owed to the town of Cape Town, the CTMCA determined It might be ideal to offer their [Schaapkraal] residence … also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for basic safety and safety, has Formerly told GroundUp the CTMCA “threw money away” on litigation with the City.

“Each year like clockwork, as we solution the tip from the 12 months, the CTMCA picks a lawful battle with the town, more than permits or another thing. We hardly ever initiate it. They continue to keep throwing income absent on vexatious litigation that they shed and also have charges awarded from them. This is entirely self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the primary position gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in command of many of the admin, finances and operating cat888 the CTMCA.” The investigators reported they had been unable to contact Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “uncovered a lot of machines, some in superior ailment, some in lousy problem and some that seemed rusty and extremely outdated”. Stemmet advised the investigators that there was also an off-web site storage facility where “devices and some machinery” ended up kept.

“We asked him to get us to the facility but he was evasive to our request.”

Based upon pics and invoices in GroundUp’s possession, some, Otherwise all, on the merchandise look like products that was illegally faraway from the CTMCA’s prior premises. Stemmet is dealing with rates for this removal.

In accordance with the last development report submitted towards the NLC via the CTMCA, the machinery was procured from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter ended up directors at the time.

The investigators located this “alarming”.

“From the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Be aware the following alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Street, Wetton, Cape Town, the same handle on which the museum was intended to be built and/or transformed,” they described.

An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.

In line with Dabishi Nthambeleni, the organization has paid out R1.two-million to be a deposit, which means R6.9-million remains to be owed, though there is absolutely no payment date set for when this has to be paid out.

The Kopano audit along with the near backlink involving the businesses “suggest to us that there's ‘foul Enjoy’ involved with the purchase from the equipment in the museum workshop”, the investigators stated in the report.

“We discover that it is extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ certainly one of its main administrators for the residence at a better overpriced rate than the actual rate and value of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant towards the CTMCA had been expended.

“In reality, a detailed report on how the funding with the NLC was used, could be difficult as being the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities put in on Just about every product it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC had not executed a web-site check out just before approving the grant. But this wasn't common practice at some time and so they discovered no proof of carelessness by NLC workers.

At enough time, the NLC’s rules did not demand funded organisations to submit proof of payment with interim studies, they identified. This meant that the CTMCA was ready to get a next tranche of funding without the need to provide evidence that it experienced applied the main tranche for its supposed intent.

Following the appointment of a brand new board, commissioner and senior govt workforce, the NLC has tightened up on these and also other troubles.

Dabishi Nthambeleni advised that

the NLC drop any long run funding programs from the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected towards the NLC’s “delinquency” system;
the NLC open a criminal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated resources.
But, instead of act around the report’s recommendations, the NLC – under its past administration – chose to suppress it, mainly because it experienced accomplished Along with the preceding reviews into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker by using SMS, and requested for electronic mail addresses to ship the queries by electronic mail way too. But no reaction had been been given at time of publication.



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

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