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 Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant from the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no evidence that a museum ever existed.
The investigators located which the CTMCA did not use the R5-million allocated to obtain or create a museum.
Additionally they observed which the CTMCA only acquired land really worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA employed cash from your Lottery to get workshop machines from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Commission (NLC) to set up a museum to celebrate the city’s prosperous minstrel background went astray. The museum was hardly ever established.

The main points on the abuse of an incredible number of rands of Lottery funds for a museum that hardly ever was are discovered in an investigative report commissioned by the NLC in 2021.

The museum grant was part of much more than R64-million in Lottery cash allocated into the CTMCA in between 2003 and 2017.

The primary Portion of the investigation, by law organization Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which integrated funding for your museum. The authorised finances for the museum was over R12.8-million, with R5-million of that allocated for any setting up to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the making for your museum and whether or not the museum “essentially existed”.

The firm was also instructed to analyze

the purchase with Lottery money of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
several equipment “bought for your production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of many directors of the organisation. Stemmet was reappointed to be a director in May well 2021.

The investigation followed in depth reporting by GroundUp regarding the countless rands of Lottery funding allotted to the CTMCA (see below, here and listed here) and just how the money in all probability helped finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The building on the proper was the supposed internet site with the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to the Parliamentary dilemma, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “projects” - such as the museum - amongst 2012 and 2015. All three jobs had been completed, she explained to MPs.

Although the investigators identified no evidence that a museum had at any time existed.

Initially the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp from the intended Wetton museum demonstrates a espresso store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung to the partitions, in addition to a product ship on its plinth in a corner.

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

Stemmet advised the investigators the museum had been moved given that they could not pay for the rent of R100,000 per month. He mentioned the CTMCA experienced ordered house for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been sold for the same price. Schaapkraal is in a very peri-urban place far from the town.

Consequently, the museum were moved to a new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after traveling to the premises, that are in an industrial location, the investigators explained they doubted whether a proper museum existed there. Photos hooked up into the report clearly show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the ground, with no rationalization.

“You will find a minimum amount of goods on the museum [that] in no way depict the greater than one hundred-calendar year background with the Cape City Carnival, the investigators stated, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … usually, the museum will not glance to generally be open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting the location of the museum to another locale without the need of notifying the NLC.



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

Buses
Stemmet explained to the investigators which the CTMCA experienced to move with the rented Crete Highway premises since it had run up a R4-million credit card debt with the town of Cape Town and was concerned its devices would be hooked up.

“As a result of authorized battles plus the debts, the organisation experienced to move its house from 5 Crete Highway to steer clear of the sheriff from attaching the residence of the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director in the CTMCA, told them which the two buses bought with lottery money have been stored inside of a solution area “concealed from your Sheriff”. However the investigators claimed they were unable to confirm that any buses had ever been bought.

Stemmet also confirmed which the buses had been hidden to halt them currently being seized. But in the event the investigators questioned to get taken to your spot the place the buses have been saved, he explained to them that “the proprietor of the secret locale wasn't accessible to open the premises for us”.

“The CTMCA couldn't present proof of payment for two automobiles that it allegedly obtained with grant money,” the investigators described.

Soeker also told them the Schaapkraal assets had been sold due to financial debt.

“Mr Soeker described that In keeping with his being familiar with, mainly because of the financial debt owed to the town of Cape City, the CTMCA determined It will be ideal to sell their [Schaapkraal] property … and to also to hide the property with the CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for safety and protection, has Earlier instructed GroundUp the CTMCA “threw funds absent” on litigation with the City.

“Yearly like clockwork, as we method the tip of your 12 months, the CTMCA picks a legal struggle with the City, over permits or another thing. We by no means initiate it. They keep throwing funds away on vexatious litigation they drop and also have charges awarded versus them. This really is totally self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the leading position players on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up answerable for all the admin, funds and functioning fox888 the CTMCA.” The investigators said they had been struggling to contact Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “uncovered various equipment, some in fantastic issue, some in undesirable issue and a few that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-site storage facility the place “devices and several equipment” had been retained.

“We asked him to just take us to the ability but he was evasive to our ask for.”

Determined by pics and invoices in GroundUp’s possession, some, Otherwise all, of your items look like machines which was illegally faraway from the CTMCA’s preceding premises. Stemmet is struggling with rates for this elimination.

Based on the ultimate development report submitted into the NLC via the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization by which Stemmet, his wife and his daughter were being directors at some 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 locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the company is five Crete Highway, Wetton, Cape City, the identical address on which the museum was meant to be built and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached into the investigative report, recorded the CTMCA was in the process of buying “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.

As outlined by Dabishi Nthambeleni, the business has paid out R1.two-million as a deposit, indicating R6.nine-million is still owed, however there is no payment date set for when this have to be paid out.

The Kopano audit and the close website link involving the businesses “suggest to us that there's ‘foul Engage in’ associated with the acquisition with the machinery of your museum workshop”, the investigators claimed from the report.

“We find that it's extremely possible that CTMCA utilized the funding with the NLC to ‘refund’ one among its major administrators to the assets at a greater overpriced fee than the particular price and value of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to the CTMCA had been spent.

“In fact, a detailed report on how the funding in the NLC was employed, can be difficult as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts spent on Each individual merchandise it asked for funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located that the NLC experienced not conducted a web page check out before approving the grant. But this was not typical practice at time plus they found no evidence of carelessness by NLC employees.

At the time, the NLC’s policies didn't need funded organisations to submit proof of payment with interim reviews, they pointed out. This meant that the CTMCA was in the position to get a next tranche of funding without having to provide evidence that it experienced utilised the 1st tranche for its meant goal.

Adhering to the appointment of a whole new board, commissioner and senior executive staff, the NLC has tightened up on these together with other troubles.

Dabishi Nthambeleni suggested that

the NLC decrease any long term funding apps in the CTMCA;
the CTMCA and any customers who were being associated with the grant be subjected to the NLC’s “delinquency” method;
the NLC open a legal scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated funds.
But, as an alternative to act to the report’s tips, the NLC – underneath its former administration – selected to suppress it, because it had completed Together with the earlier reviews into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to send the thoughts by e-mail as well. But no reaction had been gained at time of publication.



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

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