Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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Minstrels carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no evidence that a museum ever existed.
The investigators identified that the CTMCA didn't make use of the R5-million allotted to acquire or establish a museum.
They also found the CTMCA only purchased land worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA used resources from the Lottery to buy workshop machines from considered one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Fee (NLC) to put in place a museum to celebrate the town’s rich minstrel history went astray. The museum was hardly ever established.

The main points with the abuse of millions of rands of Lottery resources for the museum that never ever was are exposed within an investigative report commissioned with the NLC in 2021.

The museum grant was Section of much more than R64-million in Lottery funds allocated on the CTMCA amongst 2003 and 2017.

The initial Element of the investigation, by law organization Dabishi Nthambeleni, was done between September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which involved funding for your museum. The accredited spending plan for the museum was in excess of R12.eight-million, with R5-million of that allotted to get a building to accommodate the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a developing for the museum and whether the museum “essentially existed”.

The firm was also instructed to research

the purchase with Lottery resources of two cars – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous devices “acquired for that production on the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of several directors of your organisation. Stemmet was reappointed like a director in Might 2021.

The investigation adopted in depth reporting by GroundUp regarding the millions of rands of Lottery funding allocated to the CTMCA (see below, below and below) and the best way the money likely assisted finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.



The constructing on the right was the supposed internet site from the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to some Parliamentary query, former NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All three jobs had been concluded, she informed MPs.

However the investigators found no proof that a museum experienced ever existed.

Initially the museum was due to open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp of the meant Wetton museum displays a coffee shop with a few musical devices and minstrel costumes and collages of pics haphazardly hung within the walls, in addition to a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni explained it absolutely was “not able” to verify if a museum had ever operated from these premises.

Stemmet told the investigators the museum had been moved as they could no longer find the money for the hire of R100,000 a month. He claimed the CTMCA experienced procured assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for the same cost. Schaapkraal is in a peri-city place significantly from the town.

Subsequently, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are within an industrial spot, the investigators said they doubted whether or not an appropriate museum existed there. Pics attached to your report present a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the floor, with no rationalization.

“There's a negligible quantity of items with the museum [that] by no means stand for the a lot more than 100-yr record in the Cape City Carnival, the investigators stated, incorporating that there was “no signage outside the premises indicating they housed a museum and … generally, the museum will not glimpse for being open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by transferring the location on the museum to another location with no notifying the NLC.



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

Buses
Stemmet told the investigators that the CTMCA experienced to move with the rented Crete Street premises since it experienced run up a R4-million debt with the town of Cape Town and was afraid its machines might be attached.

“As a result of lawful battles along with the debts, the organisation experienced to maneuver its home from 5 Crete Street to stay away from the sheriff from attaching the assets from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director in the CTMCA, advised them the two buses purchased with lottery cash were stored within a solution locale “concealed within the Sheriff”. Nevertheless the investigators explained they ended up unable to substantiate that any buses had ever been acquired.

Stemmet also verified the buses were hidden to prevent them staying seized. But in the event the investigators requested being taken into the put exactly where the buses had been saved, he instructed them that “the owner of The trick locale was not accessible to open up the premises for us”.

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

Soeker also informed them the Schaapkraal house were sold as a result of debt.

“Mr Soeker described that Based on his comprehension, due to the debt owed to the City of Cape Town, the CTMCA made the decision It could be finest to provide their [Schaapkraal] property … and to also to cover the assets of the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for safety and stability, has Earlier instructed GroundUp the CTMCA “threw dollars away” on litigation with town.

“Every year like clockwork, as we solution the top on the year, the CTMCA picks a legal combat with town, in excess of permits or another thing. We under no circumstances initiate it. They maintain throwing income away on vexatious litigation they eliminate and possess costs awarded from them. This is certainly totally self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the principle purpose players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all the admin, funds and jogging สลาก กิน the CTMCA.” The investigators explained they had been unable to contact Momberg.

Hats
Throughout their “investigation in loco” at the Primrose Park premises, the investigators “found various devices, some in very good situation, some in bad affliction plus some that looked rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-website storage facility the place “devices and a few equipment” were being stored.

“We requested him to acquire us to the power but he was evasive to our ask for.”

According to images and invoices in GroundUp’s possession, some, if not all, in the objects appear to be gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through costs for this elimination.

According to the closing progress report submitted into the NLC because of the CTMCA, the machinery was procured from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter have been administrators at some time.

The investigators discovered this “alarming”.

“With the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the corporate is five Crete Street, Wetton, Cape Town, the identical deal with on which the museum was meant to be designed and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached to the investigative report, recorded the CTMCA was in the process of paying for “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.

In line with Dabishi Nthambeleni, the company has paid R1.2-million to be a deposit, which means R6.9-million continues to be owed, while there is absolutely no payment day established for when this should be paid.

The Kopano audit as well as the close website link amongst the companies “show to us that there is ‘foul Engage in’ involved with the acquisition with the machinery in the museum workshop”, the investigators mentioned while in the report.

“We discover that it is highly possible that CTMCA utilised the funding with the NLC to ‘refund’ amongst its main administrators for your home at the next overpriced fee than the actual value and worth of the assets and/or machinery.”

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

“The truth is, an in depth report on how the funding of the NLC was utilized, will be difficult given that the CTMCA doesn't have any receipts, or evidence of payments to verify the amounts spent on Every item it asked for funding for. The interim report and ultimate report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC experienced not carried out a web site go to before approving the grant. But this was not conventional follow at time and so they found no evidence of carelessness by NLC staff.

At some time, the NLC’s regulations didn't demand funded organisations to submit proof of payment with interim stories, they identified. This intended which the CTMCA was capable to get a 2nd tranche of funding while not having to deliver evidence that it experienced made use of the main 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 and various difficulties.

Dabishi Nthambeleni advisable that

the NLC decline any upcoming funding programs within the CTMCA;
the CTMCA and any customers who were associated with the grant be subjected into the NLC’s “delinquency” method;
the NLC open a felony scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the entire process of recovering the misappropriated cash.
But, rather than act on the report’s recommendations, the NLC – underneath its past administration – chose to suppress it, because it had carried out With all the earlier reviews into corruption it experienced commissioned.

GroundUp sent concerns to Stemmet and Soeker via SMS, and questioned for email addresses to mail the queries by email way too. But no reaction had been obtained at enough time of publication.



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

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