Leaked report exposes abuse of lottery cash paid to minstrel team

Leaked report exposes abuse of lottery cash paid to minstrel team

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Minstrels conduct in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has identified no proof that a museum ever existed.
The investigators located that the CTMCA did not make use of the R5-million allotted to obtain or develop a museum.
Additionally they uncovered which the CTMCA only bought land well worth R1.7-million, not R5-million as allotted.
They found the CTMCA utilised cash through the Lottery to get workshop products from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Commission (NLC) to create a museum to rejoice the city’s abundant minstrel history went astray. The museum was under no circumstances produced.

The small print from the abuse of numerous rands of Lottery resources to get a museum that never ever was are unveiled in an investigative report commissioned from the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery money allotted for the CTMCA involving 2003 and 2017.

The very first Component of the investigation, by legislation company Dabishi Nthambeleni, was executed among September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which bundled funding for that museum. The permitted funds for that museum was more than R12.8-million, with R5-million of that allotted to get a creating to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the building for your museum and whether the museum “basically existed”.

The organization was also instructed to research

the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several devices “purchased to the manufacturing of the costumes and hats” for your minstrels carnival, for R5.4-million.
At the 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 continued as two of many administrators on the organisation. Stemmet was reappointed as being a director in Might 2021.

The investigation followed in depth reporting by GroundUp in regards to the many rands of Lottery funding allotted into the CTMCA (see here, here and in this article) and the way the resources possibly assisted finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The setting up on the proper was the meant web-site on the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In response to some Parliamentary question, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “initiatives” - including the museum - amongst 2012 and 2015. All three assignments had been accomplished, she instructed MPs.

Nevertheless the investigators identified no proof that a museum experienced ever existed.

At first the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of your meant Wetton museum reveals a espresso shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung over the partitions, as well as a product ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum had been moved because they could no more afford the lease of R100,000 per month. He explained the CTMCA had acquired assets for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been offered for a similar rate. Schaapkraal is within a peri-urban spot significantly from town.

Due to this fact, the museum were moved to a different location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following browsing the premises, which happen to be in an industrial spot, the investigators stated they doubted regardless of whether an appropriate museum existed there. Photographs hooked up towards the report exhibit a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the floor, without rationalization.

“There's a small quantity of goods on the museum [that] on no account represent the a lot more than one hundred-12 months record from the Cape City Carnival, the investigators stated, adding that there was “no signage outside the premises indicating which they housed a museum and … generally, the museum will not seem for being open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by going The situation from the museum to another area without notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA had to move within the rented Crete Road premises since it had run up a R4-million debt with the town of Cape Town and was concerned its products could well be connected.

“Due to lawful battles and the debts, the organisation experienced to maneuver its residence from 5 Crete Road to avoid the sheriff from attaching the assets from the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director from the CTMCA, informed them the two buses bought with lottery funds were saved inside a solution locale “concealed from the Sheriff”. Although the investigators claimed they were being not able to confirm that any buses experienced ever been bought.

Stemmet also confirmed which the buses were hidden to halt them currently being seized. But once the investigators asked to become taken towards the place where the buses were being stored, he advised them that “the owner of The key site was not accessible to open the premises for us”.

“The CTMCA couldn't give evidence of payment for two automobiles that it allegedly procured with grant funds,” the investigators reported.

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

“Mr Soeker described that In keeping with his knowing, as a result of debt owed to the town of Cape City, the CTMCA made the decision It might be very best to offer their [Schaapkraal] property … also to also to hide the assets of the CTMCA to stay away from the sheriff from attaching the assets.”

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

“Each and every year like clockwork, as we method the tip of your year, the CTMCA picks a legal struggle with the town, more than permits or another thing. We hardly ever initiate it. They keep throwing funds away on vexatious litigation which they eliminate and also have costs awarded towards them. This really is solely self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of every one of the admin, funds and managing หวย วัน นี้ the CTMCA.” The investigators stated they were unable to Call Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “located numerous devices, some in superior problem, some in bad issue and some that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-site storage facility exactly where “devices and several machinery” ended up held.

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

Determined by pictures and invoices in GroundUp’s possession, some, if not all, of your products seem like machines that was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with charges for this removal.

According to the ultimate development report submitted on the NLC because of the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter had been administrators at enough time.

The investigators discovered this “alarming”.

“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be built and/or converted,” they noted.

An audit by accountants Kopano Integrated, hooked up into the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the administrators.

In keeping with Dabishi Nthambeleni, the corporation has compensated R1.2-million like a deposit, meaning R6.nine-million continues to be owed, though there isn't any payment day set for when this needs to be paid out.

The Kopano audit and also the near hyperlink concerning the companies “point out to us that there's ‘foul Perform’ involved with the purchase from the machinery with the museum workshop”, the investigators said inside the report.

“We discover that it is hugely possible that CTMCA made use of the funding of the NLC to ‘refund’ among its key administrators for that residence at a better overpriced fee than the particular value and value of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been expended.

“Actually, an in depth report on how the funding in the NLC was used, would be unachievable because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities spent on Every single merchandise it asked for funding for. The interim report and closing report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC had not conducted a website go to just before approving the grant. But this was not standard observe at enough time plus they identified no evidence of carelessness by NLC staff members.

At time, the NLC’s principles didn't call for funded organisations to submit evidence of payment with interim reviews, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to provide proof that it had made use of the primary tranche for its intended reason.

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

Dabishi Nthambeleni recommended that

the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected to your 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 commence the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s tips, the NLC – below its former administration – chose to suppress it, since it had completed with the earlier stories into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to mail the concerns by e-mail way too. But no reaction were acquired at enough time of publication.



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