Leaked report exposes abuse of lottery income paid out to minstrel team

Leaked report exposes abuse of lottery income paid out to minstrel team

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Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allocated to get or build a museum.
In addition they observed the CTMCA only bought land worthy of R1.7-million, not R5-million as allotted.
They found the CTMCA applied money in the Lottery to purchase workshop gear from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape City Minstrel Carnival Association (CTMCA) from the Nationwide Lotteries Fee (NLC) to build a museum to celebrate the town’s prosperous minstrel heritage went astray. The museum was never designed.

The small print on the abuse of many rands of Lottery cash to get a museum that hardly ever was are disclosed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of over R64-million in Lottery cash allocated for the CTMCA between 2003 and 2017.

The initial Portion of the investigation, by regulation company Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which incorporated funding with the museum. The authorised finances for that museum was a lot more than R12.8-million, with R5-million of that allocated for a building to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up for your museum and whether the museum “basically existed”.

The firm was also instructed to investigate

the purchase with Lottery cash of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous machines “obtained for the manufacturing in the costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous administrators on the organisation. Stemmet was reappointed like a director in May 2021.

The investigation adopted comprehensive reporting by GroundUp with regard to the many rands of Lottery funding allocated to the CTMCA (see right here, listed here and here) and how the cash most likely helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at time by Marius Fransman.



The developing on the best was the meant site of your minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to your Parliamentary issue, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few jobs were concluded, she explained to MPs.

However the investigators discovered no evidence that a museum experienced at any time existed.

At first the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo attained by GroundUp with the supposed Wetton museum reveals a coffee store with some musical instruments and minstrel costumes and collages of pics haphazardly hung within the walls, in addition to a product ship on its plinth inside a corner.

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

Stemmet instructed the investigators the museum had been moved since they could no more pay for the hire of R100,000 per month. He said the CTMCA had acquired assets for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for the same cost. Schaapkraal is within a peri-urban location much from the city.

Due to this fact, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after checking out the premises, which might be within an industrial location, the investigators mentioned they doubted no matter if a proper museum existed there. Images hooked up to your report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and unfold out on the floor, with no clarification.

“You will find a small degree of items at the museum [that] on no account represent the much more than a hundred-12 months record of the Cape City Carnival, the investigators claimed, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not glimpse to get open up to the general public.”

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



The Schaapkraal home, on which no museum was ever created. Image: Raymond Joseph

Buses
Stemmet explained to the investigators that the CTMCA experienced to maneuver in the rented Crete Road premises mainly because it experienced run up a R4-million credit card debt with the town of Cape Town and was scared its gear could be connected.

“As a result of lawful battles as well as the debts, the organisation experienced to maneuver its home from 5 Crete Street to steer clear of the sheriff from attaching the home on the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of the CTMCA, told them that the two buses bought with lottery funds were saved in a mystery location “hidden with the Sheriff”. But the investigators reported they have been unable to confirm that any buses experienced at any time been acquired.

Stemmet also verified that the buses had been hidden to stop them currently being seized. But once the investigators questioned being taken to your spot wherever the buses were being stored, he advised them that “the owner of The trick location wasn't available to open the premises for us”.

“The CTMCA couldn't deliver proof of payment for two automobiles that it allegedly procured with grant income,” the investigators described.

Soeker also advised them the Schaapkraal assets had been marketed due to the debt.

“Mr Soeker discussed that Based on his comprehending, as a result of personal debt owed to the City of Cape Town, the CTMCA decided It will be greatest to offer their [Schaapkraal] assets … also to also to hide the belongings from the CTMCA to stay away from the sheriff from attaching the home.”

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

“Each and every year like clockwork, as we technique the top with the year, the CTMCA picks a authorized fight with the City, about permits or something else. We by no means initiate it. They retain throwing money away on vexatious litigation that they get rid of and possess expenses awarded versus them. This can be completely self-inflicted,” he mentioned.

Soeker informed the Dabishi Nthambeleni investigators that the leading position players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of each of the admin, funds and operating lottovip the CTMCA.” The investigators said they were unable to Make contact with Momberg.

Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered several equipment, some in excellent condition, some in undesirable condition and several that appeared rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” had been retained.

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

Determined by images and invoices in GroundUp’s possession, some, if not all, in the things appear to be machines which was illegally removed from the CTMCA’s earlier premises. Stemmet is going through costs for this removal.

According to the closing development report submitted to your NLC because of the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter were being directors at the time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the next alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Street, Wetton, Cape City, a similar handle on which the museum was meant to be crafted and/or transformed,” they noted.

An audit by accountants Kopano Incorporated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the directors.

In line with Dabishi Nthambeleni, the company has paid out R1.two-million like a deposit, this means R6.9-million remains to be owed, nevertheless there isn't a payment date set for when this have to be paid out.

The Kopano audit as well as shut connection between the companies “indicate to us that there is ‘foul play’ linked to the purchase of the equipment on the museum workshop”, the investigators mentioned within the report.

“We discover that it is very possible that CTMCA employed the funding of the NLC to ‘refund’ one of its key directors for that property at an increased overpriced price than the actual rate and value of the home 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 your NLC was employed, will be difficult as being the CTMCA does not have any receipts, or proof of payments to confirm the quantities expended on Each individual product it requested funding for. The interim report and last report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not done a web-site check out just before approving the grant. But this wasn't typical follow at the time they usually located no proof of carelessness by NLC staff.

At some time, the NLC’s guidelines did not call for funded organisations to submit proof of payment with interim studies, they identified. This meant the CTMCA was in the position to get a next tranche of funding without the need to deliver evidence that it had employed the primary tranche for its meant goal.

Subsequent the appointment of a fresh board, commissioner and senior executive workforce, the NLC has tightened up on these and various difficulties.

Dabishi Nthambeleni advised that

the NLC drop any foreseeable future funding applications with the CTMCA;
the CTMCA and any members who ended up involved in the grant be subjected on the NLC’s “delinquency” process;
the NLC open a felony scenario of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated money.
But, instead of act within the report’s suggestions, the NLC – below its earlier administration – chose to suppress it, as it experienced finished Using the previous reports into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to mail the issues by e-mail also. But no reaction had been received at enough time of publication.



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

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