Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has observed no evidence that a museum ever existed.
The investigators uncovered that the CTMCA didn't use the R5-million allotted to acquire or establish a museum.
In addition they discovered the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They observed the CTMCA utilized money with the Lottery to invest in workshop equipment from one among its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to create a museum to rejoice the town’s rich minstrel historical past went astray. The museum was never ever developed.

The main points from the abuse of countless rands of Lottery cash for your museum that under no circumstances was are unveiled within an investigative report commissioned because of the NLC in 2021.

The museum grant was Component of more than R64-million in Lottery resources allocated on the CTMCA concerning 2003 and 2017.

The primary Section of the investigation, by legislation agency Dabishi Nthambeleni, was conducted in between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which integrated funding with the museum. The accepted price range for your museum was over R12.8-million, with R5-million of that allocated to get a building to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing for that museum and whether the museum “essentially existed”.

The firm was also instructed to research

the acquisition with Lottery money of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous devices “bought with the production in the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of several administrators with the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation adopted extensive reporting by GroundUp with regards to the a lot of rands of Lottery funding allocated for the CTMCA (see in this article, below and right here) and the best way the resources 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 appropriate was the meant website in the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to some Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “projects” - including the museum - concerning 2012 and 2015. All 3 tasks were done, she advised MPs.

However the investigators observed no evidence that a museum experienced ever existed.

In the beginning the museum was due to open in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of the supposed Wetton museum displays a espresso store with some musical instruments and minstrel costumes and collages of pictures haphazardly hung to the partitions, plus a product ship on its plinth inside a corner.

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

Stemmet instructed the investigators the museum had been moved because they could not manage the hire of R100,000 a month. He said the CTMCA had purchased residence for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for the same price. Schaapkraal is in the peri-city space significantly from town.

Due to this fact, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following browsing the premises, that are in an industrial place, the investigators reported they doubted whether or not a proper museum existed there. Shots hooked up for the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, displayed on tables and distribute out on the ground, with no rationalization.

“You will find there's small number of things with the museum [that] in no way symbolize the more than 100-12 months history of your Cape Town Carnival, the investigators mentioned, introducing that there was “no signage outside the premises indicating that they housed a museum and … frequently, the museum doesn't seem to get open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by going The placement in the museum to an alternative locale with out notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to maneuver through the rented Crete Road premises since it experienced run up a R4-million personal debt with the City of Cape Town and was fearful its equipment could well be hooked up.

“As a result of lawful battles along with the debts, the organisation experienced to move its residence from five Crete Highway to stay away from the sheriff from attaching the residence with the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them which the two buses acquired with lottery resources have been stored in a very solution spot “hidden from the Sheriff”. Nevertheless the investigators mentioned they ended up unable to substantiate that any buses experienced at any time been acquired.

Stemmet also verified that the buses had been hidden to halt them staying seized. But when the investigators asked for being taken to your position in which the buses were being saved, he informed them that “the proprietor of The trick place was not accessible to open the premises for us”.

“The CTMCA could not offer proof of payment for two cars that it allegedly acquired with grant money,” the investigators documented.

Soeker also instructed them the Schaapkraal home had been bought due to personal debt.

“Mr Soeker stated that In keeping with his knowing, mainly because of the personal debt owed to town of Cape Town, the CTMCA determined It will be most effective to promote their [Schaapkraal] assets … and to also to cover the belongings with the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for safety and security, has Earlier told GroundUp that the CTMCA “threw income absent” on litigation with town.

“Annually like clockwork, as we method the tip with the calendar year, the CTMCA picks a lawful battle with the town, more than permits or something else. We under no circumstances initiate it. They maintain throwing funds away on vexatious litigation that they drop and have expenses awarded against them. This is fully self-inflicted,” he stated.

Soeker told the Dabishi Nthambeleni investigators that the most crucial purpose players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for each of the admin, finances and operating ผล หวย ลาว the CTMCA.” The investigators reported they had been struggling to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “discovered quite a few devices, some in good situation, some in negative problem and several that seemed rusty and very previous”. Stemmet told the investigators that there was also an off-site storage facility where “devices and a few machinery” ended up retained.

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

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your things seem like machines that was illegally removed from the CTMCA’s prior premises. Stemmet is struggling with costs for this elimination.

In accordance with the ultimate progress report submitted on the NLC via the CTMCA, the equipment was obtained from Martin-Conne Milliners, a business where Stemmet, his wife and his daughter had been directors at some time.

The investigators uncovered this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Highway, Wetton, Cape City, precisely the same address on which the museum was meant to be crafted and/or converted,” they described.

An audit by accountants Kopano Incorporated, attached on the investigative report, recorded which the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.

Based on Dabishi Nthambeleni, the business has paid R1.two-million being a deposit, indicating R6.9-million is still owed, while there is not any payment date established for when this have to be compensated.

The Kopano audit plus the close connection amongst the businesses “indicate to us that there is ‘foul Enjoy’ linked to the acquisition from the machinery on the museum workshop”, the investigators reported inside the report.

“We find that it is very probable that CTMCA employed the funding with the NLC to ‘refund’ amongst its main administrators for that residence at an increased overpriced fee than the actual cost and value of the assets and/or equipment.”

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

“In reality, a detailed report on how the funding from the NLC was applied, will be not possible as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts used on Each and every product it asked for funding for. The interim report and remaining report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not carried out a web-site visit just before approving the grant. But this was not common exercise at some time they usually found no proof of negligence by NLC staff.

At time, the NLC’s guidelines did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended the CTMCA was capable of get a second tranche of funding without the need to give evidence that it had applied the primary tranche for its supposed goal.

Pursuing the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni encouraged that

the NLC decrease any upcoming funding purposes from the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated cash.
But, as opposed to act over the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, mainly because it had finished With all the former studies into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by email as well. But no response were obtained at time of publication.



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