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

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

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Minstrels accomplish in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant from the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no evidence that a museum ever existed.
The investigators uncovered that the CTMCA did not utilize the R5-million allotted to acquire or make a museum.
In addition they found the CTMCA only acquired land value R1.seven-million, not R5-million as allotted.
They observed the CTMCA utilized resources with the Lottery to purchase workshop machines from one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to the Cape City Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to create a museum to celebrate the city’s rich minstrel history went astray. The museum was by no means established.

The small print from the abuse of many rands of Lottery money for a museum that hardly ever was are discovered within an investigative report commissioned with the NLC in 2021.

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

The main part of the investigation, by law firm Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which provided funding for that museum. The approved spending plan for the museum was in excess of R12.8-million, with R5-million of that allocated for your developing to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up for your museum and if the museum “in fact existed”.

The company was also instructed to investigate

the purchase with Lottery resources of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
different machines “purchased to the producing with the costumes and hats” with the minstrels carnival, for R5.4-million.
At the time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators with the organisation. Stemmet was reappointed as being a director in Could 2021.

The investigation followed in depth reporting by GroundUp with regard to the countless rands of Lottery funding allotted into the CTMCA (see listed here, in this article and listed here) and just how the money almost certainly aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.



The creating on the correct was the supposed web page with the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to your Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - including the museum - amongst 2012 and 2015. All a few jobs had been accomplished, she explained to MPs.

Nevertheless the investigators uncovered no evidence that a museum experienced ever existed.

Initially the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photograph received by GroundUp in the meant Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the partitions, and also a design ship on its plinth within a corner.

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

Stemmet told the investigators the museum had been moved because they could not manage the rent of R100,000 a month. He mentioned the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been bought for a similar selling price. Schaapkraal is within a peri-city area considerably from the town.

Subsequently, the museum were moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after browsing the premises, that happen to be within an industrial location, the investigators said they doubted whether or not a suitable museum existed there. Photos attached on the report present a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without any clarification.

“You will find there's nominal amount of products at the museum [that] in no way signify the a lot more than one hundred-year history from the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … commonly, the museum doesn't seem to get open up to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by moving The situation of the museum to an alternative area with out notifying the NLC.



The Schaapkraal assets, on which no museum was at any time developed. Photograph: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA experienced to maneuver through the rented Crete Road premises since it had operate up a R4-million personal debt with town of Cape City and was concerned its tools would be attached.

“Mainly because of the lawful battles and the debts, the organisation experienced to move its house from 5 Crete Street to stay away from the sheriff from attaching the property with the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director of the CTMCA, instructed them that the two buses acquired with lottery resources had been saved in the secret site “concealed from the Sheriff”. Though the investigators mentioned they had been not able to confirm that any buses experienced at any time been purchased.

Stemmet also verified which the buses were hidden to halt them staying seized. But in the event the investigators questioned being taken to your spot in which the buses had been saved, he instructed them that “the owner of The key site was not accessible to open the premises for us”.

“The CTMCA could not provide evidence of payment for two cars that it allegedly acquired with grant cash,” the investigators reported.

Soeker also explained to them the Schaapkraal house were offered because of the financial debt.

“Mr Soeker stated that Based on his being familiar with, a result of the financial debt owed to the City of Cape City, the CTMCA decided it would be best to provide their [Schaapkraal] assets … and also to also to hide the belongings in the CTMCA to stay away from the sheriff from attaching the home.”

JP Smith, Cape City’s mayco member for security and security, has Earlier informed GroundUp which the CTMCA “threw income away” on litigation with town.

“Annually like clockwork, as we technique the top on the yr, the CTMCA picks a authorized struggle with the City, about permits or something else. We by no means initiate it. They hold throwing revenue away on vexatious litigation they get rid of and possess prices awarded in opposition to them. This really is completely self-inflicted,” he claimed.

Soeker told the Dabishi Nthambeleni investigators that the main part players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up in charge of each of the admin, funds and operating hihuay the CTMCA.” The investigators said they were not able to Make contact with Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “found various devices, some in great ailment, some in negative condition and a few that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility where by “instruments and several equipment” were held.

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

According to photographs and invoices in GroundUp’s possession, some, if not all, on the goods seem like tools that was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with expenses for this removal.

In accordance with the remaining progress report submitted towards the NLC by the CTMCA, the machinery was ordered from Martin-Conne Milliners, a business through which Stemmet, his spouse and his daughter have been administrators at the time.

The investigators uncovered this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Road, Wetton, Cape Town, a similar handle on which the museum was meant to be designed and/or transformed,” they documented.

An audit by accountants Kopano Integrated, hooked up to the investigative report, recorded which the CTMCA was in the entire process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was considered one of the directors.

As outlined by Dabishi Nthambeleni, the organization has compensated R1.2-million as a deposit, indicating R6.nine-million continues to be owed, nevertheless there isn't a payment day set for when this has to be paid out.

The Kopano audit along with the near backlink concerning the businesses “suggest to us that there's ‘foul Enjoy’ linked to the acquisition on the machinery from the museum workshop”, the investigators stated in the report.

“We find that it is highly possible that CTMCA utilised the funding in the NLC to ‘refund’ certainly one of its main administrators for the house at a higher overpriced fee than the particular selling price and price of the home and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant on the CTMCA were used.

“In fact, a detailed report on how the funding with the NLC was used, will be difficult given that the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts put in on Every single merchandise it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not performed a website visit in advance of approving the grant. But this wasn't common practice at enough time they usually found no evidence of negligence by NLC staff.

At the time, the NLC’s policies didn't involve funded organisations to post proof of payment with interim reviews, they pointed out. This meant that the CTMCA was capable to receive a second tranche of funding without needing to give proof that it had utilized the initial tranche for its supposed reason.

Adhering to the appointment of a different board, commissioner and senior government team, the NLC has tightened up on these along with other difficulties.

Dabishi Nthambeleni recommended that

the NLC decline any long run funding programs through the CTMCA;
the CTMCA and any members who ended up involved in the grant be subjected to your NLC’s “delinquency” method;
the NLC open up a prison situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated resources.
But, as an alternative to act over the report’s recommendations, the NLC – below its preceding administration – selected to suppress it, because it experienced accomplished with the former stories into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker by using SMS, and asked for electronic mail addresses to mail the inquiries by email too. But no reaction had been obtained at some time of publication.



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

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