Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the National Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has located no proof that a museum ever existed.
The investigators observed which the CTMCA didn't utilize the R5-million allocated to obtain or produce a museum.
They also located that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allocated.
They located the CTMCA utilised cash with the Lottery to invest in workshop machines from considered one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to build a museum to celebrate town’s prosperous minstrel heritage went astray. The museum was never ever made.

The main points of the abuse of a lot of rands of Lottery funds for the museum that hardly ever was are unveiled within an investigative report commissioned by the NLC in 2021.

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

The 1st Portion of the investigation, by legislation business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which included funding for that museum. The approved funds with the museum was more than R12.8-million, with R5-million of that allotted for the developing to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a making for that museum and if the museum “basically existed”.

The business was also instructed to research

the acquisition with Lottery money of two vehicles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
a variety of devices “procured with the producing on the costumes and hats” to the minstrels carnival, for R5.4-million.
At enough time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many directors on the organisation. Stemmet was reappointed being a director in May well 2021.

The investigation adopted comprehensive reporting by GroundUp regarding the a lot of rands of Lottery funding allotted to your CTMCA (see in this article, below and below) and just how the cash likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.



The making on the best was the supposed web page on the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “assignments” - including the museum - in between 2012 and 2015. All a few initiatives had been done, she informed MPs.

Though the investigators discovered no proof that a museum had at any time existed.

Initially the museum was on account of open up in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of your meant Wetton museum demonstrates a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the walls, and a design ship on its plinth within a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not able” to substantiate if a museum had at any time operated from these premises.

Stemmet told the investigators the museum had been moved because they could not find the money for the rent of R100,000 a month. He explained the CTMCA experienced procured home for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been offered for the same selling price. Schaapkraal is inside of a peri-city region far from the city.

Consequently, the museum had been moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after traveling to the premises, that are in an industrial location, the investigators explained they doubted no matter whether a correct museum existed there. Shots connected into the report present a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the floor, without any clarification.

“You will find there's minimum number of items on the museum [that] on no account represent the over 100-yr historical past in the Cape Town Carnival, the investigators claimed, introducing that there was “no signage exterior the premises indicating they housed a museum and … normally, the museum isn't going to glance to become open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by going The placement from the museum to an alternate place without notifying the NLC.



The Schaapkraal residence, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA had to move through the rented Crete Highway premises mainly because it experienced run up a R4-million financial debt with the town of Cape City and was worried its gear can be hooked up.

“Because of the authorized battles along with the debts, the organisation experienced to maneuver its house from 5 Crete Highway to avoid the sheriff from attaching the property from the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of the CTMCA, instructed them the two buses bought with lottery cash ended up stored in a secret location “concealed with the Sheriff”. Although the investigators stated they were unable to substantiate that any buses experienced ever been bought.

Stemmet also confirmed the buses had been concealed to prevent them staying seized. But when the investigators requested for being taken to the spot where by the buses had been saved, he told them that “the proprietor of The trick spot wasn't accessible to open up the premises for us”.

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

Soeker also told them the Schaapkraal residence had been sold due to the financial debt.

“Mr Soeker spelled out that according to his comprehending, as a result of financial debt owed to the City of Cape City, the CTMCA decided It could be most effective to promote their [Schaapkraal] house … also to also to hide the property of the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and security, has Formerly instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.

“Annually like clockwork, as we approach the end from the year, the CTMCA picks a lawful combat with the town, more than permits or another thing. We never ever initiate it. They keep throwing revenue away on vexatious litigation which they get rid of and have expenses awarded versus them. This is certainly completely self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the principle role players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all the admin, finances and working ผล หวย the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “observed various devices, some in fantastic ailment, some in lousy ailment and many that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and several equipment” were held.

“We asked him to just take us to the power but he was evasive to our request.”

Determined by shots and invoices in GroundUp’s possession, some, if not all, in the goods look like equipment that was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with expenses for this elimination.

According to the last progress report submitted into the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter have been directors at some time.

The investigators observed this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Road, Wetton, Cape Town, a similar deal with on which the museum was meant to be crafted and/or converted,” they described.

An audit by accountants Kopano Included, hooked up for the investigative report, recorded the CTMCA was in the whole process of paying for “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.

In line with Dabishi Nthambeleni, the business has paid R1.two-million being a deposit, which means R6.nine-million remains to be owed, although there isn't any payment day set for when this has to be paid.

The Kopano audit and also the shut url amongst the businesses “point out to us that there is ‘foul Engage in’ linked to the purchase of your equipment from the museum workshop”, the investigators explained from the report.

“We discover that it is very probable that CTMCA utilized the funding from the NLC to ‘refund’ among its principal directors with the assets at a higher overpriced price than the actual rate and worth of the home and/or equipment.”

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

“Actually, an in depth report on how the funding with the NLC was utilised, could be impossible because the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Each individual merchandise it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC had not carried out a web page go to just before approving the grant. But this was not normal apply at the time they usually observed no evidence of negligence by NLC employees.

At some time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was capable of get a second tranche of funding without having to present proof that it had made use of the 1st tranche for its intended reason.

Following the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni advisable that

the NLC decrease any long run funding purposes within the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, as an alternative to act about the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, mainly because it had performed Together with the prior reports into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker by using SMS, and questioned for email addresses to send out the thoughts by electronic mail as well. But no response had been received at the time of publication.



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