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

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

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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has observed no evidence that a museum ever existed.
The investigators uncovered the CTMCA didn't use the R5-million allocated to purchase or build a museum.
They also identified that the CTMCA only purchased land worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA used funds from your Lottery to acquire workshop devices from among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Association (CTMCA) through the Nationwide Lotteries Fee (NLC) to build a museum to celebrate town’s wealthy minstrel record went astray. The museum was under no circumstances developed.

The main points from the abuse of a lot of rands of Lottery resources for any museum that under no circumstances was are exposed in an investigative report commissioned because of the NLC in 2021.

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

The first Section of the investigation, by law firm Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which involved funding for your museum. The permitted spending budget for your museum was much more than R12.eight-million, with R5-million of that allotted for your developing to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the making for that museum and whether or not the museum “actually existed”.

The agency was also instructed to analyze

the acquisition with Lottery resources of two autos – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
different devices “obtained to the manufacturing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted felony 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 wife Zainonesa and daughter Raziah ongoing as two of several directors of your organisation. Stemmet was reappointed as a director in May well 2021.

The investigation followed considerable reporting by GroundUp with regards to the millions of rands of Lottery funding allocated to the CTMCA (see in this article, here and right here) and how the cash almost certainly aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.



The building on the right was the meant web page on the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Photograph: Raymond Joseph

In response into a Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 jobs had been concluded, she told MPs.

Even so the investigators uncovered no proof that a museum had ever existed.

In the beginning the museum was due to open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp of the intended Wetton museum displays a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the partitions, and also a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni claimed it 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 mainly because they could no longer find the money for the hire of R100,000 a month. He stated the CTMCA had ordered property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were offered for the same rate. Schaapkraal is in a peri-city region much from town.

Consequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after going to the premises, which can be in an industrial place, the investigators mentioned they doubted regardless of whether a proper museum existed there. Pictures attached towards the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the ground, without any explanation.

“There is a small number of things on the museum [that] by no means signify the greater than a hundred-yr historical past from the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outside the premises indicating that they housed a museum and … normally, the museum won't appear for being open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by moving The situation with the museum to an alternate area without having notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA experienced to move with the rented Crete Road premises mainly because it had run up a R4-million debt with town of Cape Town and was fearful its devices could be hooked up.

“Due to legal battles plus the debts, the organisation experienced to maneuver its home from 5 Crete Street to steer clear of the sheriff from attaching the home in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director from the CTMCA, told them which the two buses bought with lottery money had been saved in the secret site “hidden with the Sheriff”. However the investigators explained they ended up not able to substantiate that any buses had ever been acquired.

Stemmet also verified which the buses were concealed to prevent them becoming seized. But once the investigators questioned being taken into the place the place the buses were being saved, he told them that “the proprietor of The key area was not accessible to open up the premises for us”.

“The CTMCA couldn't supply proof of payment for 2 autos that it allegedly acquired with grant revenue,” the investigators claimed.

Soeker also instructed them the Schaapkraal house had been marketed because of the credit card debt.

“Mr Soeker stated that In keeping with his comprehending, due to the financial debt owed to the town of Cape Town, the CTMCA made a decision It will be best to sell their [Schaapkraal] assets … and also to also to cover the property from the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for basic safety and safety, has previously explained to GroundUp which the CTMCA “threw income absent” on litigation with the City.

“Each and every year like clockwork, as we approach the top of the calendar year, the CTMCA picks a authorized fight with the town, about permits or something else. We in no way initiate it. They hold throwing cash absent on vexatious litigation that they get rid of and possess charges awarded versus them. This really is totally self-inflicted,” he claimed.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial part players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of each of the admin, funds and jogging หวย ลาว วัน นี้ the CTMCA.” The investigators explained they had been unable to Speak to Momberg.

Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “observed several machines, some in very good problem, some in poor ailment and many that looked rusty and very aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility where “devices plus some machinery” had been held.

“We requested him to acquire us to the ability but he was evasive to our request.”

According to photos and invoices in GroundUp’s possession, some, if not all, from the things appear to be products which was illegally removed from the CTMCA’s prior premises. Stemmet is dealing with charges for this removing.

In accordance with the last development report submitted for the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter were being directors at enough time.

The investigators discovered this “alarming”.

“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape Town, the identical tackle on which the museum was intended to be created and/or converted,” they noted.

An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the directors.

In line with Dabishi Nthambeleni, the organization has compensated R1.2-million as a deposit, indicating R6.nine-million continues to be owed, though there is not any payment day set for when this need to be paid.

The Kopano audit as well as shut website link involving the businesses “point out to us that there's ‘foul Perform’ associated with the acquisition of the machinery in the museum workshop”, the investigators explained from the report.

“We find that it is highly possible that CTMCA made use of the funding of your NLC to ‘refund’ considered one of its major directors for the assets at a better overpriced price than the particular price tag and value of the residence and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to establish how the grant to your CTMCA were spent.

“Actually, a detailed report on how the funding on the NLC was made use of, will be unachievable because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every item it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC had not conducted a web site go to prior to approving the grant. But this wasn't normal practice at time they usually identified no proof of carelessness by NLC staff.

At some time, the NLC’s policies did not require funded organisations to submit evidence of payment with interim reviews, they pointed out. This meant the CTMCA was in the position to get a next tranche of funding without the need to offer proof that it had utilized the initial tranche for its intended goal.

Adhering to the appointment of a different board, commissioner and senior government crew, the NLC has tightened up on these and various challenges.

Dabishi Nthambeleni encouraged that

the NLC decline any future funding purposes with the CTMCA;
the CTMCA and any customers who had been involved with the grant be subjected for the NLC’s “delinquency” process;
the NLC open a legal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated funds.
But, as an alternative to act about the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had carried out Using the previous experiences into corruption it had commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and questioned for e mail addresses to ship the queries by email too. But no reaction had been been given at enough time of publication.



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

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