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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant through the National Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no proof that a museum ever existed.
The investigators uncovered which the CTMCA did not make use of the R5-million allocated to get or build a museum.
Additionally they discovered that the CTMCA only bought land worthy of R1.seven-million, not R5-million as allocated.
They observed the CTMCA made use of resources from the Lottery to buy workshop machines from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to rejoice town’s loaded minstrel history went astray. The museum was under no circumstances created.

The details of your abuse of countless rands of Lottery resources for your museum that hardly ever was are revealed within an investigative report commissioned from the NLC in 2021.

The museum grant was part of much more than R64-million in Lottery funds allocated to your CTMCA in between 2003 and 2017.

The 1st part of the investigation, by law company Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which provided funding to the museum. The accredited finances to the museum was much more than R12.eight-million, with R5-million of that allocated for any making to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of the building for that museum and whether the museum “basically existed”.

The company was also instructed to research

the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
numerous machines “bought for your manufacturing from the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several administrators of the organisation. Stemmet was reappointed as a director in May 2021.

The investigation adopted considerable reporting by GroundUp regarding the millions of rands of Lottery funding allotted for the CTMCA (see right here, here and below) and the way in which the cash in all probability served finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.



The making on the correct was the intended web page from the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to some Parliamentary concern, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All a few tasks had been finished, she told MPs.

Even so the investigators found no evidence that a museum experienced ever existed.

To start with the museum was as a result of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp with the meant Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung about the walls, and a model ship on its plinth in a corner.

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

Stemmet instructed the investigators the museum had been moved simply because they could no longer afford the lease of R100,000 a month. He explained the CTMCA had acquired house for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for a similar value. Schaapkraal is in a very peri-urban space significantly from the city.

Subsequently, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after traveling to the premises, which happen to be in an industrial space, the investigators claimed they doubted no matter if a proper museum existed there. Pics attached to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and unfold out on the floor, without any rationalization.

“There's a nominal amount of items on the museum [that] under no circumstances stand for the greater than one hundred-calendar year background from the Cape Town Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum doesn't glimpse to get open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by moving The placement from the museum to an alternate location without having notifying the NLC.



The Schaapkraal assets, on which no museum was ever constructed. Photograph: Raymond Joseph

Buses
Stemmet advised the investigators the CTMCA had to maneuver with the rented Crete Road premises as it experienced operate up a R4-million financial debt with the City of Cape City and was afraid its tools can be connected.

“Due to the authorized battles along with the debts, the organisation experienced to maneuver its house from five Crete Road to stay away from the sheriff from attaching the home of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director with the CTMCA, explained to them that the two buses bought with lottery resources were saved inside of a magic formula site “hidden from your Sheriff”. Nevertheless the investigators reported they were not able to substantiate that any buses experienced at any time been bought.

Stemmet also verified the buses were concealed to prevent them staying seized. But in the event the investigators requested being taken towards the location in which the buses were stored, he informed them that “the owner of The trick area wasn't accessible to open the premises for us”.

“The CTMCA couldn't offer evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators described.

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

“Mr Soeker stated that Based on his knowledge, due to financial debt owed to the City of Cape Town, the CTMCA resolved It might be most effective to provide their [Schaapkraal] house … and to also to hide the belongings on the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Earlier informed GroundUp that the CTMCA “threw dollars away” on litigation with town.

“Each and every year like clockwork, as we tactic the end of your yr, the CTMCA picks a lawful fight with the City, around permits or another thing. We under no circumstances initiate it. They continue to keep throwing cash away on vexatious litigation they reduce and possess prices awarded from them. This really is totally self-inflicted,” he said.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial job gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for each of the admin, funds and managing ตา ว จ หวย the CTMCA.” The investigators explained they had been unable to Get in touch with Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “discovered several machines, some in good affliction, some in undesirable situation and some that seemed rusty and intensely old”. Stemmet instructed the investigators that there was also an off-site storage facility wherever “instruments and several machinery” ended up kept.

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

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

In accordance with the closing progress report submitted on the NLC from the CTMCA, the equipment was acquired from Martin-Conne Milliners, a firm by which Stemmet, his spouse and his daughter had been directors at some time.

The investigators identified this “alarming”.

“Within the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Road, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be constructed and/or converted,” they noted.

An audit by accountants Kopano Incorporated, attached for the investigative report, recorded that the CTMCA was in the process of getting “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the administrators.

In keeping with Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, which means R6.nine-million is still owed, even though there is no payment date set for when this needs to be paid.

The Kopano audit plus the close url between the companies “show to us that there is ‘foul Enjoy’ linked to the acquisition of your equipment with the museum workshop”, the investigators claimed within the report.

“We find that it is really possible that CTMCA applied the funding of the NLC to ‘refund’ certainly one of its principal directors for your property at the next overpriced amount than the actual selling price and worth of the assets and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant to the CTMCA had been expended.

“In fact, a detailed report on how the funding of the NLC was utilized, can be unattainable since the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities used on Each and every item it asked for funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed that the NLC had not performed a web site go to just before approving the grant. But this was not typical apply at some time plus they identified no proof of negligence by NLC employees.

At enough time, the NLC’s guidelines didn't demand funded organisations to submit evidence of payment with interim reports, they pointed out. This meant the CTMCA was in a position to receive a second tranche of funding without needing to deliver evidence that it experienced used the primary tranche for its meant objective.

Following the appointment of a whole new board, commissioner and senior executive team, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni advisable that

the NLC decline any future funding purposes with the CTMCA;
the CTMCA and any members who ended up associated with the grant be subjected into the NLC’s “delinquency” method;
the NLC open up a criminal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated funds.
But, as opposed to act within the report’s suggestions, the NLC – beneath its preceding administration – chose to suppress it, because it had carried out Together with the preceding studies into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker by means of SMS, and asked for electronic mail addresses to ship the queries by email far too. But no response were gained at time of publication.



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

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