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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no evidence that a museum ever existed.
The investigators discovered that the CTMCA did not make use of the R5-million allotted to get or produce a museum.
They also discovered that the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They located the CTMCA applied funds with the Lottery to purchase workshop gear from amongst its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to setup a museum to rejoice town’s loaded minstrel record went astray. The museum was hardly ever developed.

The small print in the abuse of numerous rands of Lottery cash for just a museum that never ever was are uncovered within an investigative report commissioned with the NLC in 2021.

The museum grant was A part of in excess of R64-million in Lottery funds allocated towards the CTMCA involving 2003 and 2017.

The very first Portion of the investigation, by legislation company Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which included funding with the museum. The authorized funds to the museum was a lot more than R12.eight-million, with R5-million of that allocated for just a setting up to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the building for your museum and if the museum “truly existed”.

The agency was also instructed to research

the purchase with Lottery funds of two vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
different devices “bought to the production on the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various administrators in the organisation. Stemmet was reappointed being a director in May possibly 2021.

The investigation adopted substantial reporting by GroundUp in regards to the countless rands of Lottery funding allocated on the CTMCA (see below, below and right here) and how the cash most likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.



The making on the right was the intended web-site with the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph

In response to a Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All three projects were done, she instructed MPs.

Although the investigators observed no evidence that a museum had ever existed.

At the outset the museum was due to open up in rented premises in Crete Street, Wetton. A photograph attained by GroundUp of your intended Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of photos haphazardly hung over the walls, and a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni mentioned it had been “not ready” to confirm if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum had been moved mainly because they could now not pay for the rent of R100,000 per month. He reported the CTMCA experienced purchased home for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were marketed for the same value. Schaapkraal is in the peri-urban location much from the town.

Due to this fact, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after browsing the premises, which happen to be in an industrial location, the investigators mentioned they doubted no matter if a suitable museum existed there. Images hooked up on the report show a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without rationalization.

“You will find a negligible level of merchandise on the museum [that] under no circumstances stand for the over a hundred-12 months background of the Cape Town Carnival, the investigators said, introducing that there was “no signage outside the premises indicating they housed a museum and … generally, the museum would not glimpse to generally be open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by transferring The placement from the museum to an alternate area without notifying the NLC.



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

Buses
Stemmet explained to the investigators the CTMCA experienced to move through the rented Crete Road premises as it experienced operate up a R4-million personal debt with town of Cape Town and was worried its gear will be connected.

“Because of the legal battles plus the debts, the organisation experienced to maneuver its home from five Crete Street to avoid the sheriff from attaching the home of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of the CTMCA, instructed them the two buses bought with lottery resources ended up saved inside a mystery place “hidden in the Sheriff”. Nevertheless the investigators reported they were unable to confirm that any buses had at any time been purchased.

Stemmet also verified that the buses had been concealed to stop them getting seized. But once the investigators asked to be taken to the position the place the buses ended up stored, he told them that “the operator of The trick spot wasn't available to open up the premises for us”.

“The CTMCA couldn't present proof of payment for two cars that it allegedly bought with grant revenue,” the investigators documented.

Soeker also explained to them the Schaapkraal home had been offered due to the debt.

“Mr Soeker described that according to his comprehending, a result of the credit card debt owed to the City of Cape City, the CTMCA determined It might be greatest to market their [Schaapkraal] house … and also to also to hide the assets in the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for safety and stability, has Earlier advised GroundUp which the CTMCA “threw income absent” on litigation with the City.

“On a yearly basis like clockwork, as we technique the top from the 12 months, the CTMCA picks a authorized struggle with the City, about permits or another thing. We under no circumstances initiate it. They hold throwing money away on vexatious litigation that they get rid of and also have expenditures awarded versus them. This is often fully self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the main position gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, funds and working สลาก กิน the CTMCA.” The investigators mentioned they had been not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “discovered a lot of machines, some in fantastic problem, some in lousy situation and several that seemed rusty and very aged”. Stemmet informed the investigators that there was also an off-web-site storage facility where “devices plus some equipment” have been retained.

“We requested him to get us to the facility but he was evasive to our request.”

Based on shots and invoices in GroundUp’s possession, some, Otherwise all, on the things look like equipment which was illegally removed from the CTMCA’s former premises. Stemmet is going through expenses for this removal.

Based on the remaining progress report submitted on the NLC by the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter were directors at time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the following alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, a similar tackle on which the museum was intended to be constructed and/or transformed,” they documented.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded the CTMCA was in the process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the directors.

In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million being a deposit, this means R6.nine-million remains owed, though there is absolutely no payment day established for when this have to be paid out.

The Kopano audit along with the near url involving the businesses “show to us that there's ‘foul Enjoy’ involved with the purchase of the equipment with the museum workshop”, the investigators reported from the report.

“We find that it is remarkably probable that CTMCA applied the funding in the NLC to ‘refund’ one of its key directors for that home at the next overpriced fee than the particular value and price of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant on the CTMCA had been invested.

“Actually, a detailed report on how the funding in the NLC was utilised, would be not possible since the CTMCA does not have any receipts, or evidence of payments to verify the quantities expended on Each individual merchandise it requested funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located that the NLC had not conducted a web page take a look at ahead of approving the grant. But this wasn't typical follow at some time and so they located no proof of negligence by NLC staff members.

At the time, the NLC’s principles did not call for funded organisations to post proof of payment with interim experiences, they identified. This intended that the CTMCA was ready to get a second tranche of funding while not having to present proof that it had utilized the primary tranche for its supposed goal.

Adhering to the appointment of a different board, commissioner and senior executive workforce, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni advised that

the NLC decline any long run funding apps in the CTMCA;
the CTMCA and any customers who have been linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open up a criminal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, rather then act within the report’s recommendations, the NLC – below its preceding administration – chose to suppress it, because it had carried out With all the earlier studies into corruption it had commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by means of SMS, and requested for email addresses to send the concerns by electronic mail way too. But no response had been been given at time of publication.



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

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