Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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Minstrels carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has identified no proof that a museum ever existed.
The investigators discovered which the CTMCA didn't make use of the R5-million allocated to purchase or create a museum.
They also uncovered the CTMCA only bought land worth R1.7-million, not R5-million as allotted.
They observed the CTMCA used money through the Lottery to buy workshop machines from certainly one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape City Minstrel Carnival Association (CTMCA) with the National Lotteries Commission (NLC) to set up a museum to celebrate the town’s abundant minstrel record went astray. The museum was hardly ever created.

The main points with the abuse of countless rands of Lottery cash for any museum that under no circumstances was are uncovered in an investigative report commissioned with the NLC in 2021.

The museum grant was Component of more than R64-million in Lottery funds allocated to the CTMCA concerning 2003 and 2017.

The 1st Section of the investigation, by legislation firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The authorised spending plan for the museum was much more than R12.eight-million, with R5-million of that allocated for the constructing to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the developing for the museum and if the museum “actually existed”.

The company was also instructed to research

the purchase with Lottery money of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
several equipment “ordered to the manufacturing of your costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous directors of the organisation. Stemmet was reappointed as being a director in May 2021.

The investigation followed considerable reporting by GroundUp with regard to the an incredible number of rands of Lottery funding allotted towards the CTMCA (see listed here, here and listed here) and how the resources almost certainly aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.



The making on the ideal was the intended web-site of your minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Picture: Raymond Joseph

In response to a Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “jobs” - including the museum - concerning 2012 and 2015. All 3 projects had been done, she advised MPs.

However the investigators discovered no evidence that a museum experienced at any time existed.

Initially the museum was on account of open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of the meant Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung around the walls, as well as a model ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni said it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum were moved because they could now not manage the rent of R100,000 per month. He stated the CTMCA experienced bought residence for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been bought for the same rate. Schaapkraal is inside a peri-urban place far from the city.

Consequently, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial space, the investigators claimed they doubted whether an appropriate museum existed there. Pics connected towards the report exhibit a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without having explanation.

“There exists a small amount of things with the museum [that] under no circumstances stand for the greater than 100-year history from the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum would not seem to get open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by transferring The placement with the museum to another location with no notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA had to maneuver within the rented Crete Street premises because it experienced run up a R4-million credit card debt with town of Cape City and was fearful its tools would be attached.

“Due to the authorized battles and also the debts, the organisation experienced to move its residence from five Crete Street to steer clear of the sheriff from attaching the property with the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director from the CTMCA, advised them the two buses purchased with lottery resources were saved in a top secret spot “hidden from your Sheriff”. Though the investigators claimed they ended up not able to substantiate that any buses had at any time been acquired.

Stemmet also confirmed which the buses were concealed to stop them remaining seized. But once the investigators requested to be taken to the area where the buses were being stored, he advised them that “the proprietor of the secret area was not available to open the premises for us”.

“The CTMCA couldn't supply proof of payment for two autos that it allegedly purchased with grant cash,” the investigators noted.

Soeker also advised them the Schaapkraal house had been marketed due to credit card debt.

“Mr Soeker stated that In accordance with his knowing, a result of the financial debt owed to town of Cape City, the CTMCA made a decision it would be greatest to offer their [Schaapkraal] property … and to also to hide the property with the CTMCA to avoid the sheriff from attaching the house.”

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

“Annually like clockwork, as we tactic the tip from the calendar year, the CTMCA picks a authorized fight with town, above permits or another thing. We under no circumstances initiate it. They preserve throwing revenue away on vexatious litigation they reduce and have charges awarded versus them. That is fully self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of the many admin, finances and operating หวย ลาว ย้อน หลัง the CTMCA.” The investigators explained they were not able to Get hold of Momberg.

Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “discovered many equipment, some in superior affliction, some in undesirable problem and some that appeared rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web site storage facility where “devices and a few equipment” ended up kept.

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

Determined by shots and invoices in GroundUp’s possession, some, if not all, on the goods look like gear that was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.

Based on the ultimate progress report submitted on the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter have been directors at some time.

The investigators located this “alarming”.

“From your CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape City, exactly the same handle on which the museum was meant to be developed and/or transformed,” they claimed.

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

In line with Dabishi Nthambeleni, the corporation has compensated R1.2-million like a deposit, meaning R6.nine-million continues to be owed, though there is no payment day established for when this have to be compensated.

The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul play’ associated with the purchase with the equipment of the museum workshop”, the investigators explained from the report.

“We discover that it's remarkably possible that CTMCA used the funding from the NLC to ‘refund’ among its major directors for the property at the next overpriced level than the particular price tag and value of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant into the CTMCA had been used.

“Actually, an in depth report on how the funding in the NLC was used, might be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on each item it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC experienced not conducted a site go to just before approving the grant. But this was not standard observe at enough time plus they identified no proof of carelessness by NLC staff.

At the time, the NLC’s procedures did not require funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a next tranche of funding without needing to deliver evidence that it had utilised the main tranche for its intended goal.

Pursuing the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni advisable that

the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – under its preceding administration – chose to suppress it, because it experienced accomplished Using the past reports into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to ship the issues by electronic mail much too. But no reaction were gained at enough time of publication.



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