Leaked report exposes abuse of lottery dollars paid to minstrel group

Leaked report exposes abuse of lottery dollars 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 through the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no proof that a museum ever existed.
The investigators observed which the CTMCA did not use the R5-million allocated to acquire or build a museum.
Additionally they observed which the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA utilized funds from your Lottery to get workshop tools from considered one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to create a museum to rejoice the town’s rich minstrel heritage went astray. The museum was never ever created.

The small print of the abuse of a lot of rands of Lottery funds for any museum that hardly ever was are exposed in an investigative report commissioned through the NLC in 2021.

The museum grant was Component of much more than R64-million in Lottery resources allocated on the CTMCA in between 2003 and 2017.

The main A part of the investigation, by legislation business Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which bundled funding with the museum. The authorized spending plan for your museum was more than R12.8-million, with R5-million of that allocated to get a developing to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the setting up for that museum and whether the museum “actually existed”.

The business was also instructed to research

the acquisition with Lottery resources of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
numerous machines “purchased with the manufacturing of the costumes and hats” for your minstrels carnival, for R5.four-million.
At enough time, convicted legal 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 continued as two of numerous administrators of your organisation. Stemmet was reappointed as being a director in May well 2021.

The investigation followed considerable reporting by GroundUp in regards to the countless rands of Lottery funding allocated towards the CTMCA (see here, below and in this article) and the way in which the money likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.



The developing on the proper was the supposed internet site with the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction into a Parliamentary concern, previous NLC Commissioner Thabang Mampane shown grants to a few CTMCA “jobs” - such as the museum - among 2012 and 2015. All three projects were done, she informed MPs.

Nevertheless the investigators located no proof that a museum experienced at any time existed.

At the outset the museum was as a consequence of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp with the intended Wetton museum reveals a coffee shop with some musical devices and minstrel costumes and collages of pics haphazardly hung on the partitions, as well as a design ship on its plinth in a very corner.

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

Stemmet explained to the investigators the museum had been moved as they could no more find the money for the lease of R100,000 a month. He said the CTMCA experienced ordered residence for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been sold for a similar value. Schaapkraal is inside a peri-city location considerably from the city.

As a result, the museum had been moved to a new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after going to the premises, which might be within an industrial space, the investigators said they doubted no matter whether an appropriate museum existed there. Photographs connected on the report exhibit a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without any rationalization.

“You will find there's small volume of things in the museum [that] on no account depict the greater than one hundred-calendar year background of your Cape Town Carnival, the investigators said, incorporating that there was “no signage outside the premises indicating they housed a museum and … generally, the museum will not glance to be open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by relocating The placement on the museum to an alternate location with out notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA experienced to move with the rented Crete Street premises because it experienced run up a R4-million personal debt with the town of Cape City and was concerned its equipment might be attached.

“Due to legal battles as well as debts, the organisation experienced to maneuver its property from 5 Crete Road to steer clear of the sheriff from attaching the property in the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director of the CTMCA, informed them the two buses purchased with lottery money were being stored in the secret locale “hidden within the Sheriff”. Nevertheless the investigators explained they have been unable to substantiate that any buses had at any time been acquired.

Stemmet also verified that the buses were hidden to stop them staying seized. But in the event the investigators questioned for being taken to your position wherever the buses were being saved, he informed them that “the operator of The key place wasn't accessible to open the premises for us”.

“The CTMCA couldn't offer evidence of payment for two vehicles that it allegedly procured with grant income,” the investigators noted.

Soeker also told them the Schaapkraal home had been marketed because of the financial debt.

“Mr Soeker spelled out that In keeping with his knowledge, due to financial debt owed to the town of Cape Town, the CTMCA made a decision It will be best to provide their [Schaapkraal] residence … and also to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for protection and protection, has previously told GroundUp which the CTMCA “threw income away” on litigation with the town.

“Each year like clockwork, as we solution the end of your year, the CTMCA picks a legal battle with the town, over permits or something else. We never ever initiate it. They retain throwing revenue away on vexatious litigation which they lose and possess prices awarded versus them. This really is completely self-inflicted,” he said.

Soeker explained to the Dabishi Nthambeleni investigators that the primary role gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being accountable for all of the admin, finances and functioning lottovip the CTMCA.” The investigators mentioned they were not able to contact Momberg.

Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “discovered a lot of equipment, some in very good ailment, some in negative ailment and a few that seemed rusty and very previous”. Stemmet explained to the investigators that there was also an off-website storage facility in which “instruments and some equipment” were being retained.

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

According to pictures and invoices in GroundUp’s possession, some, Otherwise all, of your merchandise seem like equipment which was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing expenses for this removing.

According to the remaining progress report submitted on the NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were being directors at the time.

The investigators identified this “alarming”.

“Through the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Take note the subsequent alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape City, the same handle on which the museum was intended to be built and/or transformed,” they noted.

An audit by accountants Kopano Included, connected for the investigative report, recorded which the CTMCA was in the process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.

In accordance with Dabishi Nthambeleni, the corporation has paid out R1.two-million to be a deposit, which means R6.nine-million remains owed, though there is absolutely no payment day set for when this need to be paid out.

The Kopano audit along with the close hyperlink between the businesses “reveal to us that there is ‘foul Participate in’ involved with the purchase of your machinery of the museum workshop”, the investigators claimed inside the report.

“We discover that it is hugely possible that CTMCA employed the funding with the NLC to ‘refund’ among its key administrators for your house at the next overpriced rate than the actual value and worth of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA had been spent.

“In fact, an in depth report on how the funding of your NLC was made use of, could well be unachievable as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Each and every product it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not executed a website take a look at prior to approving the grant. But this was not typical practice at time and so they observed no proof of carelessness by NLC workforce.

At the time, the NLC’s guidelines did not need funded organisations to submit evidence of payment with interim experiences, they identified. This meant that the CTMCA was in a position to receive a next tranche of funding while not having to give proof that it experienced utilised the primary tranche for its intended intent.

Pursuing the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these as well as other challenges.

Dabishi Nthambeleni advised that

the NLC drop any long term funding apps from the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected to the NLC’s “delinquency” method;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – below its prior administration – selected to suppress it, since it had finished While using the preceding reviews into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by way of SMS, and questioned for email addresses to send out the questions by e mail too. But no response had been been given at the time of publication.



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

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