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

Leaked report exposes abuse of lottery income paid out 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.three-million grant with the Countrywide Lotteries Fee to the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators found which the CTMCA didn't make use of the R5-million allocated to purchase or create a museum.
They also found the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilised funds with the Lottery to get workshop equipment from amongst its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was hardly ever produced.

The details from the abuse of countless rands of Lottery funds to get a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of over R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.

The primary part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding to the museum. The authorised spending budget to the museum was in excess of R12.eight-million, with R5-million of that allotted for your setting up to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a building for the museum and whether or not the museum “essentially existed”.

The agency was also instructed to research

the acquisition with Lottery resources of two autos – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
several devices “ordered for your production on the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few directors of your organisation. Stemmet was reappointed being a director in Might 2021.

The investigation adopted comprehensive reporting by GroundUp with regard to the many rands of Lottery funding allocated to your CTMCA (see right here, in this article and right here) and the way in which the funds most likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The constructing on the correct was the meant web site of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph

In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few projects were completed, she informed MPs.

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

Initially the museum was as a result of open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp of the meant Wetton museum displays a coffee store with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung over the walls, and a design ship on its plinth in a corner.

In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum had ever operated from these premises.

Stemmet instructed the investigators the museum were moved simply because they could no more afford the rent of R100,000 a month. He explained the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar cost. Schaapkraal is in a very peri-city region far from town.

Subsequently, the museum were moved to a whole new spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which happen to be in an industrial space, the investigators explained they doubted no matter whether an appropriate museum existed there. Images hooked up towards the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and unfold out on the ground, without having rationalization.

“There is a minimal level of objects with the museum [that] under no circumstances characterize the in excess of one hundred-yr history of the Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum won't search to be open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving The situation with the museum to an alternate place with out notifying the NLC.



The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises mainly because it had run up a R4-million personal debt with the City of Cape Town and was concerned its equipment can be hooked up.

“Because of the authorized battles plus the debts, the organisation experienced to maneuver its residence from five Crete Highway to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director of the CTMCA, explained to them which the two buses purchased with lottery money had been saved inside of a solution spot “hidden from the Sheriff”. Though the investigators explained they had been not able to confirm that any buses experienced at any time been purchased.

Stemmet also verified that the buses had been concealed to stop them staying seized. But when the investigators requested to generally be taken for the put exactly where the buses ended up saved, he told them that “the owner of the secret spot wasn't accessible to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for two cars that it allegedly ordered with grant revenue,” the investigators claimed.

Soeker also explained to them the Schaapkraal assets were offered due to the debt.

“Mr Soeker explained that according to his understanding, due to the credit card debt owed to the City of Cape City, the CTMCA determined It will be greatest to provide their [Schaapkraal] house … also to also to hide the property of your CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and safety, has previously advised GroundUp the CTMCA “threw dollars absent” on litigation with town.

“Yearly like clockwork, as we technique the top from the yr, the CTMCA picks a lawful fight with town, around permits or another thing. We under no circumstances initiate it. They continue to keep throwing dollars away on vexatious litigation that they lose and possess expenditures awarded from them. This is often fully self-inflicted,” he explained.

Soeker told the Dabishi Nthambeleni investigators that the key function players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of the many admin, funds and jogging ผล หวย หุ้น the CTMCA.” The investigators said they had been unable to Speak to Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered numerous equipment, some in fantastic condition, some in negative problem and several that seemed rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility where “instruments and some equipment” ended up stored.

“We questioned him to get us to the power but he was evasive to our request.”

Dependant on photographs and invoices in GroundUp’s possession, some, if not all, in the objects seem like machines that was illegally removed from the CTMCA’s prior premises. Stemmet is going through prices for this removing.

Based on the closing development report submitted on the NLC with the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter had been directors at the time.

The investigators found this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Observe the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the business is 5 Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be crafted and/or transformed,” they reported.

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

As outlined by Dabishi Nthambeleni, the business has paid R1.two-million as being a deposit, this means R6.9-million remains owed, however there's no payment day set for when this have to be compensated.

The Kopano audit as well as the shut link amongst the businesses “indicate to us that there is ‘foul Perform’ involved with the acquisition with the equipment of your museum workshop”, the investigators stated inside the report.

“We find that it's highly possible that CTMCA made use of the funding with the NLC to ‘refund’ amongst its key directors for your property at the next overpriced amount than the actual rate and worth of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant into the CTMCA had been expended.

“In fact, an in depth report on how the funding of the NLC was utilised, would be extremely hard given that the CTMCA does not have any receipts, or proof of payments to confirm the amounts put in on Just about every product it asked for funding for. The interim report and remaining report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC experienced not carried out a internet site check out ahead of approving the grant. But this was not standard observe at enough time and so they discovered no proof of negligence by NLC employees.

At enough time, the NLC’s principles didn't demand funded organisations to post proof of payment with interim studies, they identified. This meant the CTMCA was able to receive a 2nd tranche of funding without the need to supply evidence that it experienced used the initial tranche for its meant intent.

Following the appointment of a brand new board, commissioner and senior executive crew, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni proposed that

the NLC drop any upcoming funding apps with the CTMCA;
the CTMCA and any associates who had been linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open 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 money.
But, rather than act about the report’s tips, the NLC – below its past administration – selected to suppress it, as it had performed Using the preceding stories into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to send the questions by email too. But no reaction were acquired at the time of publication.



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