Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels accomplish in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Fee to your Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has observed no proof that a museum ever existed.
The investigators located that the CTMCA did not utilize the R5-million allotted to get or make a museum.
In addition they located the CTMCA only bought land really worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA utilized funds in the Lottery to purchase workshop machines from amongst its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Commission (NLC) to setup a museum to rejoice the city’s wealthy minstrel heritage went astray. The museum was in no way made.

The details from the abuse of many rands of Lottery money for any museum that under no circumstances was are discovered in an investigative report commissioned because of the NLC in 2021.

The museum grant was part of greater than R64-million in Lottery cash allocated towards the CTMCA between 2003 and 2017.

The initial A part of the investigation, by regulation agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which incorporated funding to the museum. The permitted funds for your museum was a lot more than R12.8-million, with R5-million of that allotted for your creating to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing to the museum and if the museum “actually existed”.

The agency was also instructed to research

the purchase with Lottery funds of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various equipment “ordered to the producing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director from 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 various administrators on the organisation. Stemmet was reappointed like a director in Might 2021.

The investigation adopted comprehensive reporting by GroundUp with regards to the millions of rands of Lottery funding allotted for the CTMCA (see listed here, here and below) and the best way the money most likely assisted finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.



The setting up on the ideal was the meant internet site of your minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to some Parliamentary dilemma, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All three tasks were concluded, she instructed MPs.

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

In the beginning the museum was because of open up in rented premises in Crete Street, Wetton. A photo received by GroundUp from the intended 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 product ship on its plinth within a corner.

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

Stemmet explained to the investigators the museum were moved mainly because they could now not find the money for the lease of R100,000 a month. He said the CTMCA experienced obtained assets for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been offered for a similar price tag. Schaapkraal is inside a peri-city spot far from the town.

Therefore, the museum had been moved to a fresh location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after visiting the premises, which are within an industrial region, the investigators claimed they doubted no matter whether a correct museum existed there. Shots attached on the report clearly show a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, with no rationalization.

“You will find there's nominal volume of objects for the museum [that] under no circumstances symbolize the greater than one hundred-12 months history in the Cape City Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating that they housed a museum and … normally, the museum doesn't look to generally be open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by transferring The situation of the museum to another location with no notifying the NLC.



The Schaapkraal residence, on which no museum was ever designed. Image: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA had to maneuver from the rented Crete Street premises as it had run up a R4-million financial debt with the City of Cape Town and was worried its gear might be hooked up.

“Due to legal battles as well as debts, the organisation experienced to move its house from 5 Crete Highway to avoid the sheriff from attaching the home with the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director in the CTMCA, told them the two buses bought with lottery cash had been saved inside a key place “hidden within the Sheriff”. Even so the investigators reported they have been not able to substantiate that any buses had ever been bought.

Stemmet also confirmed the buses had been hidden to prevent them currently being seized. But if the investigators requested being taken into the put where the buses were stored, he advised them that “the proprietor of the secret place was not accessible to open the premises for us”.

“The CTMCA couldn't provide evidence of payment for 2 autos that it allegedly bought with grant revenue,” the investigators described.

Soeker also advised them the Schaapkraal property were sold due to debt.

“Mr Soeker stated that Based on his knowledge, due to financial debt owed to the town of Cape City, the CTMCA determined It could be most effective to promote their [Schaapkraal] house … also to also to cover the property of your CTMCA to steer clear of the sheriff from attaching the property.”

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

“On a yearly basis like clockwork, as we strategy the tip of the year, the CTMCA picks a lawful combat with the town, in excess of permits or another thing. We by no means initiate it. They hold throwing revenue absent on vexatious litigation which they get rid of and have prices awarded against them. This is totally self-inflicted,” he said.

Soeker advised the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of every one of the admin, funds and functioning ruay the CTMCA.” The investigators mentioned they were struggling to contact Momberg.

Hats
Through their “investigation in loco” with the Primrose Park premises, the investigators “identified various equipment, some in good problem, some in lousy condition and a few that looked rusty and extremely old”. Stemmet told the investigators that there was also an off-website storage facility exactly where “instruments plus some machinery” had been stored.

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

Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, with the goods look like gear which was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing fees for this elimination.

In accordance with the final progress report submitted for the NLC because of the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation during which Stemmet, his spouse and his daughter were being directors at the time.

The investigators identified this “alarming”.

“From the CIPC search of Martin-Conne Milliners plus the invoices submitted, we note the following alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Road, Wetton, Cape City, exactly the same handle on which the museum was meant to be created and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was certainly one of the directors.

According to Dabishi Nthambeleni, the business has paid out R1.2-million being a deposit, indicating R6.9-million is still owed, however there is no payment day set for when this has to be paid.

The Kopano audit and the near url among the companies “point out to us that there is ‘foul Participate in’ involved with the acquisition on the equipment with the museum workshop”, the investigators mentioned in the report.

“We find that it is really probable that CTMCA utilised the funding with the NLC to ‘refund’ certainly one of its key administrators with the property at a better overpriced amount than the particular selling price and price of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant to your CTMCA were put in.

“Actually, a detailed report on how the funding from the NLC was utilized, could well be unachievable since the CTMCA does not have any receipts, or proof of payments to confirm the quantities spent on Each individual merchandise it asked for funding for. The interim report and final report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC experienced not performed a web-site visit just before approving the grant. But this was not regular apply at time plus they located no evidence of negligence by NLC workers.

At the time, the NLC’s guidelines did not involve funded organisations to post proof of payment with interim studies, they identified. This meant which the CTMCA was ready to receive a 2nd tranche of funding without having to present evidence that it experienced employed the 1st tranche for its supposed objective.

Adhering to the appointment of a new board, commissioner and senior executive team, the NLC has tightened up on these and also other challenges.

Dabishi Nthambeleni proposed that

the NLC drop any long run funding apps within the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected to your NLC’s “delinquency” process;
the NLC open up a felony scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, in lieu of act about the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, because it experienced completed Using the earlier reports into corruption it had commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for electronic mail addresses to send the queries by e-mail also. But no response had been obtained at time of publication.



The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph