Leaked report exposes abuse of lottery funds paid out to minstrel team

Leaked report exposes abuse of lottery funds paid out to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators located the CTMCA did not use the R5-million allotted to acquire or produce a museum.
Additionally they discovered which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied money through the Lottery to buy workshop equipment from certainly one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your 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 made.

The main points from the abuse of many rands of Lottery funds for the museum that hardly ever was are disclosed in an investigative report commissioned by the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery cash allotted to your CTMCA concerning 2003 and 2017.

The very first Portion of the investigation, by legislation company Dabishi Nthambeleni, was executed between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which integrated funding for that museum. The approved spending plan for that museum was greater than R12.8-million, with R5-million of that allocated for the creating to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a making for that museum and whether the museum “actually existed”.

The agency was also instructed to analyze

the acquisition with Lottery cash of two motor vehicles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
a variety of equipment “ordered for your producing in the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation adopted extensive reporting by GroundUp with regard to the millions of rands of Lottery funding allotted into the CTMCA (see in this article, in this article and in this article) and how the money possibly assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The building on the ideal was the intended web page on the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - amongst 2012 and 2015. All 3 initiatives were done, she told MPs.

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

At first the museum was because of open in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of the meant Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of photographs haphazardly hung around the partitions, as well as a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum had at any time operated from these premises.

Stemmet told the investigators the museum had been moved mainly because they could no longer manage the hire of R100,000 per month. He said the CTMCA had bought house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been offered for the same cost. Schaapkraal is within a peri-urban area far from town.

Subsequently, the museum were moved to a whole new area 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 regardless of whether an appropriate museum existed there. Photographs 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 minimum volume of goods for the museum [that] on no account stand for the much more than a hundred-12 months historical past in the Cape Town Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum doesn't glimpse to get open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by relocating The placement from the museum to another area with out notifying the NLC.



The Schaapkraal residence, on which no museum was at any time constructed. Photograph: Raymond Joseph

Buses
Stemmet told the investigators that the CTMCA had to move with the rented Crete Highway premises since it had run up a R4-million credit card debt with town of Cape City and was worried its gear will be attached.

“Mainly because of the lawful battles and also the debts, the organisation experienced to move its residence from five Crete Street to avoid the sheriff from attaching the home of the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director in the CTMCA, told them the two buses bought with lottery cash have been stored in a very solution site “hidden through the Sheriff”. Nevertheless the investigators reported they had been unable to substantiate that any buses had ever been purchased.

Stemmet also verified the buses were concealed to prevent them remaining seized. But in the event the investigators asked for being taken into the area where the buses had been stored, he explained to them that “the proprietor of The key spot was not accessible to open up the premises for us”.

“The CTMCA could not deliver proof of payment for two autos that it allegedly purchased with grant funds,” the investigators reported.

Soeker also told them the Schaapkraal property were offered due to financial debt.

“Mr Soeker described that As outlined by his knowing, as a result of debt owed to town of Cape Town, the CTMCA resolved it would be finest to sell their [Schaapkraal] house … and also to also to cover the property of your CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and security, has Formerly explained to GroundUp which the CTMCA “threw revenue absent” on litigation with the town.

“Yearly like clockwork, as we method the top of your 12 months, the CTMCA picks a legal struggle with town, above permits or another thing. We never initiate it. They continue to keep throwing income absent on vexatious litigation they reduce and also have prices awarded towards them. This is certainly completely self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the key function gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for the many admin, funds and managing หวย รัฐบาล the CTMCA.” The investigators said they were struggling to Get in touch with Momberg.

Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “observed various equipment, some in fantastic affliction, some in undesirable issue and several that seemed rusty and extremely outdated”. Stemmet advised the investigators that there was also an off-website storage facility where “instruments plus some machinery” were held.

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

Determined by pictures and invoices in GroundUp’s possession, some, if not all, with the items appear to be tools that was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with charges for this removal.

According to the final development report submitted to the NLC by the CTMCA, the equipment was acquired from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter were being directors at time.

The investigators discovered this “alarming”.

“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, exactly the same handle on which the museum was meant to be constructed and/or converted,” they described.

An audit by accountants Kopano Included, attached towards the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and stock” 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 accordance with Dabishi Nthambeleni, the organization has paid R1.two-million like a deposit, meaning R6.nine-million continues to be owed, though there's no payment day set for when this need to be paid.

The Kopano audit and the close backlink among the businesses “suggest to us that there is ‘foul Engage in’ involved with the acquisition of the machinery in the museum workshop”, the investigators explained in the report.

“We find that it is extremely probable that CTMCA used the funding from the NLC to ‘refund’ among its principal directors for the assets at an increased overpriced fee than the actual price and price of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was unable to determine how the grant towards the CTMCA were spent.

“The truth is, a detailed report on how the funding with the NLC was employed, would be difficult as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts put in on Each individual product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC experienced not done a site visit before approving the grant. But this wasn't typical exercise at time and they found no proof of negligence by NLC staff.

At the time, the NLC’s procedures did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was capable to get a second tranche of funding without the need to supply evidence that it experienced utilized the 1st tranche for its supposed objective.

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

Dabishi Nthambeleni recommended that

the NLC drop any long term funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act over the report’s recommendations, the NLC – less than its prior administration – chose to suppress it, mainly because it had completed with the prior studies into corruption it experienced commissioned.

GroundUp despatched issues to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to send the concerns by e-mail also. But no response were gained at enough time of publication.



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