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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA didn't utilize the R5-million allocated to acquire or build a museum.
In addition they located that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA applied resources from your Lottery to buy workshop gear from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s prosperous minstrel heritage went astray. The museum was by no means developed.

The small print in the abuse of a lot of rands of Lottery cash for the museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.

The main Section of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding for that museum. The approved price range to the museum was in excess of R12.eight-million, with R5-million of that allotted for your making to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up with the museum and if the museum “truly existed”.

The firm was also instructed to analyze

the purchase with Lottery funds of two cars – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “purchased to the producing in the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of your 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 of your organisation. Stemmet was reappointed as a director in Might 2021.

The investigation followed substantial reporting by GroundUp about the countless rands of Lottery funding allotted into the CTMCA (see below, listed here and right here) and the way in which the resources in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The setting up on the best was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three projects had been completed, she informed MPs.

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

At the beginning the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photograph received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung on the walls, and a design ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum were moved since they could not find the money for the hire of R100,000 per month. He said the CTMCA had bought home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been bought for a similar rate. Schaapkraal is inside of a peri-city spot significantly from the city.

Because of this, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, which are in an industrial area, the investigators claimed they doubted no matter whether an appropriate museum existed there. Photographs hooked up to 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 floor, without clarification.

“You will find a negligible amount of items in the museum [that] in no way signify the greater than a hundred-12 months historical past in the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum does not glance for being open up to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by transferring The placement of the museum to another place devoid of notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA experienced to move from the rented Crete Street premises as it experienced operate up a R4-million credit card debt with the City of Cape Town and was afraid its machines can be attached.

“Because of the lawful battles as well as debts, the organisation had to move its home from 5 Crete Road to stay away from the sheriff from attaching the house with the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The present director of the CTMCA, explained to them which the two buses bought with lottery funds were stored inside of a mystery location “hidden within the Sheriff”. Although the investigators mentioned they were being not able to confirm that any buses had ever been purchased.

Stemmet also confirmed that the buses had been hidden to stop them becoming seized. But once the investigators asked for being taken for the area the place the buses have been stored, he told them that “the operator of The key area wasn't accessible to open the premises for us”.

“The CTMCA couldn't give proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators noted.

Soeker also explained to them the Schaapkraal home were bought due to the credit card debt.

“Mr Soeker explained that according to his comprehension, because of the financial debt owed to the town of Cape Town, the CTMCA made a decision It will be best to sell their [Schaapkraal] property … and to also to cover the belongings with the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for safety and stability, has Earlier instructed GroundUp the CTMCA “threw funds away” on litigation with town.

“Annually like clockwork, as we approach the tip in the year, the CTMCA picks a authorized struggle with the City, around permits or something else. We hardly ever initiate it. They preserve throwing money away on vexatious litigation they eliminate and possess expenses awarded in opposition to them. This is totally self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the main function players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in command of the many admin, finances and working hihuay the CTMCA.” The investigators reported they were struggling to contact Momberg.

Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “identified several machines, some in good condition, some in bad ailment and many that looked rusty and intensely outdated”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and several equipment” were retained.

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

According to pics and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like devices which was illegally faraway from the CTMCA’s former premises. Stemmet is facing costs for this removal.

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

The investigators uncovered this “alarming”.

“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Road, Wetton, Cape Town, the exact same handle on which the museum was intended to be developed and/or converted,” they described.

An audit by accountants Kopano Included, hooked up into the investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the directors.

Based on Dabishi Nthambeleni, the company has compensated R1.2-million as a deposit, indicating R6.9-million remains owed, even though there isn't any payment day established for when this need to be paid.

The Kopano audit along with the shut website link concerning the companies “show to us that there's ‘foul Enjoy’ involved in the purchase from the machinery in the museum workshop”, the investigators explained during the report.

“We discover that it's hugely probable that CTMCA utilised the funding on the NLC to ‘refund’ one among its major directors for the assets at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”

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

“In point of fact, a detailed report on how the funding on the NLC was used, can be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts spent on Every single merchandise it asked for funding for. The interim report and closing report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC experienced not carried out a internet site take a look at before approving the grant. But this wasn't typical exercise at time and they uncovered no evidence of carelessness by NLC staff members.

At time, the NLC’s principles did not have to have funded organisations to submit proof of payment with interim reports, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding while not having to provide proof that it had utilised the first tranche for its intended function.

Pursuing the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any long run funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, in lieu of act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.

GroundUp despatched issues to Stemmet and Soeker via SMS, and questioned for electronic mail addresses to mail the concerns by email also. But no response were been given at some time of publication.



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