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

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

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators discovered the CTMCA didn't use the R5-million allocated to obtain or develop a museum.
In addition they discovered that the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They identified the CTMCA employed funds from your Lottery to purchase workshop machines from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to put in place a museum to celebrate the town’s wealthy minstrel background went astray. The museum was hardly ever developed.

The main points with the abuse of many rands of Lottery cash to get a museum that hardly ever was are unveiled within an investigative report commissioned with the NLC in 2021.

The museum grant was Element of more than R64-million in Lottery funds allocated on the CTMCA amongst 2003 and 2017.

The 1st Section of the investigation, by legislation firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which integrated funding with the museum. The accredited funds for that museum was a lot more than R12.eight-million, with R5-million of that allocated for your constructing to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a setting up for that museum and whether or not the museum “really existed”.

The agency was also instructed to analyze

the purchase with Lottery money of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
many devices “procured for that production of your costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director from 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 ongoing as two of numerous directors of the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation adopted extensive reporting by GroundUp regarding the millions of rands of Lottery funding allocated to your CTMCA (see right here, listed here and in this article) and the way the resources in all probability served finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at time by Marius Fransman.



The building on the best was the meant web page of your minstrels’ museum, in the course of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph

In response to a Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 projects were done, she advised MPs.

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

Initially the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp from the supposed Wetton museum shows a espresso shop with some musical instruments and minstrel costumes and collages of photographs haphazardly hung to the partitions, and also a model ship on its plinth within a corner.

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

Stemmet instructed the investigators the museum were moved given that they could no more manage the lease of R100,000 a month. He stated the CTMCA experienced obtained property for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been marketed for a similar rate. Schaapkraal is within a peri-city region significantly from town.

Because of this, the museum were moved to a new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following checking out the premises, which happen to be within an industrial space, the investigators said they doubted no matter whether a correct museum existed there. Pics connected on the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the floor, without having clarification.

“There is a small volume of products for the museum [that] in no way characterize the greater than one hundred-calendar year history on the Cape City Carnival, the investigators reported, adding that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum isn't going to glance to generally be open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting the location of the museum to another locale without the need of notifying the NLC.



The Schaapkraal residence, on which no museum was ever crafted. Picture: Raymond Joseph

Buses
Stemmet informed the investigators which the CTMCA had to move from the rented Crete Street premises because it had operate up a R4-million debt with the town of Cape City and was afraid its products would be attached.

“Due to legal battles along with the debts, the organisation experienced to maneuver its residence from five Crete Street to steer clear of the sheriff from attaching the residence of the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director from the CTMCA, informed them the two buses acquired with lottery funds have been stored in the secret location “concealed in the Sheriff”. Though the investigators reported they were not able to substantiate that any buses experienced ever been acquired.

Stemmet also verified which the buses were hidden to halt them getting seized. But if the investigators questioned to be taken to your position wherever the buses ended up stored, he advised them that “the proprietor of the secret location wasn't accessible to open up the premises for us”.

“The CTMCA could not deliver proof of payment for two motor vehicles that it allegedly acquired with grant money,” the investigators documented.

Soeker also told them the Schaapkraal assets had been marketed because of the credit card debt.

“Mr Soeker discussed that In keeping with his comprehension, due to the debt owed to the City of Cape City, the CTMCA determined It might be best to offer their [Schaapkraal] property … also to also to cover the assets on the CTMCA to stay away from the sheriff from attaching the residence.”

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

“Every year like clockwork, as we approach the tip of the yr, the CTMCA picks a authorized combat with town, over permits or another thing. We hardly ever initiate it. They keep throwing income absent on vexatious litigation which they drop and also have expenses awarded versus them. This can be fully self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial function players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who ended up answerable for many of the admin, finances and running fox888 the CTMCA.” The investigators stated they were not able to Get hold of Momberg.

Hats
For the duration of their “investigation in loco” with the Primrose Park premises, the investigators “located quite a few machines, some in fantastic issue, some in negative problem and a few that looked rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-web site storage facility exactly where “devices and several equipment” had been kept.

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

Based upon shots and invoices in GroundUp’s possession, some, Otherwise all, of the items look like devices that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this elimination.

According to the ultimate development report submitted on the NLC by the CTMCA, the machinery was ordered from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were directors at the time.

The investigators identified this “alarming”.

“With the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Take note the subsequent alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape Town, the exact same deal with on which the museum was intended to be constructed and/or transformed,” they documented.

An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire 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 detailed corporation of which Stemmet was among the administrators.

According to Dabishi Nthambeleni, the corporate has paid R1.2-million being a deposit, this means R6.nine-million is still owed, even though there is not any payment day established 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 play’ linked to the purchase of the equipment on the museum workshop”, the investigators mentioned within the report.

“We discover that it is hugely possible that CTMCA utilised the funding of the NLC to ‘refund’ amongst its major administrators for your residence at the next overpriced price than the actual rate and value of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant into the CTMCA were used.

“In reality, an in depth report on how the funding with the NLC was applied, might be unachievable as being the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Each individual merchandise it asked for funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC had not executed a web site visit ahead of approving the grant. But this wasn't normal observe at the time and so they observed no proof of negligence by NLC workers.

At enough time, the NLC’s regulations didn't have to have funded organisations to post evidence of payment with interim experiences, they identified. This intended the CTMCA was able to get a 2nd tranche of funding without needing to offer evidence that it had used the main tranche for its meant objective.

Next the appointment of a different board, commissioner and senior executive staff, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni encouraged that

the NLC drop any potential funding purposes in the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards 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 money.
But, as an alternative to act about the report’s suggestions, the NLC – below its previous administration – selected to suppress it, because it experienced performed Together with the earlier experiences into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the issues by email way too. But no reaction were obtained at enough time of publication.



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

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