Leaked report exposes abuse of lottery dollars compensated to minstrel team

Leaked report exposes abuse of lottery dollars compensated to minstrel team

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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the Countrywide Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for any 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 get or build a museum.
In addition they discovered that the CTMCA only purchased land well worth R1.7-million, not R5-million as allocated.
They identified the CTMCA used funds in the Lottery to buy workshop tools from one among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate town’s prosperous minstrel history went astray. The museum was by no means made.

The details with the abuse of countless rands of Lottery cash for just a museum that in no way was are discovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Section of much more than R64-million in Lottery resources allotted into the CTMCA concerning 2003 and 2017.

The first part of the investigation, by regulation organization Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which incorporated funding for your museum. The approved spending plan to the museum was greater than R12.eight-million, with R5-million of that allotted for any building to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up for your museum and if the museum “essentially existed”.

The business was also instructed to investigate

the purchase with Lottery funds of two automobiles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
numerous machines “purchased for the producing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of administrators in the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation followed intensive reporting by GroundUp with regards to the countless rands of Lottery funding allocated into the CTMCA (see right here, listed here and in this article) and the way in which the money possibly aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The constructing on the best was the meant site of your minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Image: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “jobs” - including the museum - amongst 2012 and 2015. All a few assignments were done, she informed MPs.

But the investigators located no proof that a museum had ever existed.

At first the museum was because of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp of the meant Wetton museum demonstrates a espresso store with some musical devices and minstrel costumes and collages of images haphazardly hung to the partitions, plus a product ship on its plinth inside a corner.

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

Stemmet told the investigators the museum were moved as they could not find the money for the hire of R100,000 per month. He mentioned the CTMCA had purchased house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been bought for a similar rate. Schaapkraal is inside of a peri-urban area considerably from the city.

As a result, the museum had been moved to a new site in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after going to the premises, which might be within an industrial space, the investigators mentioned they doubted regardless of whether a suitable museum existed there. Shots attached for the report demonstrate a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the floor, without having clarification.

“There exists a minimum amount of products within the museum [that] under no circumstances symbolize the greater than a hundred-year background with the Cape City Carnival, the investigators mentioned, introducing that there was “no signage exterior the premises indicating which they housed a museum and … generally, the museum doesn't seem being open up to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The placement in the museum to an alternative place with out notifying the NLC.



The Schaapkraal property, on which no museum was at any time developed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA experienced to move within the rented Crete Street premises mainly because it had operate up a R4-million debt with the town of Cape City and was frightened its devices could be connected.

“Due to the authorized battles as well as debts, the organisation had to maneuver its property from 5 Crete Road to steer clear of the sheriff from attaching the house with the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director on the CTMCA, instructed them that the two buses acquired with lottery resources were stored within a mystery site “concealed from the Sheriff”. Even so the investigators explained they ended up unable to confirm that any buses experienced ever been acquired.

Stemmet also verified the buses were concealed to prevent them currently being seized. But if the investigators asked to be taken to the put where by the buses were being stored, he instructed them that “the operator of the secret spot wasn't available to open the premises for us”.

“The CTMCA could not deliver evidence of payment for two autos that it allegedly purchased with grant income,” the investigators claimed.

Soeker also told them the Schaapkraal property were bought as a result of credit card debt.

“Mr Soeker explained that As outlined by his being familiar with, due to the financial debt owed to the town of Cape Town, the CTMCA determined it would be best to offer their [Schaapkraal] residence … and to also to cover the assets from the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and stability, has Earlier advised GroundUp that the CTMCA “threw cash away” on litigation with town.

“Every year like clockwork, as we technique the tip with the calendar year, the CTMCA picks a lawful combat with town, about permits or another thing. We hardly ever initiate it. They keep throwing money absent on vexatious litigation they eliminate and have expenses awarded against them. This really is entirely self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the principle part players on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of all of the admin, finances and running เช ค หวย the CTMCA.” The investigators said they were unable to Get in touch with Momberg.

Hats
For the duration of their “investigation in loco” with the Primrose Park premises, the investigators “identified a lot of devices, some in excellent condition, some in bad issue and some that appeared rusty and very aged”. Stemmet informed the investigators that there was also an off-web-site storage facility where “instruments plus some equipment” were being stored.

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

Depending on photographs and invoices in GroundUp’s possession, some, if not all, in the items seem like products that was illegally removed from the CTMCA’s previous premises. Stemmet is facing rates for this removing.

According to the final development report submitted for the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, a business by which Stemmet, his spouse and his daughter were administrators at enough time.

The investigators uncovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the company is 5 Crete Highway, Wetton, Cape City, a similar handle on which the museum was meant to be developed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, attached on the investigative report, recorded that the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the administrators.

As outlined by Dabishi Nthambeleni, the organization has paid out R1.2-million for a deposit, this means R6.nine-million is still owed, although there is absolutely no payment day established for when this must be paid.

The Kopano audit as well as close backlink between the companies “show to us that there is ‘foul Engage in’ involved with the purchase with the equipment of your museum workshop”, the investigators stated during the report.

“We discover that it's remarkably possible that CTMCA utilised the funding on the NLC to ‘refund’ among its primary administrators to the property at a better overpriced rate than the actual selling price and price of the property and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA were spent.

“In fact, a detailed report on how the funding of the NLC was applied, will be not possible given that the CTMCA does not have any receipts, or proof of payments to substantiate the quantities invested on Each individual item it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not done a site pay a visit to right before approving the grant. But this wasn't standard practice at the time and they discovered no evidence of negligence by NLC workforce.

At the time, the NLC’s principles did not call for funded organisations to post evidence of payment with interim reports, they pointed out. This intended which the CTMCA was in a position to receive a second tranche of funding without needing to give proof that it experienced made use of the main tranche for its meant function.

Adhering to the appointment of a fresh board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.

Dabishi Nthambeleni proposed that

the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated cash.
But, in lieu of act to the report’s tips, the NLC – less than its former administration – selected to suppress it, since it had done While using the past studies into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker through SMS, and asked for e-mail addresses to send out the thoughts by email also. But no reaction were been given at time of publication.



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

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