Leaked report exposes abuse of lottery funds paid to minstrel team

Leaked report exposes abuse of lottery funds paid to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission into the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has identified no evidence that a museum ever existed.
The investigators identified which the CTMCA did not utilize the R5-million allocated to purchase or produce a museum.
In addition they uncovered the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They found the CTMCA applied cash with the Lottery to acquire workshop machines from certainly one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to create a museum to rejoice the town’s loaded minstrel background went astray. The museum was under no circumstances established.

The details from the abuse of numerous rands of Lottery money for any museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.

The museum grant was part of greater than R64-million in Lottery resources allocated to the CTMCA concerning 2003 and 2017.

The primary Portion of the investigation, by regulation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for your museum. The accredited budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for just a building to house the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making for that museum and if the museum “truly existed”.

The company was also instructed to investigate

the acquisition with Lottery money of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several machines “ordered for your producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators with the organisation. Stemmet was reappointed as a director in Could 2021.

The investigation followed comprehensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated for the CTMCA (see listed here, listed here and right here) and the way in which the resources likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.



The creating on the right was the intended website with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All a few projects had been finished, she advised MPs.

Though the investigators uncovered no evidence that a museum experienced ever existed.

To start with the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the walls, as well as a product ship on its plinth in the corner.

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

Stemmet informed the investigators the museum were moved since they could no more afford to pay for the rent of R100,000 a month. He explained the CTMCA experienced ordered property for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-city area considerably from town.

Subsequently, the museum were moved to a different site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, which can be within an industrial location, the investigators said they doubted whether a suitable museum existed there. Pictures connected into the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, with no explanation.

“There exists a nominal degree of merchandise at the museum [that] in no way signify the over 100-year historical past in the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … generally, the museum won't seem to generally be open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving the location on the museum to another location devoid of notifying the NLC.



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

Buses
Stemmet told the investigators that the CTMCA had to move in the rented Crete Street premises since it had operate up a R4-million personal debt with the City of Cape Town and was afraid its equipment can be hooked up.

“A result of the lawful battles as well as debts, the organisation had to move its property from 5 Crete Highway to avoid the sheriff from attaching the property of the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director on the CTMCA, instructed them that the two buses acquired with lottery funds had been saved in a very key place “hidden from the Sheriff”. However the investigators explained they have been unable to substantiate that any buses experienced at any time been bought.

Stemmet also confirmed which the buses were hidden to prevent them being seized. But if the investigators asked being taken for the place the place the buses had been saved, he explained to them that “the owner of The key locale was not available to open the premises for us”.

“The CTMCA couldn't deliver evidence of payment for 2 vehicles that it allegedly obtained with grant dollars,” the investigators reported.

Soeker also advised them the Schaapkraal residence were marketed due to personal debt.

“Mr Soeker stated that In accordance with his knowledge, mainly because of the personal debt owed to the town of Cape Town, the CTMCA decided It could be greatest to promote their [Schaapkraal] assets … and also to also to cover the property of the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for protection and protection, has Beforehand told GroundUp the CTMCA “threw dollars absent” on litigation with the City.

“Yearly like clockwork, as we tactic the top of your year, the CTMCA picks a legal fight with the City, around permits or another thing. We by no means initiate it. They hold throwing dollars absent on vexatious litigation they drop and have expenses awarded versus them. That is entirely self-inflicted,” he claimed.

Soeker informed the Dabishi Nthambeleni investigators that the primary position gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for all the admin, funds and running หวย the CTMCA.” The investigators mentioned they were unable to Get in touch with Momberg.

Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “located quite a few machines, some in great condition, some in bad ailment and several that looked rusty and intensely old”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “devices and some machinery” were being stored.

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

Based on photographs and invoices in GroundUp’s possession, some, if not all, with the items look like machines which was illegally removed from the CTMCA’s previous premises. Stemmet is facing prices for this elimination.

According to the closing progress report submitted into the NLC with the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company wherein Stemmet, his wife and his daughter have been administrators at the time.

The investigators located this “alarming”.

“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Street, Wetton, Cape City, precisely the same tackle on which the museum was intended to be created and/or converted,” they documented.

An audit by accountants Kopano Included, attached on the investigative report, recorded the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was considered one of the directors.

In keeping with Dabishi Nthambeleni, the corporation has paid out R1.2-million to be a deposit, which means R6.9-million remains to be owed, though there isn't a payment day established for when this must be paid.

The Kopano audit as well as the near website link amongst the companies “reveal to us that there is ‘foul Perform’ involved in the acquisition of your equipment in the museum workshop”, the investigators stated within the report.

“We discover that it is extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors for that home at the next overpriced charge than the particular cost and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to establish how the grant for the CTMCA had been expended.

“In reality, a detailed report on how the funding from the NLC was employed, might be impossible as the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every single merchandise it requested funding for. The interim report and remaining report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC experienced not performed a site stop by in advance of approving the grant. But this was not conventional apply at some time and so they uncovered no evidence of carelessness by NLC employees.

At time, the NLC’s procedures did not call for funded organisations to post evidence of payment with interim reports, they pointed out. This meant the CTMCA was in the position to get a next tranche of funding without having to supply proof that it had utilized the initial tranche for its meant goal.

Adhering to the appointment of a whole new board, commissioner and senior government group, the NLC has tightened up on these along with other concerns.

Dabishi Nthambeleni suggested that

the NLC drop any long run funding programs from the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected on the NLC’s “delinquency” procedure;
the NLC open up a prison situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated cash.
But, instead of act about the report’s tips, the NLC – less than its prior administration – chose to suppress it, as it had completed Along with the former experiences into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker through SMS, and requested for email addresses to send the thoughts by electronic mail way too. But no response were gained at time of publication.



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