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

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

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Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has found no evidence that a museum at any time existed.
The investigators located the CTMCA did not utilize the R5-million allocated to order or develop a museum.
In addition they discovered that the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allocated.
They discovered the CTMCA applied funds with the Lottery to purchase workshop gear from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to build a museum to celebrate the city’s wealthy minstrel history went astray. The museum was by no means made.

The small print of the abuse of an incredible number of rands of Lottery cash for just a museum that hardly ever was are discovered within an investigative report commissioned by the NLC in 2021.

The museum grant was part of in excess of R64-million in Lottery cash allocated for the CTMCA between 2003 and 2017.

The initial A part of the investigation, by regulation business Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which provided funding for your museum. The authorized spending budget for your museum was over R12.eight-million, with R5-million of that allotted for your creating to house the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a constructing for your museum and whether or not the museum “actually existed”.

The organization was also instructed to investigate

the purchase with Lottery resources of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
many machines “procured with the production of your costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed as being a director in May perhaps 2021.

The investigation followed extensive reporting by GroundUp concerning the many rands of Lottery funding allocated on the CTMCA (see here, listed here and below) and the way the funds in all probability served finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.



The creating on the best was the intended internet site with the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction into a Parliamentary query, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “projects” - such as the museum - among 2012 and 2015. All a few assignments were accomplished, she told MPs.

Though the investigators located no evidence that a museum had ever existed.

At first the museum was resulting from open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp with the meant Wetton museum shows a coffee shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung within the walls, plus a design ship on its plinth in the corner.

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

Stemmet informed the investigators the museum were moved because they could now not find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced acquired home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar value. Schaapkraal is inside of a peri-urban place far from the city.

Subsequently, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which are in an industrial area, the investigators stated they doubted no matter whether a suitable museum existed there. Photographs attached to the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, without having explanation.

“There's a small number of goods on the museum [that] in no way stand for the a lot more than a hundred-year historical past in the Cape City Carnival, the investigators mentioned, introducing that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum isn't going to glance to generally be open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going The situation with the museum to an alternate area without notifying the NLC.



The Schaapkraal home, on which no museum was ever created. Picture: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA experienced to move from the rented Crete Highway premises as it had operate up a R4-million credit card debt with the City of Cape Town and was frightened its equipment might be attached.

“A result of the legal battles as well as the debts, the organisation experienced to maneuver its home from five Crete Road to steer clear of the sheriff from attaching the residence with the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director on the CTMCA, told them that the two buses acquired with lottery funds were being stored inside of a mystery locale “hidden within the Sheriff”. Although the investigators explained they ended up not able to substantiate that any buses had ever been purchased.

Stemmet also confirmed that the buses had been hidden to stop them currently being seized. But in the event the investigators questioned to become taken to your place exactly where the buses had been saved, he instructed them that “the proprietor of the secret area wasn't available to open the premises for us”.

“The CTMCA could not supply evidence of payment for 2 cars that it allegedly acquired with grant cash,” the investigators described.

Soeker also informed them the Schaapkraal residence were bought because of the financial debt.

“Mr Soeker spelled out that As outlined by his understanding, due to personal debt owed to the town of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] home … also to also to hide the belongings on the CTMCA to avoid the sheriff from attaching the assets.”

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

“Every year like clockwork, as we strategy the tip with the year, the CTMCA picks a legal fight with town, over permits or something else. We by no means initiate it. They maintain throwing cash absent on vexatious litigation they get rid of and also have expenses awarded versus them. This is often fully self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the main purpose gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of all the admin, finances and managing ผล สลากกินแบ่ง the CTMCA.” The investigators claimed they had been not able to contact Momberg.

Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “observed numerous machines, some in very good affliction, some in bad problem and several that seemed rusty and very previous”. Stemmet advised the investigators that there was also an off-internet site storage facility wherever “instruments and a few machinery” were being saved.

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

Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, on the products look like tools which was illegally removed from the CTMCA’s former premises. Stemmet is going through charges for this removal.

Based on the final progress report submitted on the NLC by the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter have been directors at time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be developed and/or transformed,” they documented.

An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the directors.

In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, meaning R6.nine-million remains owed, though there's no payment date established for when this must be compensated.

The Kopano audit plus the near website link in between the businesses “reveal to us that there is ‘foul Participate in’ associated with the acquisition on the machinery on the museum workshop”, the investigators stated during the report.

“We find that it's highly probable that CTMCA made use of the funding from the NLC to ‘refund’ amongst its primary directors for that property at a greater overpriced fee than the particular rate and price of the property and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant to your CTMCA were put in.

“Actually, a detailed report on how the funding of the NLC was used, would be unachievable given that the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Each and every product it requested funding for. The interim report and remaining report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC experienced not carried out a web page pay a visit to right before approving the grant. But this was not normal exercise at some time and they identified no evidence of negligence by NLC personnel.

At enough time, the NLC’s regulations didn't call for funded organisations to submit proof of payment with interim reviews, they pointed out. This intended the CTMCA was capable to receive a next tranche of funding without the need to present proof that it experienced applied the primary tranche for its intended intent.

Adhering to the appointment of a fresh board, commissioner and senior govt crew, the NLC has tightened up on these as well as other challenges.

Dabishi Nthambeleni advised that

the NLC drop any long term funding apps within the CTMCA;
the CTMCA and any members who have been involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, as opposed to act around the report’s recommendations, the NLC – less than its former administration – chose to suppress it, as it experienced accomplished With all the previous experiences into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked 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. Photo: Raymond Joseph

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