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 execute in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the Countrywide Lotteries Commission towards the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has found no evidence that a museum ever existed.
The investigators discovered that the CTMCA didn't use the R5-million allotted to buy or create a museum.
They also found the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA made use of resources with the Lottery to get workshop tools from certainly one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape City Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate town’s wealthy minstrel record went astray. The museum was in no way made.

The main points in the abuse of an incredible number of rands of Lottery funds for the museum that never was are uncovered in an investigative report commissioned by the NLC in 2021.

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

The 1st Component of the investigation, by law organization Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which involved funding for the museum. The accepted price range for that museum was in excess of R12.eight-million, with R5-million of that allotted for just a making to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a setting up with the museum and whether the museum “actually existed”.

The business was also instructed to investigate

the acquisition with Lottery money of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous machines “acquired with the production with the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various administrators of the organisation. Stemmet was reappointed being a director in May 2021.

The investigation adopted comprehensive reporting by GroundUp in regards to the a lot of rands of Lottery funding allocated on the CTMCA (see here, here and below) and how the funds most likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.



The setting up on the appropriate was the meant web site from the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “tasks” - such as the museum - involving 2012 and 2015. All 3 assignments had been completed, she advised MPs.

Though the investigators uncovered no evidence that a museum had at any time existed.

To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of the meant Wetton museum shows a coffee store with some musical devices and minstrel costumes and collages of photos haphazardly hung about the partitions, plus a product ship on its plinth inside a corner.

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

Stemmet explained to the investigators the museum were moved since they could now not afford the lease of R100,000 a month. He mentioned the CTMCA had obtained house for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for a similar value. Schaapkraal is in a peri-urban spot far from the town.

Therefore, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after checking out the premises, that are in an industrial location, the investigators claimed they doubted regardless of whether a suitable museum existed there. Shots attached to the report clearly show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and unfold out on the ground, without having clarification.

“There exists a minimum volume of objects on the museum [that] in no way characterize the greater than 100-calendar year historical past of your Cape Town Carnival, the investigators explained, introducing that there was “no signage exterior the premises indicating they housed a museum and … generally, the museum doesn't glance to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting the location from the museum to another place with no notifying the NLC.



The Schaapkraal house, on which no museum was at any time designed. Photograph: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to maneuver from the rented Crete Road premises because it experienced run up a R4-million personal debt with town of Cape Town and was fearful its equipment can be hooked up.

“As a result of authorized battles plus the debts, the organisation had to move its home from five Crete Road to avoid the sheriff from attaching the property from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director of your CTMCA, informed them the two buses purchased with lottery money have been stored within a solution location “concealed within the Sheriff”. Nevertheless the investigators explained they have been not able to confirm that any buses experienced ever been bought.

Stemmet also verified the buses were hidden to halt them remaining seized. But if the investigators questioned for being taken for the place wherever the buses had been saved, he advised them that “the owner of The trick spot wasn't accessible to open the premises for us”.

“The CTMCA could not offer proof of payment for 2 automobiles that it allegedly ordered with grant revenue,” the investigators reported.

Soeker also informed them the Schaapkraal home were marketed because of the personal debt.

“Mr Soeker spelled out that In keeping with his comprehension, due to financial debt owed to town of Cape Town, the CTMCA made a decision It might be best to market their [Schaapkraal] home … also to also to cover the assets in the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for safety and protection, has Earlier told GroundUp that the CTMCA “threw funds absent” on litigation with the City.

“Each year like clockwork, as we tactic the top from the 12 months, the CTMCA picks a lawful struggle with town, above permits or another thing. We never ever initiate it. They preserve throwing cash absent on vexatious litigation they get rid of and also have expenses awarded against them. This really is completely self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the key role players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of all the admin, funds and working luckyvip77 the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.

Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “found several devices, some in good issue, some in negative ailment and several that seemed rusty and very outdated”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “instruments and a few machinery” ended up saved.

“We questioned him to choose us to the ability but he was evasive to our request.”

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, on the products look like tools which was illegally faraway from the CTMCA’s previous premises. Stemmet is struggling with prices for this removal.

Based on the remaining progress report submitted for the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter ended up directors at time.

The investigators observed this “alarming”.

“With the CIPC research of Martin-Conne Milliners along with the 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 Road, Wetton, Cape City, the same tackle on which the museum was meant to be crafted and/or converted,” they reported.

An audit by accountants Kopano Integrated, hooked up on the investigative report, recorded which the CTMCA was in the process of paying for “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 amongst the administrators.

In accordance with Dabishi Nthambeleni, the corporate has paid R1.two-million for a deposit, indicating R6.nine-million remains to be owed, while there is not any payment day set for when this needs to be compensated.

The Kopano audit as well as near website link among the companies “point out to us that there is ‘foul Participate in’ involved with the purchase of the equipment of the museum workshop”, the investigators said while in the report.

“We discover that it's extremely probable that CTMCA utilised the funding in the NLC to ‘refund’ one of its principal directors with the home at a better overpriced amount than the particular rate and price of the residence and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA had been used.

“Actually, a detailed report on how the funding on the NLC was employed, could be impossible as being the CTMCA does not have any receipts, or proof of payments to substantiate the quantities put in on Each and every merchandise it asked for funding for. The interim report and ultimate report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not executed a site check out in advance of approving the grant. But this wasn't standard apply at the time and they located no evidence of carelessness by NLC workforce.

At some time, the NLC’s guidelines didn't involve funded organisations to submit evidence of payment with interim experiences, they identified. This meant the CTMCA was capable to receive a next tranche of funding while not having to give evidence that it had made use of the primary tranche for its supposed objective.

Pursuing the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding apps within the CTMCA;
the CTMCA and any users who ended up linked to the grant be subjected to your NLC’s “delinquency” system;
the NLC open a criminal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated resources.
But, rather then act to the report’s recommendations, the NLC – underneath its earlier administration – selected to suppress it, because it experienced completed While using the preceding reports into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker by using SMS, and asked for email addresses to ship the issues by electronic mail too. But no response had been received at time of publication.



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