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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Fee into the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no evidence that a museum ever existed.
The investigators found which the CTMCA did not utilize the R5-million allocated to order or create a museum.
Additionally they found that the CTMCA only acquired land value R1.seven-million, not R5-million as allotted.
They identified the CTMCA used cash in the Lottery to invest in workshop tools from among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to create a museum to celebrate the city’s wealthy minstrel background went astray. The museum was in no way produced.

The small print in the abuse of countless rands of Lottery cash for your museum that never was are exposed in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of a lot more than R64-million in Lottery resources allocated towards the CTMCA between 2003 and 2017.

The first Component of the investigation, by legislation company Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding with the museum. The permitted finances for your museum was much more than R12.8-million, with R5-million of that allocated for just a developing to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of a creating to the museum and if the museum “in fact existed”.

The company was also instructed to investigate

the acquisition with Lottery resources of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
different devices “bought for that producing from the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous directors of your organisation. Stemmet was reappointed being a director in Might 2021.

The investigation followed substantial reporting by GroundUp with regard to the numerous rands of Lottery funding allocated into the CTMCA (see here, right here and listed here) and how the resources most likely aided finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.



The building on the proper was the supposed internet site in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to some Parliamentary query, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “assignments” - such as the museum - involving 2012 and 2015. All a few assignments were completed, she instructed MPs.

However the investigators uncovered no proof that a museum had at any time existed.

To start with the museum was because of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp with the meant Wetton museum exhibits a coffee store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung around the walls, and also a design ship on its plinth inside a corner.

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

Stemmet instructed the investigators the museum had been moved since they could no longer afford the hire of R100,000 a month. He said the CTMCA experienced acquired property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for a similar price. Schaapkraal is inside of a peri-urban place far from the town.

As a result, the museum had been moved to a fresh location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following browsing the premises, which are within an industrial place, the investigators mentioned they doubted irrespective of whether a suitable museum existed there. Images connected on the report clearly show a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the ground, with no explanation.

“There exists a minimum level of items with the museum [that] by no means stand for the in excess of a hundred-year historical past on the Cape City Carnival, the investigators reported, adding that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum does not search to get open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by relocating The placement of your museum to an alternative locale without notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver with the rented Crete Road premises mainly because it had run up a R4-million financial debt with the town of Cape City and was afraid its devices could be connected.

“A result of the legal battles as well as debts, the organisation experienced to maneuver its house from five Crete Road to steer clear of the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses bought with lottery funds have been stored inside of a magic formula locale “hidden with the Sheriff”. Nevertheless the investigators mentioned they have been unable to verify that any buses had at any time been purchased.

Stemmet also confirmed which the buses had been concealed to prevent them getting seized. But once the investigators questioned to be taken for the put exactly where the buses have been saved, he instructed them that “the operator of The trick place was not accessible to open up the premises for us”.

“The CTMCA couldn't offer proof of payment for two automobiles that it allegedly acquired with grant revenue,” the investigators reported.

Soeker also informed them the Schaapkraal home were bought due to credit card debt.

“Mr Soeker spelled out that Based on his being familiar with, due to the personal debt owed to the City of Cape Town, the CTMCA decided It will be finest to market their [Schaapkraal] assets … and to also to hide the property in the CTMCA to steer clear of the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has previously told GroundUp the CTMCA “threw money away” on litigation with the town.

“Each year like clockwork, as we tactic the top of your calendar year, the CTMCA picks a authorized combat with the town, more than permits or something else. We in no way initiate it. They preserve throwing income away on vexatious litigation they get rid of and also have expenses awarded against them. This really is solely self-inflicted,” he explained.

Soeker informed the Dabishi Nthambeleni investigators that the main role players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for each of the admin, finances and running หวย ไทยรัฐ the CTMCA.” The investigators said they had been struggling to Make contact with Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “observed various devices, some in superior condition, some in negative problem and many that seemed rusty and very old”. Stemmet advised the investigators that there was also an off-internet site storage facility wherever “instruments and some machinery” were being held.

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

Dependant on images and invoices in GroundUp’s possession, some, Otherwise all, with the things look like tools which was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this elimination.

In accordance with the last progress report submitted to your NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation during which Stemmet, his wife and his daughter had been directors at some time.

The investigators uncovered this “alarming”.

“Within the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Street, Wetton, Cape City, a similar address on which the museum was intended to be built and/or converted,” they claimed.

An audit by accountants Kopano Integrated, connected to the investigative report, recorded which the CTMCA was in the process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the administrators.

Based on Dabishi Nthambeleni, the business has paid out R1.two-million to be a deposit, that means R6.9-million continues to be owed, although there is absolutely no payment date established for when this need to be paid out.

The Kopano audit along with the close link between the companies “indicate to us that there's ‘foul play’ linked to the purchase on the machinery on the museum workshop”, the investigators stated from the report.

“We find that it is remarkably possible that CTMCA utilized the funding on the NLC to ‘refund’ certainly one of its major administrators for your home at a better overpriced level than the particular rate and price of the property and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant towards the CTMCA were used.

“In point of fact, an in depth report on how the funding in the NLC was used, could well be unachievable since the CTMCA doesn't have any receipts, or proof of payments to substantiate the quantities invested on each merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not performed a web page visit prior to approving the grant. But this was not regular apply at time and they found no proof of negligence by NLC workers.

At some time, the NLC’s regulations did not need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was in the position to receive a next tranche of funding without needing to offer evidence that it experienced employed the first tranche for its meant objective.

Next the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these together with other problems.

Dabishi Nthambeleni advisable that

the NLC decrease any long run funding purposes within the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected to your NLC’s “delinquency” system;
the NLC open a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, instead of act over the report’s suggestions, the NLC – under its former administration – chose to suppress it, mainly because it had finished Together with the previous studies into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker through SMS, and requested for e mail addresses to mail the concerns by e-mail way too. But no reaction had been acquired at enough time of publication.



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