Leaked report exposes abuse of lottery money paid to minstrel group

Leaked report exposes abuse of lottery money paid to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has located no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
They also identified the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA made use of cash within the Lottery to acquire workshop products from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Association (CTMCA) via the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s rich minstrel heritage went astray. The museum was never produced.

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

The museum grant was Component of greater than R64-million in Lottery cash allotted to the CTMCA among 2003 and 2017.

The first Section of the investigation, by regulation company Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which included funding for that museum. The permitted budget with the museum was greater than R12.eight-million, with R5-million of that allotted for any constructing to house the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a creating for the museum and whether or not the museum “really existed”.

The organization was also instructed to investigate

the acquisition with Lottery funds of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
different equipment “acquired for the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director with 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 ongoing as two of a number of administrators from the organisation. Stemmet was reappointed like a director in May possibly 2021.

The investigation followed substantial reporting by GroundUp about the an incredible number of rands of Lottery funding allocated to your CTMCA (see here, below and below) and just how the cash likely aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The developing on the proper was the supposed web-site in the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “assignments” - including the museum - in between 2012 and 2015. All 3 tasks were completed, she advised MPs.

Although the investigators identified no proof that a museum experienced at any time existed.

At the outset the museum was because of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of your supposed Wetton museum demonstrates a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung on the partitions, plus a model ship on its plinth in the corner.

In its report, Dabishi Nthambeleni said it was “not able” to verify if a museum experienced at any time operated from these premises.

Stemmet explained to the investigators the museum were moved mainly because they could no longer manage the hire of R100,000 per month. He said the CTMCA had obtained home for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been sold for the same price tag. Schaapkraal is inside of a peri-city spot considerably from the city.

Subsequently, the museum had been moved to a different place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after going to the premises, that happen to be in an industrial spot, the investigators stated they doubted no matter if a proper museum existed there. Photos attached towards the report exhibit a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, shown on tables and distribute out on the ground, without any explanation.

“There exists a nominal amount of merchandise within the museum [that] under no circumstances depict the in excess of one hundred-yr record of your Cape Town Carnival, the investigators mentioned, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum would not seem to be open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by moving The situation on the museum to another site with out notifying the NLC.



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

Buses
Stemmet told the investigators that the CTMCA experienced to move in the rented Crete Street premises because it had run up a R4-million financial debt with town of Cape Town and was fearful its tools will be connected.

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

Sedrick Soeker, The present director with the CTMCA, instructed them the two buses bought with lottery money have been stored in the mystery spot “hidden through the Sheriff”. But the investigators stated they had been not able to verify that any buses experienced ever been acquired.

Stemmet also verified which the buses had been hidden to stop them remaining seized. But when the investigators asked to become taken for the area where the buses had been stored, he advised them that “the operator of the secret location wasn't available to open up the premises for us”.

“The CTMCA couldn't present evidence of payment for two automobiles that it allegedly ordered with grant revenue,” the investigators claimed.

Soeker also explained to them the Schaapkraal assets were offered because of the personal debt.

“Mr Soeker spelled out that In keeping with his knowing, because of the credit card debt owed to town of Cape Town, the CTMCA made a decision It might be best to promote their [Schaapkraal] residence … also to also to cover the property on the CTMCA to steer clear of the sheriff from attaching the assets.”

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

“Yearly like clockwork, as we approach the tip of the 12 months, the CTMCA picks a legal combat with town, above permits or another thing. We in no way initiate it. They continue to keep throwing funds absent on vexatious litigation which they shed and also have costs awarded from them. This really is totally self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the key purpose gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of many of the admin, funds and functioning ตรวจ หวย ลาว วัน นี้ the CTMCA.” The investigators reported they were struggling to contact Momberg.

Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “discovered numerous machines, some in very good affliction, some in bad situation and a few that looked rusty and extremely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “devices and many equipment” ended up kept.

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

Determined by pics and invoices in GroundUp’s possession, some, if not all, of the merchandise appear to be machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is experiencing fees for this removing.

According to the last development report submitted towards the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization where Stemmet, his wife and his daughter have been directors at time.

The investigators identified this “alarming”.

“With the CIPC search of Martin-Conne Milliners and also the invoices submitted, we Be aware the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Road, Wetton, Cape City, precisely the same address on which the museum was intended to be developed and/or transformed,” they noted.

An audit by accountants Kopano Included, connected to the investigative report, recorded the CTMCA was in the process of buying “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the directors.

In accordance with Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, meaning R6.nine-million is still owed, nevertheless there is not any payment date established for when this should be paid out.

The Kopano audit and also the near link involving the businesses “show to us that there's ‘foul Participate in’ associated with the purchase on the equipment of your museum workshop”, the investigators stated while in the report.

“We find that it is very probable that CTMCA employed the funding in the NLC to ‘refund’ considered one of its most important administrators for your home at a greater overpriced rate than the particular selling price and worth of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been expended.

“In fact, an in depth report on how the funding from the NLC was made use of, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities spent on Every single product it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not carried out a internet site stop by before approving the grant. But this wasn't typical observe at some time plus they located no evidence of carelessness by NLC personnel.

At time, the NLC’s guidelines didn't call for funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to receive a next tranche of funding without needing to offer proof that it experienced utilised the very first tranche for its meant reason.

Following the appointment of a fresh board, commissioner and senior govt workforce, the NLC has tightened up on these and also other issues.

Dabishi Nthambeleni suggested that

the NLC decline any potential funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, instead of act on the report’s tips, the NLC – underneath its prior administration – selected to suppress it, as it had carried out While using the prior stories into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and questioned for email addresses to ship the issues by electronic mail too. But no reaction were been given at some time of publication.



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