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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant with the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has observed no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA didn't utilize the R5-million allotted to buy or build a museum.
They also found which the CTMCA only purchased land value R1.7-million, not R5-million as allotted.
They observed the CTMCA utilised funds from the Lottery to invest in workshop products from one among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel background went astray. The museum was under no circumstances created.

The details in the abuse of an incredible number of rands of Lottery cash for your museum that hardly ever was are revealed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Component of much more than R64-million in Lottery cash allocated to the CTMCA concerning 2003 and 2017.

The 1st Section of the investigation, by law organization Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which bundled funding for your museum. The authorised funds with the museum was over R12.8-million, with R5-million of that allotted for just a building to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for your museum and whether the museum “really existed”.

The company was also instructed to investigate

the acquisition with Lottery cash of two autos – a 60-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “ordered to the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony 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 wife Zainonesa and daughter Raziah continued as two of many administrators in the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp in regards to the millions of rands of Lottery funding allocated to your CTMCA (see right here, right here and below) and how the cash likely aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at enough time by Marius Fransman.



The creating on the right was the supposed site in the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to a Parliamentary query, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “initiatives” - including the museum - involving 2012 and 2015. All three jobs had been finished, she advised MPs.

Though the investigators found no proof that a museum experienced ever existed.

To start with the museum was as a result of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung to the walls, in addition to a model ship on its plinth in a very corner.

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

Stemmet advised the investigators the museum had been moved simply because they could now not manage the rent of R100,000 per month. He said the CTMCA had procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar value. Schaapkraal is in a very peri-city space far from the city.

Therefore, the museum were moved to a completely new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after checking out the premises, that happen to be in an industrial area, the investigators claimed they doubted whether or not a proper museum existed there. Photos connected on the report display a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the ground, without any rationalization.

“There exists a minimal degree of products with the museum [that] under no circumstances signify the much more than a hundred-year background from the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating they housed a museum and … typically, the museum doesn't look being open to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by going The placement of your museum to an alternate locale devoid of notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA experienced to move through the rented Crete Highway premises since it had operate up a R4-million debt with the City of Cape Town and was concerned its machines could be attached.

“Mainly because of the lawful battles as well as the debts, the organisation had to maneuver its assets from five Crete Road to stay away from the sheriff from attaching the home in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of your CTMCA, instructed them that the two buses acquired with lottery money were stored inside a secret site “hidden with the Sheriff”. Although the investigators said they have been not able to substantiate that any buses experienced ever been bought.

Stemmet also confirmed which the buses had been hidden to prevent them staying seized. But in the event the investigators questioned to be taken towards the spot in which the buses have been stored, he explained to them that “the proprietor of the secret location wasn't available to open up the premises for us”.

“The CTMCA could not provide evidence of payment for two automobiles that it allegedly ordered with grant cash,” the investigators claimed.

Soeker also told them the Schaapkraal home had been marketed as a result of credit card debt.

“Mr Soeker discussed that As outlined by his knowing, because of the credit card debt owed to town of Cape City, the CTMCA determined It could be best to market their [Schaapkraal] assets … and to also to cover the assets in the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has Formerly explained to GroundUp the CTMCA “threw money away” on litigation with the City.

“Each year like clockwork, as we method the top of your calendar year, the CTMCA picks a lawful struggle with the town, around permits or another thing. We never ever initiate it. They continue to keep throwing funds away on vexatious litigation that they shed and possess prices awarded from them. This is certainly totally self-inflicted,” he stated.

Soeker explained to the Dabishi Nthambeleni investigators that the most crucial purpose gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for each of the admin, funds and managing ตรวจ หวย ล่าสุด the CTMCA.” The investigators claimed they had been not able to Call Momberg.

Hats
For the duration of their “investigation in loco” in the Primrose Park premises, the investigators “located various equipment, some in good issue, some in lousy ailment and some that appeared rusty and very old”. Stemmet informed the investigators that there was also an off-web site storage facility the place “instruments and a few machinery” were being retained.

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

Dependant on images and invoices in GroundUp’s possession, some, Otherwise all, in the merchandise appear to be devices which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing prices for this removing.

According to the last development report submitted into the NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter had been administrators at some time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Observe the next alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Road, Wetton, Cape City, the same tackle on which the museum was meant to be designed and/or converted,” they claimed.

An audit by accountants Kopano Incorporated, attached into the investigative report, recorded the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million as a deposit, meaning R6.nine-million remains to be owed, even though there's no payment day set for when this should be paid out.

The Kopano audit and also the near website link between the businesses “indicate to us that there's ‘foul play’ linked to the acquisition from the machinery from the museum workshop”, the investigators claimed within the report.

“We find that it is hugely possible that CTMCA utilized the funding in the NLC to ‘refund’ considered one of its most important directors for the property at a higher overpriced rate than the particular price tag and value of the property and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant for the CTMCA were expended.

“In fact, an in depth report on how the funding from the NLC was made use of, can be not possible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Every single product it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not performed a web-site visit ahead of approving the grant. But this wasn't conventional observe at some time plus they located no evidence of carelessness by NLC personnel.

At the time, the NLC’s rules did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding while not having to give evidence that it had utilised the very first tranche for its meant intent.

Subsequent the appointment of a new board, commissioner and senior government staff, the NLC has tightened up on these along with other concerns.

Dabishi Nthambeleni proposed that

the NLC decline any foreseeable future funding apps with the CTMCA;
the CTMCA and any users who were involved in the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as an alternative to act around the report’s suggestions, the NLC – under its past administration – chose to suppress it, because it experienced carried out While using the earlier stories into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to deliver the inquiries by e mail much too. But no reaction were received at the time of publication.



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