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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the Countrywide Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has found no proof that a museum at any time existed.
The investigators found that the CTMCA did not utilize the R5-million allotted to get or build a museum.
Additionally they observed that the CTMCA only bought land really worth R1.7-million, not R5-million as allocated.
They identified the CTMCA made use of resources in the Lottery to get workshop devices from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Association (CTMCA) through the National Lotteries Commission (NLC) to create a museum to rejoice the city’s abundant minstrel historical past went astray. The museum was hardly ever designed.

The main points from the abuse of many rands of Lottery funds for any museum that hardly ever was are revealed in an investigative report commissioned with the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery funds allotted towards the CTMCA concerning 2003 and 2017.

The initial Portion of the investigation, by regulation business Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which included funding for your museum. The authorised funds for your museum was in excess of R12.eight-million, with R5-million of that allocated for a setting up to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the building for the museum and if the museum “really existed”.

The business was also instructed to investigate

the purchase with Lottery cash of two automobiles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
many equipment “bought for your production with the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many directors from the organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed in depth reporting by GroundUp regarding the an incredible number of rands of Lottery funding allotted into the CTMCA (see below, in this article and listed here) and the way the resources most likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at some time by Marius Fransman.



The constructing on the appropriate was the supposed web-site of the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “assignments” - including the museum - between 2012 and 2015. All a few initiatives had been finished, she told MPs.

However the investigators found no evidence that a museum experienced ever existed.

At the outset the museum was resulting from open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp in the intended Wetton museum exhibits a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, as well as a model ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum were moved since they could no longer afford to pay for the rent of R100,000 a month. He reported the CTMCA experienced bought residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is inside a peri-urban region much from the city.

Because of this, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which are within an industrial spot, the investigators mentioned they doubted no matter whether a proper museum existed there. Pics attached to your report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the floor, without any clarification.

“You will find there's minimal level of objects within the museum [that] on no account represent the greater than 100-year record of your Cape City Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not search to be open up to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of the museum to an alternate locale without having notifying the NLC.



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

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had run up a R4-million debt with the City of Cape City and was worried its equipment would be hooked up.

“Due to the lawful battles as well as debts, the organisation experienced to move its assets from 5 Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director from the CTMCA, explained to them the two buses acquired with lottery funds were saved inside of a solution locale “concealed in the Sheriff”. But the investigators claimed they have been not able to confirm that any buses had ever been purchased.

Stemmet also verified that the buses were hidden to halt them getting seized. But when the investigators asked to get taken on the location where the buses have been saved, he told them that “the owner of The key location was not available to open the premises for us”.

“The CTMCA could not present proof of payment for two motor vehicles that it allegedly obtained with grant money,” the investigators documented.

Soeker also instructed them the Schaapkraal residence were bought due to financial debt.

“Mr Soeker defined that In keeping with his being familiar with, a result of the personal debt owed to the City of Cape Town, the CTMCA made a decision It will be best to promote their [Schaapkraal] residence … and to also to hide the belongings on the CTMCA to avoid the sheriff from attaching the house.”

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

“Each and every year like clockwork, as we solution the top of your calendar year, the CTMCA picks a authorized struggle with town, around permits or another thing. We by no means initiate it. They hold throwing income away on vexatious litigation which they lose and possess prices awarded versus them. This is often solely self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the key purpose gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were accountable for many of the admin, finances and jogging สลาก กิน รัฐบาล the CTMCA.” The investigators stated they were not able to contact Momberg.

Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “located various equipment, some in excellent condition, some in negative affliction plus some that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-web-site storage facility wherever “instruments and a few equipment” ended up retained.

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

Based on shots and invoices in GroundUp’s possession, some, Otherwise all, on the goods seem like gear which was illegally removed from the CTMCA’s former premises. Stemmet is facing rates for this elimination.

According to the ultimate development report submitted for the NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter were being administrators at the time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we note the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the company is five Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be designed and/or converted,” they claimed.

An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded the CTMCA was in the process of getting “equipment, plant and inventory” 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 directors.

As outlined by Dabishi Nthambeleni, the organization has paid out R1.2-million being a deposit, indicating R6.nine-million remains to be owed, however there is absolutely no payment date set for when this need to be paid out.

The Kopano audit and also the close link involving the companies “point out to us that there is ‘foul Engage in’ linked to the purchase of your machinery in the museum workshop”, the investigators claimed inside the report.

“We discover that it is hugely possible that CTMCA employed the funding of your NLC to ‘refund’ one of its principal administrators to the house at a better overpriced fee than the particular price tag and value of the property and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA had been expended.

“In fact, an in depth report on how the funding from the NLC was used, can be unattainable as the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every merchandise it asked for funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not carried out a web-site stop by prior to approving the grant. But this was not standard apply at the time they usually uncovered no evidence of negligence by NLC employees.

At enough time, the NLC’s policies did not need funded organisations to post proof of payment with interim reports, they identified. This intended the CTMCA was in a position to get a second tranche of funding without the need to give evidence that it had applied the primary tranche for its intended function.

Following the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni advised that

the NLC decrease any long term funding programs in the CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open up a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act on the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, as it had performed With all the preceding experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to send out the thoughts by electronic mail much too. But no reaction were acquired at time of publication.



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