Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

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Minstrels complete in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has discovered no proof that a museum ever existed.
The investigators identified the CTMCA did not make use of the R5-million allocated to order or produce a museum.
In addition they observed the CTMCA only bought land really worth R1.seven-million, not R5-million as allotted.
They located the CTMCA employed money from your Lottery to purchase workshop machines from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted for the Cape City Minstrel Carnival Association (CTMCA) through the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the city’s abundant minstrel background went astray. The museum was under no circumstances produced.

The small print on the abuse of countless rands of Lottery funds to get a museum that under no circumstances was are uncovered within an investigative report commissioned through the NLC in 2021.

The museum grant was Element of more than R64-million in Lottery money allocated to your CTMCA in between 2003 and 2017.

The main A part of the investigation, by legislation agency Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which bundled funding to the museum. The permitted budget with the museum was over R12.eight-million, with R5-million of that allotted for any developing to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a making to the museum and if the museum “essentially existed”.

The firm was also instructed to investigate

the purchase with Lottery money of two automobiles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
various machines “procured with the producing from the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director with 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 on the organisation. Stemmet was reappointed for a director in May possibly 2021.

The investigation followed considerable reporting by GroundUp concerning the millions of rands of Lottery funding allocated to your CTMCA (see here, listed here and below) and just how the funds possibly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.



The developing on the best was the meant web site with the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph

In response into a Parliamentary query, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - including the museum - in between 2012 and 2015. All a few assignments had been done, she instructed MPs.

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

At first the museum was on account of open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp from the meant Wetton museum demonstrates a espresso shop with a few musical devices and minstrel costumes and collages of photographs haphazardly hung within the walls, in addition to a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum had at any time operated from these premises.

Stemmet informed the investigators the museum were moved simply because they could no more find the money 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 could not get it rezoned, and had been sold for the same value. Schaapkraal is inside of a peri-city location significantly from the town.

Due to this fact, the museum were moved to a different locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after visiting the premises, which might be within an industrial space, the investigators stated they doubted no matter whether a correct museum existed there. Photos connected towards the report clearly show a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, without any rationalization.

“There is a nominal degree of items on the museum [that] under no circumstances stand for the greater than one hundred-12 months record of the Cape Town Carnival, the investigators explained, incorporating that there was “no signage exterior the premises indicating they housed a museum and … normally, the museum isn't going to seem to get open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by going The placement in the museum to an alternative spot without having notifying the NLC.



The Schaapkraal assets, on which no museum was ever designed. Image: Raymond Joseph

Buses
Stemmet informed the investigators the CTMCA experienced to maneuver within the rented Crete Highway premises because it had operate up a R4-million debt with the City of Cape Town and was frightened its gear will be attached.

“A result of the legal battles as well as the debts, the organisation had to maneuver its home from five Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director of the CTMCA, instructed them that the two buses bought with lottery cash had been saved inside a solution site “hidden from your Sheriff”. Nevertheless the investigators reported they have been unable to confirm that any buses experienced at any time been bought.

Stemmet also confirmed that the buses were hidden to halt them becoming seized. But in the event the investigators asked to be taken to the position wherever the buses have been stored, he informed them that “the operator of The key location wasn't accessible to open up the premises for us”.

“The CTMCA could not deliver proof of payment for two automobiles that it allegedly acquired with grant revenue,” the investigators claimed.

Soeker also told them the Schaapkraal assets were bought due to the financial debt.

“Mr Soeker explained that according to his comprehension, due to financial debt owed to the City of Cape City, the CTMCA determined It will be greatest to provide their [Schaapkraal] house … also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for safety and protection, has Earlier instructed GroundUp which the CTMCA “threw revenue away” on litigation with the City.

“Each year like clockwork, as we tactic the end from the year, the CTMCA picks a lawful struggle with town, above permits or another thing. We hardly ever initiate it. They continue to keep throwing revenue away on vexatious litigation they shed and possess charges awarded towards them. This can be entirely self-inflicted,” he said.

Soeker explained to the Dabishi Nthambeleni investigators that the principle position gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of every one of the admin, funds and managing ตา ว จ หวย the CTMCA.” The investigators stated they had been not able to Call Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “observed many devices, some in excellent issue, some in terrible ailment and some that looked rusty and extremely old”. Stemmet told the investigators that there was also an off-website storage facility in which “devices and many machinery” were being retained.

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

Based on pics and invoices in GroundUp’s possession, some, if not all, on the products seem like devices which was illegally faraway from the CTMCA’s previous premises. Stemmet is going through prices for this elimination.

In accordance with the closing development report submitted on the NLC with the CTMCA, the machinery was obtained from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter ended up directors at some time.

The investigators observed this “alarming”.

“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the following alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape City, the same deal with on which the museum was intended to be designed and/or transformed,” they claimed.

An audit by accountants Kopano Included, attached for the investigative report, recorded the CTMCA was in the entire process of getting “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the administrators.

According to Dabishi Nthambeleni, the corporation has paid out R1.2-million to be a deposit, indicating R6.9-million remains owed, however there is absolutely no payment day set for when this needs to be paid.

The Kopano audit plus the close url between the companies “reveal to us that there's ‘foul Participate in’ associated with the purchase on the equipment with the museum workshop”, the investigators reported within the report.

“We find that it's highly possible that CTMCA used the funding of the NLC to ‘refund’ one of its main administrators for that house at a greater overpriced price than the particular price tag and value of the assets and/or machinery.”

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

“Actually, an in depth report on how the funding from the NLC was applied, will be impossible because the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities spent on Each and every merchandise it asked for funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC experienced not executed a web page visit before approving the grant. But this wasn't typical follow at time and they uncovered no proof of negligence by NLC workforce.

At time, the NLC’s guidelines didn't need funded organisations to post proof of payment with interim studies, they identified. This meant the CTMCA was in a position to receive a next tranche of funding without needing to present evidence that it had employed the main tranche for its supposed objective.

Adhering to the appointment of a completely new board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni advisable that

the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any associates who were linked to the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it had completed While using the prior studies into corruption it experienced commissioned.

GroundUp despatched issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to send the questions by email too. But no reaction were gained at enough time of publication.



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