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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Fee into the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has found no proof that a museum at any time existed.
The investigators found that the CTMCA didn't utilize the R5-million allotted to acquire or produce a museum.
In addition they uncovered which the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They located the CTMCA employed funds from the Lottery to invest in workshop products from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to arrange a museum to rejoice the city’s prosperous minstrel record went astray. The museum was in no way made.

The main points from the abuse of numerous rands of Lottery cash for the museum that under no circumstances was are disclosed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Component of in excess of R64-million in Lottery money allocated into the CTMCA amongst 2003 and 2017.

The initial A part of the investigation, by regulation agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which incorporated funding with the museum. The accepted finances for the museum was a lot more than R12.eight-million, with R5-million of that allotted for a developing to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a creating to the museum and if the museum “truly 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
different machines “ordered to the manufacturing with the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few directors in the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed comprehensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated on the CTMCA (see below, in this article and in this article) and just how the resources in all probability aided finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.



The making on the best was the supposed web page on the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to some Parliamentary dilemma, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “tasks” - such as the museum - concerning 2012 and 2015. All three assignments were concluded, she told MPs.

Nevertheless the investigators observed no evidence that a museum experienced at any time existed.

At the outset the museum was due to open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp in the supposed Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of images haphazardly hung to the partitions, and a model ship on its plinth within a corner.

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

Stemmet informed the investigators the museum had been moved since they could now not afford to pay for the lease of R100,000 per month. He reported the CTMCA had procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same price. Schaapkraal is inside of a peri-urban location considerably from town.

Because of this, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which are within an industrial area, the investigators reported they doubted irrespective of whether a correct museum existed there. Pics attached on the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and spread out on the floor, with no explanation.

“There exists a nominal degree of merchandise at the museum [that] in no way represent the greater than a hundred-calendar year heritage on the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum will not glimpse to get open up to the public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by going the location on the museum to another place with no notifying the NLC.



The Schaapkraal assets, on which no museum was ever constructed. Photograph: Raymond Joseph

Buses
Stemmet instructed the investigators which the CTMCA experienced to move through the rented Crete Street premises as it had run up a R4-million debt with town of Cape City and was concerned its products can be attached.

“Because of the lawful battles as well as debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of your CTMCA, informed them which the two buses acquired with lottery money ended up saved within a solution place “hidden through the Sheriff”. But the investigators stated they have been unable to verify that any buses had ever been bought.

Stemmet also verified which the buses were concealed to prevent them getting seized. But once the investigators asked to become taken to the place where the buses were being stored, he told them that “the operator of The key location wasn't available to open up the premises for us”.

“The CTMCA could not present proof of payment for 2 vehicles that it allegedly ordered with grant funds,” the investigators claimed.

Soeker also advised them the Schaapkraal assets had been offered as a result of personal debt.

“Mr Soeker described that In keeping with his knowing, due to personal debt owed to town of Cape City, the CTMCA resolved it would be best to sell their [Schaapkraal] property … also to also to cover the property in the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for security and security, has Beforehand advised GroundUp that the CTMCA “threw dollars away” on litigation with town.

“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a legal fight with the City, over permits or another thing. We never initiate it. They keep throwing revenue absent on vexatious litigation that they shed and possess expenditures awarded in opposition to them. This can be entirely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of the many admin, funds and working ตา ว จ หวย the CTMCA.” The investigators mentioned they were not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in very good condition, some in undesirable condition and a few that seemed rusty and very aged”. Stemmet explained to the investigators that there was also an off-website storage facility the place “instruments and several machinery” have been held.

“We requested him to just take us to the ability but he was evasive to our request.”

According to pictures and invoices in GroundUp’s possession, some, Otherwise all, of your goods seem like gear which was illegally removed from the CTMCA’s prior premises. Stemmet is facing prices for this removal.

In accordance with the ultimate development report submitted on the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter have been administrators at the time.

The investigators identified this “alarming”.

“With the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered address of the company is five Crete Highway, Wetton, Cape Town, precisely the same deal with on which the museum was intended to be crafted and/or transformed,” they described.

An audit by accountants Kopano Integrated, attached into the investigative report, recorded the CTMCA was in the process of purchasing “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.

In keeping with Dabishi Nthambeleni, the business has compensated R1.2-million being a deposit, meaning R6.9-million remains to be owed, nevertheless there's no payment day established for when this needs to be paid.

The Kopano audit as well as the near url involving the businesses “point out to us that there's ‘foul Engage in’ involved with the purchase from the machinery of your museum workshop”, the investigators claimed inside the report.

“We discover that it's very probable that CTMCA made use of the funding in the NLC to ‘refund’ amongst its primary directors for that assets at a better overpriced price than the particular price and value of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant on the CTMCA were put in.

“In point of fact, a detailed report on how the funding of the NLC was made use of, could be unachievable because the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on each merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC experienced not done a site pay a visit to prior to approving the grant. But this wasn't typical follow at time and they uncovered no proof of carelessness by NLC personnel.

At time, the NLC’s principles did not require funded organisations to post proof of payment with interim experiences, they pointed out. This intended which the CTMCA was in the position to receive a next tranche of funding without having to deliver evidence that it had employed the main tranche for its supposed reason.

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

Dabishi Nthambeleni advised that

the NLC decline any foreseeable future funding programs in the CTMCA;
the CTMCA and any users who had been associated with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated cash.
But, instead of act around the report’s tips, the NLC – below its prior administration – chose to suppress it, since it had performed Using the preceding experiences into corruption it experienced commissioned.

GroundUp sent concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the issues by e mail far too. But no reaction had been acquired at time of publication.



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