LEAKED REPORT EXPOSES ABUSE OF LOTTERY DOLLARS PAID OUT TO MINSTREL GROUP

Leaked report exposes abuse of lottery dollars paid out to minstrel group

Leaked report exposes abuse of lottery dollars paid out to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum ever existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or develop a museum.
They also found which the CTMCA only purchased land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA utilised funds through the Lottery to invest in workshop products from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to put in place a museum to rejoice the town’s rich minstrel heritage went astray. The museum was hardly ever developed.

The details on the abuse of millions of rands of Lottery resources for just a museum that never was are disclosed within an investigative report commissioned from the NLC in 2021.

The museum grant was Component of over R64-million in Lottery cash allotted to your CTMCA involving 2003 and 2017.

The very first Element of the investigation, by law agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which included funding to the museum. The authorized budget for your museum was more than R12.8-million, with R5-million of that allocated for just a building to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the building for that museum and if the museum “actually existed”.

The business was also instructed to analyze

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

The investigation adopted comprehensive reporting by GroundUp with regard to the a lot of rands of Lottery funding allotted to your CTMCA (see below, listed here and below) and the best way the resources most likely aided finance the ANC’s 2014 election campaign while in the Western Cape, led by at the time by Marius Fransman.



The building on the appropriate was the intended website of your minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Photo: Raymond Joseph

In response to the Parliamentary issue, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “assignments” - including the museum - concerning 2012 and 2015. All three initiatives had been accomplished, she advised MPs.

Though the investigators discovered no proof that a museum had at any time existed.

At the outset the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp on the supposed Wetton museum displays a coffee shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung on the partitions, and a product ship on its plinth inside of a corner.

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

Stemmet informed the investigators the museum had been moved mainly because they could now not find the money for the rent of R100,000 a month. He said the CTMCA had acquired 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 within a peri-urban location much from the city.

Therefore, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after going to the premises, that are within an industrial space, the investigators reported they doubted irrespective of whether a suitable museum existed there. Photos connected to the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without any clarification.

“You will find there's nominal degree of things with the museum [that] on no account signify the a lot more than a hundred-yr record with the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum won't seem to get open up to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by going the location from the museum to an alternative location without having notifying the NLC.



The Schaapkraal property, on which no museum was at any time created. Photograph: Raymond Joseph

Buses
Stemmet told the investigators which the CTMCA had to move with the rented Crete Street premises because it had operate up a R4-million credit card debt with the City of Cape Town and was concerned its tools could be connected.

“As a result of authorized battles along with the debts, the organisation experienced to move its assets from 5 Crete Highway to steer clear of the sheriff from attaching the home of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director of your CTMCA, told them that the two buses bought with lottery money were being saved inside of a top secret place “concealed in the Sheriff”. But the investigators explained they had been not able to confirm that any buses experienced ever been acquired.

Stemmet also confirmed the buses were concealed to stop them currently being seized. But if the investigators questioned to become taken into the location where the buses have been saved, he explained to them that “the operator of The key place was not accessible to open the premises for us”.

“The CTMCA could not present evidence of payment for two cars that it allegedly purchased with grant dollars,” the investigators noted.

Soeker also instructed them the Schaapkraal house had been marketed due to personal debt.

“Mr Soeker discussed that In accordance with his knowing, due to financial debt owed to town of Cape Town, the CTMCA made a decision It might be best to provide their [Schaapkraal] house … also to also to hide the property from the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for protection and protection, has Formerly instructed GroundUp which the CTMCA “threw cash away” on litigation with town.

“Yearly like clockwork, as we technique the tip from the year, the CTMCA picks a lawful struggle with the town, around permits or another thing. We hardly ever initiate it. They retain throwing funds absent on vexatious litigation that they get rid of and have charges awarded versus them. This can be fully self-inflicted,” he said.

Soeker advised the Dabishi Nthambeleni investigators that the main position gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and operating luckyvip77 the CTMCA.” The investigators reported they had been unable to Speak to Momberg.

Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “located a lot of equipment, some in fantastic affliction, some in undesirable issue and several that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-web site storage facility where “devices and several equipment” had been retained.

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

Determined by photos and invoices in GroundUp’s possession, some, if not all, in the goods look like equipment that was illegally removed from the CTMCA’s earlier premises. Stemmet is going through fees for this elimination.

Based on the ultimate progress report submitted for the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a firm in which Stemmet, his spouse and his daughter were being administrators at some time.

The investigators uncovered this “alarming”.

“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be developed and/or converted,” they noted.

An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.

In line with Dabishi Nthambeleni, the business has paid out R1.2-million to be a deposit, this means R6.nine-million remains to be owed, even though there's no payment date established for when this has to be paid.

The Kopano audit and the near link involving the companies “point out to us that there's ‘foul Engage in’ linked to the purchase with the equipment from the museum workshop”, the investigators explained in the report.

“We find that it is very possible that CTMCA used the funding in the NLC to ‘refund’ certainly one of its key administrators with the property at the next overpriced charge than the actual price tag and worth of the residence and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were put in.

“In fact, an in depth report on how the funding on the NLC was utilized, could well be unachievable given that the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts expended 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 identified the NLC had not done a web site visit just before approving the grant. But this was not normal apply at time and they found no proof of carelessness by NLC personnel.

At time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was capable to receive a 2nd tranche of funding without needing to offer proof that it experienced utilized the 1st tranche for its intended intent.

Adhering to the appointment of a new board, commissioner and senior government workforce, the NLC has tightened up on these and also other problems.

Dabishi Nthambeleni advisable that

the NLC decrease any foreseeable future funding apps within the CTMCA;
the CTMCA and any users who were linked to the grant be subjected towards 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 resources.
But, in lieu of act within the report’s tips, the NLC – beneath its prior administration – selected to suppress it, mainly because it had finished Together with the prior stories into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and questioned for email addresses to deliver the issues by electronic mail as well. But no response had been acquired at enough time of publication.



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

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