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 conduct in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has found no evidence that a museum ever existed.
The investigators located which the CTMCA didn't use the R5-million allotted to acquire or produce a museum.
Additionally they identified the CTMCA only bought land well worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA utilized cash from your Lottery to invest in workshop gear from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Commission (NLC) to setup a museum to celebrate the town’s rich minstrel background went astray. The museum was never ever produced.

The main points on the abuse of an incredible number of rands of Lottery funds for the museum that never was are unveiled within an investigative report commissioned from the NLC in 2021.

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

The first Portion of the investigation, by law organization Dabishi Nthambeleni, was executed involving September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which integrated funding for the museum. The authorised funds for the museum was over R12.eight-million, with R5-million of that allocated for just a building to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the developing with the museum and whether or not the museum “essentially existed”.

The organization was also instructed to research

the purchase with Lottery money of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous devices “procured for that producing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted prison 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 ongoing as two of quite a few directors from the organisation. Stemmet was reappointed being a director in May 2021.

The investigation followed in depth reporting by GroundUp concerning the countless rands of Lottery funding allotted to your CTMCA (see in this article, listed here and in this article) and how the funds in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The setting up on the appropriate was the supposed internet site with the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to the Parliamentary query, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “assignments” - including the museum - among 2012 and 2015. All three tasks had been concluded, she instructed MPs.

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

At the outset the museum was on account of open in rented premises in Crete Street, Wetton. A photo received by GroundUp with the intended Wetton museum demonstrates a coffee shop with some musical devices and minstrel costumes and collages of images haphazardly hung around the partitions, and also a model ship on its plinth inside of a corner.

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

Stemmet instructed the investigators the museum had been moved mainly because they could no longer afford the rent of R100,000 per month. He explained the CTMCA had bought property for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for a similar price tag. Schaapkraal is in a very peri-urban area far from the town.

Subsequently, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after viewing the premises, that happen to be in an industrial location, the investigators claimed they doubted no matter if a proper museum existed there. Photographs connected towards the report demonstrate a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, shown on tables and unfold out on the ground, without having clarification.

“There exists a minimum quantity of products within the museum [that] by no means represent the in excess of 100-12 months history in the Cape City Carnival, the investigators reported, adding that there was “no signage outdoors the premises indicating they housed a museum and … commonly, the museum does not appear for being open to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation of your museum to another spot with no notifying the NLC.



The Schaapkraal house, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA had to maneuver through the rented Crete Road premises mainly because it experienced run up a R4-million financial debt with town of Cape City and was worried its devices could be hooked up.

“Due to legal battles plus the debts, the organisation had to move its residence from five Crete Road to avoid the sheriff from attaching the assets on the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director in the CTMCA, instructed them which the two buses purchased with lottery resources had been stored inside a key spot “hidden in the Sheriff”. Though the investigators stated they had been unable to confirm that any buses had ever been acquired.

Stemmet also verified that the buses had been concealed to halt them getting seized. But when the investigators asked for being taken into the put the place the buses were being stored, he instructed them that “the owner of the secret locale was not accessible to open the premises for us”.

“The CTMCA could not present evidence of payment for two automobiles that it allegedly obtained with grant revenue,” the investigators claimed.

Soeker also explained to them the Schaapkraal home were sold as a result of debt.

“Mr Soeker spelled out that As outlined by his knowing, due to the debt owed to town of Cape Town, the CTMCA decided it would be most effective to sell their [Schaapkraal] home … and to also to hide the assets in the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for security and security, has previously informed GroundUp which the CTMCA “threw income away” on litigation with town.

“Yearly like clockwork, as we approach the tip in the year, the CTMCA picks a lawful battle with the town, around permits or something else. We hardly ever initiate it. They hold throwing funds absent on vexatious litigation they lose and also have expenses awarded versus them. This is certainly solely self-inflicted,” he mentioned.

Soeker advised the Dabishi Nthambeleni investigators that the main function gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and working ผล หวย ลาว the CTMCA.” The investigators stated they were not able to Speak to Momberg.

Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered several equipment, some in excellent ailment, some in negative affliction and some that looked rusty and very aged”. Stemmet told the investigators that there was also an off-web site storage facility where by “devices and some machinery” had been held.

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

Based on photographs and invoices in GroundUp’s possession, some, Otherwise all, with the merchandise look like machines which was illegally faraway from the CTMCA’s earlier premises. Stemmet is going through fees for this removal.

Based on the final development report submitted to your NLC because of the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators identified this “alarming”.

“In the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Observe the subsequent alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the company is five Crete Street, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or converted,” they reported.

An audit by accountants Kopano Included, attached into the investigative report, recorded that the CTMCA was in the whole process of acquiring “equipment, plant and inventory” 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 administrators.

In accordance with Dabishi Nthambeleni, the corporation has compensated R1.two-million as being a deposit, indicating R6.nine-million remains to be owed, nevertheless there is absolutely no payment date set for when this has to be paid.

The Kopano audit as well as the close hyperlink between the businesses “point out to us that there is ‘foul play’ linked to the purchase from the equipment in the museum workshop”, the investigators said from the report.

“We find that it's very possible that CTMCA applied the funding from the NLC to ‘refund’ amongst its principal administrators with the property at a better overpriced level than the particular cost and value of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant on the CTMCA had been put in.

“Actually, a detailed report on how the funding from the NLC was utilized, will be unattainable because the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts spent on each product it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered the NLC experienced not carried out a website stop by prior to approving the grant. But this was not conventional practice at time plus they uncovered no evidence of negligence by NLC workforce.

At the time, the NLC’s policies didn't need funded organisations to submit proof of payment with interim stories, they identified. This intended the CTMCA was able to get a 2nd tranche of funding without the need to provide evidence that it experienced applied the first tranche for its supposed reason.

Pursuing the appointment of a different board, commissioner and senior executive team, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni advised that

the NLC drop any potential funding apps from the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected towards the NLC’s “delinquency” method;
the NLC open a felony circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, as opposed to act within the report’s recommendations, the NLC – below its prior administration – chose to suppress it, as it experienced finished with the past stories into corruption it had commissioned.

GroundUp despatched issues to Stemmet and Soeker by way of SMS, and questioned for e-mail addresses to mail the queries by electronic mail way too. But no reaction had been gained at the time of publication.



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

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