Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has uncovered no proof that a museum ever existed.
The investigators identified the CTMCA did not utilize the R5-million allotted to purchase or create a museum.
They also observed the CTMCA only acquired land worth R1.7-million, not R5-million as allotted.
They observed the CTMCA used money within the Lottery to get workshop tools from considered one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted for the Cape Town Minstrel Carnival Association (CTMCA) with the National Lotteries Commission (NLC) to build a museum to rejoice town’s abundant minstrel heritage went astray. The museum was hardly ever designed.

The details on the abuse of many rands of Lottery money for just a museum that never ever was are discovered within an investigative report commissioned from the NLC in 2021.

The museum grant was Portion of a lot more than R64-million in Lottery money allotted into the CTMCA involving 2003 and 2017.

The primary Portion of the investigation, by regulation firm Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which bundled funding for that museum. The authorized spending budget with the museum was more than R12.eight-million, with R5-million of that allotted for the building to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a making with the museum and whether or not the museum “basically existed”.

The firm was also instructed to analyze

the acquisition with Lottery funds of two vehicles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
numerous equipment “acquired for your producing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators in the organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed intensive reporting by GroundUp with regard to the a lot of rands of Lottery funding allocated on the CTMCA (see here, right here and listed here) and just how the funds possibly assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at some time by Marius Fransman.



The making on the best was the supposed web site from the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to a Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “projects” - including the museum - concerning 2012 and 2015. All three jobs had been done, she informed MPs.

Though the investigators discovered no proof that a museum had ever existed.

To start with the museum was due to open up in rented premises in Crete Highway, Wetton. A photo received by GroundUp on the intended Wetton museum displays a coffee shop with some musical devices and minstrel costumes and collages of images haphazardly hung about the walls, along with a product ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum had been moved because they could not afford to pay for the rent of R100,000 a month. He reported the CTMCA experienced purchased home for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for the same cost. Schaapkraal is within a peri-urban spot considerably from town.

Therefore, the museum were moved to a new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after browsing the premises, which are within an industrial space, the investigators reported they doubted regardless of whether a proper museum existed there. Photos connected to the report demonstrate a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed for the wall, displayed on tables and unfold out on the ground, without any rationalization.

“There is a small volume of merchandise in the museum [that] on no account characterize the over one hundred-calendar year heritage from the Cape Town Carnival, the investigators claimed, including that there was “no signage outdoors the premises indicating they housed a museum and … generally, the museum will not appear being open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by relocating The placement of your museum to an alternative location with out notifying the NLC.



The Schaapkraal home, on which no museum was ever developed. Image: Raymond Joseph

Buses
Stemmet instructed the investigators the CTMCA experienced to move from the rented Crete Street premises since it experienced operate up a R4-million credit card debt with the City of Cape Town and was fearful its gear can be attached.

“As a result of authorized battles and the debts, the organisation had to move its house from five Crete Highway to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources had been saved inside of a key site “concealed from your Sheriff”. Though the investigators said they had been unable to confirm that any buses had at any time been acquired.

Stemmet also verified the buses had been hidden to stop them becoming seized. But when the investigators questioned to generally be taken into the put where by the buses ended up stored, he told them that “the operator of the secret location wasn't available to open up the premises for us”.

“The CTMCA couldn't present proof of payment for two vehicles that it allegedly ordered with grant funds,” the investigators claimed.

Soeker also informed them the Schaapkraal assets had been offered due to debt.

“Mr Soeker discussed that Based on his comprehension, due to the debt owed to the City of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] home … and to also to cover the property on the CTMCA to stay away from the sheriff from attaching the home.”

JP Smith, Cape City’s mayco member for basic safety and safety, has previously instructed GroundUp the CTMCA “threw money absent” on litigation with the City.

“On a yearly basis like clockwork, as we technique the end on the year, the CTMCA picks a authorized struggle with the City, in excess of permits or another thing. We in no way initiate it. They continue to keep throwing cash away on vexatious litigation they eliminate and possess expenses awarded in opposition to them. This is often entirely self-inflicted,” he stated.

Soeker informed the Dabishi Nthambeleni investigators that the principle position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, finances and running หวย หุ้น ช่อง 9 the CTMCA.” The investigators said they were struggling to contact Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “identified many equipment, some in superior affliction, some in undesirable problem and some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-web page storage facility the place “devices and a few equipment” were held.

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

Based on photographs and invoices in GroundUp’s possession, some, Otherwise all, with the items appear to be tools that was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.

Based on the last progress report submitted into the NLC via the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter have been directors at enough time.

The investigators identified this “alarming”.

“From the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Take note the following alarming acquiring: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be built and/or converted,” they documented.

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

In accordance with Dabishi Nthambeleni, the organization has compensated R1.2-million as a deposit, this means R6.9-million remains owed, even though there's no payment day established for when this has to be compensated.

The Kopano audit and also the near connection among the businesses “suggest to us that there's ‘foul Perform’ associated with the purchase with the equipment of your museum workshop”, the investigators said within the report.

“We find that it's really possible that CTMCA made use of the funding of your NLC to ‘refund’ amongst its most important administrators to the home at a higher overpriced level than the actual cost and price of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant for the CTMCA were invested.

“In point of fact, a detailed report on how the funding on the NLC was used, can be not possible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities spent on Each and every merchandise it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not carried out a internet site check out ahead of approving the grant. But this was not standard observe at enough time and so they discovered no proof of carelessness by NLC employees.

At enough time, the NLC’s principles didn't have to have funded organisations to post evidence of payment with interim studies, they pointed out. This intended that the CTMCA was in the position to get a next tranche of funding without having to give proof that it had utilized the first tranche for its meant reason.

Subsequent the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advisable that

the NLC drop any foreseeable future funding programs through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act within the report’s tips, the NLC – below its former administration – chose to suppress it, because it experienced completed While using the earlier stories into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the thoughts by electronic mail too. But no reaction were gained at enough time of publication.



The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph