Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels execute in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant through the National Lotteries Fee on the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has found no evidence that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allocated to get or make a museum.
Additionally they observed that the CTMCA only purchased land really worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of money from the Lottery to get workshop products from one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate town’s rich minstrel historical past went astray. The museum was never ever established.

The details from the abuse of many rands of Lottery resources for just a museum that in no way was are disclosed within an investigative report commissioned with the NLC in 2021.

The museum grant was part of a lot more than R64-million in Lottery resources allotted to the CTMCA in between 2003 and 2017.

The initial Portion of the investigation, by legislation company Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which bundled funding for that museum. The accredited funds for your museum was greater than R12.eight-million, with R5-million of that allotted for your creating to deal with the museum.

Go through the report (PDF, 7MB)

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

The company was also instructed to research

the purchase with Lottery money of two cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
various equipment “procured with the producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors in the organisation. Stemmet was reappointed like a director in Could 2021.

The investigation adopted considerable reporting by GroundUp with regards to the millions of rands of Lottery funding allotted to your CTMCA (see below, listed here and right here) and just how the cash possibly aided finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.



The constructing on the ideal was the intended site from the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph

In response to your Parliamentary problem, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “assignments” - including the museum - between 2012 and 2015. All 3 projects had been done, she advised MPs.

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

At the outset the museum was due to open in rented premises in Crete Road, Wetton. A photo received by GroundUp in the intended Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of images haphazardly hung within the walls, and also a design ship on its plinth within a corner.

In its report, Dabishi Nthambeleni claimed it absolutely was “not able” to substantiate if a museum had at any time operated from these premises.

Stemmet explained to the investigators the museum had been moved as they could not pay for the hire of R100,000 a month. He reported the CTMCA experienced obtained property for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for the same value. Schaapkraal is inside of a peri-urban place considerably from the city.

Therefore, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after visiting the premises, that happen to be within an industrial place, the investigators said they doubted no matter whether a proper museum existed there. Photographs hooked up to your report exhibit a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, displayed on tables and unfold out on the floor, without having clarification.

“There's a negligible level of goods with the museum [that] under no circumstances represent the a lot more than a hundred-calendar year history of the Cape City Carnival, the investigators explained, introducing that there was “no signage outside the premises indicating they housed a museum and … typically, the museum does not look being open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The placement on the museum to an alternate place with no notifying the NLC.



The Schaapkraal residence, on which no museum was at any time designed. Image: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to move from your rented Crete Street premises mainly because it had run up a R4-million credit card debt with town of Cape City and was afraid its tools will be attached.

“A result of the legal battles and also the debts, the organisation had to maneuver its home from 5 Crete Street to avoid the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, the current director in the CTMCA, explained to them that the two buses bought with lottery money had been stored inside a mystery site “hidden from your Sheriff”. Nevertheless the investigators mentioned they had been not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified that the buses had been concealed to halt them becoming seized. But once the investigators requested for being taken for the spot exactly where the buses were saved, he informed them that “the operator of The key area wasn't available to open up the premises for us”.

“The CTMCA couldn't offer evidence of payment for 2 autos that it allegedly procured with grant income,” the investigators reported.

Soeker also told them the Schaapkraal house had been offered due to the debt.

“Mr Soeker explained that In accordance with his comprehension, a result of the debt owed to town of Cape Town, the CTMCA made a decision it would be finest to promote their [Schaapkraal] residence … and to also to hide the property of your CTMCA to stay away from the sheriff from attaching the residence.”

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

“Each year like clockwork, as we strategy the end with the 12 months, the CTMCA picks a authorized combat with the City, above permits or another thing. We in no way initiate it. They hold throwing money away on vexatious litigation that they get rid of and possess expenses awarded from them. This can be totally self-inflicted,” he claimed.

Soeker told the Dabishi Nthambeleni investigators that the key position players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who have been in command of all the admin, funds and functioning หวย ออก the CTMCA.” The investigators explained they had been not able to Speak to Momberg.

Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “observed a lot of machines, some in fantastic affliction, some in lousy ailment and many that seemed rusty and extremely aged”. Stemmet advised the investigators that there was also an off-internet site storage facility where by “instruments and many equipment” were held.

“We questioned him to choose us to the power but he was evasive to our request.”

Determined by shots and invoices in GroundUp’s possession, some, Otherwise all, from the things look like devices that was illegally removed from the CTMCA’s past premises. Stemmet is struggling with charges for this removing.

Based on the closing progress report submitted to the NLC from the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm through which Stemmet, his spouse and his daughter had been administrators at some time.

The investigators located this “alarming”.

“In the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the organization is 5 Crete Road, Wetton, Cape City, exactly the same address on which the museum was meant to be constructed and/or converted,” they documented.

An audit by accountants Kopano Incorporated, attached into the investigative report, recorded which the CTMCA was in the whole process of buying “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.

According to Dabishi Nthambeleni, the corporate has paid R1.two-million as being a deposit, indicating R6.9-million remains owed, even though there isn't any payment day established for when this should be paid.

The Kopano audit as well as close backlink in between the companies “point out to us that there's ‘foul play’ involved in the purchase in the machinery in the museum workshop”, the investigators explained during the report.

“We find that it's really possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors for your residence at an increased overpriced price than the actual price and worth of the assets and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant on the CTMCA were used.

“In reality, a detailed report on how the funding from the NLC was utilised, could well be unattainable as being the CTMCA does not have any receipts, or evidence of payments to verify the amounts spent on Each and every item it asked for funding for. The interim report and last report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not done a internet site visit ahead of approving the grant. But this wasn't standard apply at time plus they observed no proof of carelessness by NLC workforce.

At the time, the NLC’s guidelines did not require funded organisations to post evidence of payment with interim stories, they pointed out. This meant which the CTMCA was able to get a 2nd tranche of funding without needing to supply proof that it experienced employed the initial tranche for its supposed function.

Subsequent the appointment of a brand new board, commissioner and senior government team, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni suggested that

the NLC decrease any future funding apps within the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected to the NLC’s “delinquency” method;
the NLC open a legal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, as opposed to act around the report’s recommendations, the NLC – less than its past administration – chose to suppress it, as it experienced accomplished With all the previous experiences into corruption it had commissioned.

GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for e mail addresses to send the issues by email too. But no response had been gained at the time of publication.



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

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