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 complete in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant with the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has observed no evidence that a museum ever existed.
The investigators located the CTMCA did not make use of the R5-million allocated to get or produce a museum.
Additionally they identified that the CTMCA only bought land worth R1.7-million, not R5-million as allocated.
They found the CTMCA used cash in the Lottery to purchase workshop gear from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Fee (NLC) to put in place a museum to rejoice the city’s prosperous minstrel heritage went astray. The museum was by no means produced.

The main points of your abuse of numerous rands of Lottery cash for just a museum that in no way was are unveiled within an investigative report commissioned from the NLC in 2021.

The museum grant was A part of much more than R64-million in Lottery money allocated into the CTMCA amongst 2003 and 2017.

The first part of the investigation, by legislation agency Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which provided funding for that museum. The accredited finances with the museum was much more than R12.8-million, with R5-million of that allotted for your setting up to accommodate the museum.

Study the report (PDF, 7MB)

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

The business was also instructed to research

the acquisition with Lottery cash of two autos – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
various machines “ordered to the production of your costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted criminal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators with the organisation. Stemmet was reappointed to be a director in Might 2021.

The investigation followed in depth reporting by GroundUp with regards to the countless rands of Lottery funding allotted into the CTMCA (see here, right here and right here) and just how the funds most likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.



The creating on the right was the supposed internet site of your minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to the Parliamentary question, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - such as the museum - between 2012 and 2015. All a few projects were completed, she explained to MPs.

Nevertheless the investigators located no proof that a museum experienced at any time existed.

At first the museum was because of open up in rented premises in Crete Highway, Wetton. A photo received by GroundUp of the supposed Wetton museum displays a coffee shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung over the partitions, as well as a product ship on its plinth in a corner.

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

Stemmet instructed the investigators the museum had been moved simply because they could not afford to pay for the hire of R100,000 per month. He claimed the CTMCA had obtained home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were offered for a similar rate. Schaapkraal is within a peri-urban space significantly from town.

As a result, the museum were moved to a fresh location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after visiting the premises, that happen to be in an industrial location, the investigators claimed they doubted regardless of whether a correct museum existed there. Pictures hooked up into the report exhibit a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the floor, without rationalization.

“You will find a minimal number of products at the museum [that] under no circumstances symbolize the more than 100-yr heritage with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum isn't going to seem to get open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by shifting the location with the museum to an alternative locale without the need of notifying the NLC.



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

Buses
Stemmet advised the investigators which the CTMCA experienced to move through the rented Crete Road premises as it had run up a R4-million personal debt with the City of Cape Town and was concerned its machines would be attached.

“Due to lawful battles and also the debts, the organisation had to move its home from 5 Crete Road to stay away from the sheriff from attaching the home with the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director in the CTMCA, informed them that the two buses acquired with lottery cash have been stored inside of a mystery area “concealed through the Sheriff”. Although the investigators mentioned they were being unable to verify that any buses had ever been bought.

Stemmet also verified which the buses were hidden to halt them getting seized. But when the investigators requested to generally be taken to the put wherever the buses had been saved, he instructed them that “the owner of The key locale was not available to open up the premises for us”.

“The CTMCA couldn't deliver evidence of payment for 2 motor vehicles that it allegedly bought with grant funds,” the investigators reported.

Soeker also informed them the Schaapkraal home were offered as a result of debt.

“Mr Soeker stated that In accordance with his knowing, because of the credit card debt owed to the City of Cape City, the CTMCA resolved It could be ideal to market their [Schaapkraal] home … also to also to hide the belongings from the CTMCA to stay away from the sheriff from attaching the residence.”

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

“Each and every year like clockwork, as we method the end on the calendar year, the CTMCA picks a lawful fight with town, about permits or another thing. We by no means initiate it. They preserve throwing funds away on vexatious litigation that they drop and possess costs awarded versus them. This really is entirely self-inflicted,” he said.

Soeker told the Dabishi Nthambeleni investigators that the key purpose gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of all of the admin, finances and working ตรวจ สลาก the CTMCA.” The investigators stated they had been unable to Call Momberg.

Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “observed numerous machines, some in great affliction, some in poor issue and some that seemed rusty and very old”. Stemmet advised the investigators that there was also an off-web-site storage facility wherever “devices plus some machinery” were kept.

“We questioned him to acquire us to the ability but he was evasive to our request.”

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, on the items seem like machines that was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing costs for this elimination.

Based on the final progress report submitted on the NLC via the CTMCA, the machinery was obtained from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter have been administrators at time.

The investigators identified this “alarming”.

“Through the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Notice the next alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is five Crete Road, Wetton, Cape City, the same tackle on which the museum was intended to be crafted and/or converted,” they described.

An audit by accountants Kopano Integrated, hooked up towards the investigative report, recorded which the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the directors.

In keeping with Dabishi Nthambeleni, the organization has paid out R1.2-million for a deposit, meaning R6.nine-million remains owed, even though there is absolutely no payment day set for when this have to be paid.

The Kopano audit along with the close link between the companies “indicate to us that there's ‘foul play’ involved with the purchase of your machinery with the museum workshop”, the investigators mentioned in the report.

“We discover that it's extremely probable that CTMCA made use of the funding from the NLC to ‘refund’ one of its principal directors for your home at a better overpriced amount than the particular price and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant to the CTMCA were invested.

“In reality, an in depth report on how the funding in the NLC was utilized, would be unachievable as being the CTMCA does not have any receipts, or proof of payments to substantiate the quantities invested on Each individual item it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not conducted a web site check out in advance of approving the grant. But this wasn't standard apply at time plus they found no evidence of carelessness by NLC employees.

At some time, the NLC’s procedures didn't demand funded organisations to submit proof of payment with interim reports, they identified. This meant the CTMCA was capable to receive a 2nd tranche of funding without needing to provide proof that it experienced employed the very first tranche for its meant function.

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 decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, rather than act over the report’s suggestions, the NLC – under its former administration – chose to suppress it, since it experienced completed Using the previous studies into corruption it experienced commissioned.

GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for electronic mail addresses to send the queries by e mail too. But no response were received at the time of publication.



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