Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

Blog Article

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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the Nationwide Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to get or make a museum.
In addition they observed the CTMCA only purchased land really worth R1.seven-million, not R5-million as allotted.
They located the CTMCA applied resources in the Lottery to buy workshop tools from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to create a museum to celebrate town’s prosperous minstrel record went astray. The museum was under no circumstances produced.

The small print of your abuse of a lot of rands of Lottery money for any museum that never ever was are unveiled in an investigative report commissioned through the NLC in 2021.

The museum grant was A part of greater than R64-million in Lottery resources allotted towards the CTMCA between 2003 and 2017.

The 1st Element of the investigation, by legislation firm Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which provided funding for the museum. The approved spending plan with the museum was more than R12.eight-million, with R5-million of that allocated for a building to deal with the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for the museum and whether or not the museum “in fact existed”.

The firm was also instructed to investigate

the acquisition with Lottery cash of two autos – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
numerous equipment “obtained for the producing of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted criminal 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 spouse Zainonesa and daughter Raziah ongoing as two of various administrators of the organisation. Stemmet was reappointed like a director in Might 2021.

The investigation followed substantial reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated to your CTMCA (see listed here, listed here and here) and just how the resources possibly aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at some time by Marius Fransman.



The developing on the correct was the supposed web site with the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Image: Raymond Joseph

In reaction into a Parliamentary question, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “projects” - including the museum - concerning 2012 and 2015. All a few projects were done, she explained to MPs.

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

At the beginning the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of the intended Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, and also a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni explained it absolutely was “not in a position” to substantiate if a museum had ever operated from these premises.

Stemmet told the investigators the museum were moved as they could no more afford to pay for the lease of R100,000 a month. He said the CTMCA experienced purchased assets for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and were offered for the same selling price. Schaapkraal is inside of a peri-urban spot much from town.

Therefore, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following traveling to the premises, which can be within an industrial area, the investigators claimed they doubted no matter whether an appropriate museum existed there. Pictures connected on the report clearly show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, displayed on tables and distribute out on the ground, without having clarification.

“There exists a minimal degree of objects in the museum [that] on no account represent the a lot more than one hundred-calendar year background on the Cape Town Carnival, the investigators mentioned, including that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum doesn't glance being open to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni pointed out, by transferring the location of the museum to an alternate site with out notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA had to maneuver from the rented Crete Road premises as it experienced operate up a R4-million personal debt with town of Cape City and was afraid its tools can be connected.

“A result of the authorized battles as well as the debts, the organisation experienced to maneuver its home from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses acquired with lottery funds ended up saved in a very mystery place “concealed from your Sheriff”. But the investigators claimed they had been not able to substantiate that any buses experienced at any time been purchased.

Stemmet also verified which the buses had been hidden to halt them currently being seized. But in the event the investigators asked for being taken to your spot the place the buses have been saved, he explained to them that “the operator of the secret place was not available to open the premises for us”.

“The CTMCA couldn't present proof of payment for two cars that it allegedly ordered with grant revenue,” the investigators reported.

Soeker also told them the Schaapkraal home had been sold because of the financial debt.

“Mr Soeker described that according to his comprehending, a result of the financial debt owed to the City of Cape Town, the CTMCA resolved It might be best to sell their [Schaapkraal] assets … and also to also to cover the belongings of the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for protection and security, has Beforehand told GroundUp that the CTMCA “threw revenue absent” on litigation with the City.

“On a yearly basis like clockwork, as we solution the top from the yr, the CTMCA picks a authorized combat with town, over permits or another thing. We never ever initiate it. They retain throwing revenue absent on vexatious litigation that they lose and possess charges awarded from them. This really is entirely self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial purpose gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of each of the admin, funds and jogging ตรวจ หวย ลาว the CTMCA.” The investigators explained they had been not able to contact Momberg.

Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “located many devices, some in great issue, some in bad affliction and several that seemed rusty and intensely old”. Stemmet told the investigators that there was also an off-web site storage facility in which “instruments and some machinery” were stored.

“We asked him to get us to the facility but he was evasive to our ask for.”

According to pictures and invoices in GroundUp’s possession, some, Otherwise all, in the items seem like gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing prices for this removing.

According to the closing development report submitted to the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter have been directors at time.

The investigators identified this “alarming”.

“Through the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Road, Wetton, Cape Town, exactly the same handle on which the museum was intended to be constructed and/or transformed,” they reported.

An audit by accountants Kopano Included, hooked up towards the investigative report, recorded which the CTMCA was in the entire process of obtaining “equipment, plant and inventory” 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 administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million for a deposit, that means R6.9-million is still owed, nevertheless there is no payment day established for when this has to be compensated.

The Kopano audit as well as near link involving the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition from the machinery with the museum workshop”, the investigators mentioned during the report.

“We discover that it is remarkably possible that CTMCA used the funding from the NLC to ‘refund’ one among its most important administrators for the home at an increased overpriced amount than the actual rate and price of the home and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant on the CTMCA had been spent.

“In reality, an in depth report on how the funding in the NLC was used, would be unattainable as the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts invested on Each individual item it requested funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a internet site check out in advance of approving the grant. But this wasn't normal apply at the time they usually observed no evidence of carelessness by NLC staff members.

At time, the NLC’s rules didn't need funded organisations to post proof of payment with interim studies, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to provide proof that it had applied the very first tranche for its meant reason.

Following the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these together with other challenges.

Dabishi Nthambeleni suggested that

the NLC decline any long term funding applications in the CTMCA;
the CTMCA and any members who were involved in the grant be subjected into the NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – beneath its former administration – chose to suppress it, since it experienced carried out While using the prior stories into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the questions by email as well. But no response had been received at some time of publication.



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