Leaked report exposes abuse of lottery dollars compensated to minstrel team

Leaked report exposes abuse of lottery dollars compensated to minstrel team

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the Countrywide Lotteries Commission to the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has identified no evidence that a museum at any time existed.
The investigators located which the CTMCA didn't make use of the R5-million allocated to purchase or produce a museum.
Additionally they found which the CTMCA only bought land value R1.seven-million, not R5-million as allocated.
They identified the CTMCA utilized cash in the Lottery to buy workshop tools from among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape City Minstrel Carnival Association (CTMCA) through the Nationwide Lotteries Fee (NLC) to put in place a museum to celebrate town’s wealthy minstrel heritage went astray. The museum was in no way produced.

The details in the abuse of an incredible number of rands of Lottery cash for any museum that by no means was are revealed within an investigative report commissioned through the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery funds allocated on the CTMCA in between 2003 and 2017.

The main Portion of the investigation, by legislation organization Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which integrated funding for the museum. The approved budget for that museum was a lot more than R12.8-million, with R5-million of that allotted for any building to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the making for the museum and if the museum “actually existed”.

The organization was also instructed to investigate

the purchase with Lottery cash of two vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
numerous equipment “obtained with the manufacturing with the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from 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 as being a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp with regards to the a lot of rands of Lottery funding allotted to your CTMCA (see here, in this article and in this article) and how the funds most likely helped finance the ANC’s 2014 election campaign while in the Western Cape, led by at some time by Marius Fransman.



The setting up on the right was the meant site of the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to your Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “jobs” - such as the museum - in between 2012 and 2015. All a few tasks were finished, she explained to MPs.

Although the investigators identified no evidence that a museum experienced ever existed.

At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp on the intended Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of pics haphazardly hung on the partitions, and a product ship on its plinth in a corner.

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

Stemmet explained to the investigators the museum were moved as they could not pay for the hire of R100,000 a month. He reported the CTMCA had purchased home for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been sold for the same price. Schaapkraal is in a peri-urban space much from the town.

Consequently, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial spot, the investigators said they doubted irrespective of whether an appropriate museum existed there. Images attached to the report show a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the ground, without clarification.

“There's a small volume of items with the museum [that] in no way symbolize the a lot more than a hundred-12 months record in the Cape Town Carnival, the investigators stated, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum doesn't glimpse to generally be open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting The situation with the museum to an alternate spot without the need of notifying the NLC.



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

Buses
Stemmet told the investigators the CTMCA experienced to maneuver in the rented Crete Highway premises because it experienced operate up a R4-million debt with the City of Cape Town and was scared its equipment could be attached.

“Because of the lawful battles as well as the debts, the organisation had to move its property from five Crete Street to stay away from the sheriff from attaching the house in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director of the CTMCA, explained to them that the two buses bought with lottery resources ended up saved in a very solution location “concealed in the Sheriff”. But the investigators explained they have been not able to substantiate that any buses experienced ever been purchased.

Stemmet also verified which the buses were concealed to halt them remaining seized. But once the investigators requested being taken to the put in which the buses were being saved, he told them that “the owner of the secret locale wasn't accessible to open the premises for us”.

“The CTMCA couldn't give proof of payment for two motor vehicles that it allegedly procured with grant dollars,” the investigators documented.

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

“Mr Soeker spelled out that As outlined by his comprehension, due to the debt owed to the town of Cape Town, the CTMCA determined it would be best to sell their [Schaapkraal] assets … and to also to cover the assets with the CTMCA to avoid the sheriff from attaching the residence.”

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

“Each year like clockwork, as we method the top with the yr, the CTMCA picks a lawful combat with town, about permits or something else. We never initiate it. They continue to keep throwing income absent on vexatious litigation that they get rid of and have expenses awarded in opposition to them. This is often totally self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial job gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in command of the many admin, finances and running ตรวจ the CTMCA.” The investigators mentioned they were not able to Get hold of Momberg.

Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “discovered numerous devices, some in excellent condition, some in lousy issue and some that appeared rusty and extremely outdated”. Stemmet told the investigators that there was also an off-web-site storage facility exactly where “instruments and many machinery” had been retained.

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

Determined by images and invoices in GroundUp’s possession, some, if not all, of your merchandise seem like products that was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with costs for this removal.

In accordance with the closing progress report submitted towards the NLC through the CTMCA, the equipment was acquired from Martin-Conne Milliners, an organization in which Stemmet, his wife and his daughter were administrators at some time.

The investigators located this “alarming”.

“In the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the business is 5 Crete Highway, Wetton, Cape Town, the same handle on which the museum was intended to be built and/or transformed,” they noted.

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

In accordance with Dabishi Nthambeleni, the company has paid R1.2-million being a deposit, indicating R6.nine-million remains owed, while there isn't any payment date set for when this have to be paid out.

The Kopano audit plus the near url amongst the companies “show to us that there's ‘foul Enjoy’ associated with the acquisition of your machinery of your museum workshop”, the investigators claimed while in the report.

“We find that it's extremely possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors for that property at an increased overpriced charge than the particular value and price of the home and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it was unable to establish how the grant on the CTMCA had been put in.

“The truth is, an in depth report on how the funding of your NLC was used, could be unattainable since the CTMCA does not have any receipts, or evidence of payments to confirm the quantities put in on Each and every item it asked for funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified that the NLC had not done a web site stop by just before approving the grant. But this wasn't conventional follow at some time and they discovered no evidence of negligence by NLC workforce.

At some time, the NLC’s principles didn't need funded organisations to submit proof of payment with interim reviews, they pointed out. This meant that the CTMCA was capable to receive a 2nd tranche of funding without the need to provide evidence that it had applied the 1st tranche for its meant goal.

Adhering to the appointment of a different board, commissioner and senior government workforce, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni advisable that

the NLC drop any long run funding programs within the CTMCA;
the CTMCA and any customers who ended up involved in the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated cash.
But, rather than act on the report’s recommendations, the NLC – under its previous administration – selected to suppress it, since it had completed With all the prior reports into corruption it experienced commissioned.

GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for e-mail addresses to send the concerns by electronic mail much too. But no response were acquired at some time of publication.



The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph

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