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

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no proof that a museum ever existed.
The investigators identified the CTMCA did not make use of the R5-million allocated to purchase or develop a museum.
Additionally they identified that the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They found the CTMCA utilized resources through the Lottery to get workshop gear from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to arrange a museum to rejoice the city’s prosperous minstrel heritage went astray. The museum was by no means developed.

The small print of your abuse of millions of rands of Lottery funds to get a museum that by no means was are exposed in an investigative report commissioned through the NLC in 2021.

The museum grant was Portion of in excess of R64-million in Lottery cash allocated to the CTMCA concerning 2003 and 2017.

The main Element of the investigation, by legislation firm Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which bundled funding for your museum. The authorised spending budget for that museum was more than R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for your museum and if the museum “actually existed”.

The organization was also instructed to analyze

the acquisition with Lottery resources of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
a variety of machines “obtained for your manufacturing from the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several administrators from the organisation. Stemmet was reappointed as a director in May well 2021.

The investigation adopted substantial reporting by GroundUp concerning the numerous rands of Lottery funding allocated into the CTMCA (see right here, here and right here) and the way the resources probably aided finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at the time by Marius Fransman.



The setting up on the right was the supposed site with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Image: Raymond Joseph

In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “tasks” - including the museum - among 2012 and 2015. All a few jobs were accomplished, she advised MPs.

Nevertheless the investigators located no proof that a museum had ever existed.

At the beginning the museum was due to open in rented premises in Crete Highway, Wetton. A photo received by GroundUp of the meant Wetton museum exhibits a coffee store with a few musical devices and minstrel costumes and collages of pictures haphazardly hung within the partitions, and a model ship on its plinth within a corner.

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

Stemmet informed the investigators the museum had been moved since they could now not find the money for the hire of R100,000 per month. He stated the CTMCA experienced obtained property for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is in a peri-urban region far from the city.

Therefore, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, that are within an industrial spot, the investigators stated they doubted whether or not an appropriate museum existed there. Photographs hooked up on the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and unfold out on the floor, without rationalization.

“There is a minimum volume of goods within the museum [that] in no way represent the greater than 100-calendar year record of your Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … typically, the museum does not glimpse to get open to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement of your museum to an alternative site with out notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA had to move through the rented Crete Street premises as it experienced operate up a R4-million personal debt with the City of Cape City and was afraid its tools will be connected.

“A result of the authorized battles plus the debts, the organisation experienced to move its property from five Crete Street to stay away from the sheriff from attaching the property from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of the CTMCA, explained to them the two buses acquired with lottery money were saved inside a magic formula site “hidden with the Sheriff”. Nevertheless the investigators said they had been unable to confirm that any buses had ever been bought.

Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators asked to become taken to the place where the buses were being stored, he informed them that “the operator of The key place wasn't available to open up the premises for us”.

“The CTMCA could not present proof of payment for 2 vehicles that it allegedly ordered with grant funds,” the investigators claimed.

Soeker also advised them the Schaapkraal assets had been offered as a result of debt.

“Mr Soeker spelled out that according to his comprehending, due to the personal debt owed to the town of Cape City, the CTMCA made the decision it would be ideal to promote their [Schaapkraal] assets … and to also to hide the assets of your CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for security and safety, has Formerly advised GroundUp the CTMCA “threw dollars away” on litigation with the City.

“Each and every year like clockwork, as we approach the top on the yr, the CTMCA picks a lawful battle with town, above permits or another thing. We never initiate it. They retain throwing cash absent on vexatious litigation that they reduce and possess expenses awarded versus them. That is entirely self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the primary position players on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and functioning ltpbet the CTMCA.” The investigators reported they had been unable to Speak to Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “discovered several devices, some in excellent issue, some in bad situation and a few that looked rusty and intensely previous”. Stemmet instructed the investigators that there was also an off-web site storage facility where “instruments and some equipment” were held.

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

Based upon pictures and invoices in GroundUp’s possession, some, if not all, with the items appear to be products that was illegally removed from the CTMCA’s preceding premises. Stemmet is experiencing prices for this elimination.

Based on the ultimate progress report submitted towards the NLC from the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter were being directors at some time.

The investigators located this “alarming”.

“In the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape Town, a similar address on which the museum was intended to be constructed 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 getting “machinery, plant and stock” 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 amongst the administrators.

As outlined by Dabishi Nthambeleni, the corporate has paid R1.two-million like a deposit, meaning R6.nine-million is still owed, while there isn't a payment day set for when this need to be paid.

The Kopano audit along with the shut hyperlink amongst the businesses “indicate to us that there is ‘foul Perform’ involved with the acquisition with the equipment of your museum workshop”, the investigators said within the report.

“We find that it's really possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its key directors for your property at the next overpriced fee than the actual rate and worth of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been used.

“Actually, an in depth report on how the funding from the NLC was utilised, would be extremely hard given that the CTMCA does not have any receipts, or proof of payments to confirm the amounts put in on Just about every product it asked for funding for. The interim report and remaining report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC experienced not executed a web-site take a look at in advance of approving the grant. But this was not normal practice at some time plus they identified no proof of negligence by NLC employees.

At enough time, the NLC’s principles didn't demand funded organisations to post proof of payment with interim studies, they identified. This meant the CTMCA was ready to receive a 2nd tranche of funding without the need to supply evidence that it experienced made use of the initial tranche for its meant reason.

Next the appointment of a brand new board, commissioner and senior executive group, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated funds.
But, in lieu of act around the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it experienced carried out Along with the previous reviews into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e mail way too. But no response were been given at enough time of publication.



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