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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to obtain or create a museum.
Additionally they discovered that the CTMCA only purchased land well worth R1.7-million, not R5-million as allocated.
They observed the CTMCA employed funds with the Lottery to acquire workshop devices from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape City Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the town’s abundant minstrel historical past went astray. The museum was never produced.

The details on the abuse of a lot of rands of Lottery money for any museum that in no way was are disclosed in an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of more than R64-million in Lottery money allocated to the CTMCA between 2003 and 2017.

The main Section of the investigation, by law firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which involved funding to the museum. The accredited funds to the museum was over R12.eight-million, with R5-million of that allotted to get a constructing to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing with the museum and whether the museum “truly existed”.

The company was also instructed to investigate

the acquisition with Lottery funds of two cars – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
many machines “procured with the production from the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director with 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 a number of administrators with the organisation. Stemmet was reappointed for a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp with regards to the countless rands of Lottery funding allotted towards the CTMCA (see below, in this article and here) and the way in which the funds possibly aided finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.



The setting up on the ideal was the intended internet site on the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to a Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “jobs” - including the museum - involving 2012 and 2015. All three jobs were completed, she advised MPs.

Though the investigators identified no proof that a museum had ever existed.

In the beginning the museum was because of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp with the intended Wetton museum shows a coffee store with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung over the partitions, and also a product ship on its plinth inside of a corner.

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

Stemmet instructed the investigators the museum had been moved simply because they could no longer manage the hire of R100,000 a month. He reported the CTMCA experienced acquired property for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been sold for a similar cost. Schaapkraal is inside of a peri-urban place considerably from the city.

Due to this fact, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after viewing the premises, which can be in an industrial space, the investigators claimed they doubted regardless of whether a suitable museum existed there. Shots hooked up to the report present a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed on the wall, shown on tables and spread out on the floor, with no rationalization.

“There is a negligible amount of goods on the museum [that] on no account depict the greater than 100-yr heritage in the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage outside the premises indicating which they housed a museum and … frequently, the museum does not seem to be open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting The placement with the museum to an alternate site with out notifying the NLC.



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

Buses
Stemmet told the investigators the CTMCA experienced to maneuver through the rented Crete Road premises as it experienced operate up a R4-million credit card debt with town of Cape City and was scared its equipment could well be connected.

“Due to legal battles and also the debts, the organisation had to maneuver its residence from five Crete Street to steer clear of the sheriff from attaching the residence of the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director of your CTMCA, told them the two buses purchased with lottery funds were being stored inside of a mystery site “hidden in the Sheriff”. However the investigators reported they have been not able to substantiate that any buses had ever been bought.

Stemmet also confirmed that the buses were concealed to halt them being seized. But when the investigators questioned to be taken towards the location in which the buses had been stored, he explained to them that “the proprietor of The key site was not available to open up the premises for us”.

“The CTMCA could not offer evidence of payment for two vehicles that it allegedly ordered with grant income,” the investigators reported.

Soeker also explained to them the Schaapkraal home were bought as a result of personal debt.

“Mr Soeker discussed that In accordance with his understanding, a result of the personal debt owed to town of Cape City, the CTMCA decided it would be greatest to market their [Schaapkraal] residence … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for basic safety and safety, has previously told GroundUp that the CTMCA “threw cash absent” on litigation with the town.

“Each and every year like clockwork, as we strategy the end of the calendar year, the CTMCA picks a authorized struggle with the town, over permits or another thing. We by no means initiate it. They continue to keep throwing dollars away on vexatious litigation that they eliminate and possess charges awarded from them. This can be solely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the principle role players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of every one of the admin, finances and managing hihuay the CTMCA.” The investigators explained they had been not able to Call Momberg.

Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “found many machines, some in superior situation, some in negative affliction plus some that appeared rusty and very old”. Stemmet told the investigators that there was also an off-web site storage facility in which “devices plus some equipment” have been stored.

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

Based on pics and invoices in GroundUp’s possession, some, if not all, of your products seem like machines that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing expenses for this elimination.

Based on the closing development report submitted to the NLC through the CTMCA, the machinery was acquired from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter were directors at some time.

The investigators uncovered this “alarming”.

“With the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be crafted and/or converted,” they documented.

An audit by accountants Kopano Incorporated, attached on the investigative report, recorded the CTMCA was in the entire process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.

In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million to be a deposit, this means R6.9-million is still owed, though there is no payment day set for when this must be paid.

The Kopano audit plus the close connection among the businesses “show to us that there's ‘foul Perform’ involved with the acquisition from the machinery with the museum workshop”, the investigators reported inside the report.

“We discover that it's highly probable that CTMCA utilized the funding with the NLC to ‘refund’ one of its principal directors to the assets at a greater overpriced price than the actual value and value of the home and/or machinery.”

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

“The truth is, an in depth report on how the funding in the NLC was utilised, can be unachievable given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts spent on Each individual merchandise it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC experienced not conducted a web site stop by before approving the grant. But this wasn't conventional observe at enough time plus they located no evidence of negligence by NLC workforce.

At enough time, the NLC’s policies did not involve funded organisations to post proof of payment with interim reviews, they identified. This meant which the CTMCA was capable to get a second tranche of funding while not having to offer proof that it experienced employed the 1st tranche for its supposed goal.

Pursuing the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advisable that

the NLC decrease any potential funding programs in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, mainly because it experienced completed While using the earlier stories into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for e-mail addresses to deliver the inquiries by e mail way too. But no response had been received at some time of publication.



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