Leaked report exposes abuse of lottery income paid to minstrel group

Leaked report exposes abuse of lottery income paid to minstrel group

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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the National Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum ever existed.
The investigators located the CTMCA did not use the R5-million allocated to purchase or create a museum.
They also found which the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They identified the CTMCA employed resources with the Lottery to get workshop gear from one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice the city’s abundant minstrel history went astray. The museum was by no means made.

The main points from the abuse of numerous rands of Lottery money for any museum that never ever was are discovered in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of over R64-million in Lottery funds allotted on the CTMCA among 2003 and 2017.

The very first Element of the investigation, by legislation business Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for the museum. The permitted budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for a developing to house the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for your museum and whether the museum “actually existed”.

The business was also instructed to analyze

the purchase with Lottery funds of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
several machines “purchased for that manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors from the organisation. Stemmet was reappointed to be a director in May well 2021.

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



The setting up on the proper was the meant web page in the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to your Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - such as the museum - in between 2012 and 2015. All a few assignments were completed, she informed MPs.

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

At first the museum was due to open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung within the partitions, plus a model ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum had at any time operated from these premises.

Stemmet told the investigators the museum had been moved mainly because they could no longer manage the lease of R100,000 per month. He claimed the CTMCA experienced procured property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is inside of a peri-urban place much from the city.

Subsequently, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after checking out the premises, that happen to be in an industrial location, the investigators claimed they doubted regardless of whether a suitable museum existed there. Images attached into the report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, exhibited on tables and unfold out on the ground, without any explanation.

“There is a nominal quantity of objects within the museum [that] by no means depict the greater than one hundred-12 months record of the Cape City Carnival, the investigators stated, incorporating that there was “no signage exterior the premises indicating they housed a museum and … normally, the museum will not appear to be open up to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to an alternative site without having notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with town of Cape City and was fearful its machines could well be hooked up.

“Due to the lawful battles as well as debts, the organisation experienced to move its assets from 5 Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses purchased with lottery funds have been saved within a top secret area “concealed from the Sheriff”. Even so the investigators said they had been unable to verify that any buses had ever been purchased.

Stemmet also confirmed the buses had been hidden to stop them getting seized. But once the investigators asked for being taken for the spot the place the buses have been stored, he told them that “the operator of The key area wasn't accessible to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for two vehicles that it allegedly procured with grant income,” the investigators noted.

Soeker also instructed them the Schaapkraal home were sold as a result of debt.

“Mr Soeker discussed that according to his knowledge, because of the credit card debt owed to the town of Cape City, the CTMCA resolved it would be very best to promote their [Schaapkraal] home … and to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for security and security, has Beforehand instructed GroundUp the CTMCA “threw cash absent” on litigation with the town.

“Yearly like clockwork, as we technique the end of the 12 months, the CTMCA picks a legal combat with town, in excess of permits or another thing. We never ever initiate it. They keep throwing income absent on vexatious litigation that they shed and have costs awarded against them. This is certainly completely self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the leading position gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of every one of the admin, funds and managing หวย ไทยรัฐ the CTMCA.” The investigators claimed they were struggling to Get in touch with Momberg.

Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered many machines, some in good condition, some in poor situation and a few that looked rusty and very previous”. Stemmet explained to the investigators that there was also an off-web page storage facility the place “devices and several equipment” have been kept.

“We requested him to choose us to the facility but he was evasive to our request.”

Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, of your products appear to be products which was illegally faraway from the CTMCA’s past premises. Stemmet is facing costs for this removal.

According to the final development report submitted to the NLC by the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter were administrators at time.

The investigators found this “alarming”.

“Within the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Take note the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be crafted and/or transformed,” they reported.

An audit by accountants Kopano Integrated, connected to your investigative report, recorded the CTMCA was in the whole 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 detailed Company of which Stemmet was considered one of the directors.

In line with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, which means R6.nine-million continues to be owed, though there is no payment date established for when this has to be compensated.

The Kopano audit as well as the shut hyperlink involving the businesses “show to us that there is ‘foul Enjoy’ involved in the purchase in the machinery on the museum workshop”, the investigators reported in the report.

“We find that it's highly possible that CTMCA made use of the funding of the NLC to ‘refund’ one of its main administrators for that residence at a better overpriced charge than the particular rate and worth of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA were put in.

“In reality, a detailed report on how the funding of your NLC was utilised, would be extremely hard given that the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on each item it requested funding for. The interim report and last report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a internet site check out ahead of approving the grant. But this was not regular practice at some time plus they identified no proof of carelessness by NLC staff.

At the time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim reports, they identified. This intended that the CTMCA was in the position to receive a 2nd tranche of funding without the need to supply evidence that it experienced used the primary tranche for its supposed purpose.

Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni advisable that

the NLC decrease any potential funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced carried out Along with the previous reviews into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to mail the thoughts by electronic mail too. But no reaction were acquired at time of publication.



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