Leaked report exposes abuse of lottery income paid out to minstrel group

Leaked report exposes abuse of lottery income paid out to minstrel group

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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA did not use the R5-million allotted to obtain or build a museum.
They also discovered that the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA applied funds in the Lottery to purchase workshop equipment from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Commission (NLC) to set up a museum to celebrate town’s wealthy minstrel history went astray. The museum was under no circumstances produced.

The small print of the abuse of numerous rands of Lottery resources to get a museum that under no circumstances was are exposed in an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of a lot more than R64-million in Lottery cash allotted to your CTMCA amongst 2003 and 2017.

The 1st Element of the investigation, by regulation agency Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which involved funding for your museum. The approved finances for your museum was in excess of R12.eight-million, with R5-million of that allocated for a creating to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a building for your museum and whether or not the museum “essentially existed”.

The company was also instructed to research

the purchase with Lottery cash of two automobiles – a 60-seater bus and a 23-seater bus – for R2.4-million; and
different devices “acquired with the producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators of your organisation. Stemmet was reappointed being a director in May perhaps 2021.

The investigation followed substantial reporting by GroundUp in regards to the numerous rands of Lottery funding allotted for the CTMCA (see in this article, listed here and in this article) and the way in which the funds in all probability served finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at the time by Marius Fransman.



The constructing on the right was the meant site in the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph

In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “projects” - such as the museum - amongst 2012 and 2015. All 3 assignments had been accomplished, she instructed MPs.

Though the investigators discovered no evidence that a museum had ever existed.

At the outset the museum was on account of open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp with the supposed Wetton museum reveals a espresso store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, along with a product ship on its plinth inside a corner.

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

Stemmet informed the investigators the museum had been moved as they could no more manage the rent of R100,000 per month. He mentioned the CTMCA experienced purchased assets for R1.7-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been sold for a similar selling price. Schaapkraal is in the peri-city spot considerably from the town.

As a result, the museum had been moved to a fresh locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after browsing the premises, which are within an industrial space, the investigators said they doubted regardless of whether a correct museum existed there. Photographs attached into the report exhibit a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the floor, without having explanation.

“There is a small degree of goods on the museum [that] in no way signify the over 100-yr heritage from the Cape Town Carnival, the investigators reported, adding that there was “no signage outside the premises indicating which they housed a museum and … typically, the museum isn't going to glance to be open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by transferring The placement of your museum to another location without having notifying the NLC.



The Schaapkraal residence, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA experienced to maneuver from your rented Crete Highway premises since it experienced operate up a R4-million debt with the City of Cape Town and was concerned its machines would be attached.

“As a result of legal battles along with the debts, the organisation had to move its home from five Crete Street to stay away from the sheriff from attaching the house on the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director from the CTMCA, explained to them the two buses bought with lottery cash have been saved in a very key location “hidden from the Sheriff”. Although the investigators mentioned they were not able to confirm that any buses had ever been acquired.

Stemmet also confirmed that the buses had been concealed to stop them currently being seized. But in the event the investigators questioned to become taken for the area the place the buses ended up stored, he advised them that “the proprietor of the secret place was not accessible to open the premises for us”.

“The CTMCA could not offer evidence of payment for 2 cars that it allegedly obtained with grant funds,” the investigators documented.

Soeker also informed them the Schaapkraal property were sold due to credit card debt.

“Mr Soeker described that In line with his comprehension, as a result of personal debt owed to the City of Cape Town, the CTMCA resolved it would be greatest to offer their [Schaapkraal] home … and also to also to cover the property of your CTMCA to avoid the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for security and safety, has Formerly informed GroundUp that the CTMCA “threw funds away” on litigation with the town.

“On a yearly basis like clockwork, as we solution the top on the yr, the CTMCA picks a legal struggle with the town, above permits or something else. We in no way initiate it. They preserve throwing cash absent on vexatious litigation that they reduce and also have prices awarded in opposition to them. This is totally self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the primary role players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, finances and managing ผล สลากกินแบ่ง the CTMCA.” The investigators reported they had been not able to Call Momberg.

Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “found many devices, some in excellent issue, some in undesirable issue plus some that looked rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-website storage facility the place “instruments and a few machinery” had been saved.

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

Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, in the products seem like gear which was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing charges for this removal.

In accordance with the ultimate development report submitted for the NLC via the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business by which Stemmet, his wife and his daughter ended up administrators at enough time.

The investigators observed this “alarming”.

“From the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Take note the subsequent alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, the identical handle on which the museum was intended to be crafted and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the directors.

According to Dabishi Nthambeleni, the business has paid out R1.two-million as a deposit, which means R6.9-million continues to be owed, even though there isn't a payment day set for when this have to be paid.

The Kopano audit and the near url in between the businesses “indicate to us that there's ‘foul play’ involved with the purchase from the equipment in the museum workshop”, the investigators stated inside the report.

“We discover that it's very possible that CTMCA employed the funding of your NLC to ‘refund’ certainly one of its most important directors to the house at the next overpriced fee than the particular cost and worth of the residence and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant into the CTMCA were used.

“In point of fact, a detailed report on how the funding from the NLC was employed, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts spent on each merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC had not carried out a web-site visit just before approving the grant. But this was not normal follow at time and they found no proof of negligence by NLC workers.

At the time, the NLC’s rules didn't demand funded organisations to submit evidence of payment with interim reports, they identified. This meant the CTMCA was capable to receive a 2nd tranche of funding without having to present proof that it had applied the initial tranche for its meant purpose.

Subsequent the appointment of a completely new board, commissioner and senior executive team, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni advised that

the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire 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 Along with the prior stories into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by using SMS, and asked for email addresses to ship the issues by electronic mail much too. But no reaction were been given at some time of publication.



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