Leaked report exposes abuse of lottery funds paid to minstrel group

Leaked report exposes abuse of lottery funds paid to minstrel group

Blog Article

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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant through the Nationwide Lotteries Commission towards the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no proof that a museum ever existed.
The investigators found which the CTMCA did not utilize the R5-million allocated to acquire or establish a museum.
They also located which the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA utilised money within the Lottery to invest in workshop devices from certainly one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice the town’s abundant minstrel heritage went astray. The museum was hardly ever designed.

The main points with the abuse of a lot of rands of Lottery money for a museum that in no way was are discovered within an investigative report commissioned from the NLC in 2021.

The museum grant was part of over R64-million in Lottery funds allocated for the CTMCA between 2003 and 2017.

The 1st Component of the investigation, by regulation company Dabishi Nthambeleni, was conducted 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 price range for that museum was much 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 purchase of the building for that museum and whether the museum “basically existed”.

The firm was also instructed to analyze

the acquisition with Lottery resources of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
several equipment “ordered to the manufacturing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few directors on the organisation. Stemmet was reappointed to be a director in May possibly 2021.

The investigation followed intensive reporting by GroundUp with regards to the a lot of rands of Lottery funding allocated to the CTMCA (see in this article, listed here and right here) and the way in which the resources almost certainly helped finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.



The making on the best was the intended internet site of the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to some Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “jobs” - including the museum - between 2012 and 2015. All three assignments had been concluded, she explained to MPs.

Nevertheless the investigators discovered no evidence that a museum had at any time existed.

Initially the museum was as a result of open up in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp on the meant Wetton museum reveals a espresso store with some musical instruments and minstrel costumes and collages of images haphazardly hung over the partitions, along with a model ship on its plinth within a corner.

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

Stemmet informed the investigators the museum were moved because they could no more pay for the lease of R100,000 per month. He stated the CTMCA had ordered property for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been offered for the same selling price. Schaapkraal is within a peri-urban spot significantly from town.

Subsequently, the museum were moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after viewing the premises, which happen to be within an industrial spot, the investigators mentioned they doubted regardless of whether a proper museum existed there. Photos hooked up to your report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, displayed on tables and unfold out on the floor, without having clarification.

“There exists a minimal degree of objects at the museum [that] under no circumstances signify the much more than 100-yr heritage of the Cape Town Carnival, the investigators stated, adding that there was “no signage outdoors the premises indicating they housed a museum and … commonly, the museum does not appear for being open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by moving The situation with the museum to an alternate place with out notifying the NLC.



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

Buses
Stemmet told the investigators the CTMCA experienced to move in the rented Crete Street premises because it had run up a R4-million personal debt with the City of Cape Town and was fearful its tools could well be attached.

“Mainly because of the legal battles along with the debts, the organisation had to move its residence from five Crete Street to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director on the CTMCA, instructed them the two buses bought with lottery money were being stored within a key locale “concealed from your Sheriff”. Though the investigators said they ended up unable to substantiate that any buses had ever been acquired.

Stemmet also confirmed the buses were hidden to prevent them currently being seized. But when the investigators requested to get taken for the put the place the buses had been saved, he told them that “the proprietor of The key locale wasn't accessible to open up the premises for us”.

“The CTMCA couldn't present proof of payment for two cars that it allegedly procured with grant cash,” the investigators noted.

Soeker also informed them the Schaapkraal house were bought because of the credit card debt.

“Mr Soeker explained that In line with his knowledge, mainly because of the credit card debt owed to the City of Cape City, the CTMCA resolved It could be ideal to sell their [Schaapkraal] assets … and to also to hide the belongings in the CTMCA to steer clear of the sheriff from attaching the home.”

JP Smith, Cape Town’s mayco member for safety and protection, has Beforehand told GroundUp that the CTMCA “threw income absent” on litigation with the town.

“Annually like clockwork, as we solution the top of your year, the CTMCA picks a authorized combat with town, above permits or something else. We hardly ever initiate it. They maintain throwing income away on vexatious litigation they get rid of and also have expenses awarded from them. This is often fully self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the principle position players on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, funds and functioning luckyvip77 the CTMCA.” The investigators reported they had been not able to Call Momberg.

Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “discovered quite a few devices, some in very good issue, some in terrible affliction and many that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility the place “instruments and many machinery” ended up stored.

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

Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like gear that was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing charges for this removal.

Based on the ultimate progress report submitted on the NLC by the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his spouse and his daughter ended up directors at the time.

The investigators discovered this “alarming”.

“In the CIPC search of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the business is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be built and/or converted,” they described.

An audit by accountants Kopano Incorporated, hooked up for the investigative report, recorded the CTMCA was in the whole process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one among the administrators.

In keeping with Dabishi Nthambeleni, the corporation has compensated R1.two-million for a deposit, indicating R6.9-million continues to be owed, even though there is absolutely no payment date set for when this must be compensated.

The Kopano audit as well as the shut url among the businesses “show to us that there's ‘foul Perform’ involved with the acquisition in the equipment with the museum workshop”, the investigators said while in the report.

“We find that it is very probable that CTMCA utilised the funding on the NLC to ‘refund’ one of its main administrators with the assets at the next overpriced level than the particular selling price and worth of the property and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were invested.

“In reality, an in depth report on how the funding from the NLC was made use of, can be unattainable given that the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every single product it asked for funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not performed a internet site visit just before approving the grant. But this wasn't typical observe at the time and they discovered no proof of carelessness by NLC workforce.

At enough time, the NLC’s regulations did not require funded organisations to post evidence of payment with interim stories, they pointed out. This meant which the CTMCA was capable to receive a 2nd tranche of funding without having to provide proof that it had utilized the first tranche for its meant purpose.

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

Dabishi Nthambeleni advisable that

the NLC decrease any long term funding programs through the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a felony situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated funds.
But, instead of act over the report’s suggestions, the NLC – below its previous administration – chose to suppress it, mainly because it had carried out While using the preceding reports into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send the inquiries by electronic mail too. But no reaction were been given at some time of publication.



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