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

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

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

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the National Lotteries Commission to the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allotted to obtain or establish a museum.
In addition they located that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA used cash from your Lottery to invest in workshop devices from one among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s loaded minstrel history went astray. The museum was never ever made.

The main points with the abuse of millions of rands of Lottery resources for just a museum that hardly ever was are disclosed within an investigative report commissioned through the NLC in 2021.

The museum grant was Portion of greater than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.

The primary part of the investigation, by legislation business Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for that museum. The approved price range for that museum was much more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for your museum and whether or not the museum “basically existed”.

The organization was also instructed to research

the acquisition with Lottery money of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
many machines “procured to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors in the organisation. Stemmet was reappointed for a director in May 2021.

The investigation adopted in depth reporting by GroundUp with regard to the many rands of Lottery funding allotted to your CTMCA (see below, below and listed here) and the way in which the funds probably aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.



The creating on the right was the intended site with the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photo: Raymond Joseph

In response to your Parliamentary question, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - such as the museum - in between 2012 and 2015. All three assignments had been accomplished, she advised MPs.

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

In the beginning the museum was on account of open in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp of the meant Wetton museum displays a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung over the walls, and a design ship on its plinth in a corner.

In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum experienced at any time operated from these premises.

Stemmet told the investigators the museum were moved as they could not pay for the hire of R100,000 per month. He stated the CTMCA had ordered assets for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for the same selling price. Schaapkraal is within a peri-city area much from the town.

As a result, the museum had been moved to a new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after traveling to the premises, that happen to be within an industrial space, the investigators said they doubted no matter if a suitable museum existed there. Shots hooked up to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the floor, without having clarification.

“There exists a minimal quantity of items at the museum [that] under no circumstances depict the over a hundred-calendar year background on the Cape City Carnival, the investigators said, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … usually, the museum isn't going to look to become open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by going The situation of your museum to an alternate area with no notifying the NLC.



The Schaapkraal assets, on which no museum was ever designed. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators the CTMCA had to move with the rented Crete Road premises since it had operate up a R4-million credit card debt with the City of Cape Town and was frightened its equipment can be hooked up.

“Because of the legal battles along with the debts, the organisation had to move its residence from 5 Crete Street to stay away from the sheriff from attaching the residence on the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director in the CTMCA, informed them that the two buses acquired with lottery cash ended up stored inside a secret locale “hidden from the Sheriff”. Though the investigators explained they were not able to confirm that any buses experienced ever been bought.

Stemmet also verified that the buses had been concealed to stop them currently being seized. But when the investigators asked for being taken to your put in which the buses have been saved, he told them that “the owner of The trick location was not available to open the premises for us”.

“The CTMCA couldn't supply proof of payment for 2 motor vehicles that it allegedly bought with grant funds,” the investigators documented.

Soeker also instructed them the Schaapkraal residence had been sold because of the personal debt.

“Mr Soeker spelled out that according to his understanding, mainly because of the credit card debt owed to town of Cape Town, the CTMCA made a decision It might be very best to offer their [Schaapkraal] property … and also to also to cover the belongings in the CTMCA to stay away from the sheriff from attaching the residence.”

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

“Annually like clockwork, as we solution the end of the calendar year, the CTMCA picks a authorized battle with town, around permits or another thing. We by no means initiate it. They retain throwing income absent on vexatious litigation they shed and possess charges awarded in opposition to them. That is completely self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the primary position players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and working ตรวจ รางวัล the CTMCA.” The investigators said they had been not able to Get hold of Momberg.

Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “uncovered numerous equipment, some in great problem, some in terrible affliction and many that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-website storage facility where “devices and several machinery” were being retained.

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

Based on pics and invoices in GroundUp’s possession, some, if not all, with the products look like tools which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing fees for this elimination.

Based on the closing progress report submitted on the NLC because of the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were being administrators at time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming getting: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the company is 5 Crete Highway, Wetton, Cape Town, a similar deal with on which the museum was intended to be designed and/or converted,” they documented.

An audit by accountants Kopano Integrated, connected to the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.

In keeping with Dabishi Nthambeleni, the corporate has paid out R1.two-million for a deposit, that means R6.nine-million continues to be owed, although there is no payment date established for when this has to be compensated.

The Kopano audit along with the close backlink in between the businesses “indicate to us that there is ‘foul Participate in’ associated with the acquisition on the machinery of your museum workshop”, the investigators said during the report.

“We find that it is hugely probable that CTMCA employed the funding of the NLC to ‘refund’ considered one of its primary directors for your property at a greater overpriced price than the actual price and worth of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA were put in.

“Actually, an in depth report on how the funding on the NLC was utilized, could well be unachievable since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every single product it asked for funding for. The interim report and final report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not done a site go to ahead of approving the grant. But this wasn't common exercise at enough time and so they identified no evidence of carelessness by NLC staff members.

At time, the NLC’s principles did not have to have funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was capable of get a second tranche of funding without the need to give evidence that it experienced employed the main tranche for its intended function.

Next the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding apps with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, instead of act over the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, as it had performed Using the preceding experiences into corruption it experienced commissioned.

GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e-mail addresses to send out the issues by e mail much too. But no reaction had been obtained at time of publication.



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