Leaked report exposes abuse of lottery cash paid to minstrel group

Leaked report exposes abuse of lottery cash paid to minstrel group

Blog Article

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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has found no proof that a museum at any time existed.
The investigators found which the CTMCA didn't utilize the R5-million allotted to obtain or establish a museum.
In addition they observed which the CTMCA only bought land well worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA used funds in the Lottery to buy workshop machines from amongst its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Fee (NLC) to put in place a museum to celebrate the town’s rich minstrel historical past went astray. The museum was never developed.

The small print on the abuse of many rands of Lottery resources for just a museum that hardly ever was are disclosed within an investigative report commissioned with the NLC in 2021.

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

The main Component of the investigation, by legislation firm Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which integrated funding for the museum. The authorised funds for the museum was more than R12.8-million, with R5-million of that allotted to get a setting up to accommodate the museum.

Examine the report (PDF, 7MB)

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

The firm was also instructed to analyze

the purchase with Lottery funds of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
several devices “acquired for the production of the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed being a director in Could 2021.

The investigation followed comprehensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated towards the CTMCA (see right here, here and in this article) and how the resources most likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.



The developing on the correct was the supposed web site from the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph

In response to some Parliamentary query, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - amongst 2012 and 2015. All 3 assignments were concluded, she instructed MPs.

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

Initially the museum was due to open in rented premises in Crete Street, Wetton. A photo acquired by GroundUp with the supposed Wetton museum exhibits a coffee store with a few musical devices and minstrel costumes and collages of photographs haphazardly hung about the partitions, in addition to a product ship on its plinth inside of a corner.

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

Stemmet advised the investigators the museum were moved mainly because they could not afford to pay for the rent of R100,000 a month. He reported the CTMCA had purchased residence for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for a similar price tag. Schaapkraal is in a very peri-city area far from the city.

Therefore, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after checking out the premises, which can be within an industrial spot, the investigators stated they doubted whether or not an appropriate museum existed there. Pictures connected towards the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, shown on tables and spread out on the floor, without having explanation.

“There is a small quantity of objects within the museum [that] by no means depict the more than one hundred-yr historical past in the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum will not look being open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by transferring the location with the museum to an alternative site without having notifying the NLC.



The Schaapkraal residence, on which no museum was ever crafted. Photo: Raymond Joseph

Buses
Stemmet explained to the investigators that the CTMCA had to maneuver within the rented Crete Highway premises because it experienced operate up a R4-million debt with the City of Cape Town and was concerned its devices could well be hooked up.

“Mainly because of the authorized battles along with the debts, the organisation had to maneuver its house from 5 Crete Highway to steer clear of the sheriff from attaching the home from the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director of the CTMCA, advised them that the two buses acquired with lottery money were being stored inside a top secret spot “hidden within the Sheriff”. Even so the investigators mentioned they were being unable to substantiate that any buses experienced ever been bought.

Stemmet also confirmed that the buses had been hidden to stop them staying seized. But in the event the investigators questioned to be taken for the position where the buses had been stored, he told them that “the owner of The trick locale wasn't available to open up the premises for us”.

“The CTMCA couldn't give proof of payment for two autos that it allegedly obtained with grant cash,” the investigators noted.

Soeker also told them the Schaapkraal residence had been marketed because of the credit card debt.

“Mr Soeker defined that according to his knowledge, as a result of credit card debt owed to the town of Cape City, the CTMCA decided it would be very best to market their [Schaapkraal] house … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for basic safety and protection, has Earlier advised GroundUp the CTMCA “threw income away” on litigation with town.

“Every year like clockwork, as we approach the top on the 12 months, the CTMCA picks a authorized combat with the town, in excess of permits or something else. We hardly ever initiate it. They keep throwing revenue absent on vexatious litigation they lose and also have fees awarded towards them. That is completely self-inflicted,” he reported.

Soeker advised the Dabishi Nthambeleni investigators that the primary job players on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of many of the admin, funds and jogging หวย รัฐบาล the CTMCA.” The investigators claimed they had been unable to Make contact with Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “discovered quite a few devices, some in fantastic affliction, some in lousy situation plus some that appeared rusty and extremely outdated”. Stemmet instructed the investigators that there was also an off-site storage facility in which “instruments and a few machinery” were kept.

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

According to shots and invoices in GroundUp’s possession, some, if not all, of your objects appear to be products that was illegally removed from the CTMCA’s earlier premises. Stemmet is struggling with fees for this elimination.

Based on the closing development report submitted into the NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter had been directors at enough time.

The investigators located this “alarming”.

“From your CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered tackle of the organization is 5 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 Incorporated, attached on the 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 close Company of which Stemmet was considered one of the administrators.

In line with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, meaning R6.nine-million is still owed, nevertheless there isn't a payment date set for when this must be paid out.

The Kopano audit as well as close backlink in between the companies “point out to us that there's ‘foul Perform’ involved with the acquisition from 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 your NLC to ‘refund’ one of its main administrators for that house at a greater overpriced price than the particular selling price and value of the property and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been unable to determine how the grant towards the CTMCA were invested.

“In point of fact, a detailed report on how the funding on the NLC was utilized, might be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on Each individual product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC had not conducted a website pay a visit to ahead of approving the grant. But this was not regular apply at the time they usually observed no evidence of carelessness by NLC personnel.

At time, the NLC’s rules did not require funded organisations to post evidence of payment with interim reviews, they identified. This meant the CTMCA was able to receive a 2nd tranche of funding without having to present evidence that it experienced employed the 1st tranche for its supposed objective.

Adhering to the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, in lieu of act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for email addresses to deliver the queries 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