Leaked report exposes abuse of lottery money compensated to minstrel team

Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has identified no evidence that a museum ever existed.
The investigators identified which the CTMCA didn't utilize the R5-million allotted to acquire or establish a museum.
They also located the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They found the CTMCA used resources with the Lottery to get workshop products from considered one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to build a museum to celebrate the city’s loaded minstrel heritage went astray. The museum was in no way designed.

The details on the abuse of millions of rands of Lottery money for your museum that in no way was are revealed in an investigative report commissioned through the NLC in 2021.

The museum grant was Element of more than R64-million in Lottery cash allotted for the CTMCA in between 2003 and 2017.

The first Component of the investigation, by law organization Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which involved funding for your museum. The permitted spending budget to the museum was much more than R12.8-million, with R5-million of that allocated for any making to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the making for that museum and if the museum “in fact existed”.

The agency was also instructed to investigate

the acquisition with Lottery resources of two cars – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
various equipment “acquired for your manufacturing on the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director on 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 numerous directors from the organisation. Stemmet was reappointed as a director in May perhaps 2021.

The investigation followed in depth reporting by GroundUp about the numerous rands of Lottery funding allotted into the CTMCA (see in this article, below and in this article) and the best way the resources most likely aided finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.



The building on the correct was the intended internet site with the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “jobs” - such as the museum - involving 2012 and 2015. All a few jobs had been done, she instructed MPs.

However the investigators found no proof that a museum experienced at any time existed.

At the outset the museum was on account of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp from the meant Wetton museum exhibits a coffee shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung about the walls, and a product ship on its plinth in a very corner.

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

Stemmet instructed the investigators the museum had been moved since they could no longer pay for the rent of R100,000 per month. He reported the CTMCA had acquired house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is in a very peri-urban region significantly from the city.

Because of this, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following going to the premises, which can be in an industrial area, the investigators reported they doubted whether or not a proper museum existed there. Photos hooked up for the report demonstrate a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without rationalization.

“There exists a small amount of products with the museum [that] on no account represent the a lot more than a hundred-calendar year record of the Cape City Carnival, the investigators stated, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … normally, the museum will not search for being open to the general public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement from the museum to an alternate location without the need of notifying the NLC.



The Schaapkraal house, on which no museum was at any time constructed. Picture: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA experienced to move with the rented Crete Highway premises mainly because it had run up a R4-million debt with the City of Cape Town and was afraid its tools will be attached.

“A result of the authorized battles plus the debts, the organisation had to move its house from 5 Crete Street to avoid the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director with the CTMCA, advised them which the two buses purchased with lottery resources had been saved within a top secret area “concealed from the Sheriff”. Even so the investigators claimed they were unable to confirm that any buses had ever been acquired.

Stemmet also verified which the buses were concealed to stop them staying seized. But when the investigators asked for being taken to your put where the buses were saved, he explained to them that “the operator of The trick locale wasn't available to open up the premises for us”.

“The CTMCA could not offer evidence of payment for two autos that it allegedly acquired with grant revenue,” the investigators claimed.

Soeker also explained to them the Schaapkraal property had been bought because of the credit card debt.

“Mr Soeker discussed that according to his understanding, due to the financial debt owed to town of Cape Town, the CTMCA decided It might be best to provide their [Schaapkraal] property … and also to also to cover the belongings from the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for basic safety and protection, has Earlier instructed GroundUp which the CTMCA “threw cash away” on litigation with the town.

“Each and every year like clockwork, as we method the end with the calendar year, the CTMCA picks a lawful fight with the City, over permits or another thing. We by no means initiate it. They maintain throwing money absent on vexatious litigation they eliminate and also have expenditures awarded from them. This is often fully self-inflicted,” he explained.

Soeker instructed the Dabishi Nthambeleni investigators that the primary purpose players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were answerable for the many admin, funds and running ตัว หวย the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.

Hats
All through their “investigation in loco” in the Primrose Park premises, the investigators “observed various equipment, some in superior condition, some in negative situation and some that looked rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-internet site storage facility the place “instruments and some machinery” were kept.

“We requested him to acquire 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, of the merchandise seem like gear which was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with fees for this removing.

According to the ultimate progress report submitted into the NLC from the CTMCA, the machinery was procured from Martin-Conne Milliners, a firm in which Stemmet, his wife and his daughter ended up administrators at the time.

The investigators identified this “alarming”.

“Through the CIPC research of Martin-Conne Milliners as well as invoices submitted, we note the subsequent alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the company is five Crete Street, Wetton, Cape City, a similar handle on which the museum was intended to be developed and/or transformed,” they documented.

An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the administrators.

In accordance with Dabishi Nthambeleni, the corporate has compensated R1.two-million as being a deposit, indicating R6.9-million continues to be owed, however there is no payment day set for when this need to be paid out.

The Kopano audit as well as the close link amongst the businesses “show to us that there's ‘foul Perform’ linked to the purchase of the equipment in the museum workshop”, the investigators reported inside the report.

“We find that it is hugely possible that CTMCA utilized the funding with the NLC to ‘refund’ among its main directors to the assets at a greater overpriced amount than the particular rate and price of the property and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant for the CTMCA were used.

“In point of fact, an in depth report on how the funding with the NLC was utilised, will be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Just about every product it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not conducted a internet site take a look at right before approving the grant. But this wasn't typical observe at some time plus they identified no evidence of carelessness by NLC personnel.

At the time, the NLC’s rules didn't demand funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to provide proof that it experienced used the primary tranche for its supposed goal.

Pursuing the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni encouraged that

the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, as an alternative to act around the report’s tips, the NLC – under its past administration – selected to suppress it, as it had finished With all the former reports into corruption it had commissioned.

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



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

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