Leaked report exposes abuse of lottery dollars compensated to minstrel team

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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no proof that a museum at any time existed.
The investigators observed the CTMCA didn't utilize the R5-million allocated to order or make a museum.
They also found the CTMCA only bought land worthy of R1.seven-million, not R5-million as allocated.
They found the CTMCA utilised funds within the Lottery to acquire workshop machines from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel background went astray. The museum was hardly ever produced.

The main points on the abuse of many rands of Lottery resources for your museum that never ever was are discovered in an investigative report commissioned via the NLC in 2021.

The museum grant was A part of greater than R64-million in Lottery cash allotted into the CTMCA amongst 2003 and 2017.

The primary Element of the investigation, by regulation firm Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which integrated funding for your museum. The authorized spending plan with the museum was more than R12.eight-million, with R5-million of that allocated to get a developing to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the creating for the museum and if the museum “truly existed”.

The business was also instructed to investigate

the acquisition with Lottery money of two cars – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
numerous machines “acquired to the production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors of your organisation. Stemmet was reappointed for a director in Could 2021.

The investigation adopted substantial reporting by GroundUp regarding the millions of rands of Lottery funding allocated on the CTMCA (see in this article, right here and below) and just how the resources most likely assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The constructing on the appropriate was the intended internet site on the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph

In response to the Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - such as the museum - amongst 2012 and 2015. All a few assignments were finished, she explained to MPs.

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

Initially the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo obtained by GroundUp in the intended Wetton museum demonstrates a espresso store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung about the walls, and also a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni explained it was “not in a position” to substantiate if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum had been moved simply because they could no longer afford to pay for the lease of R100,000 per month. He explained the CTMCA experienced acquired property for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same rate. Schaapkraal is within a peri-city area much from the town.

Because of this, the museum had been moved to a new spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following checking out the premises, which might be within an industrial place, the investigators claimed they doubted whether an appropriate museum existed there. Shots connected for the report display a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, without having clarification.

“There is a nominal quantity of goods in the museum [that] under no circumstances signify the in excess of a hundred-year historical past with the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum isn't going to glimpse to be open up to the general public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going The situation on the museum to an alternative location without the need of notifying the NLC.



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

Buses
Stemmet told the investigators the CTMCA experienced to move within the rented Crete Road premises as it experienced run up a R4-million credit card debt with town of Cape City and was scared its tools could well be hooked up.

“Because of the lawful battles as well as debts, the organisation had to move its home from 5 Crete Road to steer clear of the sheriff from attaching the house of your organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director with the CTMCA, instructed them that the two buses bought with lottery funds had been stored in a secret location “concealed within the Sheriff”. Nevertheless the investigators stated they were not able to substantiate that any buses experienced at any time been bought.

Stemmet also verified that the buses were hidden to halt them remaining seized. But once the investigators questioned to generally be taken to your position wherever the buses were being saved, he told them that “the proprietor of The key location was not accessible to open up the premises for us”.

“The CTMCA could not deliver proof of payment for two autos that it allegedly acquired with grant money,” the investigators noted.

Soeker also advised them the Schaapkraal home had been marketed due to credit card debt.

“Mr Soeker discussed that according to his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA made the decision It will be ideal to sell their [Schaapkraal] residence … also to also to hide the property of your CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and safety, has Earlier explained to GroundUp which the CTMCA “threw cash away” on litigation with the City.

“Each and every year like clockwork, as we tactic the top of your calendar year, the CTMCA picks a lawful combat with the town, around permits or something else. We never ever initiate it. They preserve throwing revenue absent on vexatious litigation which they lose and possess expenses awarded towards them. This can be completely self-inflicted,” he stated.

Soeker explained to the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of every one of the admin, funds and working ตรวจ หวย รัฐบาล the CTMCA.” The investigators explained they had been not able to Get in touch with Momberg.

Hats
All through their “investigation in loco” on the Primrose Park premises, the investigators “uncovered many devices, some in fantastic condition, some in negative issue plus some that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-site storage facility in which “instruments and a few machinery” had been stored.

“We asked him to get us to the ability but he was evasive to our request.”

Depending on photographs and invoices in GroundUp’s possession, some, if not all, of your merchandise look like products that was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with expenses for this removing.

According to the remaining progress report submitted on the NLC through the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter had been administrators at some time.

The investigators found this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the next alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Road, Wetton, Cape City, precisely the same address on which the museum was meant to be developed and/or transformed,” they noted.

An audit by accountants Kopano Included, attached to your investigative report, recorded that the CTMCA was in the whole process of buying “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was amongst the administrators.

In accordance with Dabishi Nthambeleni, the corporation has paid R1.2-million as being a deposit, which means R6.9-million continues to be owed, even though there isn't a payment day set for when this should be paid.

The Kopano audit and the shut backlink amongst the companies “indicate to us that there's ‘foul Perform’ linked to the acquisition from the equipment from the museum workshop”, the investigators reported while in the report.

“We discover that it is remarkably probable that CTMCA utilised the funding of your NLC to ‘refund’ one among its most important directors for your residence at the next overpriced price than the actual value and worth of the house and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA had been spent.

“In reality, an in depth report on how the funding with the NLC was applied, might be difficult since the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Every product it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not performed a web page pay a visit to right before approving the grant. But this wasn't regular exercise at some time and they discovered no evidence of negligence by NLC staff.

At enough time, the NLC’s regulations didn't have to have funded organisations to post proof of payment with interim reviews, they pointed out. This intended the CTMCA was in the position to receive a second tranche of funding without having to deliver evidence that it had used the first tranche for its supposed goal.

Following the appointment of a completely new board, commissioner and senior government team, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni recommended that

the NLC decline any long run funding applications through the CTMCA;
the CTMCA and any customers who were associated with the grant be subjected on the NLC’s “delinquency” system;
the NLC open up a prison circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated funds.
But, instead of act around the report’s recommendations, the NLC – less than its past administration – chose to suppress it, as it experienced accomplished Together with the prior experiences into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the thoughts by e-mail much too. But no response had been gained at some time of publication.



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

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