Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant through the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allotted to order or make a museum.
Additionally they identified which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of cash from your Lottery to purchase workshop devices from one among its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was never produced.
The small print in the abuse of an incredible number of rands of Lottery cash for any museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allotted on the CTMCA among 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which included funding for your museum. The authorised spending budget for your museum was in excess of R12.eight-million, with R5-million of that allotted for the making to deal with the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing for the museum and whether or not the museum “essentially existed”.
The agency was also instructed to investigate
the acquisition with Lottery money of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of equipment “acquired for the production of the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation followed comprehensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see here, here and in this article) and just how the cash almost certainly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.
The setting up on the best was the supposed internet site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few projects were completed, she informed MPs.
Even so the investigators located no proof that a museum had ever existed.
At first the museum was because of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp of your intended Wetton museum exhibits a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, in addition to 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 ever operated from these premises.
Stemmet advised the investigators the museum were moved since they could no longer afford the rent of R100,000 a month. He stated the CTMCA experienced ordered residence for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and had been offered for a similar value. Schaapkraal is in a peri-urban place considerably from the city.
Therefore, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after browsing the premises, which happen to be in an industrial region, the investigators said they doubted whether or not an appropriate museum existed there. Photographs hooked up for the report show a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the floor, without any clarification.
“You will find there's minimal volume of goods within the museum [that] in no way symbolize the a lot more than one hundred-yr background in the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum would not glance to get open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation from the museum to another location devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to maneuver with the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with town of Cape City and was fearful its machines would be hooked up.
“Due to the lawful battles plus the debts, the organisation had to move its residence from 5 Crete Highway to stay away from the sheriff from attaching the home of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery resources have been saved inside a solution place “hidden within the Sheriff”. Nevertheless the investigators reported they had been unable to verify that any buses had ever been purchased.
Stemmet also confirmed that the buses had been hidden to stop them becoming seized. But once the investigators asked for being taken for the area wherever the buses ended up stored, he told them that “the operator of The key area was not accessible to open the premises for us”.
“The CTMCA couldn't give proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators noted.
Soeker also explained to them the Schaapkraal house were offered as a result of debt.
“Mr Soeker spelled out that In accordance with his being familiar with, as a result of credit card debt owed to town of Cape City, the CTMCA decided It might be greatest to sell their [Schaapkraal] residence … and to also to cover the belongings on the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and safety, has Earlier told GroundUp that the CTMCA “threw income absent” on litigation with town.
“Yearly like clockwork, as we tactic the top of your year, the CTMCA picks a legal fight with town, over permits or another thing. We never initiate it. They maintain throwing cash away on vexatious litigation which they eliminate and also have fees awarded towards them. This can be entirely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the key role gamers on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of many of the admin, finances and managing ตรวจ สลากกินแบ่ง รัฐบาล the CTMCA.” The investigators claimed they were unable to contact Momberg.
Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located many devices, some in great ailment, some in negative condition and several that appeared rusty and intensely previous”. Stemmet instructed the investigators that there was also an off-site storage facility the place “devices plus some equipment” were stored.
“We asked him to just take us to the ability but he was evasive to our request.”
Determined by images and invoices in GroundUp’s possession, some, if not all, in the things appear to be gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through costs for this removing.
Based on the last development report submitted on the NLC through the CTMCA, the equipment was obtained from Martin-Conne Milliners, a company where Stemmet, his wife and his daughter ended up administrators at time.
The investigators observed this “alarming”.
“In the CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Street, Wetton, Cape Town, the identical deal with on which the museum was intended to be constructed and/or transformed,” they claimed.
An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the whole process of getting “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.
Based on Dabishi Nthambeleni, the corporation has paid R1.2-million to be a deposit, which means R6.nine-million remains owed, although there isn't a payment day established for when this should be paid.
The Kopano audit along with the near backlink between the businesses “indicate to us that there's ‘foul Participate in’ linked to the acquisition with the machinery in the museum workshop”, the investigators mentioned inside the report.
“We find that it's very probable that CTMCA made use of the funding on the NLC to ‘refund’ among its primary administrators for your assets at a better overpriced rate than the actual rate and value of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to establish how the grant into the CTMCA had been put in.
“In fact, an in depth report on how the funding in the NLC was employed, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to verify the amounts put in on Each and every item it requested funding for. The interim report and remaining report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC had not performed a internet site stop by just before approving the grant. But this was not normal follow at time and they discovered no proof of carelessness by NLC personnel.
At the time, the NLC’s rules didn't need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a second tranche of funding while not having to provide proof that it experienced used the primary tranche for its supposed goal.
Next the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these and other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any foreseeable future funding apps from the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open up a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – beneath its prior administration – chose to suppress it, mainly because it had accomplished 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 questions by e mail too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph