Minstrels conduct in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Fee to the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has observed no proof that a museum at any time existed.
The investigators located which the CTMCA didn't use the R5-million allotted to buy or develop a museum.
They also discovered the CTMCA only acquired land well worth R1.7-million, not R5-million as allocated.
They observed the CTMCA made use of funds within the Lottery to purchase workshop tools from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) with the National Lotteries Commission (NLC) to set up a museum to celebrate the town’s abundant minstrel record went astray. The museum was hardly ever produced.
The details with the abuse of numerous rands of Lottery funds for the museum that never was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery resources allotted into the CTMCA involving 2003 and 2017.
The 1st part of the investigation, by regulation business Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which involved funding with the museum. The accredited spending budget with the museum was greater than R12.8-million, with R5-million of that allocated to get a developing to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a building to the museum and whether the museum “basically existed”.
The company was also instructed to analyze
the purchase with Lottery funds of two motor vehicles – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
several equipment “bought for that manufacturing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director with 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 from the organisation. Stemmet was reappointed being a director in May perhaps 2021.
The investigation adopted in depth reporting by GroundUp about the an incredible number of rands of Lottery funding allocated to your CTMCA (see below, right here and right here) and the way the resources probably assisted finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.
The building on the proper was the intended site in the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - such as the museum - concerning 2012 and 2015. All a few projects were completed, she explained to MPs.
But the investigators discovered no proof that a museum experienced ever existed.
At the outset the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp from the supposed Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung on the partitions, and a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum had been moved mainly because they could no longer pay for the rent of R100,000 per month. He reported the CTMCA had purchased residence for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were offered for a similar selling price. Schaapkraal is within a peri-city area much from town.
Because of this, the museum had been moved to a new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following checking out the premises, which happen to be within an industrial place, the investigators said they doubted regardless of whether a correct museum existed there. Photographs hooked up to your report demonstrate a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, shown on tables and unfold out on the floor, without having clarification.
“There is a small number of goods at the museum [that] on no account symbolize the more than 100-yr record in the Cape Town Carnival, the investigators explained, including that there was “no signage outdoors the premises indicating that they housed a museum and … typically, the museum doesn't appear to become open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring The placement in the museum to another spot without notifying the NLC.
The Schaapkraal property, on which no museum was at any time constructed. Image: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA had to move with the rented Crete Highway premises since it experienced operate up a R4-million credit card debt with the City of Cape Town and was concerned its tools will be hooked up.
“Mainly because of the authorized battles and also the debts, the organisation had to maneuver its home from five Crete Street to avoid the sheriff from attaching the property with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director on the CTMCA, informed them the two buses acquired with lottery funds have been stored in a very mystery place “concealed from your Sheriff”. Though the investigators reported they were being unable to substantiate that any buses experienced ever been acquired.
Stemmet also confirmed that the buses were hidden to prevent them remaining seized. But once the investigators questioned to become taken to your location the place the buses were being saved, he told them that “the owner of the secret area wasn't accessible to open up the premises for us”.
“The CTMCA couldn't supply evidence of payment for two cars that it allegedly bought with grant funds,” the investigators described.
Soeker also instructed them the Schaapkraal residence had been marketed because of the debt.
“Mr Soeker defined that according to his comprehending, mainly because of the personal debt owed to the town of Cape City, the CTMCA made the decision it would be finest to promote their [Schaapkraal] residence … also to also to hide the property of your CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for security and protection, has Beforehand told GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Yearly like clockwork, as we tactic the tip in the yr, the CTMCA picks a legal struggle with the town, above permits or another thing. We hardly ever initiate it. They maintain throwing revenue absent on vexatious litigation that they lose and also have expenses awarded versus them. This is often entirely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of all the admin, funds and operating หวย หุ้น ช่อง 9 the CTMCA.” The investigators said they had been unable to Get hold of Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “discovered quite a few equipment, some in good problem, some in undesirable ailment plus some that appeared rusty and intensely aged”. Stemmet told the investigators that there was also an off-web site storage facility the place “instruments and a few equipment” were kept.
“We questioned him to just take us to the ability but he was evasive to our request.”
Based on pics and invoices in GroundUp’s possession, some, if not all, with the things look like tools which was illegally removed from the CTMCA’s previous premises. Stemmet is struggling with fees for this removing.
According to the last development report submitted to the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter ended up directors at time.
The investigators located this “alarming”.
“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be designed and/or converted,” they noted.
An audit by accountants Kopano Included, hooked up towards the investigative report, recorded the CTMCA was in the entire process of obtaining “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 amongst the administrators.
According to Dabishi Nthambeleni, the corporation has compensated R1.2-million as being a deposit, meaning R6.nine-million is still owed, though there is no payment day set for when this must be paid out.
The Kopano audit along with the close url between the companies “point out to us that there's ‘foul Perform’ involved with the acquisition in the machinery with the museum workshop”, the investigators stated during the report.
“We discover that it's really possible that CTMCA used the funding in the NLC to ‘refund’ considered one of its most important administrators for the assets at a higher overpriced level than the particular price tag and worth of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant to the CTMCA were spent.
“In point of fact, a detailed report on how the funding of the NLC was used, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the amounts used on Every single product it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not carried out a site pay a visit to ahead of approving the grant. But this was not common follow at enough time plus they located no proof of carelessness by NLC workforce.
At some time, the NLC’s procedures did not demand funded organisations to submit evidence of payment with interim reviews, they pointed out. This intended the CTMCA was capable of get a second tranche of funding without needing to offer evidence that it experienced made use of the 1st tranche for its intended intent.
Next the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni proposed that
the NLC decline any long term funding programs from your CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, because it experienced carried out with the past reviews into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to send out the thoughts by email as well. But no response were received at the time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph