Minstrels complete in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators found which the CTMCA didn't make use of the R5-million allocated to purchase or create a museum.
They also uncovered the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA utilised funds within the Lottery to get workshop gear from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print with the abuse of many rands of Lottery cash for your museum that hardly ever was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of more than R64-million in Lottery resources allocated into the CTMCA amongst 2003 and 2017.
The initial part of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for that museum. The authorized funds for that museum was more than R12.8-million, with R5-million of that allocated for a creating to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the making for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the acquisition with Lottery funds of two motor vehicles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different equipment “obtained for the production of your costumes and hats” to the 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 spouse Zainonesa and daughter Raziah ongoing as two of quite a few administrators from the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted considerable reporting by GroundUp with regards to the many rands of Lottery funding allotted to your CTMCA (see below, listed here and listed here) and the way in which the funds likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The developing on the ideal was the intended web page in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Image: Raymond Joseph
In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - such as the museum - among 2012 and 2015. All three tasks were done, she told MPs.
But the investigators observed no proof that a museum had ever existed.
To start with the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp in the intended Wetton museum displays a coffee store with a few musical devices and minstrel costumes and collages of photographs haphazardly hung within the partitions, as well as a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it absolutely was “not ready” to verify if a museum had ever operated from these premises.
Stemmet informed the investigators the museum were moved since they could now not afford to pay for the rent of R100,000 a month. He mentioned the CTMCA experienced ordered house for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar rate. Schaapkraal is in a peri-city space considerably from the town.
Subsequently, the museum were moved to a different area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which are in an industrial area, the investigators claimed they doubted no matter whether a proper museum existed there. Images hooked up for the report exhibit a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having explanation.
“There's a nominal number of merchandise within the museum [that] on no account represent the greater than 100-calendar year heritage on the Cape Town Carnival, the investigators said, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum will not look to be open up to the general public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by going The placement in the museum to an alternative locale devoid of notifying the NLC.
The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move with the rented Crete Road premises as it experienced run up a R4-million financial debt with town of Cape City and was scared its devices could be connected.
“Mainly because of the legal battles as well as the debts, the organisation had to move its house from five Crete Street to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses bought with lottery funds were saved in the mystery area “concealed with the Sheriff”. Even so the investigators mentioned they were unable to substantiate that any buses had at any time been bought.
Stemmet also verified which the buses had been concealed to halt them currently being seized. But in the event the investigators asked being taken towards the area where the buses had been stored, he instructed them that “the operator of The trick location was not available to open the premises for us”.
“The CTMCA could not offer proof of payment for two automobiles that it allegedly obtained with grant funds,” the investigators documented.
Soeker also advised them the Schaapkraal house had been bought due to personal debt.
“Mr Soeker spelled out that As outlined by his knowledge, a result of the financial debt owed to town of Cape Town, the CTMCA resolved It might be best to offer their [Schaapkraal] property … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously advised GroundUp the CTMCA “threw dollars absent” on litigation with town.
“Each year like clockwork, as we strategy the tip on the yr, the CTMCA picks a legal struggle with the town, above permits or another thing. We never ever initiate it. They keep throwing dollars away on vexatious litigation that they eliminate and have expenses awarded against them. This really is entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the key function gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of each of the admin, funds and operating หวย รัฐบาล the CTMCA.” The investigators mentioned they had been not able to Make contact with Momberg.
Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located many equipment, some in excellent condition, some in lousy affliction and many that seemed rusty and very previous”. Stemmet told the investigators that there was also an off-site storage facility wherever “instruments and many machinery” ended up stored.
“We questioned him to get us to the power but he was evasive to our request.”
Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like machines which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with charges for this removal.
According to the last progress report submitted towards the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter were being directors at the time.
The investigators observed this “alarming”.
“From your CIPC search of Martin-Conne Milliners plus the invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Road, Wetton, Cape Town, a similar deal with on which the museum was meant to be crafted and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the entire process of obtaining “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.
According to Dabishi Nthambeleni, the company has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, however there's no payment date set for when this must be paid out.
The Kopano audit and the close backlink in between the companies “point out to us that there's ‘foul Perform’ linked to the purchase from the machinery with the museum workshop”, the investigators stated while in the report.
“We discover that it's remarkably probable that CTMCA utilised the funding on the NLC to ‘refund’ considered one of its key directors for the property at the next overpriced amount than the actual price and worth of the home and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant towards the CTMCA were spent.
“The truth is, an in depth report on how the funding in the NLC was made use of, will be unachievable because the CTMCA does not have any receipts, or evidence of payments to verify the quantities used on Every item it requested funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not conducted a site go to prior to approving the grant. But this wasn't typical follow at time they usually observed no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not have to have funded organisations to submit evidence of payment with interim reports, they pointed out. This intended which the CTMCA was capable to get a next tranche of funding without needing to deliver proof that it had utilised the main tranche for its supposed objective.
Adhering to the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advised that
the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, in lieu of act around the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it experienced carried out Along with the previous reviews into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and requested for e mail addresses to ship the inquiries by e mail way too. But no response had been been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph