Minstrels conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Nationwide Lotteries Fee into the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has observed no proof that a museum ever existed.
The investigators identified which the CTMCA didn't use the R5-million allotted to acquire or make a museum.
They also located which the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They identified the CTMCA applied funds from your Lottery to purchase workshop devices from among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) with the Nationwide Lotteries Commission (NLC) to put in place a museum to celebrate the city’s rich minstrel background went astray. The museum was never ever developed.
The small print in the abuse of an incredible number of rands of Lottery cash to get a museum that never was are disclosed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of greater than R64-million in Lottery resources allocated on the CTMCA involving 2003 and 2017.
The primary A part of the investigation, by regulation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for that museum. The authorised spending budget for that museum was much more than R12.eight-million, with R5-million of that allocated for any constructing to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the developing with the museum and whether the museum “basically existed”.
The agency was also instructed to analyze
the acquisition with Lottery cash of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
numerous machines “acquired for the production of your costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted criminal 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 wife Zainonesa and daughter Raziah ongoing as two of a number of administrators with the organisation. Stemmet was reappointed for a director in May 2021.
The investigation followed considerable reporting by GroundUp regarding the countless rands of Lottery funding allocated towards the CTMCA (see below, here and right here) and just how the funds most likely served finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.
The building on the proper was the intended website with the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane shown grants to three CTMCA “assignments” - such as the museum - among 2012 and 2015. All a few tasks were done, she instructed MPs.
But the investigators uncovered no evidence that a museum experienced ever existed.
At the outset the museum was because of open in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the meant Wetton museum exhibits a coffee shop with some musical instruments and minstrel costumes and collages of images haphazardly hung on the partitions, along with a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it was “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet informed the investigators the museum had been moved given that they could no longer pay for the hire of R100,000 a month. He said the CTMCA experienced acquired home for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were offered for the same value. Schaapkraal is inside of a peri-urban area significantly from the city.
Subsequently, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after going to the premises, which might be within an industrial region, the investigators mentioned they doubted whether or not a correct museum existed there. Photographs connected on the report demonstrate a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the ground, with no clarification.
“There is a small volume of items on the museum [that] under no circumstances represent the a lot more than a hundred-calendar year background in the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum isn't going to glance being open to the public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by shifting the location with the museum to an alternate area without having notifying the NLC.
The Schaapkraal property, on which no museum was ever built. Picture: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to move from the rented Crete Road premises as it experienced operate up a R4-million debt with the town of Cape City and was worried its tools could well be connected.
“As a result of lawful battles along with the debts, the organisation had to maneuver its property from five Crete Road to stay away from the sheriff from attaching the assets of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director of your CTMCA, explained to them the two buses bought with lottery funds were stored within a magic formula site “hidden with the Sheriff”. Though the investigators claimed they ended up not able to confirm that any buses experienced at any time been purchased.
Stemmet also verified which the buses were hidden to stop them staying seized. But once the investigators requested to generally be taken for the put exactly where the buses have been stored, he instructed them that “the operator of The trick site wasn't accessible to open the premises for us”.
“The CTMCA could not offer evidence of payment for 2 autos that it allegedly ordered with grant money,” the investigators noted.
Soeker also instructed them the Schaapkraal assets had been sold due to personal debt.
“Mr Soeker defined that according to his understanding, as a result of credit card debt owed to the City of Cape Town, the CTMCA determined it would be most effective to offer their [Schaapkraal] home … and also to also to cover the belongings with the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for protection and safety, has Formerly told GroundUp which the CTMCA “threw money absent” on litigation with town.
“Yearly like clockwork, as we strategy the top with the 12 months, the CTMCA picks a authorized battle with town, about permits or something else. We by no means initiate it. They continue to keep throwing revenue absent on vexatious litigation they get rid of and possess fees awarded towards them. This can be entirely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the primary function gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of each of the admin, funds and operating ตรวจ หวย รัฐบาล the CTMCA.” The investigators explained they had been struggling to Make contact with Momberg.
Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located various machines, some in very good ailment, some in poor problem and many that seemed rusty and intensely old”. Stemmet instructed the investigators that there was also an off-web page storage facility exactly where “instruments and some equipment” were being saved.
“We requested him to get us to the facility but he was evasive to our ask for.”
Determined by images and invoices in GroundUp’s possession, some, if not all, on the things look like gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with charges for this elimination.
In accordance with the last development report submitted to your NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, a business where Stemmet, his spouse and his daughter have been directors at some time.
The investigators observed this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the corporation is 5 Crete Road, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or transformed,” they described.
An audit by accountants Kopano Included, attached on the investigative report, recorded which the CTMCA was in the entire process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was amongst the administrators.
In line with Dabishi Nthambeleni, the corporate has compensated R1.two-million being a deposit, that means R6.9-million remains owed, nevertheless there isn't any payment day established for when this have to be paid out.
The Kopano audit along with the near website link in between the businesses “show to us that there's ‘foul Perform’ linked to the purchase in the equipment from the museum workshop”, the investigators explained within the report.
“We find that it is hugely possible that CTMCA utilized the funding in the NLC to ‘refund’ considered one of its most important administrators for that residence at the next overpriced level than the particular selling price and worth of the home and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were invested.
“In point of fact, a detailed report on how the funding from the NLC was made use of, can be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities invested on Each individual item it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not carried out a site check out right before approving the grant. But this wasn't typical exercise at enough time plus they identified no evidence of carelessness by NLC staff members.
At enough time, the NLC’s principles did not require funded organisations to post proof of payment with interim reviews, they identified. This meant the CTMCA was capable of get a second tranche of funding without the need to give evidence that it had applied the initial tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, in lieu of act around the report’s tips, the NLC – beneath its previous administration – chose to suppress it, mainly because it had performed With all the previous studies into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send out the thoughts by email as well. But no response were received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph