Minstrels carry out in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the Countrywide Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no evidence that a museum ever existed.
The investigators located which the CTMCA did not utilize the R5-million allocated to order or build a museum.
In addition they found which the CTMCA only bought land worthy of R1.7-million, not R5-million as allocated.
They identified the CTMCA used cash from the Lottery to acquire workshop products from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Commission (NLC) to create a museum to celebrate the city’s wealthy minstrel background went astray. The museum was under no circumstances made.
The small print of your abuse of a lot of rands of Lottery funds for just a museum that under no circumstances was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery funds allocated to your CTMCA in between 2003 and 2017.
The first Component of the investigation, by law agency Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which incorporated funding for that museum. The approved finances for your museum was greater than R12.8-million, with R5-million of that allotted for your constructing to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the setting up for that museum and whether or not the museum “actually existed”.
The business was also instructed to investigate
the purchase with Lottery money of two motor vehicles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
a variety of equipment “bought for that production with the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many directors of your organisation. Stemmet was reappointed for a director in Could 2021.
The investigation adopted considerable reporting by GroundUp in regards to the a lot of rands of Lottery funding allocated on the CTMCA (see listed here, in this article and listed here) and the best way the resources in all probability helped finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.
The developing on the appropriate was the supposed internet site with the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to your Parliamentary concern, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “tasks” - such as the museum - in between 2012 and 2015. All 3 jobs had been accomplished, she advised MPs.
However the investigators found no proof that a museum experienced at any time existed.
At the outset the museum was as a result of open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp from the supposed Wetton museum exhibits a coffee store with a few musical instruments and minstrel costumes and collages of images haphazardly hung over the partitions, and also a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni claimed it had been “not in a position” to substantiate if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum had been moved simply because they could no longer afford to pay for the rent of R100,000 per month. He claimed the CTMCA experienced acquired house for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for the same cost. Schaapkraal is in the peri-city region much from the town.
Because of this, the museum were moved to a completely new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after going to the premises, which happen to be in an industrial location, the investigators explained they doubted whether a proper museum existed there. Photographs connected for the report present a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without having rationalization.
“There's a small level of items with the museum [that] in no way depict the a lot more than a hundred-year historical past with the Cape Town Carnival, the investigators stated, including that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum does not seem being open to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by transferring the location of the museum to an alternative location without having notifying the NLC.
The Schaapkraal house, on which no museum was ever constructed. Image: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move through the rented Crete Highway premises mainly because it experienced run up a R4-million personal debt with town of Cape Town and was scared its devices could well be hooked up.
“Due to the legal battles and the debts, the organisation experienced to maneuver 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 current director of your CTMCA, instructed them which the two buses acquired with lottery funds ended up saved in a mystery site “hidden with the Sheriff”. Though the investigators said they were not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified that the buses were hidden to halt them staying seized. But if the investigators asked to be taken into the location wherever the buses had been stored, he instructed them that “the operator of the secret spot wasn't accessible to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 automobiles that it allegedly acquired with grant revenue,” the investigators claimed.
Soeker also explained to them the Schaapkraal assets were sold because of the financial debt.
“Mr Soeker discussed that In line with his knowledge, due to the personal debt owed to the City of Cape City, the CTMCA resolved It will be most effective to offer their [Schaapkraal] home … and also to also to cover the assets of your CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for basic safety and security, has Formerly told GroundUp that the CTMCA “threw income absent” on litigation with town.
“Each year like clockwork, as we technique the tip of the yr, the CTMCA picks a authorized combat with the town, in excess of permits or something else. We by no means initiate it. They maintain throwing funds away on vexatious litigation which they get rid of and have prices awarded in opposition to them. This really is entirely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the primary purpose players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of all of the admin, funds and running ตา ว จ หวย the CTMCA.” The investigators mentioned they were not able to contact Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “found several devices, some in very good affliction, some in terrible ailment and some that appeared rusty and very outdated”. Stemmet advised the investigators that there was also an off-internet site storage facility the place “devices and many machinery” have been stored.
“We asked him to acquire us to the facility but he was evasive to our ask for.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, in the merchandise appear to be machines that was illegally faraway from the CTMCA’s prior premises. Stemmet is facing fees for this removing.
According to the closing development report submitted towards the NLC because of the CTMCA, the equipment was ordered from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter were being directors at the time.
The investigators identified this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the business is five Crete Highway, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Incorporated, attached to your investigative report, recorded that the CTMCA was in the entire process of acquiring “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 considered one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million as a deposit, meaning R6.nine-million remains to be owed, while there isn't a payment date established for when this need to be compensated.
The Kopano audit plus the close connection amongst the companies “suggest to us that there is ‘foul Participate in’ involved with the purchase on the equipment from the museum workshop”, the investigators reported within the report.
“We find that it is very probable that CTMCA utilised the funding with the NLC to ‘refund’ amongst its main administrators with the residence at an increased overpriced fee than the actual value and value of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant into the CTMCA were put in.
“Actually, a detailed report on how the funding of your NLC was applied, can be extremely hard since the CTMCA does not have any receipts, or proof of payments to substantiate the amounts put in on Each and every item it requested funding for. The interim report and closing report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not executed a web site take a look at prior to approving the grant. But this was not common observe at some time they usually found no proof of carelessness by NLC workforce.
At enough time, the NLC’s procedures didn't demand funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was capable of get a second tranche of funding without the need to give evidence that it experienced employed the main tranche for its intended function.
Following the appointment of a fresh board, commissioner and senior govt workforce, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni suggested that
the NLC decline any potential funding programs from your CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal 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, as an alternative to act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had done Along with the previous studies into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e mail addresses to send out the thoughts by electronic mail too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph