Minstrels execute in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the Countrywide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no proof that a museum ever existed.
The investigators located that the CTMCA didn't use the R5-million allotted to acquire or produce a museum.
They also uncovered that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They uncovered the CTMCA utilized cash in the Lottery to purchase workshop machines from among its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Commission (NLC) to set up a museum to rejoice the town’s prosperous minstrel historical past went astray. The museum was by no means established.
The main points from the abuse of an incredible number of rands of Lottery cash for your museum that never was are uncovered in an investigative report commissioned because of the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery cash allotted to your CTMCA among 2003 and 2017.
The very first part of the investigation, by legislation firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which integrated funding for that museum. The approved spending budget for your museum was greater than R12.8-million, with R5-million of that allocated for just a developing to accommodate the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the setting up with the museum and whether the museum “actually existed”.
The company was also instructed to analyze
the purchase with Lottery resources of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “ordered with the producing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many directors with the organisation. Stemmet was reappointed as being a director in May 2021.
The investigation followed intensive reporting by GroundUp about the a lot of rands of Lottery funding allocated to the CTMCA (see listed here, here and listed here) and how the cash likely assisted finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at enough time by Marius Fransman.
The developing on the appropriate was the meant site on the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “jobs” - such as the museum - in between 2012 and 2015. All three tasks were completed, she informed MPs.
Although the investigators discovered no evidence that a museum had ever existed.
In the beginning the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp on the meant Wetton museum shows a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung about the walls, in addition to a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could now not pay for the hire of R100,000 per month. He explained the CTMCA experienced ordered residence for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been bought for the same rate. Schaapkraal is inside of a peri-city location much from the city.
Therefore, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after visiting the premises, which are in an industrial place, the investigators reported they doubted irrespective of whether a proper museum existed there. Photographs hooked up to your report exhibit a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and distribute out on the ground, without having explanation.
“You will find a minimal volume of merchandise in the museum [that] by no means characterize the greater than one hundred-year heritage from 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 look to generally be open to the public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by moving The situation from the museum to another area with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time developed. Photo: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to move through the rented Crete Street premises because it experienced run up a R4-million debt with the town of Cape City and was worried its equipment could be hooked up.
“Because of the authorized battles plus the debts, the organisation had to move its residence from five Crete Street to steer clear of the sheriff from attaching the home of your organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director with the CTMCA, told them that the two buses bought with lottery cash ended up saved in a very mystery area “hidden from your Sheriff”. Though the investigators stated they were not able to confirm that any buses experienced at any time been purchased.
Stemmet also verified that the buses were hidden to halt them currently being seized. But when the investigators requested to be taken to your spot where the buses were being stored, he explained to them that “the owner of The key locale was not available to open the premises for us”.
“The CTMCA could not provide evidence of payment for 2 vehicles that it allegedly acquired with grant dollars,” the investigators claimed.
Soeker also explained to them the Schaapkraal residence had been offered because of the personal debt.
“Mr Soeker spelled out that In keeping with his knowledge, a result of the debt owed to the town of Cape City, the CTMCA determined it would be finest to promote their [Schaapkraal] assets … and also to also to cover the property with the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and safety, has Formerly instructed GroundUp that the CTMCA “threw income absent” on litigation with town.
“Each and every year like clockwork, as we solution the end from the yr, the CTMCA picks a authorized combat with the City, in excess of permits or something else. We by no means initiate it. They preserve throwing cash absent on vexatious litigation they drop and also have fees awarded against them. This is fully self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the main purpose players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for each of the admin, finances and functioning สลาก กิน the CTMCA.” The investigators reported they had been struggling to Make contact with Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “located various equipment, some in good situation, some in undesirable affliction plus some that seemed rusty and very outdated”. Stemmet advised the investigators that there was also an off-web-site storage facility where by “instruments and some equipment” have been stored.
“We questioned him to get us to the facility but he was evasive to our ask for.”
Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, from the products seem like equipment which was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with rates for this removal.
Based on the remaining progress report submitted towards the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a firm in which Stemmet, his spouse and his daughter had been directors at some time.
The investigators found this “alarming”.
“From the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the company is five Crete Road, Wetton, Cape Town, the same tackle on which the museum was meant to be designed and/or converted,” they noted.
An audit by accountants Kopano Included, connected into the investigative report, recorded that the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the directors.
As outlined by Dabishi Nthambeleni, the organization has paid R1.two-million as being a deposit, indicating R6.nine-million continues to be owed, even though there is absolutely no payment date established for when this need to be paid out.
The Kopano audit along with the near website link in between the businesses “point out to us that there is ‘foul Perform’ involved in the acquisition with the machinery of your museum workshop”, the investigators mentioned in the report.
“We find that it's highly probable that CTMCA made use of the funding from the NLC to ‘refund’ one of its principal administrators for that assets at a higher overpriced rate than the actual price and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to the CTMCA were spent.
“In point of fact, an in depth report on how the funding on the NLC was employed, would be impossible given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts put in on Each and every product it asked for funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located which the NLC experienced not performed a internet site take a look at before approving the grant. But this was not common exercise at some time they usually uncovered no proof of carelessness by NLC workforce.
At some time, the NLC’s regulations did not demand funded organisations to submit evidence of payment with interim studies, they pointed out. This meant which the CTMCA was able to receive a next tranche of funding while not having to offer evidence that it had made use of the primary tranche for its intended function.
Following the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni advisable that
the NLC decrease any upcoming funding purposes from the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open up a legal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated money.
But, as opposed to act around the report’s tips, the NLC – beneath its former administration – chose to suppress it, mainly because it had performed With all the past reports into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for e mail addresses to mail the questions by email also. But no response had been obtained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph