Minstrels perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has identified no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
They also uncovered the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed funds with the Lottery to get workshop equipment from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Commission (NLC) to build a museum to rejoice the town’s wealthy minstrel record went astray. The museum was never designed.
The main points from the abuse of many rands of Lottery funds to get a museum that under no circumstances was are discovered within an investigative report commissioned from the NLC in 2021.
The museum grant was part of much more than R64-million in Lottery funds allotted into the CTMCA amongst 2003 and 2017.
The main Portion of the investigation, by legislation company Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which provided funding for that museum. The authorised spending budget for that museum was greater than R12.eight-million, with R5-million of that allotted for a setting up to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the developing with the museum and whether or not the museum “basically existed”.
The organization was also instructed to investigate
the acquisition with Lottery resources of two cars – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
many devices “bought with the production of the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators from the organisation. Stemmet was reappointed for a director in May 2021.
The investigation followed comprehensive reporting by GroundUp regarding the a lot of rands of Lottery funding allotted to your CTMCA (see in this article, in this article and in this article) and just how the cash in all probability aided finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.
The constructing on the correct was the meant web-site in the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “initiatives” - such as the museum - among 2012 and 2015. All 3 initiatives were completed, she informed MPs.
Although the investigators found no evidence that a museum experienced at any time existed.
At the beginning the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp from the supposed Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, along with a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum had been moved as they could no longer find the money for the hire of R100,000 per month. He stated the CTMCA had acquired assets for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for the same value. Schaapkraal is in the peri-urban spot much from the city.
Therefore, the museum had been moved to a fresh place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which are within an industrial region, the investigators said they doubted whether a suitable museum existed there. Pictures connected to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without rationalization.
“There is a minimum number of merchandise at the museum [that] in no way signify the a lot more than one hundred-yr background from the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to search to be open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by going The placement of your museum to an alternative spot with out notifying the NLC.
The Schaapkraal house, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver from the rented Crete Road premises because it had operate up a R4-million credit card debt with town of Cape Town and was scared its devices could well be hooked up.
“Due to legal battles along with the debts, the organisation had to maneuver its property from 5 Crete Street to stay away from the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director of the CTMCA, instructed them the two buses bought with lottery money had been saved in a very magic formula locale “concealed with the Sheriff”. Even so the investigators stated they had been not able to confirm that any buses had ever been purchased.
Stemmet also verified that the buses had been hidden to prevent them becoming seized. But in the event the investigators asked to get taken towards the spot in which the buses were stored, he explained to them that “the operator of The key site wasn't accessible to open up the premises for us”.
“The CTMCA could not offer proof of payment for 2 motor vehicles that it allegedly ordered with grant dollars,” the investigators claimed.
Soeker also explained to them the Schaapkraal residence had been marketed due to the financial debt.
“Mr Soeker described that Based on his knowing, because of the credit card debt owed to the City of Cape City, the CTMCA made the decision It might be greatest to offer their [Schaapkraal] assets … also to also to hide the belongings with the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for protection and security, has Earlier advised GroundUp the CTMCA “threw money absent” on litigation with the City.
“Yearly like clockwork, as we method the tip on the 12 months, the CTMCA picks a lawful fight with town, around permits or another thing. We never initiate it. They maintain throwing money away on vexatious litigation which they eliminate and have expenses awarded versus them. This is fully self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the leading role players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up answerable for each of the admin, finances and managing หวย หุ้น the CTMCA.” The investigators claimed they were struggling to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “discovered many machines, some in good situation, some in poor situation and some that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-web page storage facility the place “instruments and many machinery” ended up stored.
“We requested him to take us to the facility but he was evasive to our request.”
Dependant on pictures and invoices in GroundUp’s possession, some, if not all, with the merchandise look like gear that was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.
Based on the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter were being directors at the time.
The investigators observed this “alarming”.
“From your CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Be aware the next alarming discovering: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the business is five Crete Highway, Wetton, Cape City, the identical tackle on which the museum was meant to be crafted and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, attached for the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.
In line with Dabishi Nthambeleni, the business has paid R1.2-million as being a deposit, this means R6.9-million remains owed, however there's no payment day set for when this need to be paid.
The Kopano audit along with the shut hyperlink involving the businesses “indicate to us that there is ‘foul Engage in’ linked to the acquisition of the machinery from the museum workshop”, the investigators explained from the report.
“We discover that it is hugely probable that CTMCA employed the funding in the NLC to ‘refund’ among its principal directors with the residence at a better overpriced charge than the particular selling price and worth of the property and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, could be unachievable because the CTMCA does not have any receipts, or proof 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 identified that the NLC had not conducted a site go to prior to approving the grant. But this wasn't conventional exercise at time and they uncovered no evidence of carelessness by NLC staff members.
At time, the NLC’s procedures did not require funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was in the position to receive a second tranche of funding without the need to offer proof that it had applied the very first tranche for its meant function.
Next the appointment of a brand new board, commissioner and senior executive group, the NLC has tightened up on these together with other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any upcoming funding apps through the CTMCA;
the CTMCA and any associates who had been linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, instead of act over the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, because it experienced finished With all the past reports into corruption it had commissioned.
GroundUp sent concerns to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to deliver the queries by e-mail also. But no response were gained at enough time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph