Minstrels perform in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has identified no proof that a museum ever existed.
The investigators identified that the CTMCA did not use the R5-million allotted to obtain or build a museum.
They also observed which the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA employed resources from the Lottery to purchase workshop tools from one among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted into the Cape City Minstrel Carnival Association (CTMCA) through the Countrywide Lotteries Fee (NLC) to put in place a museum to celebrate the town’s prosperous minstrel background went astray. The museum was in no way created.
The small print of your abuse of numerous rands of Lottery money for the museum that never was are exposed within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery funds allotted to the CTMCA concerning 2003 and 2017.
The first Portion of the investigation, by legislation agency Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for the museum. The authorised spending plan with the museum was in excess of R12.eight-million, with R5-million of that allocated for your building to deal with the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a constructing with the museum and whether or not the museum “essentially existed”.
The firm was also instructed to analyze
the acquisition with Lottery funds of two cars – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
a variety of machines “procured for the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few administrators from the organisation. Stemmet was reappointed for a director in May well 2021.
The investigation followed extensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allotted for the CTMCA (see below, in this article and here) and the way in which the money most likely assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The creating on the ideal was the intended site of the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape Town. Photo: Raymond Joseph
In reaction to your Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 initiatives were completed, she informed MPs.
Even so the investigators discovered no proof that a museum had ever existed.
At the beginning the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp with the supposed Wetton museum shows a coffee store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung around the walls, plus a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni explained it absolutely was “not ready” to substantiate if a museum had ever operated from these premises.
Stemmet told the investigators the museum were moved simply because they could no longer afford to pay for the lease of R100,000 a month. He stated the CTMCA experienced ordered assets for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been marketed for a similar price tag. Schaapkraal is inside a peri-urban space far from town.
Therefore, the museum were moved to a brand new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial area, the investigators stated they doubted no matter if a suitable museum existed there. Pics connected into the report show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the ground, without any clarification.
“There is a minimum quantity of merchandise in the museum [that] under no circumstances stand for the over one hundred-yr background in the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … normally, the museum will not appear to be open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by shifting the location of your museum to an alternate location with no notifying the NLC.
The Schaapkraal house, on which no museum was ever developed. Photo: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA experienced to maneuver from your rented Crete Street premises mainly because it experienced operate up a R4-million debt with the town of Cape Town and was scared its machines can be connected.
“Due to authorized battles plus the debts, the organisation experienced to move its house from 5 Crete Highway to steer clear of the sheriff from attaching the house in the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of your CTMCA, instructed them the two buses bought with lottery cash have been saved in a very key area “concealed through the Sheriff”. Even so the investigators said they ended up not able to confirm that any buses experienced at any time been acquired.
Stemmet also verified which the buses had been hidden to prevent them remaining seized. But when the investigators questioned to be taken towards the spot in which the buses had been stored, he informed them that “the proprietor of the secret place was not accessible to open the premises for us”.
“The CTMCA could not offer evidence of payment for two vehicles that it allegedly procured with grant dollars,” the investigators documented.
Soeker also advised them the Schaapkraal home were offered because of the personal debt.
“Mr Soeker discussed that In line with his knowing, due to the personal debt owed to the City of Cape Town, the CTMCA made a decision it would be ideal to offer their [Schaapkraal] assets … also to also to cover the property on the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for security and security, has previously told GroundUp which the CTMCA “threw income away” on litigation with town.
“Each and every year like clockwork, as we strategy the top of the year, the CTMCA picks a lawful combat with the City, more than permits or another thing. We hardly ever initiate it. They retain throwing income away on vexatious litigation that they eliminate and also have fees awarded against them. This really is fully self-inflicted,” he stated.
Soeker explained to the Dabishi Nthambeleni investigators that the leading role players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been answerable for all of the admin, finances and operating ตรวจ หวย ลาว the CTMCA.” The investigators explained they were struggling to Get in touch with Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “located quite a few equipment, some in good situation, some in undesirable affliction and many that seemed rusty and very previous”. Stemmet instructed the investigators that there was also an off-web page storage facility where by “instruments and some equipment” were saved.
“We requested him to consider us to the ability but he was evasive to our ask for.”
Dependant on photographs and invoices in GroundUp’s possession, some, if not all, with the products look like equipment that was illegally removed from the CTMCA’s previous premises. Stemmet is facing fees for this removing.
According to the ultimate progress report submitted to the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter ended up administrators at some time.
The investigators found this “alarming”.
“In the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the business is five Crete Street, Wetton, Cape Town, precisely the same address on which the museum was meant to be created and/or transformed,” they noted.
An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded that the CTMCA was in the entire process of paying for “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was considered one of the administrators.
According to Dabishi Nthambeleni, the organization has paid R1.2-million as a deposit, meaning R6.nine-million remains to be owed, nevertheless there is no payment day established for when this has to be paid.
The Kopano audit as well as near link amongst the companies “point out to us that there is ‘foul Participate in’ associated with the acquisition on the equipment of the museum workshop”, the investigators mentioned during the report.
“We find that it is very probable that CTMCA applied the funding of the NLC to ‘refund’ one among its most important directors for your residence at the next overpriced price than the actual price tag and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to ascertain how the grant towards the CTMCA were used.
“In reality, an in depth report on how the funding in the NLC was used, might be extremely hard because the CTMCA doesn't have any receipts, or proof of payments to verify the quantities put in on each merchandise it asked for funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found the NLC had not carried out a web-site visit prior to approving the grant. But this was not regular exercise at enough time plus they observed no evidence of negligence by NLC staff.
At time, the NLC’s guidelines didn't involve funded organisations to submit evidence of payment with interim stories, they pointed out. This intended the CTMCA was capable to receive a 2nd tranche of funding while not having to supply evidence that it had utilized the main tranche for its intended intent.
Subsequent the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other issues.
Dabishi Nthambeleni suggested that
the NLC decrease any foreseeable future funding apps within the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start the process of recovering the misappropriated resources.
But, in lieu of act within the report’s tips, the NLC – beneath its prior administration – selected to suppress it, mainly because it had finished Along with the prior experiences into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to ship the queries by e-mail way too. But no response had been obtained at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph