Minstrels accomplish in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by the National Lotteries Commission on the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators discovered the CTMCA did not use the R5-million allotted to purchase or develop a museum.
Additionally they uncovered the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They located the CTMCA utilized funds through the Lottery to purchase workshop products from certainly one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to put in place a museum to celebrate town’s loaded minstrel background went astray. The museum was in no way developed.
The details of the abuse of an incredible number of rands of Lottery resources for any museum that under no circumstances was are disclosed within an investigative report commissioned by the NLC in 2021.
The museum grant was Portion of a lot more than R64-million in Lottery funds allotted to the CTMCA in between 2003 and 2017.
The initial Portion of the investigation, by law business Dabishi Nthambeleni, was done among September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which provided funding for your museum. The approved finances for the museum was more than R12.8-million, with R5-million of that allocated for just a creating to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a constructing for the museum and whether the museum “in fact existed”.
The organization was also instructed to research
the purchase with Lottery money of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of machines “acquired for that producing from the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors of the organisation. Stemmet was reappointed being a director in May perhaps 2021.
The investigation followed substantial reporting by GroundUp with regard to the millions of rands of Lottery funding allocated to the CTMCA (see listed here, listed here and listed here) and the way the resources most likely served finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The making on the correct was the meant web site of your minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “initiatives” - including the museum - involving 2012 and 2015. All a few tasks had been completed, she told MPs.
Even so the investigators observed no proof that a museum had at any time existed.
Initially the museum was as a result of open up in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with a few musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, along with a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not ready” to confirm if a museum experienced ever operated from these premises.
Stemmet advised the investigators the museum had been moved mainly because they could not find the money for the hire of R100,000 a month. He stated the CTMCA had procured home for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were offered for a similar selling price. Schaapkraal is in the peri-city spot considerably from the town.
As a result, the museum had been moved to a brand new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after viewing the premises, that are in an industrial location, the investigators explained they doubted regardless of whether a suitable museum existed there. Images connected to the report show a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the ground, with no rationalization.
“You will find a nominal degree of merchandise for the museum [that] under no circumstances characterize the over 100-calendar year historical past from the Cape City Carnival, the investigators stated, including that there was “no signage exterior the premises indicating they housed a museum and … frequently, the museum will not seem for being open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by shifting The situation on the museum to an alternative site with no notifying the NLC.
The Schaapkraal property, on which no museum was at any time crafted. Photograph: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to maneuver with the rented Crete Highway premises since it had run up a R4-million credit card debt with town of Cape Town and was fearful its products would be attached.
“A result of the authorized battles plus the debts, the organisation had to move its home from 5 Crete Highway to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of the CTMCA, explained to them which the two buses purchased with lottery resources were stored inside a key site “concealed in the Sheriff”. Although the investigators claimed they have been not able to confirm that any buses had at any time been acquired.
Stemmet also confirmed the buses were concealed to prevent them being seized. But once the investigators requested for being taken on the position where by the buses were being saved, he informed them that “the proprietor of The trick locale wasn't accessible to open the premises for us”.
“The CTMCA couldn't provide evidence of payment for two automobiles that it allegedly bought with grant money,” the investigators described.
Soeker also advised them the Schaapkraal property had been offered due to credit card debt.
“Mr Soeker described that In line with his knowing, because of the credit card debt owed to town of Cape Town, the CTMCA resolved It might be most effective to promote their [Schaapkraal] home … and to also to cover the assets of your CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for protection and security, has Formerly instructed GroundUp that the CTMCA “threw funds away” on litigation with the town.
“Each year like clockwork, as we technique the top of the year, the CTMCA picks a authorized battle with the City, around permits or another thing. We by no means initiate it. They preserve throwing cash absent on vexatious litigation they get rid of and also have prices awarded in opposition to them. This really is solely self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the main position players on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, funds and running หวย วัน นี้ the CTMCA.” The investigators claimed they were unable to Get hold of Momberg.
Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “observed several equipment, some in superior condition, some in lousy ailment and several that looked rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-internet site storage facility the place “instruments plus some machinery” were retained.
“We requested him to get us to the power but he was evasive to our request.”
According to pics and invoices in GroundUp’s possession, some, if not all, on the items look like machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with prices for this removal.
Based on the remaining progress report submitted on the NLC by the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization where Stemmet, his spouse and his daughter ended up directors at enough time.
The investigators located this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Road, Wetton, Cape City, the same address on which the museum was meant to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Integrated, hooked up on the investigative report, recorded that the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the directors.
Based on Dabishi Nthambeleni, the business has paid out R1.2-million for a deposit, meaning R6.nine-million remains to be owed, while there is not any payment date set for when this needs to be compensated.
The Kopano audit along with the shut backlink in between the businesses “show to us that there's ‘foul play’ involved with the acquisition from the equipment of your museum workshop”, the investigators explained during the report.
“We discover that it is extremely probable that CTMCA utilised the funding with the NLC to ‘refund’ certainly one of its principal directors for your home at a better overpriced charge than the actual cost and price of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to establish how the grant for the CTMCA were put in.
“In reality, a detailed report on how the funding from the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on each item it asked for funding for. The interim report and closing report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not done a site visit prior to approving the grant. But this wasn't conventional exercise at enough time and so they found no proof of negligence by NLC employees.
At some time, the NLC’s policies did not need funded organisations to post evidence of payment with interim studies, they identified. This meant the CTMCA was in a position to get a next tranche of funding without needing to deliver proof that it had applied the very first tranche for its meant reason.
Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any potential funding programs from your CTMCA;
the CTMCA and any members who were 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 start off the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – under its earlier administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to deliver the inquiries by e-mail way too. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph