Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the National Lotteries Fee towards the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has identified no proof that a museum ever existed.
The investigators located the CTMCA did not make use of the R5-million allocated to get or make a museum.
Additionally they identified that the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA used cash through the Lottery to buy workshop equipment from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to set up a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was by no means designed.
The main points of your abuse of an incredible number of rands of Lottery cash for your museum that hardly ever was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which incorporated funding with the museum. The authorized finances with the museum was a lot more than R12.eight-million, with R5-million of that allotted for your setting up to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the setting up with the museum and if the museum “in fact existed”.
The agency was also instructed to investigate
the acquisition with Lottery cash of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
numerous equipment “obtained for the production from the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough 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 many administrators of the organisation. Stemmet was reappointed being a director in May perhaps 2021.
The investigation adopted extensive reporting by GroundUp with regards to the millions of rands of Lottery funding allocated to the CTMCA (see right here, listed here and listed here) and the best way the money most likely served finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at enough time by Marius Fransman.
The making on the appropriate was the meant internet site in the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph
In response into a Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 jobs had been done, she advised MPs.
But the investigators identified no proof that a museum had at any time existed.
At the outset the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp with the intended Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it was “not in a position” to substantiate if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum were moved because they could now not pay for the hire of R100,000 per month. He explained the CTMCA experienced procured residence for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and were marketed for the same value. Schaapkraal is inside a peri-city location much from the city.
Consequently, the museum were moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after viewing the premises, which can be in an industrial spot, the investigators reported they doubted whether or not a proper museum existed there. Shots connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, exhibited on tables and spread out on the ground, with no explanation.
“You will find there's minimal number of merchandise within the museum [that] in no way depict 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 become open up to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to an alternate locale with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA experienced to move in the rented Crete Road premises since it had operate up a R4-million personal debt with town of Cape City and was fearful its machines could well be hooked up.
“Mainly because of the authorized battles along with the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery money were being stored in a very magic formula site “concealed from your Sheriff”. Though the investigators mentioned they ended up not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified which the buses were concealed to halt them being seized. But when the investigators asked to be taken towards the location exactly where the buses had been saved, he instructed them that “the proprietor of the secret locale wasn't available to open up the premises for us”.
“The CTMCA could not deliver evidence of payment for 2 cars that it allegedly obtained with grant money,” the investigators described.
Soeker also informed them the Schaapkraal assets had been marketed because of the financial debt.
“Mr Soeker stated that As outlined by his knowing, mainly because of the debt owed to the City of Cape Town, the CTMCA made the decision It could be finest to provide their [Schaapkraal] property … also to also to cover the property with the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for security and security, has Beforehand instructed GroundUp the CTMCA “threw cash absent” on litigation with the town.
“Yearly like clockwork, as we method the top on the year, the CTMCA picks a authorized struggle with the town, around permits or something else. We never initiate it. They hold throwing money away on vexatious litigation they lose and have expenditures awarded against them. That is fully self-inflicted,” he said.
Soeker informed the Dabishi Nthambeleni investigators that the key purpose gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been in command of many of the admin, funds and working ตา ว จ หวย the CTMCA.” The investigators said they were unable to Get in touch with Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “located a lot of devices, some in excellent problem, some in poor condition plus some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-site storage facility wherever “instruments and many equipment” had been saved.
“We asked him to just take us to the power but he was evasive to our request.”
Determined by shots and invoices in GroundUp’s possession, some, if not all, in the goods look like equipment that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing rates for this removal.
According to the last progress report submitted for the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a business through which Stemmet, his wife and his daughter were administrators at time.
The investigators identified this “alarming”.
“From your CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming acquiring: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, exactly the same tackle on which the museum was meant to be constructed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached into the investigative report, recorded the CTMCA was in the process of acquiring “machinery, plant and stock” 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 one of the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.2-million as a deposit, this means R6.9-million remains owed, nevertheless there isn't a payment date established for when this has to be compensated.
The Kopano audit plus the close connection involving the companies “suggest to us that there is ‘foul play’ associated with the acquisition from the equipment from the museum workshop”, the investigators reported while in the report.
“We discover that it's really possible that CTMCA used the funding from the NLC to ‘refund’ considered one of its key directors for your residence at an increased overpriced amount than the particular price tag and worth of the property and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were used.
“The truth is, a detailed report on how the funding of the NLC was used, would be impossible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on each merchandise it asked for funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not done a web site take a look at before approving the grant. But this was not conventional practice at the time and they found no proof 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 meant which the CTMCA was in the position to receive a next tranche of funding without needing to deliver proof that it had made use of the primary tranche for its supposed objective.
Adhering to the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni advised that
the NLC decline any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected on the 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 entire process of recovering the misappropriated resources.
But, in lieu of act within the report’s tips, the NLC – underneath its prior administration – chose to suppress it, since it experienced completed While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the issues by e mail far too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph