Minstrels carry out in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant by the Countrywide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has located no proof that a museum at any time existed.
The investigators identified which the CTMCA didn't use the R5-million allotted to purchase or make a museum.
They also discovered that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allocated.
They uncovered the CTMCA made use of cash within the Lottery to invest in workshop devices from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Commission (NLC) to build a museum to celebrate the town’s loaded minstrel history went astray. The museum was hardly ever created.
The details in the abuse of an incredible number of rands of Lottery cash for your museum that hardly ever was are disclosed within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allocated into the CTMCA involving 2003 and 2017.
The initial A part of the investigation, by legislation firm Dabishi Nthambeleni, was executed among September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The authorised price range for that museum was more than R12.8-million, with R5-million of that allocated for any making to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the making for that museum and if the museum “truly existed”.
The company was also instructed to analyze
the acquisition with Lottery funds of two vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
several machines “procured to the manufacturing on the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors on the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed comprehensive reporting by GroundUp regarding the a lot of rands of Lottery funding allotted on the CTMCA (see below, in this article and below) and just how the cash possibly assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the right was the intended website of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few projects had been finished, she advised MPs.
Though the investigators found no evidence that a museum experienced at any time existed.
At the beginning the museum was because of open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp in the supposed Wetton museum reveals a espresso shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung over the walls, along with a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved simply because they could no longer find the money for the rent of R100,000 a month. He explained the CTMCA experienced acquired assets for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for the same cost. Schaapkraal is in a very peri-urban location much from town.
As a result, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, which happen to be within an industrial spot, the investigators reported they doubted regardless of whether an appropriate museum existed there. Photos attached towards the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the floor, without having explanation.
“There is a small level of merchandise in the museum [that] under no circumstances stand for the over one hundred-yr historical past with the Cape City Carnival, the investigators reported, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum does not glimpse being open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement from the museum to an alternate location devoid of notifying the NLC.
The Schaapkraal home, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to maneuver within the rented Crete Road premises because it had run up a R4-million credit card debt with the town of Cape Town and was scared its products might be connected.
“Due to the lawful battles and also the debts, the organisation had to maneuver its assets from five Crete Road to avoid the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery funds ended up stored in a very mystery location “hidden through the Sheriff”. Even so the investigators stated they were being not able to confirm that any buses had ever been purchased.
Stemmet also confirmed that the buses were hidden to prevent them remaining seized. But when the investigators asked for being taken towards the place the place the buses had been saved, he advised them that “the operator of the secret site was not accessible to open up the premises for us”.
“The CTMCA couldn't present evidence of payment for two autos that it allegedly procured with grant cash,” the investigators described.
Soeker also explained to them the Schaapkraal house had been bought due to credit card debt.
“Mr Soeker discussed that In line with his being familiar with, as a result of financial debt owed to the City of Cape Town, the CTMCA resolved It could be greatest to promote their [Schaapkraal] home … also to also to hide the belongings on the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for security and protection, has Beforehand informed GroundUp the CTMCA “threw dollars absent” on litigation with the City.
“Yearly like clockwork, as we tactic the top of the year, the CTMCA picks a legal fight with the City, more than permits or something else. We in no way initiate it. They hold throwing income away on vexatious litigation that they lose and possess prices awarded from them. This is certainly totally self-inflicted,” he mentioned.
Soeker told the Dabishi Nthambeleni investigators that the most crucial position players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and functioning หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators mentioned they had been struggling to Speak to Momberg.
Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “observed several equipment, some in great ailment, some in negative ailment and a few that seemed rusty and intensely old”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “instruments and several machinery” ended up saved.
“We questioned him to choose us to the power but he was evasive to our ask for.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, with the goods seem like tools that was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with prices for this elimination.
According to the remaining progress report submitted towards the NLC via the CTMCA, the machinery was purchased from Martin-Conne Milliners, a firm by which Stemmet, his spouse and his daughter were directors at enough time.
The investigators discovered this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we Take note the following alarming obtaining: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Road, Wetton, Cape City, the same address on which the museum was meant to be designed and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the process of purchasing “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the directors.
Based on Dabishi Nthambeleni, the corporation has paid R1.2-million to be a deposit, which means R6.nine-million remains owed, even though there is no payment date set for when this has to be paid out.
The Kopano audit as well as shut hyperlink among the companies “reveal to us that there's ‘foul Participate in’ involved in the purchase in the machinery from the museum workshop”, the investigators stated inside the report.
“We find that it's hugely probable that CTMCA used the funding of your NLC to ‘refund’ amongst its key directors for the residence at a better overpriced charge than the particular value and price of the home and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant towards the CTMCA had been expended.
“In point of fact, a detailed report on how the funding in the NLC was utilised, could well be unattainable since the CTMCA does not have any receipts, or proof of payments to confirm the amounts invested on Each and every item it requested funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC had not done a web page take a look at in advance of approving the grant. But this was not standard exercise at time and they observed no evidence of negligence by NLC workers.
At time, the NLC’s rules didn't require funded organisations to post proof of payment with interim studies, they pointed out. This intended which the CTMCA was in a position to get a next tranche of funding while not having to supply evidence that it had applied the initial tranche for its supposed objective.
Pursuing the appointment of a different board, commissioner and senior govt crew, the NLC has tightened up on these and also other concerns.
Dabishi Nthambeleni recommended that
the NLC decline any foreseeable future funding apps with the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected into the NLC’s “delinquency” process;
the NLC open up a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, as an alternative to act on the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, since it experienced done With all the preceding stories into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for e mail addresses to ship the issues by e mail way too. But no response were been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph