Minstrels execute in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant with the Countrywide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no proof that a museum at any time existed.
The investigators uncovered the CTMCA didn't make use of the R5-million allocated to buy or establish a museum.
Additionally they identified that the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilised money within the Lottery to purchase workshop tools from one among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to arrange a museum to rejoice town’s rich minstrel background went astray. The museum was by no means created.
The main points in the abuse of countless rands of Lottery resources for a museum that never was are disclosed in an investigative report commissioned by the NLC in 2021.
The museum grant was Section of over R64-million in Lottery resources allocated into the CTMCA in between 2003 and 2017.
The initial A part of the investigation, by law organization Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and centered on a R27.three-million grant into the CTMCA in 2014, which incorporated funding for the museum. The authorized price range for the museum was over R12.eight-million, with R5-million of that allotted for the building to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up with the museum and if the museum “truly existed”.
The firm was also instructed to investigate
the acquisition with Lottery resources of two vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
numerous equipment “purchased for the production in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed like a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp about the a lot of rands of Lottery funding allocated towards the CTMCA (see here, in this article and in this article) and how the money in all probability aided finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The building on the ideal was the supposed web page from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - such as the museum - involving 2012 and 2015. All three tasks had been completed, she instructed MPs.
However the investigators discovered no evidence that a museum had at any time existed.
At the beginning the museum was resulting from open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp from the intended Wetton museum shows a coffee shop with some musical devices and minstrel costumes and collages of pics haphazardly hung on the walls, and also a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni said it absolutely was “not ready” to verify if a museum had at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved as they could not afford the hire of R100,000 a month. He said the CTMCA had procured house for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were marketed for a similar cost. Schaapkraal is in the peri-city area significantly from the town.
Subsequently, the museum were moved to a fresh locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But following browsing the premises, which can be in an industrial area, the investigators mentioned they doubted irrespective of whether an appropriate museum existed there. Photos connected for the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the floor, with no rationalization.
“There exists a negligible amount of goods in the museum [that] in no way depict the more than one hundred-12 months record from the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … commonly, the museum would not glimpse to be open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by going The situation on the museum to an alternate area with no notifying the NLC.
The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to move within the rented Crete Street premises as it had run up a R4-million credit card debt with the City of Cape Town and was worried its tools might be hooked up.
“Because of the legal battles and the debts, the organisation had to maneuver its residence from 5 Crete Road to avoid the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director from the CTMCA, told them which the two buses purchased with lottery resources have been saved in the secret spot “concealed from your Sheriff”. But the investigators claimed they had been not able to confirm that any buses experienced ever been purchased.
Stemmet also confirmed the buses had been concealed to prevent them currently being seized. But when the investigators asked to be taken to your place the place the buses were saved, he explained to them that “the owner of The trick place wasn't available to open up the premises for us”.
“The CTMCA couldn't offer proof of payment for 2 vehicles that it allegedly bought with grant funds,” the investigators noted.
Soeker also informed them the Schaapkraal property were marketed due to the debt.
“Mr Soeker stated that according to his understanding, because of the personal debt owed to the City of Cape Town, the CTMCA made a decision It might be best to provide their [Schaapkraal] residence … and also to also to cover the belongings on the CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for protection and security, has Formerly instructed GroundUp which the CTMCA “threw money away” on litigation with town.
“Each and every year like clockwork, as we approach the top of the calendar year, the CTMCA picks a lawful combat with the town, in excess of permits or another thing. We hardly ever initiate it. They retain throwing dollars absent on vexatious litigation that they eliminate and have prices awarded towards them. This is often completely self-inflicted,” he claimed.
Soeker told the Dabishi Nthambeleni investigators that the key position gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of every one of the admin, funds and jogging หวย วัน นี้ the CTMCA.” The investigators said they had been not able to Get hold of Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “found quite a few devices, some in fantastic ailment, some in bad problem and several that seemed rusty and extremely old”. Stemmet explained to the investigators that there was also an off-site storage facility exactly where “devices plus some equipment” had been saved.
“We questioned him to just take us to the facility but he was evasive to our ask for.”
Based on shots and invoices in GroundUp’s possession, some, if not all, with the products seem like equipment that was illegally faraway from the CTMCA’s prior premises. Stemmet is facing prices for this removing.
In accordance with the ultimate progress report submitted to the NLC with the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business through which Stemmet, his spouse and his daughter were being administrators at some time.
The investigators discovered this “alarming”.
“Within the CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, precisely the same deal with on which the museum was meant to be crafted and/or converted,” they described.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the entire process of buying “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.
As outlined by Dabishi Nthambeleni, the organization has paid R1.2-million as being a deposit, meaning R6.nine-million remains owed, while there is no payment day set for when this should be compensated.
The Kopano audit as well as the shut hyperlink involving the companies “suggest to us that there's ‘foul Enjoy’ linked to the purchase in the machinery of your museum workshop”, the investigators mentioned during the report.
“We find that it's very possible that CTMCA used the funding in the NLC to ‘refund’ amongst its most important administrators for that assets at a greater overpriced charge than the actual price tag and worth of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA were put in.
“Actually, a detailed report on how the funding of your NLC was made use of, might be difficult as being the CTMCA does not have any receipts, or evidence of payments to verify the quantities invested on each merchandise it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not performed a internet site visit ahead of approving the grant. But this wasn't typical exercise at enough time and so they discovered no proof of negligence by NLC personnel.
At time, the NLC’s guidelines didn't require funded organisations to post proof of payment with interim reports, they identified. This meant the CTMCA was ready to receive a next tranche of funding while not having to give evidence that it had utilized the 1st tranche for its meant purpose.
Pursuing the appointment of a whole new board, commissioner and senior government group, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni advisable that
the NLC drop any upcoming funding applications in the CTMCA;
the CTMCA and any associates who ended up associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated money.
But, as an alternative to act within the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, because it experienced accomplished Using the preceding reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the thoughts by email also. But no response had been obtained at time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph