Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has found no proof that a museum ever existed.
The investigators discovered which the CTMCA didn't make use of the R5-million allotted to order or create a museum.
They also observed the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed funds with the Lottery to acquire workshop tools from amongst its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape City Minstrel Carnival Association (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to celebrate town’s wealthy minstrel background went astray. The museum was under no circumstances made.
The small print of your abuse of numerous rands of Lottery money for your museum that by no means was are revealed in an investigative report commissioned by the NLC in 2021.
The museum grant was part of much more than R64-million in Lottery cash allotted to the CTMCA between 2003 and 2017.
The very first part of the investigation, by law company Dabishi Nthambeleni, was done between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which incorporated funding for that museum. The authorized budget for your museum was much more than R12.eight-million, with R5-million of that allotted for a creating to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the building with the museum and if the museum “really existed”.
The organization was also instructed to analyze
the purchase with Lottery money of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
a variety of devices “purchased for the manufacturing on the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors in the organisation. Stemmet was reappointed like a director in Might 2021.
The investigation adopted substantial reporting by GroundUp with regard to the a lot of rands of Lottery funding allotted to your CTMCA (see in this article, right here and below) and the best way the funds likely served finance the ANC’s 2014 election campaign from the Western Cape, led by at the time by Marius Fransman.
The creating on the appropriate was the intended web-site of your minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to the Parliamentary question, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “projects” - such as the museum - amongst 2012 and 2015. All three jobs were finished, she told MPs.
Though the investigators observed no proof that a museum had at any time existed.
At the beginning the museum was on account of open up in rented premises in Crete Road, Wetton. A photograph attained by GroundUp with the meant Wetton museum exhibits a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung around the partitions, and a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni claimed it had been “not in a position” to confirm if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved as they could no more afford to pay for the rent of R100,000 a month. He reported the CTMCA experienced procured property for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were offered for the same price. Schaapkraal is in a very peri-urban space considerably from the city.
Subsequently, the museum had been moved to a new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after going to the premises, which might be within an industrial spot, the investigators claimed they doubted whether or not a proper museum existed there. Photos connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and distribute out on the ground, without any explanation.
“You will find there's negligible level of merchandise on the museum [that] in no way depict the much more than 100-yr history from the Cape Town Carnival, the investigators claimed, including that there was “no signage outdoors the premises indicating they housed a museum and … commonly, the museum won't look to get open to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni pointed out, by going The placement in the museum to an alternative site devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time built. Picture: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to move from the rented Crete Street premises since it experienced run up a R4-million credit card debt with town of Cape City and was concerned its equipment could well be attached.
“Because of the authorized battles and the debts, the organisation had to maneuver its assets from five Crete Street to stay away from the sheriff from attaching the property from the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director on the CTMCA, advised them that the two buses bought with lottery resources were saved inside of a secret location “concealed with the Sheriff”. Even so the investigators mentioned they were not able to substantiate that any buses had at any time been bought.
Stemmet also verified that the buses were concealed to stop them being seized. But if the investigators asked being taken to the area wherever the buses were being saved, he told them that “the operator of the secret location wasn't accessible to open the premises for us”.
“The CTMCA couldn't deliver evidence of payment for two vehicles that it allegedly purchased with grant cash,” the investigators reported.
Soeker also explained to them the Schaapkraal house were offered because of the personal debt.
“Mr Soeker stated that Based on his comprehending, due to debt owed to the town of Cape Town, the CTMCA resolved It might be finest to sell their [Schaapkraal] home … and also to also to hide the property of the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for protection and security, has previously told GroundUp which the CTMCA “threw money absent” on litigation with town.
“On a yearly basis like clockwork, as we solution the tip in the year, the CTMCA picks a authorized fight with the town, more than permits or another thing. We never ever initiate it. They preserve throwing money away on vexatious litigation that they get rid of and have charges awarded against them. This is certainly entirely self-inflicted,” he reported.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial purpose players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being in charge of the many admin, funds and operating cat888 the CTMCA.” The investigators explained they had been unable to Speak to Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “identified quite a few devices, some in fantastic affliction, some in bad problem plus some that appeared rusty and very old”. Stemmet told the investigators that there was also an off-site storage facility where by “instruments and several machinery” were being saved.
“We requested him to get us to the facility but he was evasive to our ask for.”
According to pictures and invoices in GroundUp’s possession, some, if not all, with the objects look like products which was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with fees for this elimination.
In accordance with the final progress report submitted for the NLC because of the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business in which Stemmet, his spouse and his daughter had been directors at the time.
The investigators discovered this “alarming”.
“From your CIPC look for of Martin-Conne Milliners and the invoices submitted, we Be aware the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape City, the exact same handle on which the museum was meant to be crafted and/or converted,” they reported.
An audit by accountants Kopano Included, connected to the investigative report, recorded the CTMCA was in the process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.
According to Dabishi Nthambeleni, the business has paid out R1.two-million as a deposit, which means R6.9-million is still owed, even though there is no payment date set for when this should be compensated.
The Kopano audit and the near connection involving the companies “suggest to us that there is ‘foul Participate in’ linked to the acquisition on the machinery with the museum workshop”, the investigators stated from the report.
“We find that it is remarkably possible that CTMCA utilised the funding from the NLC to ‘refund’ certainly one of its major administrators for your house at a better overpriced fee than the particular rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant on the CTMCA had been used.
“The truth is, a detailed report on how the funding in the NLC was utilized, could well be not possible as the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Each and every product it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located which the NLC experienced not performed a web site stop by ahead of approving the grant. But this wasn't common exercise at enough time plus they located no evidence of negligence by NLC employees.
At some time, the NLC’s procedures didn't involve funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was ready to receive a next tranche of funding without the need to give evidence that it had utilized the main tranche for its meant objective.
Next the appointment of a whole new board, commissioner and senior govt crew, the NLC has tightened up on these as well as other challenges.
Dabishi Nthambeleni suggested that
the NLC decrease any upcoming funding purposes within the CTMCA;
the CTMCA and any members who were involved in the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open a prison scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, in lieu of act about the report’s tips, the NLC – below its prior administration – chose to suppress it, mainly because it had done with the past reports into corruption it experienced commissioned.
GroundUp despatched queries to Stemmet and Soeker by using SMS, and asked for e-mail addresses to mail the concerns by e mail far too. But no reaction had been obtained at time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph