Minstrels perform in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant with the Countrywide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed the CTMCA did not use the R5-million allocated to buy or build a museum.
In addition they observed the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA employed funds with the Lottery to buy workshop gear from among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape Town Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Commission (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was under no circumstances created.
The details of the abuse of a lot of rands of Lottery resources for a museum that in no way was are exposed within an investigative report commissioned from the NLC in 2021.
The museum grant was A part of over R64-million in Lottery cash allocated for the CTMCA among 2003 and 2017.
The initial Section of the investigation, by legislation agency Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which incorporated funding with the museum. The authorized spending plan for the museum was in excess of R12.8-million, with R5-million of that allocated for the developing to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating for the museum and if the museum “truly existed”.
The firm was also instructed to research
the purchase with Lottery funds of two automobiles – a 60-seater bus along with a 23-seater bus – for R2.4-million; and
numerous machines “bought for your manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of your organisation. Stemmet was reappointed to be a director in May 2021.
The investigation adopted comprehensive reporting by GroundUp concerning the millions of rands of Lottery funding allocated towards the CTMCA (see right here, below and here) and the best way the cash almost certainly served finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.
The setting up on the proper was the meant website of your minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to some Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All a few jobs were concluded, she explained to MPs.
Although the investigators uncovered no evidence that a museum had ever existed.
Initially the museum was because of open up in rented premises in Crete Street, Wetton. A photo received by GroundUp of the intended Wetton museum shows a coffee store with a few musical instruments and minstrel costumes and collages of images haphazardly hung over the partitions, and a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni explained it was “not in a position” to substantiate if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved as they could no longer find the money for the rent of R100,000 per month. He mentioned the CTMCA experienced procured home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been offered for the same rate. Schaapkraal is inside a peri-urban area much from the town.
Subsequently, the museum were moved to a new place in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after browsing the premises, which are in an industrial place, the investigators stated they doubted irrespective of whether a proper museum existed there. Pictures hooked up to your report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the floor, without having clarification.
“There exists a minimum quantity of products within the museum [that] on no account depict the over a hundred-year historical past from the Cape Town Carnival, the investigators reported, including that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum won't glimpse to generally be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by relocating The placement in the museum to an alternative area with no notifying the NLC.
The Schaapkraal house, on which no museum was ever crafted. Picture: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver with the rented Crete Street premises because it had operate up a R4-million personal debt with the City of Cape City and was fearful its tools could be hooked up.
“Due to the legal battles as well as debts, the organisation experienced to move its property from 5 Crete Street to steer clear of the sheriff from attaching the residence in the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director in the CTMCA, advised them which the two buses acquired with lottery resources were saved inside a mystery location “hidden from your Sheriff”. However the investigators stated they had been unable to verify that any buses had ever been bought.
Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators requested for being taken into the area in which the buses were being saved, he informed them that “the operator of The trick spot wasn't available to open the premises for us”.
“The CTMCA could not deliver evidence of payment for 2 motor vehicles that it allegedly purchased with grant funds,” the investigators described.
Soeker also explained to them the Schaapkraal assets were offered due to the debt.
“Mr Soeker defined that In keeping with his knowing, mainly because of the credit card debt owed to the City of Cape Town, the CTMCA decided It will be ideal to provide their [Schaapkraal] home … and also to also to cover the belongings on the CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and safety, has Formerly instructed GroundUp that the CTMCA “threw funds absent” on litigation with the town.
“Every year like clockwork, as we method the tip with the calendar year, the CTMCA picks a authorized battle with the City, around permits or another thing. We never ever initiate it. They continue to keep throwing income absent on vexatious litigation they reduce and have charges awarded against them. That is entirely self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the key job gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, funds and running fox888 the CTMCA.” The investigators stated they had been not able to Get hold of Momberg.
Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “observed various equipment, some in good situation, some in poor situation and several that looked rusty and extremely old”. Stemmet advised the investigators that there was also an off-web-site storage facility where by “devices and several machinery” were stored.
“We questioned him to choose us to the ability but he was evasive to our ask for.”
Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, in the merchandise appear to be tools that was illegally faraway from the CTMCA’s former premises. Stemmet is going through prices for this elimination.
In accordance with the last progress report submitted to your NLC via the CTMCA, the equipment was purchased from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter have been directors at the time.
The investigators discovered this “alarming”.
“From your CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Street, Wetton, Cape Town, a similar address on which the museum was intended to be built and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the directors.
In accordance with Dabishi Nthambeleni, the business has paid R1.two-million for a deposit, that means R6.9-million remains owed, nevertheless there is not any payment day set for when this need to be paid out.
The Kopano audit as well as the shut url among the businesses “indicate to us that there is ‘foul Participate in’ involved in the purchase on the equipment of your museum workshop”, the investigators stated while in the report.
“We discover that it is hugely possible that CTMCA applied the funding of your NLC to ‘refund’ certainly one of its major directors to the house at a better overpriced charge than the actual price and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant for the CTMCA were put in.
“In fact, an in depth report on how the funding on the NLC was employed, could be unachievable because the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts put in on each merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not executed a site pay a visit to ahead of approving the grant. But this wasn't common follow at enough time and so they identified no evidence of carelessness by NLC staff members.
At enough time, the NLC’s policies didn't have to have funded organisations to submit evidence of payment with interim studies, they pointed out. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without needing to provide proof that it experienced utilized the main tranche for its meant purpose.
Pursuing the appointment of a new board, commissioner and senior executive crew, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any long term funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced done Together with the former reports into corruption it had commissioned.
GroundUp sent queries 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 obtained at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph