Minstrels accomplish in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant with the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has uncovered no proof that a museum ever existed.
The investigators found the CTMCA didn't use the R5-million allotted to purchase or make a museum.
They also located which the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They located the CTMCA used cash from the Lottery to invest in workshop equipment from certainly one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted into the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to put in place a museum to rejoice the city’s wealthy minstrel heritage went astray. The museum was by no means made.
The details from the abuse of countless rands of Lottery resources for the museum that by no means was are unveiled within an investigative report commissioned from the NLC in 2021.
The museum grant was part of greater than R64-million in Lottery funds allocated towards the CTMCA concerning 2003 and 2017.
The main part of the investigation, by law firm Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which bundled funding for that museum. The accepted price range for your museum was in excess of R12.eight-million, with R5-million of that allocated for your building to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the developing for your museum and if the museum “essentially existed”.
The organization was also instructed to investigate
the purchase with Lottery funds of two autos – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
several devices “acquired for your manufacturing from the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors in the organisation. Stemmet was reappointed as a director in Could 2021.
The investigation followed substantial reporting by GroundUp with regards to the countless rands of Lottery funding allotted to the CTMCA (see listed here, in this article and here) and the best way the cash most likely aided finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at some time by Marius Fransman.
The constructing on the ideal was the intended internet site on the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In response to a Parliamentary query, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “assignments” - such as the museum - amongst 2012 and 2015. All a few projects had been done, she informed MPs.
But the investigators identified no evidence that a museum experienced ever existed.
Initially the museum was as a consequence of open in rented premises in Crete Street, Wetton. A photo received by GroundUp with the meant Wetton museum demonstrates a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung within the walls, as well as a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not ready” to substantiate if a museum had ever operated from these premises.
Stemmet advised the investigators the museum had been moved mainly because they could now not afford the rent of R100,000 per month. He said the CTMCA had acquired property for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar value. Schaapkraal is within a peri-city location significantly from town.
Therefore, the museum had been moved to a different place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after browsing the premises, which are within an industrial spot, the investigators claimed they doubted whether a proper museum existed there. Photographs attached to the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, exhibited on tables and unfold out on the ground, with no clarification.
“There's a minimal volume of products in the museum [that] by no means signify the much more than 100-12 months record of the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the premises indicating which they housed a museum and … generally, the museum would not glimpse to be open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation on the museum to an alternative location without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever crafted. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA experienced to maneuver with the rented Crete Street premises since it experienced run up a R4-million debt with town of Cape City and was scared its gear could well be connected.
“As a result of lawful battles as well as debts, the organisation had to maneuver its home from 5 Crete Street to avoid the sheriff from attaching the residence from the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director in the CTMCA, instructed them which the two buses acquired with lottery cash have been stored in the magic formula place “concealed from the Sheriff”. Though the investigators stated they ended up not able to confirm that any buses experienced at any time been purchased.
Stemmet also confirmed which the buses were concealed to prevent them being seized. But in the event the investigators asked being taken on the location exactly where the buses were saved, he instructed them that “the operator of The key place was not available to open up the premises for us”.
“The CTMCA couldn't give evidence of payment for two cars that it allegedly procured with grant money,” the investigators noted.
Soeker also advised them the Schaapkraal house had been bought due to credit card debt.
“Mr Soeker stated that In accordance with his being familiar with, because of the personal debt owed to the City of Cape Town, the CTMCA determined It will be finest to provide their [Schaapkraal] residence … and to also to cover the property of the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for security and safety, has Earlier explained to GroundUp that the CTMCA “threw income absent” on litigation with the town.
“Yearly like clockwork, as we solution the end with the year, the CTMCA picks a legal combat with the town, more than permits or another thing. We under no circumstances initiate it. They retain throwing funds absent on vexatious litigation which they reduce and possess charges awarded towards them. This really is solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the leading function players on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and jogging หวย ลาว ล่าสุด the CTMCA.” The investigators explained they were struggling to Get hold of Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “identified a lot of machines, some in great condition, some in bad condition and some that appeared rusty and very previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and several equipment” ended up held.
“We asked him to take us to the ability but he was evasive to our ask for.”
Depending on photos and invoices in GroundUp’s possession, some, if not all, of your things seem like gear that was illegally faraway from the CTMCA’s prior premises. Stemmet is experiencing rates for this removing.
In accordance with the remaining development report submitted into the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter had been administrators at enough time.
The investigators identified this “alarming”.
“In the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Observe the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, exactly the same deal with on which the museum was meant to be crafted and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the process of buying “machinery, plant and inventory” 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.
According to Dabishi Nthambeleni, the corporation has paid out R1.2-million to be a deposit, indicating R6.9-million remains owed, however there is absolutely no payment date set for when this needs to be paid out.
The Kopano audit and also the shut url between the companies “indicate to us that there is ‘foul Enjoy’ involved in the purchase on the equipment of the museum workshop”, the investigators explained in the report.
“We discover that it's highly possible that CTMCA used the funding from the NLC to ‘refund’ one among its key administrators with the home at a better overpriced fee than the actual cost and price of the assets and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant to your CTMCA had been used.
“The truth is, a detailed report on how the funding with the NLC was applied, can be extremely hard because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts invested on Just about every product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered that the NLC had not conducted a site go to just before approving the grant. But this was not standard apply at time plus they uncovered no proof of negligence by NLC personnel.
At enough time, the NLC’s principles didn't call for funded organisations to submit evidence of payment with interim reports, they identified. This meant the CTMCA was able to get a next tranche of funding while not having to give evidence that it had made use of the primary tranche for its supposed objective.
Adhering to the appointment of a brand new board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act to the report’s recommendations, the NLC – less than its earlier administration – selected to suppress it, as it had finished Together with the prior stories into corruption it experienced commissioned.
GroundUp sent issues to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send the issues by electronic mail much too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph