Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee into the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has discovered no proof that a museum at any time existed.
The investigators observed which the CTMCA didn't utilize the R5-million allotted to obtain or establish a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.7-million, not R5-million as allotted.
They uncovered the CTMCA used funds within the Lottery to acquire workshop gear from one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to set up a museum to celebrate town’s abundant minstrel historical past went astray. The museum was never ever created.
The main points from the abuse of countless rands of Lottery resources for just a museum that never ever was are unveiled within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery money allocated into the CTMCA amongst 2003 and 2017.
The first Section of the investigation, by regulation firm Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which included funding for your museum. The authorized finances with the museum was much more than R12.eight-million, with R5-million of that allocated for your building to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a creating for the museum and whether the museum “truly existed”.
The agency was also instructed to investigate
the acquisition with Lottery money of two cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
many machines “purchased for your manufacturing on the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed as being a director in Could 2021.
The investigation adopted in depth reporting by GroundUp concerning the a lot of rands of Lottery funding allotted to your CTMCA (see below, in this article and in this article) and just how the cash in all probability aided finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.
The creating on the best was the intended internet site with the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph
In response into a Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - including the museum - concerning 2012 and 2015. All three assignments had been accomplished, she instructed MPs.
However the investigators identified no proof that a museum had at any time existed.
Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung on the partitions, as well as a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet advised the investigators the museum were moved simply because they could no more afford the rent of R100,000 a month. He explained the CTMCA experienced procured property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for the same cost. Schaapkraal is within a peri-urban location much from the town.
Therefore, the museum had been moved to a fresh spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, which can be within an industrial spot, the investigators stated they doubted no matter whether a proper museum existed there. Shots attached to your report present a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and unfold out on the ground, without having rationalization.
“There exists a small amount of things with the museum [that] under no circumstances represent the greater than 100-year history of the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not appear to be open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by going The placement of your museum to an alternative spot with out notifying the NLC.
The Schaapkraal house, on which no museum was at any time created. Image: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to maneuver in the rented Crete Road premises as it experienced operate up a R4-million personal debt with town of Cape City and was worried its machines could be hooked up.
“Due to the lawful battles as well as debts, the organisation experienced to move its home from five Crete Highway to avoid the sheriff from attaching the residence from the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director from the CTMCA, informed them which the two buses acquired with lottery funds were being saved in a very magic formula spot “concealed in the Sheriff”. Though the investigators reported they ended up not able to confirm that any buses experienced at any time been bought.
Stemmet also confirmed which the buses were concealed to stop them becoming seized. But when the investigators requested being taken to the position exactly where the buses ended up saved, he informed them that “the operator of The trick place was not available to open up the premises for us”.
“The CTMCA could not present evidence of payment for two vehicles that it allegedly acquired with grant money,” the investigators noted.
Soeker also advised them the Schaapkraal assets had been offered due to financial debt.
“Mr Soeker spelled out that according to his comprehending, as a result of financial debt owed to town of Cape City, the CTMCA made the decision It might be most effective to offer their [Schaapkraal] house … also to also to hide the belongings on the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for protection and safety, has Earlier informed GroundUp the CTMCA “threw revenue away” on litigation with the City.
“Every year like clockwork, as we technique the top of the calendar year, the CTMCA picks a legal fight with the City, more than permits or another thing. We never initiate it. They maintain throwing money absent on vexatious litigation which they drop and have charges awarded towards them. That is totally self-inflicted,” he stated.
Soeker instructed the Dabishi Nthambeleni investigators that the key function gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, funds and operating ตรวจ สลาก the CTMCA.” The investigators said they had been unable to Get hold of Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “uncovered numerous equipment, some in superior ailment, some in lousy affliction and many that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-web site storage facility where “devices and some equipment” were retained.
“We questioned him to get us to the power but he was evasive to our request.”
Dependant on images and invoices in GroundUp’s possession, some, Otherwise all, on the items appear to be products which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with fees for this elimination.
Based on the closing development report submitted on the NLC because of the CTMCA, the equipment was obtained from Martin-Conne Milliners, a firm where Stemmet, his wife and his daughter had been administrators at some time.
The investigators observed this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be built and/or converted,” they documented.
An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the whole process of paying for “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.
As outlined by Dabishi Nthambeleni, the corporate has paid out R1.2-million as a deposit, this means R6.9-million is still owed, while there isn't a payment date established for when this has to be compensated.
The Kopano audit as well as the shut website link concerning the companies “suggest to us that there is ‘foul Engage in’ linked to the acquisition of the machinery from the museum workshop”, the investigators claimed in the report.
“We discover that it's highly probable that CTMCA employed the funding on the NLC to ‘refund’ one of its primary administrators with the assets at an increased overpriced fee than the actual cost and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been unable to determine how the grant on the CTMCA had been used.
“The truth is, a detailed report on how the funding from the NLC was made use of, might be extremely hard as the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Each and every merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not carried out a internet site stop by before approving the grant. But this wasn't typical exercise at enough time and so they discovered no evidence of carelessness by NLC personnel.
At time, the NLC’s guidelines didn't call for funded organisations to submit evidence of payment with interim reports, they identified. This intended that the CTMCA was in a position to receive a next tranche of funding while not having to offer proof that it had applied the very first tranche for its meant reason.
Next the appointment of a fresh board, commissioner and senior government crew, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any potential funding programs in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated money.
But, rather then act about the report’s tips, the NLC – below its past administration – chose to suppress it, because it had finished Together with the previous reviews into corruption it experienced commissioned.
GroundUp sent thoughts to Stemmet and Soeker via SMS, and requested for e-mail addresses to ship the thoughts by electronic mail too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph