Minstrels carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has observed no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to obtain or build a museum.
They also found which the CTMCA only acquired land truly worth R1.7-million, not R5-million as allocated.
They observed the CTMCA made use of resources from the Lottery to acquire workshop tools from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the city’s rich minstrel history went astray. The museum was under no circumstances created.
The details of the abuse of an incredible number of rands of Lottery funds for your museum that hardly ever was are uncovered within an investigative report commissioned by the NLC in 2021.
The museum grant was Element of a lot more than R64-million in Lottery money allotted for the CTMCA between 2003 and 2017.
The primary Element of the investigation, by law organization Dabishi Nthambeleni, was conducted in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which integrated funding to the museum. The accepted spending budget to the museum was much more than R12.8-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 your museum and whether the museum “truly existed”.
The company was also instructed to investigate
the acquisition with Lottery money of two automobiles – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
a variety of machines “procured for that manufacturing of your costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of several directors of your organisation. Stemmet was reappointed like a director in Might 2021.
The investigation followed considerable reporting by GroundUp about the numerous rands of Lottery funding allotted to your CTMCA (see here, right here and listed here) and just how the cash probably served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.
The creating on the best was the supposed website of the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Image: Raymond Joseph
In response into a Parliamentary dilemma, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “jobs” - such as the museum - in between 2012 and 2015. All three assignments had been accomplished, she instructed MPs.
But the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp with the intended Wetton museum exhibits a espresso shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung on the partitions, along with a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni said it had been “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved because they could not afford to pay for the hire of R100,000 a month. He mentioned the CTMCA had ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for a similar price. Schaapkraal is in the peri-city area much from town.
As a result, the museum had been moved to a whole new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after browsing the premises, which happen to be within an industrial place, the investigators reported they doubted whether or not a proper museum existed there. Photos hooked up to your report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, without any rationalization.
“There exists a minimal degree of things within the museum [that] by no means stand for the over one hundred-calendar year history on the Cape City Carnival, the investigators claimed, introducing that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum will not seem being open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring The placement in the museum to an alternative location without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever built. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Road premises mainly because it had run up a R4-million financial debt with the town of Cape City and was worried its tools can be hooked up.
“Due to the authorized battles and the debts, the organisation had to maneuver its assets from five Crete Road to avoid the sheriff from attaching the assets with the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director with the CTMCA, informed them which the two buses purchased with lottery funds were being stored inside a solution area “hidden through the Sheriff”. However the investigators explained they were being not able to confirm that any buses had ever been bought.
Stemmet also confirmed which the buses were concealed to halt them remaining seized. But when the investigators questioned to be taken to the location exactly where the buses were saved, he instructed them that “the proprietor of the secret site was not accessible to open up the premises for us”.
“The CTMCA could not deliver proof of payment for 2 cars that it allegedly bought with grant money,” the investigators described.
Soeker also informed them the Schaapkraal residence had been marketed due to financial debt.
“Mr Soeker stated that In line with his comprehending, due to personal debt owed to the City of Cape Town, the CTMCA determined It might be ideal to offer their [Schaapkraal] assets … also to also to cover the property in the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw income away” on litigation with town.
“Annually like clockwork, as we strategy the top on the year, the CTMCA picks a authorized fight with the town, over permits or another thing. We never initiate it. They retain throwing money away on vexatious litigation they reduce and have charges awarded versus them. This can be entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the key role players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, funds and operating ตัว หวย the CTMCA.” The investigators mentioned they had been not able to Speak to Momberg.
Hats
In the course of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered quite a few equipment, some in very good condition, some in undesirable condition and several that appeared rusty and intensely old”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “instruments and several machinery” have been retained.
“We requested him to acquire us to the power but he was evasive to our ask for.”
Based upon pics and invoices in GroundUp’s possession, some, Otherwise all, on the objects seem like gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through costs for this removing.
Based on the last development report submitted for the NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter were directors at enough time.
The investigators discovered this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape Town, the identical deal with on which the museum was intended to be built and/or transformed,” they described.
An audit by accountants Kopano Integrated, attached towards the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the directors.
As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as being a deposit, indicating R6.nine-million is still owed, even though there is no payment date set for when this has to be paid out.
The Kopano audit plus the near connection concerning the businesses “suggest to us that there's ‘foul Enjoy’ involved with the purchase in the machinery of the museum workshop”, the investigators said during the report.
“We discover that it is really probable that CTMCA utilized the funding of your NLC to ‘refund’ considered one of its principal administrators to the property at an increased overpriced price than the particular price and worth of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA were used.
“In reality, a detailed report on how the funding on the NLC was applied, would be not possible since the CTMCA does not have any receipts, or proof of payments to confirm the quantities used on each product it asked for funding for. The interim report and ultimate report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered the NLC had not done a web-site check out just before approving the grant. But this wasn't common practice at enough time and they observed no proof of negligence by NLC workforce.
At the time, the NLC’s regulations didn't demand funded organisations to post evidence of payment with interim experiences, they pointed out. This meant that the CTMCA was in the position to get a next tranche of funding without having to offer proof that it had utilized the initial tranche for its meant function.
Adhering to the appointment of a whole new board, commissioner and senior government group, the NLC has tightened up on these and also other troubles.
Dabishi Nthambeleni advised that
the NLC decline any upcoming funding apps from your CTMCA;
the CTMCA and any members who ended up associated with the grant be subjected into the NLC’s “delinquency” approach;
the NLC open up a legal scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC get started the whole process of recovering the misappropriated funds.
But, in lieu of act on the report’s recommendations, the NLC – beneath its past administration – selected to suppress it, mainly because it experienced done With all the preceding stories into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker by way of SMS, and asked for electronic mail addresses to mail the issues by e mail also. But no response were acquired at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph