Minstrels carry out in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators identified that the CTMCA did not utilize the R5-million allotted to acquire or make a museum.
Additionally they identified which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of money from the Lottery to purchase workshop gear from one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print on the abuse of a lot of rands of Lottery cash for the museum that never ever was are unveiled in an investigative report commissioned by the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery cash allotted to your CTMCA among 2003 and 2017.
The first Component of the investigation, by law agency Dabishi Nthambeleni, was done among September 2020 and January 2021 and focused on a R27.3-million grant for the CTMCA in 2014, which provided funding for your museum. The accepted price range for the museum was much more than R12.eight-million, with R5-million of that allotted for just a setting up to accommodate the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up for that museum and whether or not the museum “basically existed”.
The firm was also instructed to analyze
the acquisition with Lottery cash of two vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
different devices “bought with the manufacturing of the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted criminal 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 ongoing as two of numerous directors of your organisation. Stemmet was reappointed like a director in Could 2021.
The investigation followed comprehensive reporting by GroundUp in regards to the an incredible number of rands of Lottery funding allotted towards the CTMCA (see here, below and listed here) and the best way the funds most likely aided finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The creating on the right was the supposed internet site of the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph
In response into a Parliamentary concern, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 projects had been accomplished, she explained to MPs.
Nevertheless the investigators uncovered no evidence that a museum experienced at any time existed.
Initially the museum was resulting from open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp in the supposed Wetton museum shows a espresso store with some musical devices and minstrel costumes and collages of shots haphazardly hung to the walls, along with a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni reported it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum had been moved since they could now not pay for the hire of R100,000 a month. He stated the CTMCA experienced purchased house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were offered for a similar selling price. Schaapkraal is inside of a peri-urban location significantly from the town.
As a result, the museum were moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which happen to be within an industrial location, the investigators stated they doubted regardless of whether a proper museum existed there. Shots hooked up to your report clearly show a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the floor, without having explanation.
“There is a small number of objects on the museum [that] in no way depict the much more than a hundred-year historical past of your Cape City Carnival, the investigators mentioned, introducing that there was “no signage exterior the premises indicating they housed a museum and … generally, the museum doesn't seem being open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by transferring The situation of your museum to an alternative place with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time designed. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA experienced to move with the rented Crete Highway premises because it experienced operate up a R4-million debt with the City of Cape Town and was concerned its equipment can be hooked up.
“A result of the lawful battles and also the debts, the organisation had to move its property from five Crete Highway to avoid the sheriff from attaching the home on the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director from the CTMCA, informed them the two buses bought with lottery funds were saved within a key location “hidden within the Sheriff”. Even so the investigators said they have been not able to confirm that any buses had at any time been acquired.
Stemmet also confirmed which the buses had been hidden to prevent them being seized. But if the investigators asked to become taken into the location where by the buses had been stored, he explained to them that “the owner of The key area was not available to open the premises for us”.
“The CTMCA could not give evidence of payment for 2 motor vehicles that it allegedly acquired with grant funds,” the investigators documented.
Soeker also advised them the Schaapkraal property had been offered due to the financial debt.
“Mr Soeker described that In line with his knowledge, due to the debt owed to the town of Cape Town, the CTMCA determined It might be very best to provide their [Schaapkraal] house … also to also to hide the property with the CTMCA to stay away from the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for safety and protection, has Beforehand instructed GroundUp which the CTMCA “threw funds away” on litigation with the town.
“Annually like clockwork, as we approach the end on the 12 months, the CTMCA picks a lawful combat with the City, in excess of permits or something else. We hardly ever initiate it. They maintain throwing money away on vexatious litigation which they get rid of and have costs awarded against them. This is solely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the primary job players on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all of the admin, finances and running ตรวจ สลาก the CTMCA.” The investigators said they were struggling to Get hold of Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “discovered several devices, some in superior situation, some in negative problem and several that seemed rusty and very old”. Stemmet told the investigators that there was also an off-web site storage facility the place “devices and some equipment” were being kept.
“We questioned him to acquire 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 devices that was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removal.
According to the ultimate development report submitted into the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a firm where Stemmet, his spouse and his daughter have been directors at the time.
The investigators identified this “alarming”.
“Through the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Take note the subsequent alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the corporation is 5 Crete Highway, Wetton, Cape Town, precisely the same address on which the museum was meant to be designed and/or converted,” they reported.
An audit by accountants Kopano Integrated, hooked up on the investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the administrators.
In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, which means R6.9-million is still owed, even though there is absolutely no payment date established for when this needs to be paid.
The Kopano audit and the shut hyperlink among the businesses “reveal to us that there's ‘foul Engage in’ linked to the purchase in the equipment of the museum workshop”, the investigators explained in the report.
“We find that it is really possible that CTMCA used the funding from the NLC to ‘refund’ among its major directors to the house at a greater overpriced price than the particular selling price and worth of the home and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant into the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, will be unachievable since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the amounts invested on Each individual product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not performed a web-site visit before approving the grant. But this wasn't common follow at time and they uncovered no evidence of carelessness by NLC staff members.
At time, the NLC’s guidelines didn't call for funded organisations to submit proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to receive a next tranche of funding without needing to deliver proof that it had made use of the initial tranche for its meant intent.
Following the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these along with other troubles.
Dabishi Nthambeleni encouraged that
the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, as an alternative to act around the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it had accomplished with the earlier stories into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by email as well. But no response were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph