Minstrels perform in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant through the Nationwide Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum ever existed.
The investigators uncovered which the CTMCA did not use the R5-million allotted to acquire or make a museum.
They also found the CTMCA only acquired land really worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA used resources with the Lottery to get workshop gear from certainly one of its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Commission (NLC) to create a museum to rejoice the town’s abundant minstrel record went astray. The museum was never ever made.
The details of your abuse of many rands of Lottery cash for any museum that in no way was are uncovered within an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of more than R64-million in Lottery funds allotted on the CTMCA among 2003 and 2017.
The primary Portion of the investigation, by law business Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which integrated funding with the museum. The authorised finances for your museum was much more than R12.8-million, with R5-million of that allotted for any building to accommodate the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the developing to the museum and whether the museum “truly existed”.
The company was also instructed to research
the purchase with Lottery money of two automobiles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
many machines “obtained with the producing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At time, convicted felony 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 spouse Zainonesa and daughter Raziah continued as two of a number of administrators of your organisation. Stemmet was reappointed to be a director in May well 2021.
The investigation followed considerable reporting by GroundUp about the an incredible number of rands of Lottery funding allotted for the CTMCA (see in this article, here and below) and how the cash in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The building on the appropriate was the supposed web-site from the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph
In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been accomplished, she instructed MPs.
Though the investigators found no evidence that a museum experienced ever existed.
To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp in the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, as well as a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer manage the hire of R100,000 per month. He reported the CTMCA had bought house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for the same price. Schaapkraal is inside a peri-city space considerably from the town.
Due to this fact, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after traveling to the premises, that happen to be in an industrial place, the investigators mentioned they doubted regardless of whether an appropriate museum existed there. Photographs hooked up towards the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the ground, without having rationalization.
“There's a minimum number of merchandise within the museum [that] on no account represent the more than a hundred-calendar year heritage on the Cape Town Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to generally be open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by shifting The situation of the museum to an alternate site with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Photo: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA had to move through the rented Crete Street premises as it had run up a R4-million debt with the City of Cape City and was worried its machines could well be connected.
“A result of the authorized battles and also the debts, the organisation experienced to move its property from five Crete Street to stay away from the sheriff from attaching the property on the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director with the CTMCA, informed them which the two buses bought with lottery money were being stored in the secret spot “concealed within the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses experienced at any time been acquired.
Stemmet also verified the buses had been hidden to stop them becoming seized. But when the investigators questioned to generally be taken to the put where by the buses were being saved, he explained to them that “the owner of the secret site wasn't accessible to open up the premises for us”.
“The CTMCA could not give proof of payment for 2 vehicles that it allegedly bought with grant income,” the investigators described.
Soeker also instructed them the Schaapkraal residence were offered as a result of debt.
“Mr Soeker discussed that Based on his knowledge, due to the credit card debt owed to the City of Cape Town, the CTMCA made the decision It could be most effective to provide their [Schaapkraal] property … also to also to cover the property of the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for security and stability, has Earlier advised GroundUp that the CTMCA “threw income absent” on litigation with the town.
“Yearly like clockwork, as we solution the top of the year, the CTMCA picks a lawful fight with the City, in excess of permits or another thing. We never initiate it. They preserve throwing dollars away on vexatious litigation that they shed and also have costs awarded towards them. That is fully self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial purpose players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in command of many of the admin, finances and jogging หวย รัฐบาล the CTMCA.” The investigators stated they were struggling to Get hold of Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “identified quite a few devices, some in superior condition, some in poor problem and many that seemed rusty and very aged”. Stemmet explained to the investigators that there was also an off-web site storage facility where by “devices and some machinery” had been retained.
“We asked him to get us to the ability but he was evasive to our request.”
Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, with the objects seem like machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing fees for this removing.
Based on the final development report submitted towards the NLC via the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter have been administrators at time.
The investigators discovered this “alarming”.
“From the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we note the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Street, Wetton, Cape Town, precisely the same deal with on which the museum was intended to be constructed and/or transformed,” they described.
An audit by accountants Kopano Integrated, attached into the investigative report, recorded which the CTMCA was in the whole process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one of the directors.
Based on Dabishi Nthambeleni, the corporate has paid R1.2-million for a deposit, which means R6.9-million remains to be owed, though there isn't a payment day established for when this must be paid.
The Kopano audit as well as the near url involving the businesses “point out to us that there's ‘foul Enjoy’ involved with the purchase from the machinery of your museum workshop”, the investigators reported during the report.
“We find that it is really probable that CTMCA utilized the funding of your NLC to ‘refund’ considered one of its major directors for that home at the next overpriced charge than the particular cost and worth of the property and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant on the CTMCA were spent.
“Actually, a detailed report on how the funding with the NLC was made use of, could be extremely hard as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts spent on Every item it asked for funding for. The interim report and closing report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC had not conducted a web page take a look at ahead of approving the grant. But this was not typical apply at some time and so they uncovered no evidence of carelessness by NLC workers.
At enough time, the NLC’s rules did not have to have funded organisations to post proof of payment with interim reviews, they identified. This intended which the CTMCA was able to receive a second tranche of funding while not having to present evidence that it experienced applied the main tranche for its supposed purpose.
Following the appointment of a brand new board, commissioner and senior executive team, the NLC has tightened up on these as well as other problems.
Dabishi Nthambeleni recommended that
the NLC drop any long run funding programs in the CTMCA;
the CTMCA and any users who have been involved in the grant be subjected on the NLC’s “delinquency” procedure;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated funds.
But, as an alternative to act over the report’s recommendations, the NLC – beneath its past administration – selected to suppress it, mainly because it experienced carried out Together with the past stories into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker through SMS, and requested for email addresses to send the questions by electronic mail much too. But no reaction had been been given at enough time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph