Minstrels accomplish in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant through 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 found that the CTMCA did not use the R5-million allocated to obtain or create a museum.
They also discovered that the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They located the CTMCA applied resources with the Lottery to invest in workshop devices from considered one of its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s rich minstrel history went astray. The museum was by no means made.
The main points of the abuse of numerous rands of Lottery funds for your museum that never ever was are unveiled within an investigative report commissioned because of the NLC in 2021.
The museum grant was part of over R64-million in Lottery resources allotted to the CTMCA in between 2003 and 2017.
The 1st A part of the investigation, by regulation business Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which involved funding for the museum. The approved finances with the museum was over R12.8-million, with R5-million of that allotted for the creating to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the building for your museum and whether the museum “really existed”.
The company was also instructed to analyze
the purchase with Lottery funds of two autos – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous devices “ordered with the production from the costumes and hats” to the minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of administrators of your organisation. Stemmet was reappointed as a director in May well 2021.
The investigation followed intensive reporting by GroundUp in regards to the many rands of Lottery funding allocated to the CTMCA (see right here, right here and in this article) and how the cash possibly assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The setting up on the best was the intended site on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to the Parliamentary issue, former NLC Commissioner Thabang Mampane stated grants to a few CTMCA “jobs” - such as the museum - concerning 2012 and 2015. All 3 tasks were accomplished, she informed MPs.
Although the investigators located no proof that a museum had at any time existed.
At first the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp in the intended Wetton museum displays a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung around the partitions, in addition to a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum experienced ever operated from these premises.
Stemmet advised the investigators the museum were moved since they could no more afford to pay for the hire of R100,000 per month. He said the CTMCA had obtained house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is in a peri-city space considerably from the town.
Therefore, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after going to the premises, that are within an industrial area, the investigators claimed they doubted no matter whether a proper museum existed there. Photographs hooked up to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, displayed on tables and unfold out on the floor, without any clarification.
“You will find a small degree of items at the museum [that] in no way represent the more than a hundred-12 months background from the Cape City Carnival, the investigators explained, including that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum won't seem to be open to the general public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement of your museum to an alternative area without the need of notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to move through the rented Crete Street premises as it had run up a R4-million debt with town of Cape City and was concerned its products will be attached.
“Because of the lawful battles plus the debts, the organisation had to maneuver its house from five Crete Street to avoid the sheriff from attaching the residence from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director with the CTMCA, advised them the two buses acquired with lottery resources were stored in a top secret spot “concealed from the Sheriff”. But the investigators stated they ended up unable to verify that any buses had ever been purchased.
Stemmet also confirmed the buses had been concealed to halt them currently being seized. But if the investigators questioned to generally be taken on the area the place the buses ended up stored, he advised them that “the owner of The trick locale was not available to open the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 motor vehicles that it allegedly obtained with grant money,” the investigators documented.
Soeker also instructed them the Schaapkraal assets were marketed as a result of financial debt.
“Mr Soeker discussed that In keeping with his being familiar with, due to financial debt owed to town of Cape Town, the CTMCA decided It could be very best to provide their [Schaapkraal] home … also to also to hide the assets of your CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and safety, has Earlier told GroundUp that the CTMCA “threw income absent” on litigation with town.
“Annually like clockwork, as we method the top from the 12 months, the CTMCA picks a lawful fight with the town, about permits or another thing. We hardly ever initiate it. They keep throwing funds away on vexatious litigation which they drop and have costs awarded versus them. This is often completely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the principle part gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who had been answerable for all of the admin, finances and operating cat888 the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “found numerous equipment, some in very good problem, some in bad ailment and many that looked rusty and very old”. Stemmet instructed the investigators that there was also an off-website storage facility where by “instruments and many equipment” had been retained.
“We questioned him to consider us to the ability but he was evasive to our ask for.”
Dependant on pictures and invoices in GroundUp’s possession, some, if not all, in the goods look like machines which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with rates for this removing.
Based on the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was acquired from Martin-Conne Milliners, a business by which Stemmet, his spouse and his daughter have been administrators at enough time.
The investigators discovered this “alarming”.
“Within the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the business is five Crete Street, Wetton, Cape City, the same deal with on which the museum was intended to be created and/or transformed,” they described.
An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the entire process of acquiring “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.
According to Dabishi Nthambeleni, the corporation has paid out R1.two-million like a deposit, meaning R6.9-million remains owed, however there's no payment day established for when this should be paid out.
The Kopano audit and the close backlink between the companies “reveal to us that there's ‘foul Enjoy’ linked to the acquisition of the machinery of the museum workshop”, the investigators mentioned inside the report.
“We find that it is highly possible that CTMCA applied the funding with the NLC to ‘refund’ considered one of its major directors for the assets at an increased overpriced charge than the particular selling price and value of the assets and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was unable to determine how the grant for the CTMCA were invested.
“The truth is, an in depth report on how the funding in the NLC was made use of, could be difficult as the CTMCA does not have any receipts, or proof of payments to confirm the amounts invested on Every single merchandise it requested funding for. The interim report and ultimate report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not conducted a site visit before approving the grant. But this wasn't normal apply at some time plus they discovered no proof of negligence by NLC workforce.
At time, the NLC’s rules did not require funded organisations to submit evidence of payment with interim reports, they pointed out. This meant which the CTMCA was in a position to receive a 2nd tranche of funding without having to supply evidence that it experienced made use of the very first tranche for its intended function.
Pursuing the appointment of a completely new board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other problems.
Dabishi Nthambeleni advised that
the NLC decline any future funding purposes within the CTMCA;
the CTMCA and any customers who had been involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a felony case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated money.
But, rather then act within the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, since it experienced done With all the preceding stories into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to send out the issues by e mail way too. But no response had been been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph