Minstrels accomplish in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Nationwide Lotteries Fee towards the Cape Town Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators found which the CTMCA didn't make use of the R5-million allotted to get or develop a museum.
They also uncovered which the CTMCA only bought land well worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA made use of funds from your Lottery to acquire workshop equipment from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to put in place a museum to rejoice the town’s rich minstrel background went astray. The museum was by no means designed.
The main points from the abuse of a lot of rands of Lottery cash for your museum that never ever was are discovered within an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of in excess of R64-million in Lottery cash allocated to your CTMCA in between 2003 and 2017.
The first Component of the investigation, by regulation organization Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which involved funding for that museum. The authorized funds for the museum was a lot more than R12.8-million, with R5-million of that allotted for the making to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for your museum and whether the museum “essentially existed”.
The agency was also instructed to research
the purchase with Lottery cash of two autos – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
various equipment “procured with the production of the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators with the organisation. Stemmet was reappointed as being a director in May perhaps 2021.
The investigation followed substantial reporting by GroundUp regarding the many rands of Lottery funding allotted for the CTMCA (see below, in this article and here) and the way the funds almost certainly aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The developing on the proper was the meant site from the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction into a Parliamentary question, former NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All 3 assignments were done, she advised MPs.
But the investigators identified no evidence that a museum had ever existed.
To start with the museum was due to open up in rented premises in Crete Street, Wetton. A photo received by GroundUp in the supposed Wetton museum demonstrates a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung within the walls, as well as a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni reported it was “not able” to verify if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum were moved mainly because they could no more afford the rent of R100,000 per month. He stated the CTMCA had acquired house for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for a similar value. Schaapkraal is within a peri-city location considerably from the city.
Subsequently, the museum had been moved to a different area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following visiting the premises, which are in an industrial space, the investigators stated they doubted whether or not a correct museum existed there. Photographs attached for the report present a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, with no rationalization.
“You will find there's negligible amount of goods on the museum [that] by no means represent the more than a hundred-yr history of the Cape Town Carnival, the investigators claimed, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum isn't going to glimpse to become open to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by relocating The placement on the museum to an alternative place devoid of notifying the NLC.
The Schaapkraal residence, on which no museum was ever constructed. Photo: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA experienced to maneuver with the rented Crete Street premises because it experienced operate up a R4-million credit card debt with the town of Cape City and was fearful its devices will be hooked up.
“Due to the authorized battles and also the debts, the organisation experienced to maneuver its house from 5 Crete Road to stay away from the sheriff from attaching the residence in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director of your CTMCA, told them that the two buses acquired with lottery resources were stored inside of a key locale “concealed within the Sheriff”. However the investigators reported they ended up not able to verify that any buses had at any time been purchased.
Stemmet also verified that the buses were hidden to halt them staying seized. But if the investigators asked to get taken towards the position where the buses have been saved, he told them that “the proprietor of The key place wasn't accessible to open the premises for us”.
“The CTMCA could not deliver proof of payment for two automobiles that it allegedly obtained with grant revenue,” the investigators noted.
Soeker also informed them the Schaapkraal home were marketed as a result of credit card debt.
“Mr Soeker spelled out that according to his being familiar with, a result of the personal debt owed to town of Cape City, 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 stability, has Beforehand instructed GroundUp the CTMCA “threw cash absent” on litigation with the town.
“Each and every year like clockwork, as we strategy the top with the yr, the CTMCA picks a lawful combat with town, in excess of permits or another thing. We never ever initiate it. They keep throwing income absent on vexatious litigation that they get rid of and possess expenses awarded in opposition to them. This is totally self-inflicted,” he reported.
Soeker informed the Dabishi Nthambeleni investigators that the leading role players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, finances and managing เช ค หวย the CTMCA.” The investigators reported they were struggling to contact Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “identified several machines, some in good condition, some in poor condition plus some that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-site storage facility exactly where “devices and some machinery” were being held.
“We questioned him to consider us to the ability but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, from the things seem like devices which was illegally faraway from the CTMCA’s former premises. Stemmet is facing costs for this removal.
According to the final development report submitted to your NLC via the CTMCA, the equipment was obtained from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter ended up directors at some time.
The investigators located this “alarming”.
“From your CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Be aware the subsequent alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be constructed and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.
Based on Dabishi Nthambeleni, the organization has paid out R1.2-million to be a deposit, that means R6.9-million remains to be owed, even though there's no payment day set for when this need to be paid.
The Kopano audit along with the close url concerning the companies “reveal to us that there's ‘foul Participate in’ associated with the purchase with the equipment of your museum workshop”, the investigators stated inside the report.
“We find that it is very probable that CTMCA utilized the funding from the NLC to ‘refund’ among its major directors for the property at the next overpriced level than the actual cost and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant for the CTMCA had been used.
“The truth is, a detailed report on how the funding of the NLC was used, might be difficult because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on Every item it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not conducted a web site take a look at before approving the grant. But this wasn't typical exercise at enough time and so they located no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not demand funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a 2nd tranche of funding without needing to offer proof that it had employed the first tranche for its meant purpose.
Subsequent the appointment of a brand new board, commissioner and senior govt crew, the NLC has tightened up on these and various challenges.
Dabishi Nthambeleni advised that
the NLC drop any long term funding programs with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated money.
But, rather than act over the report’s suggestions, the NLC – under its preceding administration – chose to suppress it, since it experienced accomplished Together with the prior experiences into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker via SMS, and asked for e-mail addresses to send out the questions by email way too. But no reaction were received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph