Minstrels accomplish in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has located no proof that a museum at any time existed.
The investigators discovered that the CTMCA did not make use of the R5-million allotted to obtain or build a museum.
They also discovered that the CTMCA only bought land worth R1.seven-million, not R5-million as allotted.
They observed the CTMCA applied cash with the Lottery to acquire workshop tools from amongst its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate town’s prosperous minstrel record went astray. The museum was by no means developed.
The small print of the abuse of many rands of Lottery cash for a museum that hardly ever was are uncovered within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of greater than R64-million in Lottery funds allocated towards the CTMCA among 2003 and 2017.
The main Portion of the investigation, by legislation agency Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which bundled funding to the museum. The authorized spending plan to the museum was more than R12.8-million, with R5-million of that allocated for a building to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a constructing with the museum and if the museum “essentially existed”.
The organization was also instructed to investigate
the purchase with Lottery cash of two cars – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various devices “bought with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted felony 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 continued as two of a number of administrators from the organisation. Stemmet was reappointed to be a director in Could 2021.
The investigation adopted comprehensive reporting by GroundUp concerning the numerous rands of Lottery funding allotted on the CTMCA (see here, in this article and below) and the way the cash most likely helped finance the ANC’s 2014 election marketing campaign in the Western Cape, led by at some time by Marius Fransman.
The developing on the ideal was the intended website with the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Image: Raymond Joseph
In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “assignments” - including the museum - involving 2012 and 2015. All 3 initiatives had been completed, she explained to MPs.
Even so the investigators discovered no proof that a museum experienced at any time existed.
At the beginning the museum was due to open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp from the intended Wetton museum demonstrates a espresso shop with some musical instruments and minstrel costumes and collages of photos haphazardly hung around the partitions, along with a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to confirm if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved simply because they could now not pay for the lease of R100,000 per month. He said the CTMCA had obtained residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is within a peri-urban region much from the city.
Therefore, the museum had been moved to a brand new place in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following visiting the premises, which are within an industrial region, the investigators said they doubted whether a suitable museum existed there. Pictures connected to the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, displayed on tables and spread out on the floor, without rationalization.
“There is a nominal degree of items in the museum [that] by no means symbolize the a lot more than one hundred-yr background from the Cape City Carnival, the investigators reported, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … generally, the museum would not glance for being open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation in the museum to another place devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to move through the rented Crete Street premises as it experienced run up a R4-million credit card debt with the town of Cape Town and was scared its tools can be connected.
“A result of the legal battles and also the debts, the organisation experienced to move its home from 5 Crete Road to steer clear of the sheriff from attaching the property in the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director from the CTMCA, informed them that the two buses bought with lottery money were saved in the solution site “concealed from your Sheriff”. Even so the investigators reported they have been unable to confirm that any buses had at any time been bought.
Stemmet also confirmed the buses had been hidden to prevent them being seized. But once the investigators requested for being taken to your location wherever the buses were being saved, he instructed them that “the proprietor of The key area wasn't accessible to open the premises for us”.
“The CTMCA could not provide evidence of payment for 2 automobiles that it allegedly bought with grant cash,” the investigators noted.
Soeker also instructed them the Schaapkraal home had been bought as a result of debt.
“Mr Soeker stated that Based on his understanding, due to the debt owed to the City of Cape City, the CTMCA resolved It will be finest to provide their [Schaapkraal] residence … also to also to hide the property of the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for protection and security, has previously informed GroundUp that the CTMCA “threw revenue absent” on litigation with the town.
“Annually like clockwork, as we tactic the end from the calendar year, the CTMCA picks a lawful combat with the City, over permits or another thing. We never ever initiate it. They preserve throwing money absent on vexatious litigation which they eliminate and have charges awarded against them. That is completely self-inflicted,” he claimed.
Soeker told the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of the many admin, finances and operating หวย วัน นี้ the CTMCA.” The investigators mentioned they had been unable to Make contact with Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered various devices, some in very good problem, some in negative situation plus some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-web page storage facility the place “devices and several equipment” were retained.
“We questioned him to get us to the ability but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like products which was illegally faraway from the CTMCA’s past premises. Stemmet is struggling with charges for this removing.
In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company wherein Stemmet, his wife and his daughter had been administrators at time.
The investigators found this “alarming”.
“Within the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be built and/or converted,” they documented.
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 inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.
As outlined by Dabishi Nthambeleni, the corporate has paid out R1.two-million for a deposit, that means R6.nine-million remains to be owed, although there isn't any payment day set for when this have to be paid.
The Kopano audit along with the shut website link concerning the companies “point out to us that there's ‘foul play’ associated with the purchase on the equipment of your museum workshop”, the investigators stated inside the report.
“We find that it is very probable that CTMCA employed the funding on the NLC to ‘refund’ considered one of its key directors for your property at a higher overpriced level than the particular value and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was used, can be not possible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts invested on Just about every 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 check out ahead of approving the grant. But this was not regular practice at some time plus they identified no evidence of carelessness by NLC staff.
At the time, the NLC’s regulations did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was ready to receive a 2nd tranche of funding without the need to supply evidence that it experienced utilized the 1st tranche for its supposed purpose.
Adhering to the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” approach;
the NLC open a prison situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated cash.
But, as opposed to act over the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, since it experienced carried out Along with the previous studies into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by email too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph