Minstrels carry out in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has uncovered no proof that a museum at any time existed.
The investigators located that the CTMCA didn't make use of the R5-million allotted to order or build a museum.
Additionally they uncovered that the CTMCA only purchased land value R1.seven-million, not R5-million as allocated.
They identified the CTMCA utilized funds from the Lottery to purchase workshop devices from amongst its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted to your Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel background went astray. The museum was never designed.
The main points of the abuse of a lot of rands of Lottery money for your museum that by no means was are uncovered in an investigative report commissioned with the NLC in 2021.
The museum grant was Element of in excess of R64-million in Lottery funds allocated towards the CTMCA involving 2003 and 2017.
The main Component of the investigation, by law firm Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which bundled funding for that museum. The permitted funds for your museum was much more than R12.8-million, with R5-million of that allocated for your developing to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the making with the museum and whether or not the museum “actually existed”.
The firm was also instructed to investigate
the purchase with Lottery resources of two motor vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous equipment “acquired to the producing on the costumes and hats” for the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators of the organisation. Stemmet was reappointed being a director in May perhaps 2021.
The investigation followed considerable reporting by GroundUp with regard to the countless rands of Lottery funding allocated for the CTMCA (see below, below and in this article) and just how the resources probably served finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the proper was the meant web-site in the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape Town. Picture: Raymond Joseph
In response to a Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - between 2012 and 2015. All 3 tasks were finished, she explained to MPs.
However the investigators uncovered no evidence that a museum experienced ever existed.
At first the museum was on account of open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp from the intended Wetton museum shows a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung over the walls, and also a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni explained it was “not able” to substantiate if a museum had ever operated from these premises.
Stemmet instructed the investigators the museum were moved given that they could not afford the hire of R100,000 per month. He reported the CTMCA experienced ordered residence for R1.seven-million in Schaapkraal to the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is within a peri-city place significantly from the city.
Therefore, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But immediately after going to the premises, that are in an industrial area, the investigators explained they doubted no matter whether a suitable museum existed there. Photographs attached into the report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, displayed on tables and unfold out on the ground, without having clarification.
“There is a negligible number of objects on the museum [that] in no way stand for the a lot more than a hundred-12 months history with the Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … typically, the museum won't seem to get open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by moving The situation of your museum to another spot without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had run up a R4-million debt with town of Cape City and was fearful its machines could well be hooked up.
“Due to the lawful battles plus the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the home of your organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director with the CTMCA, informed them which the two buses acquired with lottery cash were stored inside of a key site “concealed from your Sheriff”. Though the investigators mentioned they ended up not able to substantiate that any buses experienced at any time been purchased.
Stemmet also verified the buses had been hidden to stop them getting seized. But once the investigators asked for being taken for the area the place the buses have been stored, he explained to them that “the proprietor of the secret location wasn't available to open up the premises for us”.
“The CTMCA could not deliver proof of payment for 2 autos that it allegedly bought with grant revenue,” the investigators documented.
Soeker also told them the Schaapkraal residence had been offered due to debt.
“Mr Soeker spelled out that In accordance with his being familiar with, as a result of credit card debt owed to town of Cape City, the CTMCA decided it would be very best to promote their [Schaapkraal] house … and also to also to hide the assets of the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for security and security, has previously told GroundUp which the CTMCA “threw income away” on litigation with the City.
“Each year like clockwork, as we method the end with the 12 months, the CTMCA picks a legal struggle with the town, more than permits or another thing. We under no circumstances initiate it. They preserve throwing cash absent on vexatious litigation that they get rid of and possess charges awarded towards them. This really is fully self-inflicted,” he said.
Soeker advised the Dabishi Nthambeleni investigators that the most crucial part players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for all the admin, funds and functioning ตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด the CTMCA.” The investigators said they had been not able to Call Momberg.
Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “found many machines, some in great problem, some in terrible situation and a few that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-website storage facility in which “devices and many machinery” were saved.
“We requested him to consider us to the power but he was evasive to our request.”
Based on shots and invoices in GroundUp’s possession, some, if not all, of the goods appear to be devices which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with expenses for this elimination.
Based on the closing development report submitted to your NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization through which Stemmet, his spouse and his daughter have been directors at enough time.
The investigators observed this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Street, Wetton, Cape City, the same tackle on which the museum was meant to be created and/or converted,” they reported.
An audit by accountants Kopano Integrated, connected towards the investigative report, recorded which the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.
In accordance with Dabishi Nthambeleni, the corporate has paid out R1.two-million as being a deposit, meaning R6.9-million continues to be owed, nevertheless there isn't any payment day established for when this have to be paid out.
The Kopano audit along with the near backlink involving the companies “reveal to us that there is ‘foul Enjoy’ involved in the purchase in the equipment of the museum workshop”, the investigators claimed inside the report.
“We discover that it's remarkably possible that CTMCA utilized the funding in the NLC to ‘refund’ one of its primary administrators with the property at a greater overpriced rate than the actual cost and value of the house and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was unable to determine how the grant towards the CTMCA were used.
“In point of fact, a detailed report on how the funding from the NLC was used, could well be impossible given that the CTMCA does not have any receipts, or evidence of payments to confirm the quantities invested on Each individual merchandise it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC had not executed a website take a look at prior to approving the grant. But this was not normal observe at some time they usually uncovered no proof of carelessness by NLC staff members.
At enough time, the NLC’s procedures didn't require funded organisations to post evidence of payment with interim experiences, they pointed out. This meant which the CTMCA was ready to get a 2nd tranche of funding without having to offer evidence that it experienced made use of the 1st tranche for its intended purpose.
Pursuing the appointment of a whole new board, commissioner and senior executive crew, the NLC has tightened up on these and also other challenges.
Dabishi Nthambeleni suggested that
the NLC decline any foreseeable future funding apps within the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a legal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, as it experienced done While using the prior stories into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to deliver the queries by e mail far too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph