Minstrels accomplish in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has discovered no proof that a museum at any time existed.
The investigators observed which the CTMCA didn't utilize the R5-million allotted to obtain or create a museum.
They also discovered the CTMCA only bought land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA utilised money from your Lottery to buy workshop equipment from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Commission (NLC) to build a museum to celebrate the city’s abundant minstrel history went astray. The museum was under no circumstances made.
The details of your abuse of numerous rands of Lottery resources for your museum that by no means was are uncovered within an investigative report commissioned by the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allotted to the CTMCA amongst 2003 and 2017.
The 1st Portion of the investigation, by legislation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which incorporated funding to the museum. The authorised funds for the museum was a lot more than R12.eight-million, with R5-million of that allocated to get a setting up to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for the museum and whether or not the museum “actually existed”.
The business was also instructed to investigate
the purchase with Lottery resources of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
different devices “acquired for your producing on the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director in the 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 various directors in the organisation. Stemmet was reappointed as a director in May well 2021.
The investigation adopted extensive reporting by GroundUp with regard to the numerous rands of Lottery funding allocated for the CTMCA (see listed here, listed here and in this article) and the way the funds almost certainly served 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 internet site of your minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to your Parliamentary question, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “tasks” - such as the museum - between 2012 and 2015. All three projects were completed, she told MPs.
Although the investigators observed no proof that a museum experienced ever existed.
At the outset the museum was due to open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp of the intended Wetton museum exhibits a coffee store with some musical instruments and minstrel costumes and collages of photos haphazardly hung to the walls, as well as a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not able” to verify if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved given that they could no more pay for the rent of R100,000 per month. He said the CTMCA had acquired assets for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and were offered for a similar price tag. Schaapkraal is within a peri-city location significantly from the town.
Because of this, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after visiting the premises, which might be within an industrial space, the investigators explained they doubted whether an appropriate museum existed there. Images hooked up towards the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the ground, without having rationalization.
“There exists a small amount of merchandise within the museum [that] under no circumstances depict the in excess of one hundred-calendar year historical past of the Cape Town Carnival, the investigators explained, introducing that there was “no signage outdoors the premises indicating they housed a museum and … generally, the museum isn't going to glance to be open up to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by transferring The situation with the museum to an alternate spot without the need of notifying the NLC.
The Schaapkraal assets, on which no museum was at any time built. Image: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA had to maneuver from the rented Crete Street premises as it had run up a R4-million debt with town of Cape Town and was worried its tools could be hooked up.
“Due to legal battles plus the debts, the organisation had to move its property from 5 Crete Street to avoid the sheriff from attaching the home with the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director with the CTMCA, explained to them which the two buses acquired with lottery cash were being saved inside of a secret place “hidden from the Sheriff”. Nevertheless the investigators mentioned they were not able to verify that any buses had ever been acquired.
Stemmet also confirmed which the buses were hidden to stop them remaining seized. But if the investigators asked to generally be taken on the place wherever the buses were stored, he explained to them that “the owner of The key locale was not available to open the premises for us”.
“The CTMCA could not supply proof of payment for 2 vehicles that it allegedly purchased with grant money,” the investigators claimed.
Soeker also instructed them the Schaapkraal residence had been offered as a result of credit card debt.
“Mr Soeker discussed that Based on his comprehending, mainly because of the credit card debt owed to town of Cape City, the CTMCA made the decision It might be best to market their [Schaapkraal] assets … also to also to hide the assets on the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for basic safety and security, has Beforehand told GroundUp that the CTMCA “threw income absent” on litigation with town.
“Each and every year like clockwork, as we method the end in the calendar year, the CTMCA picks a lawful fight with town, over permits or something else. We by no means initiate it. They retain throwing dollars absent on vexatious litigation which they lose and also have charges awarded from them. This really is entirely self-inflicted,” he said.
Soeker told the Dabishi Nthambeleni investigators that the most crucial job players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up accountable for the many admin, funds and working ตัว หวย the CTMCA.” The investigators reported they had been not able to Make contact with Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “observed quite a few devices, some in very good problem, some in bad ailment and several that appeared rusty and intensely outdated”. Stemmet told the investigators that there was also an off-web-site storage facility where by “devices and some machinery” ended up kept.
“We requested him to acquire us to the power but he was evasive to our ask for.”
Dependant on images and invoices in GroundUp’s possession, some, if not all, of the objects appear to be devices that was illegally removed from the CTMCA’s past premises. Stemmet is facing prices for this removing.
According to the closing development report submitted towards the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been directors at time.
The investigators uncovered this “alarming”.
“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the next alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the corporate is 5 Crete Street, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be created and/or transformed,” they noted.
An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the administrators.
Based on Dabishi Nthambeleni, the organization has paid R1.2-million like a deposit, that means R6.9-million is still owed, although there is absolutely no payment day set for when this have to be paid out.
The Kopano audit along with the close link concerning the companies “suggest to us that there is ‘foul Participate in’ associated with the acquisition from the machinery of your museum workshop”, the investigators mentioned in the report.
“We find that it is highly possible that CTMCA made use of the funding of the NLC to ‘refund’ one among its major directors to the house at a better overpriced fee than the actual price and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been expended.
“The truth is, a detailed report on how the funding of your NLC was utilised, would be difficult because the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it asked for funding for. The interim report and remaining report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not conducted a web site check out in advance of approving the grant. But this wasn't common follow at time and they found no proof of negligence by NLC staff.
At some time, the NLC’s procedures did not need funded organisations to post proof of payment with interim stories, they pointed out. This intended that the CTMCA was ready to receive a 2nd tranche of funding without needing to provide proof that it experienced utilized the 1st tranche for its intended function.
Next the appointment of a whole new board, commissioner and senior govt group, the NLC has tightened up on these and other difficulties.
Dabishi Nthambeleni recommended that
the NLC drop any future funding applications from the CTMCA;
the CTMCA and any members who were being involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – beneath its former administration – chose to suppress it, since it experienced completed While using the prior stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for e-mail addresses to ship the inquiries by e mail far too. But no reaction had been obtained at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph