Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators uncovered that the CTMCA didn't utilize the R5-million allotted to purchase or make a museum.
In addition they located which the CTMCA only acquired land worthy of R1.seven-million, not R5-million as allotted.
They located the CTMCA applied money from your Lottery to purchase workshop devices from amongst its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Commission (NLC) to set up a museum to celebrate the town’s rich minstrel historical past went astray. The museum was never made.
The main points from the abuse of an incredible number of rands of Lottery cash for just a museum that never was are revealed in an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of a lot more than R64-million in Lottery money allocated on the CTMCA concerning 2003 and 2017.
The main Portion of the investigation, by legislation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding for your museum. The authorised spending plan to the museum was over R12.eight-million, with R5-million of that allotted for any making to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the creating for your museum and whether or not the museum “basically existed”.
The company was also instructed to investigate
the purchase with Lottery money of two automobiles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
different equipment “procured for that production of the costumes and hats” for the minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few administrators of the organisation. Stemmet was reappointed being a director in Might 2021.
The investigation followed in depth reporting by GroundUp about the countless rands of Lottery funding allocated for the CTMCA (see right here, right here and listed here) and the way the resources possibly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at time by Marius Fransman.
The creating on the proper was the supposed web-site of your minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to your Parliamentary problem, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “jobs” - including the museum - involving 2012 and 2015. All three initiatives were accomplished, she told MPs.
Nevertheless the investigators found no proof that a museum had ever existed.
At first the museum was on account of open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp in the supposed Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the walls, along with a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni claimed it was “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet advised the investigators the museum were moved as they could no longer afford the lease of R100,000 a month. He reported the CTMCA had acquired assets for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and were bought for the same price tag. Schaapkraal is inside a peri-urban spot considerably from the town.
Therefore, the museum were moved to a new site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But following checking out the premises, which are in an industrial place, the investigators explained they doubted no matter if a correct museum existed there. Pictures connected towards the report clearly show a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, without any clarification.
“There is a nominal quantity of goods at the museum [that] by no means characterize the greater than 100-yr background in the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating they housed a museum and … usually, the museum does not look being open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni noted, by going the location of your museum to an alternate locale with no notifying the NLC.
The Schaapkraal property, on which no museum was ever designed. Image: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to maneuver within the rented Crete Highway premises because it experienced operate up a R4-million debt with the City of Cape City and was worried its equipment could be attached.
“As a result of legal battles and also the debts, the organisation experienced to maneuver its home from 5 Crete Highway to stay away from the sheriff from attaching the home of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery resources have been saved within a magic formula site “hidden within the Sheriff”. Though the investigators claimed they had been not able to confirm that any buses had ever been purchased.
Stemmet also verified that the buses had been hidden to prevent them remaining seized. But when the investigators requested to generally be taken towards the position exactly where the buses ended up stored, he advised them that “the operator of The key location was not available to open the premises for us”.
“The CTMCA could not deliver proof of payment for 2 cars that it allegedly procured with grant money,” the investigators reported.
Soeker also advised them the Schaapkraal house had been offered due to the financial debt.
“Mr Soeker discussed that In accordance with his comprehension, a result of the financial debt owed to town of Cape Town, the CTMCA decided It will be finest to market their [Schaapkraal] property … and also to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and safety, has Earlier told GroundUp which the CTMCA “threw cash away” on litigation with the town.
“Each year like clockwork, as we technique the tip of your yr, the CTMCA picks a authorized battle with town, over permits or another thing. We never initiate it. They continue to keep throwing money absent on vexatious litigation that they reduce and have costs awarded in opposition to them. This really is fully self-inflicted,” he stated.
Soeker instructed the Dabishi Nthambeleni investigators that the key role players on issues of Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, funds and functioning หวย วัน นี้ the CTMCA.” The investigators claimed they had been unable to Get hold of Momberg.
Hats
For the duration of their “investigation in loco” in the Primrose Park premises, the investigators “located various equipment, some in excellent affliction, some in lousy condition and a few that looked rusty and intensely aged”. Stemmet instructed the investigators that there was also an off-site storage facility exactly where “instruments plus some equipment” had been kept.
“We questioned him to acquire us to the ability but he was evasive to our ask for.”
Determined by pictures and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise appear to be devices that was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing prices for this removing.
In accordance with the closing development report submitted to your NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were being directors at the time.
The investigators observed this “alarming”.
“Through the CIPC search of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape City, exactly the same tackle on which the museum was meant to be crafted and/or transformed,” they noted.
An audit by accountants Kopano Incorporated, attached for the 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 detailed Company of which Stemmet was considered one of the administrators.
In line with Dabishi Nthambeleni, the business has paid R1.two-million like a deposit, which means R6.nine-million continues to be owed, though there is no payment date established for when this has to be compensated.
The Kopano audit as well as the shut hyperlink involving the businesses “show to us that there is ‘foul Participate in’ involved in the purchase in the machinery on the museum workshop”, the investigators reported within the report.
“We find that it is highly probable that CTMCA used the funding from the NLC to ‘refund’ among its principal directors for the assets at the next overpriced amount than the actual cost and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been used.
“The truth is, a detailed report on how the funding on the NLC was utilized, could well be unachievable since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities expended on Every item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not executed a web-site stop by before approving the grant. But this wasn't typical follow at time and they found no proof of negligence by NLC workforce.
At enough time, the NLC’s principles didn't call for funded organisations to post proof of payment with interim experiences, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding without the need to supply evidence that it experienced used the primary tranche for its supposed intent.
Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni encouraged that
the NLC decrease any long run funding apps through the CTMCA;
the CTMCA and any customers who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open up a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its past administration – chose to suppress it, because it experienced done Together with the former reviews into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for e mail addresses to send out the thoughts by electronic mail too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph