Minstrels accomplish in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant with the Nationwide Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum ever existed.
The investigators observed that the CTMCA did not use the R5-million allocated to buy or produce a museum.
Additionally they uncovered the CTMCA only acquired land worth R1.7-million, not R5-million as allotted.
They identified the CTMCA used resources from the Lottery to buy workshop devices from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Fee (NLC) to set up a museum to rejoice the city’s loaded minstrel background went astray. The museum was never designed.
The details of your abuse of many rands of Lottery cash to get a museum that in no way was are exposed in an investigative report commissioned by the NLC in 2021.
The museum grant was Portion of a lot more than R64-million in Lottery resources allotted on the CTMCA amongst 2003 and 2017.
The first Component of the investigation, by legislation firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which provided funding for your museum. The authorised spending plan for that museum was a lot more than R12.8-million, with R5-million of that allotted for a developing to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the setting up for the museum and whether or not the museum “truly existed”.
The business was also instructed to investigate
the purchase with Lottery money of two autos – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
different equipment “procured for that manufacturing with the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators in the organisation. Stemmet was reappointed for a director in May well 2021.
The investigation adopted substantial reporting by GroundUp about the many rands of Lottery funding allotted to your CTMCA (see listed here, here and listed here) and just how the cash possibly served finance the ANC’s 2014 election campaign during the Western Cape, led by at enough time by Marius Fransman.
The building on the proper was the meant web site on the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Picture: Raymond Joseph
In response to a Parliamentary dilemma, previous NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All 3 initiatives had been done, she instructed MPs.
Although the investigators located no proof that a museum experienced ever existed.
At the outset the museum was on account of open in rented premises in Crete Street, Wetton. A photo received by GroundUp from the intended Wetton museum exhibits a espresso store with a few musical instruments and minstrel costumes and collages of photos haphazardly hung about the walls, in addition to a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to verify if a museum had ever operated from these premises.
Stemmet informed the investigators the museum were moved simply because they could no longer afford to pay for the lease of R100,000 per month. He explained the CTMCA had procured residence for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were marketed for the same price. Schaapkraal is inside of a peri-urban space much from the town.
As a result, the museum had been moved to a completely new site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after checking out the premises, which can be within an industrial area, the investigators claimed they doubted no matter if a proper museum existed there. Images connected for the report display a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, shown on tables and spread out on the ground, without having explanation.
“There exists a minimal quantity of items within the museum [that] under no circumstances depict the over a hundred-12 months history with the Cape Town Carnival, the investigators explained, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … commonly, the museum won't glance for being open up to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by relocating the location of your museum to an alternative site with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to move within the rented Crete Highway premises since it experienced run up a R4-million credit card debt with town of Cape Town and was worried its tools might be connected.
“A result of the lawful battles plus the debts, the organisation experienced to move its house from five Crete Street to stay away from the sheriff from attaching the assets in the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director from the CTMCA, told them which the two buses acquired with lottery money have been stored inside a mystery site “concealed from the Sheriff”. However the investigators mentioned they had been not able to confirm that any buses experienced ever been acquired.
Stemmet also confirmed which the buses had been hidden to prevent them becoming seized. But once the investigators requested being taken towards the position exactly where the buses ended up saved, he told them that “the operator of the secret spot wasn't accessible to open up the premises for us”.
“The CTMCA could not provide proof of payment for 2 autos that it allegedly purchased with grant dollars,” the investigators reported.
Soeker also informed them the Schaapkraal residence were sold due to debt.
“Mr Soeker described that according to his comprehending, due to personal debt owed to the town of Cape Town, the CTMCA determined it would be best to provide their [Schaapkraal] property … also to also to hide the property of the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for safety and safety, has Earlier told GroundUp that the CTMCA “threw funds absent” on litigation with the town.
“Every year like clockwork, as we strategy the end in the yr, the CTMCA picks a legal fight with town, above permits or something else. We never ever initiate it. They continue to keep throwing dollars absent on vexatious litigation that they get rid of and also have charges awarded in opposition to them. This is entirely self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the main position players on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of many of the admin, finances and running ruay the CTMCA.” The investigators explained they were unable to Call Momberg.
Hats
For the duration of their “investigation in loco” in the Primrose Park premises, the investigators “located various machines, some in excellent affliction, some in negative ailment and some that appeared rusty and extremely old”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “instruments and some machinery” were being saved.
“We questioned him to acquire us to the ability but he was evasive to our request.”
According to shots and invoices in GroundUp’s possession, some, if not all, from the objects look like products that was illegally faraway from the CTMCA’s preceding premises. Stemmet is going through costs for this removing.
According to the closing development report submitted for the NLC by the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter ended up directors at the time.
The investigators discovered this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Be aware the next alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Street, Wetton, Cape Town, the exact same handle on which the museum was intended to be crafted and/or converted,” they noted.
An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the whole process of buying “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.two-million being a deposit, that means R6.9-million remains owed, while there is not any payment date established for when this have to be compensated.
The Kopano audit plus the close backlink among the businesses “show to us that there's ‘foul play’ involved with the acquisition of the machinery on the museum workshop”, the investigators said while in the report.
“We find that it's really probable that CTMCA employed the funding with the NLC to ‘refund’ amongst its most important administrators for that assets at the next overpriced rate than the actual value and value of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were invested.
“In point of fact, an in depth report on how the funding in the NLC was utilized, could be unachievable since the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts put in on each merchandise it asked for funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not carried out a web-site go to right before approving the grant. But this wasn't typical exercise at enough time plus they located no evidence of carelessness by NLC workforce.
At enough time, the NLC’s policies did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This meant which the CTMCA was ready to receive a next tranche of funding without needing to give evidence that it had used the first tranche for its intended intent.
Adhering to the appointment of a new board, commissioner and senior government staff, the NLC has tightened up on these and also other issues.
Dabishi Nthambeleni advisable that
the NLC drop any future funding applications from the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a criminal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – under its past administration – chose to suppress it, since it experienced accomplished With all the former reviews into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to send out the issues by email too. But no response had been gained at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph