Minstrels execute in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Commission to your Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has found no proof that a museum at any time existed.
The investigators located that the CTMCA did not use the R5-million allotted to acquire or produce a museum.
They also uncovered that the CTMCA only purchased land value R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed funds in the Lottery to invest in workshop products from certainly one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Commission (NLC) to put in place a museum to celebrate the town’s prosperous minstrel history went astray. The museum was in no way developed.
The details of the abuse of countless rands of Lottery funds for any museum that hardly ever was are unveiled within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of in excess of R64-million in Lottery funds allotted for the CTMCA concerning 2003 and 2017.
The primary part of the investigation, by regulation company Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which included funding with the museum. The approved budget with the museum was in excess of R12.eight-million, with R5-million of that allocated for just a making to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a constructing for your museum and whether or not the museum “essentially existed”.
The business was also instructed to research
the purchase with Lottery money of two automobiles – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
numerous machines “acquired for the manufacturing of your costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous directors from the organisation. Stemmet was reappointed like a director in Might 2021.
The investigation adopted substantial reporting by GroundUp in regards to the countless rands of Lottery funding allotted into the CTMCA (see below, here and right here) and the best way the resources likely helped finance the ANC’s 2014 election campaign during the Western Cape, led by at the time by Marius Fransman.
The creating on the right was the meant web site in the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction into a Parliamentary issue, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “tasks” - such as the museum - in between 2012 and 2015. All three initiatives had been completed, she informed MPs.
However the investigators uncovered no proof that a museum experienced at any time existed.
At first the museum was as a consequence of open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp of the supposed Wetton museum reveals a coffee shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung about the walls, and also a product ship on its plinth in a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not ready” to substantiate if a museum had ever operated from these premises.
Stemmet told the investigators the museum had been moved given that they could no longer manage the hire of R100,000 a month. He said the CTMCA had acquired assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were marketed for a similar cost. Schaapkraal is in a peri-city location much from town.
As a result, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after going to the premises, which are in an industrial place, the investigators said they doubted no matter if a suitable museum existed there. Pics connected towards the report display a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the ground, without any explanation.
“There's a minimal amount of objects with the museum [that] in no way characterize the over a hundred-yr background of your Cape Town Carnival, the investigators claimed, adding that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum doesn't appear to become open up to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by transferring the location of the museum to another site with no notifying the NLC.
The Schaapkraal property, on which no museum was ever built. Picture: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA had to maneuver through the rented Crete Street premises since it experienced run up a R4-million personal debt with the City of Cape Town and was afraid its devices would be connected.
“Due to the legal battles plus the debts, the organisation experienced to maneuver its home from five Crete Street to stay away from the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director from the CTMCA, informed them that the two buses bought with lottery cash ended up stored inside of a top secret locale “concealed through the Sheriff”. Even so the investigators explained they had been not able to confirm that any buses experienced at any time been acquired.
Stemmet also confirmed which the buses were concealed to halt them becoming seized. But once the investigators requested for being taken to the area where the buses had been stored, he explained to them that “the owner of The trick location wasn't accessible to open the premises for us”.
“The CTMCA couldn't deliver proof of payment for 2 autos that it allegedly bought with grant revenue,” the investigators described.
Soeker also advised them the Schaapkraal property were marketed because of the personal debt.
“Mr Soeker discussed that In keeping with his being familiar with, due to debt owed to the City of Cape City, the CTMCA made the decision it would be most effective to promote their [Schaapkraal] assets … and also to also to hide the property in the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for security and stability, has previously instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.
“Each and every year like clockwork, as we tactic the tip in the yr, the CTMCA picks a authorized fight with town, around permits or something else. We in no way initiate it. They maintain throwing dollars away on vexatious litigation they get rid of and have prices awarded from them. This really is solely self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were in control of the many admin, finances and operating หุ้น ชอง 9 the CTMCA.” The investigators said they had been unable to Speak to Momberg.
Hats
During their “investigation in loco” on the Primrose Park premises, the investigators “located a lot of equipment, some in superior ailment, some in bad ailment plus some that seemed rusty and very old”. Stemmet instructed the investigators that there was also an off-web-site storage facility wherever “devices and many machinery” have been stored.
“We questioned him to just take us to the power but he was evasive to our request.”
Based on images and invoices in GroundUp’s possession, some, Otherwise all, from the objects appear to be machines that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing charges for this elimination.
Based on the closing development report submitted into the NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, a company through which Stemmet, his spouse and his daughter have been directors at some time.
The investigators uncovered this “alarming”.
“Within the CIPC look for of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the business is five Crete Road, Wetton, Cape Town, a similar address on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached towards the investigative report, recorded that the CTMCA was in the entire process of obtaining “equipment, plant and stock” 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 R1.two-million being a deposit, that means R6.nine-million remains to be owed, even though there isn't any payment day set for when this must be paid out.
The Kopano audit as well as the shut hyperlink concerning the companies “point out to us that there's ‘foul play’ associated with the acquisition of your machinery from the museum workshop”, the investigators explained from the report.
“We discover that it's really possible that CTMCA used the funding of the NLC to ‘refund’ certainly one of its primary directors for the property at the next overpriced rate than the particular selling price and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was unable to establish how the grant to your CTMCA had been used.
“Actually, an in depth report on how the funding in the NLC was made use of, will be impossible since the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts used on Every merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not executed a site check out in advance of approving the grant. But this was not normal follow at some time and they uncovered no proof of carelessness by NLC staff.
At time, the NLC’s principles didn't require funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in a position to get a 2nd tranche of funding without needing to present evidence that it experienced applied the initial tranche for its supposed function.
Following the appointment of a different board, commissioner and senior executive staff, the NLC has tightened up on these together with other problems.
Dabishi Nthambeleni advisable that
the NLC decrease any upcoming funding applications from your CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected into the NLC’s “delinquency” process;
the NLC open up a felony situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as an alternative to act on the report’s suggestions, the NLC – below its previous administration – chose to suppress it, mainly because it had done Along with the earlier stories into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by electronic mail too. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph