Minstrels conduct in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has discovered no proof that a museum ever existed.
The investigators found which the CTMCA didn't make use of the R5-million allocated to buy or build a museum.
In addition they observed the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilised funds with the Lottery to get workshop equipment from amongst its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print on the abuse of a lot of rands of Lottery cash for the museum that under no circumstances was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of more than R64-million in Lottery resources allocated into the CTMCA amongst 2003 and 2017.
The very first Element of the investigation, by legislation business Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which included funding to the museum. The authorised price range for that museum was greater than R12.8-million, with R5-million of that allotted for any building to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing for that museum and whether the museum “in fact existed”.
The organization was also instructed to investigate
the acquisition with Lottery funds of two automobiles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
different devices “procured with the production of your costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of numerous administrators from the organisation. Stemmet was reappointed to be a director in May possibly 2021.
The investigation adopted considerable reporting by GroundUp with regard to the a lot of rands of Lottery funding allocated to the CTMCA (see right here, listed here and here) and how the funds in all probability helped finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.
The making on the right was the supposed web page from the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to some Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “assignments” - such as the museum - among 2012 and 2015. All a few projects were completed, she explained to MPs.
Although the investigators found no evidence that a museum experienced at any time existed.
Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the intended Wetton museum exhibits a espresso shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung around the partitions, plus a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet told the investigators the museum had been moved because they could not afford to pay for the rent of R100,000 a month. He mentioned the CTMCA experienced procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been marketed for the same price tag. Schaapkraal is inside a peri-urban space much from town.
Consequently, the museum had been moved to a completely new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after going to the premises, that happen to be in an industrial spot, the investigators claimed they doubted whether a proper museum existed there. Photos hooked up into the report exhibit a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, displayed on tables and distribute out on the floor, with no rationalization.
“There exists a minimal degree of things at the museum [that] under no circumstances represent the in excess of 100-yr heritage of the Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … usually, the museum isn't going to glance to generally be open up to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by relocating the location from the museum to an alternative locale without the need of notifying the NLC.
The Schaapkraal residence, on which no museum was ever built. Image: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to move with the rented Crete Road premises mainly because it had run up a R4-million personal debt with the town of Cape City and was frightened its devices will be hooked up.
“Because of the authorized battles as well as debts, the organisation had to move its home from 5 Crete Street to stay away from the sheriff from attaching the residence of your organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director from the CTMCA, advised them that the two buses bought with lottery funds were saved in a very solution spot “hidden in the Sheriff”. But the investigators reported they ended up unable to substantiate that any buses had at any time been bought.
Stemmet also verified that the buses were concealed to prevent them remaining seized. But once the investigators questioned for being taken into the spot where by the buses had been saved, he explained to them that “the owner of The key site wasn't accessible to open up the premises for us”.
“The CTMCA could not offer proof of payment for two autos that it allegedly ordered with grant revenue,” the investigators noted.
Soeker also told them the Schaapkraal property had been bought due to personal debt.
“Mr Soeker explained that Based on his comprehending, due to the debt owed to town of Cape Town, the CTMCA decided It will be finest to market their [Schaapkraal] assets … also to also to cover the belongings of your CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and protection, has Earlier told GroundUp the CTMCA “threw dollars absent” on litigation with the City.
“On a yearly basis like clockwork, as we method the end of the yr, the CTMCA picks a lawful combat with the City, around permits or another thing. We never ever initiate it. They preserve throwing income away on vexatious litigation that they get rid of and have expenditures awarded in opposition to them. That is completely self-inflicted,” he claimed.
Soeker advised the Dabishi Nthambeleni investigators that the key function gamers on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being accountable for many of the admin, funds and working ตรวจ หวย ล่าสุด the CTMCA.” The investigators stated they had been unable to Speak to Momberg.
Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “found many machines, some in excellent problem, some in negative affliction and several that seemed rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-site storage facility where by “instruments plus some machinery” were being retained.
“We asked him to take us to the power but he was evasive to our request.”
Dependant on photographs and invoices in GroundUp’s possession, some, Otherwise all, of the objects look like equipment that was illegally removed from the CTMCA’s earlier premises. Stemmet is facing fees for this removal.
In accordance with the final development report submitted to the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter ended up administrators at time.
The investigators observed this “alarming”.
“From the CIPC search of Martin-Conne Milliners and the invoices submitted, we Take note the next alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Street, Wetton, Cape City, the same tackle on which the museum was intended to be developed and/or converted,” they described.
An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded that the CTMCA was in the entire process of buying “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the administrators.
In line with Dabishi Nthambeleni, the corporation has paid out R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, though there isn't any payment day set for when this must be paid out.
The Kopano audit and also the near link amongst the businesses “show to us that there's ‘foul Participate in’ involved in the purchase on the equipment of your museum workshop”, the investigators stated from the report.
“We discover that it's really possible that CTMCA used the funding in the NLC to ‘refund’ one among its key directors for your home at a greater overpriced price than the particular selling price and worth of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant into the CTMCA had been spent.
“In point of fact, an in depth report on how the funding from the NLC was made use of, can be not possible as being the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on Each and every merchandise it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not done a web site check out right before approving the grant. But this wasn't standard practice at some time and they identified no proof of carelessness by NLC staff members.
At enough time, the NLC’s policies did not need funded organisations to post proof of payment with interim stories, they identified. This intended that the CTMCA was capable to get a next tranche of funding without having to supply proof that it had utilised the 1st tranche for its supposed intent.
Next the appointment of a new board, commissioner and senior govt workforce, the NLC has tightened up on these and other issues.
Dabishi Nthambeleni recommended that
the NLC drop any foreseeable future funding applications from the CTMCA;
the CTMCA and any customers who had been linked to the grant be subjected on the NLC’s “delinquency” procedure;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the whole process of recovering the misappropriated funds.
But, in lieu of act on the report’s recommendations, the NLC – beneath its former administration – selected to suppress it, as it had carried out Together with the past experiences into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker through SMS, and requested for email addresses to send the questions by electronic mail far too. But no response were gained at time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph