Minstrels carry out in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant from the Countrywide Lotteries Commission for the Cape City Minstrel Carnival Association (CTMCA) for a minstrels museum has uncovered no proof that a museum at any time existed.
The investigators discovered the CTMCA didn't use the R5-million allocated to obtain or develop a museum.
In addition they discovered the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allotted.
They found the CTMCA employed money with the Lottery to purchase workshop gear from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Commission (NLC) to setup a museum to rejoice the city’s loaded minstrel heritage went astray. The museum was never ever produced.
The main points in the abuse of countless rands of Lottery cash for a museum that under no circumstances was are exposed in an investigative report commissioned via the NLC in 2021.
The museum grant was Portion of much more than R64-million in Lottery funds allocated towards the CTMCA among 2003 and 2017.
The primary Component of the investigation, by regulation organization Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which included funding for the museum. The authorised spending plan for that museum was a lot more than R12.eight-million, with R5-million of that allocated for a making to house the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating with the museum and whether the museum “in fact existed”.
The business was also instructed to investigate
the purchase with Lottery funds of two autos – a 60-seater bus in addition to a 23-seater bus – for R2.four-million; and
various machines “bought for your manufacturing in the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with 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 from the organisation. Stemmet was reappointed as a director in May perhaps 2021.
The investigation followed extensive reporting by GroundUp concerning the many rands of Lottery funding allocated to your CTMCA (see right here, below and here) and how the resources most likely assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.
The developing on the proper was the meant site of the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape City. Image: Raymond Joseph
In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “initiatives” - such as the museum - between 2012 and 2015. All a few assignments were finished, she advised MPs.
Even so the investigators located no proof that a museum experienced at any time existed.
Initially the museum was because of open up in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp with the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of shots haphazardly hung within the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved given that they could now not afford the lease of R100,000 a month. He claimed the CTMCA experienced procured property for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been marketed for the same cost. Schaapkraal is in a very peri-city location considerably from the town.
Consequently, the museum were moved to a new area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial spot, the investigators claimed they doubted whether or not a proper museum existed there. Shots hooked up on the report present a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, shown on tables and spread out on the floor, with no clarification.
“There is a small level of items with the museum [that] on no account symbolize the much more than 100-yr heritage of the Cape Town Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating they housed a museum and … normally, the museum won't glance to generally be open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement from the museum to another spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver in the rented Crete Street premises because it had run up a R4-million personal debt with the City of Cape Town and was concerned its equipment will be connected.
“Due to the legal battles along with the debts, the organisation experienced to move its house from 5 Crete Street to stay away from the sheriff from attaching the house on the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director in the CTMCA, informed them that the two buses acquired with lottery cash have been stored inside of a solution spot “hidden within the Sheriff”. Although the investigators mentioned they were unable to substantiate that any buses had at any time been acquired.
Stemmet also confirmed the buses were concealed to stop them staying seized. But when the investigators requested being taken to the area where by the buses were stored, he informed them that “the proprietor of The key spot wasn't available to open the premises for us”.
“The CTMCA could not offer proof of payment for 2 motor vehicles that it allegedly procured with grant revenue,” the investigators claimed.
Soeker also instructed them the Schaapkraal residence had been bought due to financial debt.
“Mr Soeker described that In accordance with his comprehending, due to the credit card debt owed to the City of Cape Town, the CTMCA resolved It might be most effective to promote their [Schaapkraal] residence … and to also to hide the property with the CTMCA to avoid the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for basic safety and protection, has Beforehand explained to GroundUp which the CTMCA “threw money absent” on litigation with town.
“Every year like clockwork, as we method the end of the year, the CTMCA picks a lawful combat with the town, more than permits or something else. We never initiate it. They continue to keep throwing dollars away on vexatious litigation which they eliminate and have prices awarded from them. This can be solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the leading function players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, finances and operating หวย วัน นี้ the CTMCA.” The investigators reported they had been struggling to Speak to Momberg.
Hats
Throughout their “investigation in loco” at the Primrose Park premises, the investigators “located many machines, some in superior issue, some in terrible affliction and a few that seemed rusty and very aged”. Stemmet told the investigators that there was also an off-web site storage facility wherever “devices and many machinery” have been held.
“We asked him to consider us to the facility but he was evasive to our ask for.”
Based upon images and invoices in GroundUp’s possession, some, if not all, of your goods appear to be machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing rates for this elimination.
In accordance with the ultimate progress report submitted on the NLC from the CTMCA, the equipment was procured from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter were directors at time.
The investigators identified this “alarming”.
“Through the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Observe the subsequent alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Road, Wetton, Cape Town, the exact same tackle on which the museum was intended to be developed and/or transformed,” they described.
An audit by accountants Kopano Integrated, attached to your investigative report, recorded that the CTMCA was in the whole process of getting “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the directors.
In keeping with Dabishi Nthambeleni, the organization has paid R1.2-million like a deposit, indicating R6.nine-million remains to be owed, while there isn't any payment day established for when this have to be paid out.
The Kopano audit as well as the close connection concerning the companies “indicate to us that there's ‘foul Perform’ linked to the purchase of the equipment of the museum workshop”, the investigators claimed within the report.
“We discover that it's very possible that CTMCA used the funding in the NLC to ‘refund’ amongst its principal directors for that assets at a higher overpriced charge than the actual price tag and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to establish how the grant to the CTMCA were used.
“In point of fact, an in depth report on how the funding on the NLC was employed, will be unattainable as the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts expended on Every single item it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified which the NLC experienced not performed a web-site go to in advance of approving the grant. But this wasn't standard apply at enough time plus they uncovered no proof of carelessness by NLC workforce.
At some time, the NLC’s rules didn't require funded organisations to post evidence of payment with interim studies, they pointed out. This intended which the CTMCA was in the position to receive a second tranche of funding without having to deliver evidence that it had applied the primary tranche for its intended intent.
Adhering to the appointment of a brand new board, commissioner and senior govt group, the NLC has tightened up on these and other troubles.
Dabishi Nthambeleni recommended that
the NLC decrease any upcoming funding applications from your CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” approach;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, in lieu of act about the report’s recommendations, the NLC – under its previous administration – selected to suppress it, because it experienced performed Together with the prior experiences into corruption it had commissioned.
GroundUp despatched concerns to Stemmet and Soeker by using SMS, and asked for e mail addresses to send the issues by email also. But no reaction were obtained at time of publication.
The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph
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