Minstrels perform in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed that the CTMCA didn't use the R5-million allocated to obtain or build a museum.
They also found which the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They found the CTMCA employed money within the Lottery to buy workshop equipment from considered one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape City Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Commission (NLC) to put in place a museum to rejoice town’s rich minstrel background went astray. The museum was never produced.
The details in the abuse of a lot of rands of Lottery cash for just a museum that never ever was are revealed within an investigative report commissioned via the NLC in 2021.
The museum grant was part of more than R64-million in Lottery cash allotted towards the CTMCA involving 2003 and 2017.
The 1st Portion of the investigation, by regulation agency Dabishi Nthambeleni, was performed amongst September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which incorporated funding with the museum. The accredited spending budget for the museum was much more than R12.8-million, with R5-million of that allocated for just a creating to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing with the museum and if the museum “truly existed”.
The agency was also instructed to research
the purchase with Lottery funds of two vehicles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
numerous equipment “purchased for that producing from the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators with the organisation. Stemmet was reappointed for a director in May well 2021.
The investigation followed comprehensive reporting by GroundUp regarding the many rands of Lottery funding allocated towards the CTMCA (see in this article, below and listed here) and how the cash likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The building on the best was the supposed web site in the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In response to a Parliamentary concern, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “projects” - including the museum - concerning 2012 and 2015. All 3 jobs had been done, she told MPs.
Even so the investigators located no proof that a museum experienced ever existed.
In the beginning the museum was due to open in rented premises in Crete Street, Wetton. A photo acquired by GroundUp in the supposed Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of pics haphazardly hung to the partitions, in addition to a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not in a position” to substantiate if a museum had at any time operated from these premises.
Stemmet advised the investigators the museum were moved as they could no longer manage the hire of R100,000 per month. He stated the CTMCA had ordered property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been sold for the same cost. Schaapkraal is in the peri-urban location significantly from the town.
Subsequently, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after visiting the premises, which are within an industrial location, the investigators stated they doubted regardless of whether an appropriate museum existed there. Pics attached to your report present a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and distribute out on the floor, without having rationalization.
“You will find there's small quantity of objects within the museum [that] in no way represent the much more than 100-12 months record of the Cape Town Carnival, the investigators stated, incorporating that there was “no signage outside the premises indicating that they housed a museum and … generally, the museum won't appear for being open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by relocating the location from the museum to another spot devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time created. Photo: Raymond Joseph
Buses
Stemmet informed the investigators that the CTMCA had to maneuver from your rented Crete Highway premises because it had operate up a R4-million credit card debt with the City of Cape City and was scared its equipment can be attached.
“Due to the legal battles as well as debts, the organisation experienced to move its residence from five Crete Highway to stay away from the sheriff from attaching the property on the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director of the CTMCA, explained to them which the two buses acquired with lottery cash ended up stored in a secret area “hidden from the Sheriff”. However the investigators said they had been not able to verify that any buses experienced ever been purchased.
Stemmet also verified that the buses had been hidden to halt them currently being seized. But in the event the investigators asked to become taken on the put wherever the buses were being saved, he explained to them that “the operator of The trick location was not available to open the premises for us”.
“The CTMCA could not supply proof of payment for two automobiles that it allegedly acquired with grant dollars,” the investigators described.
Soeker also instructed them the Schaapkraal residence were sold because of the debt.
“Mr Soeker defined that Based on his comprehension, due to financial debt owed to the City of Cape City, the CTMCA made a decision it would be most effective to offer their [Schaapkraal] home … and also to also to cover the assets with the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and safety, has Earlier explained to GroundUp that the CTMCA “threw funds away” on litigation with the town.
“Every year like clockwork, as we method the end from the year, the CTMCA picks a lawful combat with the City, around permits or something else. We by no means initiate it. They maintain throwing cash absent on vexatious litigation that they shed and possess expenses awarded from them. This really is fully self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the main part players on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were being in control of each of the admin, finances and running lottovip the CTMCA.” The investigators mentioned they were struggling to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “found numerous equipment, some in fantastic affliction, some in undesirable problem and a few that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “instruments and many machinery” were being stored.
“We questioned him to get us to the facility but he was evasive to our ask for.”
Depending on shots and invoices in GroundUp’s possession, some, if not all, of your products look like gear which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with fees for this elimination.
In accordance with the remaining development report submitted to the NLC from the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter ended up directors at time.
The investigators identified this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the company is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or transformed,” they described.
An audit by accountants Kopano Included, connected to your investigative report, recorded which the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.
In line with Dabishi Nthambeleni, the business has paid R1.two-million to be a deposit, indicating R6.9-million remains owed, even though there's no payment day set for when this need to be paid.
The Kopano audit plus the shut url concerning the companies “reveal to us that there's ‘foul play’ associated with the purchase with the equipment of the museum workshop”, the investigators stated while in the report.
“We find that it is very probable that CTMCA employed the funding in the NLC to ‘refund’ among its principal directors for the assets at an increased overpriced fee than the actual rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA were put in.
“In reality, a detailed report on how the funding of your NLC was utilised, would be extremely hard given that the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on each item it requested funding for. The interim report and last report on the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not performed a web site pay a visit to ahead of approving the grant. But this was not standard observe at some time plus they identified no proof of negligence by NLC workers.
At some time, the NLC’s policies did not have to have funded organisations to submit proof of payment with interim experiences, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding while not having to offer proof that it had applied the very first tranche for its meant reason.
Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni advised that
the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a legal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act about the report’s recommendations, the NLC – beneath its former administration – chose to suppress it, because it had finished With all the past experiences into corruption it experienced commissioned.
GroundUp despatched concerns to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the inquiries by e-mail way too. But no response had been been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph