Minstrels perform in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to obtain or establish a museum.
In addition they located that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They identified the CTMCA utilized resources through the Lottery to invest in workshop devices from one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted on the Cape Town Minstrel Carnival Association (CTMCA) by the National Lotteries Fee (NLC) to build a museum to celebrate town’s rich minstrel historical past went astray. The museum was never established.
The small print of your abuse of many rands of Lottery money for your museum that never ever was are revealed within an investigative report commissioned by the NLC in 2021.
The museum grant was A part of in excess of R64-million in Lottery resources allotted to your CTMCA involving 2003 and 2017.
The primary Portion of the investigation, by regulation agency Dabishi Nthambeleni, was conducted involving September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which incorporated funding with the museum. The accepted finances with the museum was greater than R12.8-million, with R5-million of that allocated for the setting up to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building with the museum and whether or not the museum “essentially existed”.
The organization was also instructed to research
the purchase with Lottery resources of two motor vehicles – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
various equipment “acquired for the production of your costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal 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 quite a few administrators from the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation adopted considerable reporting by GroundUp in regards to the many rands of Lottery funding allotted on the CTMCA (see below, below and listed here) and the best way the funds probably aided finance the ANC’s 2014 election campaign in the Western Cape, led by at enough time by Marius Fransman.
The creating on the proper was the intended website with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to the Parliamentary query, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - including the museum - amongst 2012 and 2015. All 3 jobs were done, she explained to MPs.
However the investigators identified no proof that a museum experienced at any time existed.
At the beginning the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp on the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung about the walls, and also a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved because they could not find the money for the hire of R100,000 per month. He said the CTMCA had obtained house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same cost. Schaapkraal is within a peri-urban area far from town.
As a result, the museum were moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter whether an appropriate museum existed there. Images hooked up towards the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, without having rationalization.
“There's a minimum volume of goods for the museum [that] on no account stand for the much more than a hundred-12 months historical past from the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not look being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by moving The placement with the museum to an alternative area without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver from the rented Crete Road premises since it had run up a R4-million credit card debt with the town of Cape Town and was worried its products will be hooked up.
“Because of the legal battles along with the debts, the organisation experienced to maneuver its property from five Crete Street to stay away from the sheriff from attaching the home from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them which the two buses bought with lottery resources had been saved within a secret spot “concealed from your Sheriff”. Though the investigators mentioned they were being not able to confirm that any buses had ever been bought.
Stemmet also confirmed which the buses were concealed to prevent them staying seized. But if the investigators requested to get taken to your position wherever the buses ended up stored, he told them that “the operator of the secret location wasn't available to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 automobiles that it allegedly procured with grant income,” the investigators reported.
Soeker also instructed them the Schaapkraal property had been marketed because of the financial debt.
“Mr Soeker explained that As outlined by his comprehending, a result of the personal debt owed to town of Cape City, the CTMCA resolved it would be very best to promote their [Schaapkraal] home … and to also to cover the belongings with the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and stability, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with town.
“Each and every year like clockwork, as we method the top in the calendar year, the CTMCA picks a authorized struggle with the City, about permits or something else. We never ever initiate it. They keep throwing income absent on vexatious litigation which they shed and also have prices awarded against them. That is fully self-inflicted,” he reported.
Soeker told the Dabishi Nthambeleni investigators that the key part players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being accountable for all the admin, finances and jogging lottovip the CTMCA.” The investigators mentioned they were not able to Make contact with Momberg.
Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “identified various devices, some in superior problem, some in lousy situation and several that appeared rusty and intensely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where by “devices and some equipment” were stored.
“We asked him to consider us to the facility but he was evasive to our ask for.”
Based on shots and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be equipment which was illegally removed from the CTMCA’s former premises. Stemmet is struggling with fees for this removal.
In accordance with the ultimate development report submitted on the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter ended up administrators at the time.
The investigators located this “alarming”.
“From the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape City, a similar handle on which the museum was meant to be developed and/or converted,” they reported.
An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one among the administrators.
As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as a deposit, indicating R6.nine-million remains owed, although there isn't a payment day established for when this must be paid.
The Kopano audit as well as the near url amongst the businesses “reveal to us that there is ‘foul Perform’ associated with the purchase of your equipment on the museum workshop”, the investigators explained inside the report.
“We find that it's very possible that CTMCA utilised the funding in the NLC to ‘refund’ certainly one of its most important directors with the house at a higher overpriced fee than the particular value and worth of the property and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant for the CTMCA were used.
“In reality, a detailed report on how the funding in the NLC was utilised, could well be impossible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities put in on Every single merchandise it requested funding for. The interim report and final report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located that the NLC experienced not carried out a website go to right before approving the grant. But this was not standard exercise at the time plus they discovered no proof of carelessness by NLC staff.
At some time, the NLC’s guidelines did not involve funded organisations to submit proof of payment with interim studies, they identified. This intended which the CTMCA was in a position to receive a second tranche of funding while not having to present evidence that it experienced applied the main tranche for its supposed intent.
Following the appointment of a new board, commissioner and senior govt workforce, the NLC has tightened up on these and other challenges.
Dabishi Nthambeleni proposed that
the NLC decrease any long term funding purposes with the CTMCA;
the CTMCA and any associates who were being involved with the grant be subjected to the NLC’s “delinquency” course of action;
the NLC open a legal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, rather then act around the report’s suggestions, the NLC – underneath its former administration – selected to suppress it, as it had carried out Together with the past stories into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker through SMS, and asked for email addresses to mail the thoughts by e mail way too. But no response were acquired at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph