Minstrels perform in Athlone on two January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has identified no proof that a museum ever existed.
The investigators observed that the CTMCA didn't use the R5-million allotted to buy or produce a museum.
They also located the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They found the CTMCA made use of funds from your Lottery to get workshop machines from one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Affiliation (CTMCA) via the Countrywide Lotteries Commission (NLC) to put in place a museum to rejoice town’s rich minstrel heritage went astray. The museum was hardly ever designed.
The details with the abuse of many rands of Lottery cash for a museum that hardly ever was are unveiled in an investigative report commissioned with the NLC in 2021.
The museum grant was Section of over R64-million in Lottery resources allocated on the CTMCA involving 2003 and 2017.
The very first Component of the investigation, by legislation company Dabishi Nthambeleni, was performed between September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which integrated funding for the museum. The authorised finances for the museum was much more than R12.eight-million, with R5-million of that allotted for any making to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the setting up with the museum and whether or not the museum “basically existed”.
The business was also instructed to research
the purchase with Lottery funds of two motor vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
various equipment “acquired for your producing in the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous administrators of your organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted in depth reporting by GroundUp about the numerous rands of Lottery funding allocated for the CTMCA (see listed here, below and below) and how the money possibly assisted finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at enough time by Marius Fransman.
The constructing on the correct was the meant internet site from the minstrels’ museum, in the course of an industrial location in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to a few CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All 3 initiatives were completed, she informed MPs.
Although the investigators uncovered no evidence that a museum experienced at any time existed.
At the outset the museum was due to open up in rented premises in Crete Street, Wetton. A photo acquired by GroundUp from the meant Wetton museum reveals a espresso shop with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung on the partitions, as well as a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it absolutely 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 since they could no more afford the rent of R100,000 a month. He claimed the CTMCA experienced bought house for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is inside a peri-urban region far from the city.
Because of this, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after viewing the premises, which happen to be in an industrial region, the investigators reported they doubted irrespective of whether a correct museum existed there. Photos connected to the 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 explanation.
“You will find a small quantity of products at the museum [that] on no account represent the a lot more than a hundred-yr background on the Cape City Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating that they housed a museum and … commonly, the museum won't seem for being open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by shifting The placement from the museum to an alternate location without the need of notifying the NLC.
The Schaapkraal house, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to maneuver in the rented Crete Street premises as it experienced operate up a R4-million financial debt with the town of Cape Town and was afraid its tools could be connected.
“As a result of authorized battles as well as debts, the organisation experienced to maneuver its assets from 5 Crete Street to avoid the sheriff from attaching the house of the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director on the CTMCA, advised them the two buses bought with lottery funds were stored inside of a top secret spot “hidden within the Sheriff”. Although the investigators said they ended up not able to confirm that any buses had at any time been acquired.
Stemmet also verified that the buses were hidden to prevent them staying seized. But in the event the investigators asked to become taken on the position where by the buses were being saved, he explained to them that “the owner of The trick site was not available to open up the premises for us”.
“The CTMCA could not provide evidence of payment for two motor vehicles that it allegedly ordered with grant funds,” the investigators reported.
Soeker also instructed them the Schaapkraal home were bought due to the personal debt.
“Mr Soeker described that Based on his being familiar with, as a result of credit card debt owed to town of Cape City, the CTMCA decided it would be greatest to market their [Schaapkraal] residence … and also to also to hide the assets from the CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for basic safety and safety, has Formerly told GroundUp which the CTMCA “threw income away” on litigation with town.
“Annually like clockwork, as we strategy the top with the yr, the CTMCA picks a lawful fight with the town, more than permits or another thing. We by no means initiate it. They retain throwing cash away on vexatious litigation which they lose and also have expenditures awarded against them. That is fully self-inflicted,” he said.
Soeker told the Dabishi Nthambeleni investigators that the key position players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of all of the admin, funds and functioning หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators claimed they were struggling to contact Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “located quite a few devices, some in excellent situation, some in poor condition plus some that seemed rusty and extremely aged”. Stemmet advised the investigators that there was also an off-website storage facility where by “instruments plus some machinery” ended up stored.
“We requested him to take us to the ability but he was evasive to our ask for.”
According to images and invoices in GroundUp’s possession, some, Otherwise all, of the objects seem like machines which was illegally faraway from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.
Based on the closing development report submitted on the NLC with the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were being administrators at the time.
The investigators found this “alarming”.
“Within the CIPC research of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the business is five Crete Highway, Wetton, Cape Town, precisely the same handle on which the museum was intended to be developed and/or converted,” they documented.
An audit by accountants Kopano Integrated, hooked up into the investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.2-million to be a deposit, indicating R6.9-million remains owed, however there is absolutely no payment day set for when this needs to be paid.
The Kopano audit as well as close backlink in between the businesses “suggest to us that there is ‘foul Perform’ involved with the acquisition of the machinery in the museum workshop”, the investigators explained during the report.
“We discover that it's remarkably possible that CTMCA applied the funding of your NLC to ‘refund’ one of its main administrators with the residence at an increased overpriced fee than the actual price and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.
“In fact, an in depth report on how the funding in the NLC was made use of, will be unachievable since the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts put in on each merchandise it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC had not executed a web page go to just before approving the grant. But this was not regular apply at the time and they uncovered no proof of negligence by NLC employees.
At enough time, the NLC’s regulations did not require funded organisations to post proof of payment with interim stories, they pointed out. This intended the CTMCA was in a position to get a 2nd tranche of funding without having to deliver proof that it experienced used the 1st tranche for its supposed goal.
Pursuing the appointment of a new board, commissioner and senior government staff, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni encouraged that
the NLC decrease any long run funding apps with the CTMCA;
the CTMCA and any customers who ended up involved with the grant be subjected for the NLC’s “delinquency” method;
the NLC open up a prison circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as opposed to act on the report’s suggestions, the NLC – beneath its earlier administration – chose to suppress it, as it had finished with the preceding experiences into corruption it had commissioned.
GroundUp despatched inquiries to Stemmet and Soeker through SMS, and requested for electronic mail addresses to deliver the issues by electronic mail as well. But no response had been acquired at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph