Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators found the CTMCA did not use the R5-million allocated to order or establish a museum.
They also identified the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They located the CTMCA employed resources through the Lottery to buy workshop machines from one among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to arrange a museum to celebrate the city’s wealthy minstrel historical past went astray. The museum was hardly ever created.
The details of the abuse of countless rands of Lottery funds to get a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of in excess of R64-million in Lottery money allotted for the CTMCA between 2003 and 2017.
The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding for that museum. The approved price range for that museum was much more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether the museum “basically existed”.
The organization was also instructed to investigate
the acquisition with Lottery money of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several machines “ordered for your producing from the costumes and hats” for that minstrels carnival, for R5.four-million.
At the time, convicted felony 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 wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation adopted intensive reporting by GroundUp in regards to the a lot of rands of Lottery funding allotted on the CTMCA (see listed here, right here and right here) and the way the resources in all probability assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The building on the appropriate was the supposed web page in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Image: Raymond Joseph
In reaction to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - such as the museum - amongst 2012 and 2015. All 3 tasks had been done, she instructed MPs.
Even so the investigators found no proof that a museum had at any time existed.
In the beginning the museum was on account of open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp in the supposed Wetton museum exhibits a coffee store with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, plus a model 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 told the investigators the museum were moved since they could now not afford to pay for the rent of R100,000 per month. He said the CTMCA had procured assets for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were marketed for a similar cost. Schaapkraal is in a peri-city area significantly from the town.
Due to this fact, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But after browsing the premises, which can be in an industrial spot, the investigators explained they doubted irrespective of whether a suitable museum existed there. Images attached to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without having explanation.
“There exists a small quantity of things with the museum [that] under no circumstances represent the greater than 100-year history of the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … frequently, the museum won't search to become open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement from the museum to an alternate location with no notifying the NLC.
The Schaapkraal property, on which no museum was ever created. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to move through the rented Crete Street premises as it experienced run up a R4-million credit card debt with the town of Cape Town and was scared its products might be connected.
“Due to authorized battles along with the debts, the organisation had to maneuver its house from 5 Crete Highway to stay away from the sheriff from attaching the home of your organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director of your CTMCA, advised them which the two buses bought with lottery resources had been saved in a mystery location “hidden with the Sheriff”. However the investigators claimed they were unable to confirm that any buses had ever been bought.
Stemmet also confirmed that the buses had been hidden to halt them becoming seized. But when the investigators asked to become taken towards the location in which the buses had been stored, he explained to them that “the proprietor of the secret location wasn't available to open up the premises for us”.
“The CTMCA could not offer evidence of payment for two vehicles that it allegedly ordered with grant funds,” the investigators reported.
Soeker also instructed them the Schaapkraal property had been bought due to the personal debt.
“Mr Soeker described that In keeping with his comprehension, due to the financial debt owed to the town of Cape Town, the CTMCA made a decision It will be best to sell their [Schaapkraal] home … and to also to hide the belongings of the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously explained to GroundUp which the CTMCA “threw income away” on litigation with town.
“Annually like clockwork, as we strategy the top with the year, the CTMCA picks a authorized fight with the town, more than permits or another thing. We by no means initiate it. They continue to keep throwing cash absent on vexatious litigation which they shed and also have prices awarded against them. This is certainly solely self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of the many admin, funds and managing หวย วัน นี้ the CTMCA.” The investigators stated they had been not able to Speak to Momberg.
Hats
All through their “investigation in loco” within the Primrose Park premises, the investigators “found many equipment, some in superior ailment, some in lousy affliction and many that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-site storage facility wherever “instruments and many machinery” have been kept.
“We requested him to choose us to the facility but he was evasive to our ask for.”
Based on images and invoices in GroundUp’s possession, some, Otherwise all, of the things seem like machines which was illegally faraway from the CTMCA’s previous premises. Stemmet is dealing with fees for this elimination.
Based on the ultimate progress report submitted for the NLC with the CTMCA, the machinery was procured from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter have been administrators at some time.
The investigators uncovered this “alarming”.
“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be crafted and/or transformed,” they described.
An audit by accountants Kopano Incorporated, connected to your investigative report, recorded that the CTMCA was in the entire process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, that means R6.nine-million remains owed, while there isn't a payment date established for when this have to be paid.
The Kopano audit plus the shut url between the companies “point out to us that there's ‘foul Perform’ linked to the purchase with the equipment from the museum workshop”, the investigators mentioned from the report.
“We discover that it's very probable that CTMCA employed the funding on the NLC to ‘refund’ one of its principal directors for that property at a better overpriced amount than the particular price and value of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant for the CTMCA had been put in.
“In fact, an in depth report on how the funding in the NLC was made use of, will be not possible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities spent on Just about every product it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC experienced not conducted a web-site go to just before approving the grant. But this was not typical observe at some time plus they located no evidence of carelessness by NLC staff members.
At enough time, the NLC’s rules didn't involve funded organisations to post evidence of payment with interim experiences, they identified. This meant which the CTMCA was able to get a next tranche of funding without having to give proof that it experienced utilised the primary tranche for its supposed goal.
Next the appointment of a new board, commissioner and senior executive workforce, the NLC has tightened up on these together with other concerns.
Dabishi Nthambeleni proposed that
the NLC decline any foreseeable future funding apps from the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected to your NLC’s “delinquency” process;
the NLC open up a legal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated cash.
But, as an alternative to act within the report’s tips, the NLC – beneath its previous administration – chose to suppress it, mainly because it had done While using the preceding reports into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker by using SMS, and questioned for email addresses to ship the thoughts by email as well. But no response had been obtained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photograph: Raymond Joseph