Minstrels perform in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant with the National Lotteries Fee for the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has discovered no evidence that a museum at any time existed.
The investigators observed the CTMCA did not make use of the R5-million allocated to buy or establish a museum.
They also located which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA utilised money from the Lottery to acquire workshop products from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape City Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Commission (NLC) to create a museum to celebrate town’s prosperous minstrel history went astray. The museum was in no way designed.
The main points on the abuse of an incredible number of rands of Lottery funds for your museum that in no way was are exposed within an investigative report commissioned through the NLC in 2021.
The museum grant was A part of much more than R64-million in Lottery funds allocated to your CTMCA in between 2003 and 2017.
The primary Component of the investigation, by legislation organization Dabishi Nthambeleni, was done between September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which bundled funding for your museum. The accredited finances for that museum was much more than R12.eight-million, with R5-million of that allocated for your constructing to deal with the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating for the museum and if the museum “truly existed”.
The firm was also instructed to investigate
the purchase with Lottery funds of two autos – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
different equipment “ordered with the producing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At enough time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many directors of your organisation. Stemmet was reappointed like a director in May well 2021.
The investigation followed in depth reporting by GroundUp with regards to the many rands of Lottery funding allocated for the CTMCA (see in this article, listed here and right here) and the way in which the resources almost certainly aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at time by Marius Fransman.
The setting up on the right was the intended web site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to your Parliamentary query, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All a few jobs had been done, she informed MPs.
Though the investigators identified no evidence that a museum had at any time existed.
At first the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp in the meant Wetton museum demonstrates a coffee shop with a few musical devices and minstrel costumes and collages of pics haphazardly hung on the partitions, in addition to a model ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to verify if a museum experienced ever operated from these premises.
Stemmet explained to the investigators the museum were moved as they could now not afford to pay for the lease of R100,000 per month. He mentioned the CTMCA had obtained home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been marketed for a similar rate. Schaapkraal is inside of a peri-urban location far from the city.
Consequently, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after viewing the premises, which might be within an industrial space, the investigators mentioned they doubted whether or not a suitable museum existed there. Pics connected on the report clearly show a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed on the wall, shown on tables and unfold out on the ground, without clarification.
“There exists a minimum amount of objects at the museum [that] under no circumstances depict the greater than 100-12 months record on the Cape City Carnival, the investigators said, incorporating that there was “no signage outside the house the premises indicating which they housed a museum and … commonly, the museum would not appear to generally be open up to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni mentioned, by moving The situation on the museum to an alternative locale devoid of notifying the NLC.
The Schaapkraal house, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA experienced to move from the rented Crete Highway premises as it had operate up a R4-million debt with the town of Cape City and was concerned its gear might be hooked up.
“A result of the lawful battles and also the debts, the organisation had to move its property from 5 Crete Road to avoid the sheriff from attaching the property from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director of the CTMCA, informed them which the two buses acquired with lottery resources were saved in a magic formula location “concealed through the Sheriff”. Although the investigators mentioned they were not able to confirm that any buses experienced at any time been bought.
Stemmet also confirmed which the buses had been concealed to stop them being seized. But if the investigators questioned to get taken towards the area where by the buses had been stored, he informed them that “the proprietor of the secret spot was not available to open the premises for us”.
“The CTMCA couldn't provide proof of payment for two cars that it allegedly bought with grant revenue,” the investigators noted.
Soeker also instructed them the Schaapkraal assets were bought due to financial debt.
“Mr Soeker stated that Based on his comprehending, due to the credit card debt owed to the City of Cape City, the CTMCA determined It could be very best to offer their [Schaapkraal] home … also to also to cover the belongings from the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for basic safety and safety, has Formerly advised GroundUp that the CTMCA “threw funds away” on litigation with the City.
“Every year like clockwork, as we approach the end in the 12 months, the CTMCA picks a authorized combat with the town, above permits or something else. We under no circumstances initiate it. They continue to keep throwing money absent on vexatious litigation they get rid of and also have prices awarded against them. This really is fully self-inflicted,” he mentioned.
Soeker informed the Dabishi Nthambeleni investigators that the primary role players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, funds and working หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators claimed they had been not able to Make contact with Momberg.
Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “found quite a few devices, some in good issue, some in bad affliction and some that seemed rusty and very aged”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “devices and some equipment” ended up saved.
“We questioned him to take us to the power but he was evasive to our ask for.”
Based on pictures and invoices in GroundUp’s possession, some, Otherwise all, with the things appear to be equipment that was illegally faraway from the CTMCA’s former premises. Stemmet is struggling with expenses for this elimination.
In accordance with the last development report submitted to the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter ended up administrators at enough time.
The investigators found this “alarming”.
“In the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Street, Wetton, Cape Town, exactly the same tackle on which the museum was intended to be designed and/or converted,” they noted.
An audit by accountants Kopano Integrated, hooked up to the investigative report, recorded that the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the administrators.
Based on Dabishi Nthambeleni, the company has compensated R1.2-million as being a deposit, meaning R6.nine-million is still owed, though there is no payment date established for when this has to be compensated.
The Kopano audit plus the close url in between the companies “suggest to us that there is ‘foul Engage in’ involved with the acquisition from the machinery with the museum workshop”, the investigators said inside the report.
“We find that it is remarkably possible that CTMCA made use of the funding of the NLC to ‘refund’ among its principal directors for your home at a greater overpriced rate than the particular price tag and worth of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA had been used.
“The truth is, an in depth report on how the funding on the NLC was utilized, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the amounts used on Every merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not done a website go to just before approving the grant. But this was not regular practice at some time plus they located no evidence of carelessness by NLC personnel.
At the time, the NLC’s rules did not need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a second tranche of funding while not having to offer evidence that it experienced utilized the 1st tranche for its intended goal.
Pursuing the appointment of a brand new board, commissioner and senior government crew, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni suggested that
the NLC decline any potential funding programs in the CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a prison scenario of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act about the report’s tips, the NLC – beneath its previous administration – chose to suppress it, since it experienced completed While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the issues by electronic mail much too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph