Minstrels execute in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the Nationwide Lotteries Commission for the Cape Town Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has uncovered no proof that a museum at any time existed.
The investigators found the CTMCA didn't use the R5-million allocated to acquire or build a museum.
In addition they found the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA utilized funds within the Lottery to acquire workshop products from one among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape City Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s wealthy minstrel record went astray. The museum was under no circumstances produced.
The main points in the abuse of countless rands of Lottery cash for a museum that never ever was are disclosed within an investigative report commissioned from the NLC in 2021.
The museum grant was Component of much more than R64-million in Lottery resources allocated to your CTMCA involving 2003 and 2017.
The very first Portion of the investigation, by regulation organization Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which bundled funding to the museum. The authorised spending budget for the museum was more than R12.eight-million, with R5-million of that allotted for a developing to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a setting up with the museum and whether the museum “basically existed”.
The organization was also instructed to investigate
the purchase with Lottery cash of two cars – a 60-seater bus and a 23-seater bus – for R2.four-million; and
various equipment “bought for that manufacturing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director with 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 numerous directors on the organisation. Stemmet was reappointed as being a director in Might 2021.
The investigation followed extensive reporting by GroundUp in regards to the a lot of rands of Lottery funding allocated into the CTMCA (see listed here, right here and below) and the way the money probably helped finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.
The developing on the proper was the supposed web site on the minstrels’ museum, in the midst of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to the Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “assignments” - including the museum - involving 2012 and 2015. All three tasks had been finished, she informed MPs.
However the investigators found no evidence that a museum had at any time existed.
In the beginning the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp with the supposed Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of pics haphazardly hung to the partitions, plus a model ship on its plinth within a corner.
In its report, Dabishi Nthambeleni explained it had been “not ready” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved given that they could no longer afford to pay for the lease of R100,000 per month. He stated the CTMCA experienced bought house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same selling price. Schaapkraal is inside a peri-urban place considerably from town.
Therefore, the museum had been moved to a completely new location in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after browsing the premises, which might be in an industrial area, the investigators reported they doubted irrespective of whether a suitable museum existed there. Photos connected to the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, displayed on tables and unfold out on the ground, without rationalization.
“There's a nominal degree of items in the museum [that] by no means symbolize the a lot more than one hundred-yr background in the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum does not glimpse to get open to the general public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by shifting The situation from the museum to an alternate locale with no notifying the NLC.
The Schaapkraal assets, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had run up a R4-million debt with town of Cape City and was afraid its gear could be attached.
“Because of the lawful battles as well as debts, the organisation experienced to move its assets from 5 Crete Road to steer clear of the sheriff from attaching the home of the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director of your CTMCA, advised them which the two buses bought with lottery cash were stored inside of a mystery location “hidden with the Sheriff”. However the investigators explained they were being not able to confirm that any buses had at any time been acquired.
Stemmet also verified which the buses were concealed to prevent them currently being seized. But once the investigators asked to be taken into the place the place the buses ended up saved, he instructed them that “the proprietor of the secret location wasn't accessible to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 vehicles that it allegedly ordered with grant cash,” the investigators reported.
Soeker also explained to them the Schaapkraal residence were marketed because of the credit card debt.
“Mr Soeker explained that according to his comprehending, a result of the financial debt owed to the City of Cape City, the CTMCA determined it would be finest to promote their [Schaapkraal] residence … also to also to hide the assets on the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for protection and safety, has Beforehand instructed GroundUp the CTMCA “threw cash absent” on litigation with the City.
“Every year like clockwork, as we method the top of the calendar year, the CTMCA picks a lawful combat with the town, above permits or another thing. We in no way initiate it. They preserve throwing funds away on vexatious litigation they eliminate and also have charges awarded in opposition to them. This really is completely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the leading part gamers on problems with Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for the many admin, funds and working fox888 the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “observed numerous machines, some in great issue, some in lousy situation and a few that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-website storage facility exactly where “devices and a few equipment” have been held.
“We questioned him to just take us to the facility but he was evasive to our ask for.”
Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your things seem like machines that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing expenses for this elimination.
Based on the closing development report submitted to the NLC with the CTMCA, the equipment was acquired from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter ended up directors at the time.
The investigators discovered this “alarming”.
“In the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the company is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was meant to be developed and/or converted,” they described.
An audit by accountants Kopano Included, attached towards the investigative report, recorded that the CTMCA was in the process of getting “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was considered one of the directors.
In line with Dabishi Nthambeleni, the business has paid R1.two-million being a deposit, which means R6.nine-million continues to be owed, although there isn't any payment day established for when this has to be compensated.
The Kopano audit as well as the shut hyperlink involving the businesses “indicate to us that there is ‘foul Enjoy’ linked to the acquisition from the machinery in the museum workshop”, the investigators explained from the report.
“We discover that it's remarkably possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its most important administrators to the house at a greater overpriced rate than the particular price tag and value of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been expended.
“Actually, an in depth report on how the funding on the NLC was utilized, could well be extremely hard as the CTMCA does not have any receipts, or proof of payments to verify the quantities invested on Each individual item it requested funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not conducted a website check out in advance of approving the grant. But this was not normal apply at the time and they uncovered no evidence of negligence by NLC workforce.
At enough time, the NLC’s policies did not need funded organisations to post proof of payment with interim stories, they pointed out. This intended which the CTMCA was in the position to receive a next tranche of funding without needing to provide proof that it had used the primary tranche for its supposed purpose.
Adhering to the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni recommended that
the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, rather then act to the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, mainly because it had accomplished with the earlier stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to ship the inquiries by e mail way too. But no response had been received at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph