Minstrels carry out in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Countrywide Lotteries Fee to your Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has observed no proof that a museum at any time existed.
The investigators identified which the CTMCA did not utilize the R5-million allocated to purchase or produce a museum.
In addition they observed the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of money from your Lottery to purchase workshop devices from one among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the city’s wealthy minstrel historical past went astray. The museum was hardly ever created.
The details from the abuse of numerous rands of Lottery money to get a museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The main Section of the investigation, by law agency Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which provided funding with the museum. The accepted finances with the museum was greater than R12.8-million, with R5-million of that allocated to get a creating to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the making for that museum and if the museum “really existed”.
The firm was also instructed to analyze
the purchase with Lottery resources of two cars – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
various devices “purchased for that producing on the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several directors in the organisation. Stemmet was reappointed for a director in May perhaps 2021.
The investigation adopted extensive reporting by GroundUp with regards to the many rands of Lottery funding allotted on the CTMCA (see listed here, listed 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 setting up on the appropriate was the supposed internet site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.
However the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung around the partitions, as well as a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni said it had been “not ready” to confirm if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum had been moved as they could now not pay for the lease of R100,000 a month. He claimed the CTMCA experienced procured property for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were bought for a similar rate. Schaapkraal is inside of a peri-city place significantly from the town.
Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after checking out the premises, that are within an industrial location, the investigators reported they doubted no matter if a proper museum existed there. Pics attached on the report show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the ground, with no rationalization.
“There is a negligible number of things on the museum [that] by no means symbolize the over a hundred-yr history of your Cape City Carnival, the investigators explained, introducing that there was “no signage outside the house the premises indicating they housed a museum and … commonly, the museum won't glance to get open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by relocating The situation on the museum to another spot with no notifying the NLC.
The Schaapkraal home, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to maneuver within the rented Crete Road premises because it experienced operate up a R4-million credit card debt with the town of Cape Town and was scared its tools will be attached.
“A result of the legal battles and also the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house from the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, the current director of your CTMCA, advised them which the two buses bought with lottery money were being stored in the secret area “concealed from the Sheriff”. Even so the investigators claimed they were unable to confirm that any buses experienced at any time been acquired.
Stemmet also verified the buses had been hidden to stop them becoming seized. But when the investigators asked to be taken to the place where the buses were being stored, he informed them that “the operator of The key place 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 funds,” the investigators reported.
Soeker also instructed them the Schaapkraal property had been marketed because of the financial debt.
“Mr Soeker stated that In accordance with his being familiar with, as a result of credit card debt owed to the town of Cape Town, the CTMCA made a decision It will be most effective to sell their [Schaapkraal] property … also to also to cover the property on the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously told GroundUp the CTMCA “threw funds absent” on litigation with the town.
“Each year like clockwork, as we solution the tip of the 12 months, the CTMCA picks a lawful battle with town, more than permits or another thing. We never initiate it. They retain throwing money away on vexatious litigation they eliminate and possess expenses awarded in opposition to them. This is often entirely self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the leading purpose gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for all the admin, funds and managing ruay the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
During their “investigation in loco” in the Primrose Park premises, the investigators “discovered many equipment, some in fantastic affliction, some in undesirable situation and some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-site storage facility wherever “instruments and several equipment” had been retained.
“We questioned him to get us to the power but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, of the products seem like products which was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with rates for this removing.
In accordance with the closing progress report submitted for the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company wherein Stemmet, his spouse and his daughter had been administrators at the time.
The investigators located this “alarming”.
“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Observe 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, the same handle on which the museum was meant to be created and/or converted,” they reported.
An audit by accountants Kopano Included, connected for the investigative report, recorded that the CTMCA was in the whole process of getting “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was amongst the directors.
According to Dabishi Nthambeleni, the business has compensated R1.2-million like a deposit, this means R6.9-million continues to be owed, while there's no payment date set for when this need to be compensated.
The Kopano audit and the shut link in between the companies “show to us that there is ‘foul play’ involved in the acquisition with the machinery in the museum workshop”, the investigators stated within the report.
“We discover that it is highly possible that CTMCA utilised the funding from the NLC to ‘refund’ one of its key directors for that home at the next overpriced charge than the particular cost and worth of the assets and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant on the CTMCA were used.
“In fact, a detailed report on how the funding in the NLC was applied, could well be not possible because the CTMCA does not have any receipts, or proof of payments to substantiate the quantities expended on Just about every merchandise it requested funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located that the NLC experienced not executed a web site go to before approving the grant. But this was not regular observe at time they usually identified no proof of carelessness by NLC personnel.
At some time, the NLC’s principles didn't 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.
Next the appointment of a new board, commissioner and senior govt workforce, the NLC has tightened up on these and various challenges.
Dabishi Nthambeleni encouraged that
the NLC decrease any long term funding purposes with the CTMCA;
the CTMCA and any associates who were being associated 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 experienced carried out Together with the preceding 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