Minstrels carry out in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Commission towards the Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has observed no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to purchase or develop a museum.
Additionally they uncovered the CTMCA only purchased land value R1.seven-million, not R5-million as allocated.
They found the CTMCA utilized money through the Lottery to buy workshop devices from certainly one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted on the Cape Town Minstrel Carnival Association (CTMCA) because of the National Lotteries Fee (NLC) to set up a museum to rejoice the town’s abundant minstrel heritage went astray. The museum was in no way designed.
The details of the abuse of countless rands of Lottery cash to get a museum that by no means was are revealed in an investigative report commissioned because of the NLC in 2021.
The museum grant was A part of in excess of R64-million in Lottery cash allocated on the CTMCA in between 2003 and 2017.
The initial Component of the investigation, by legislation firm Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which involved funding for that museum. The accepted price range for that museum was a lot more than R12.eight-million, with R5-million of that allotted for just a constructing to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of a making for the museum and if the museum “actually existed”.
The agency was also instructed to research
the acquisition with Lottery money of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous devices “bought with the production of the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators in the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation adopted extensive reporting by GroundUp with regard to the many rands of Lottery funding allocated to the CTMCA (see here, here and below) and the best way the money possibly assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at some time by Marius Fransman.
The making on the best was the meant web-site in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to your Parliamentary issue, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “tasks” - including the museum - between 2012 and 2015. All a few projects were done, she explained to MPs.
But the investigators identified no proof that a museum experienced ever existed.
At the outset the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp with the intended Wetton museum exhibits a espresso shop with some musical devices and minstrel costumes and collages of pictures haphazardly hung on the walls, plus a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not able” to verify if a museum had ever operated from these premises.
Stemmet advised the investigators the museum were moved given that they could no more afford to pay for the hire of R100,000 per month. He said the CTMCA experienced procured property for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and had been marketed for the same price. Schaapkraal is in a peri-city location far from town.
Due to this fact, the museum had been moved to a fresh location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after checking out the premises, which might be in an industrial space, the investigators reported they doubted irrespective of whether a proper museum existed there. Photos hooked up towards the report present a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and unfold out on the floor, with no explanation.
“There's a minimal quantity of items within the museum [that] on no account signify the more than one hundred-year record from the Cape Town Carnival, the investigators claimed, introducing that there was “no signage outside the house the premises indicating which they housed a museum and … typically, the museum will not search to generally be open up to the general public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni famous, by shifting The placement of the museum to an alternative area without the need of notifying the NLC.
The Schaapkraal property, on which no museum was at any time designed. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move through the rented Crete Road premises as it had operate up a R4-million debt with town of Cape Town and was frightened its tools can be hooked up.
“Mainly because of the legal battles and the debts, the organisation had to move its property from five Crete Highway to avoid the sheriff from attaching the assets with the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director on the CTMCA, advised them the two buses acquired with lottery cash had been saved inside a top secret area “concealed from your Sheriff”. However the investigators reported they have been unable to substantiate that any buses had ever been acquired.
Stemmet also confirmed the buses were concealed to halt them remaining seized. But when the investigators asked to become taken for the spot in which the buses have been stored, he told them that “the operator of The key area wasn't accessible to open up the premises for us”.
“The CTMCA could not supply proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators described.
Soeker also informed them the Schaapkraal assets had been marketed because of the personal debt.
“Mr Soeker described that Based on his knowledge, as a result of credit card debt owed to the town of Cape City, the CTMCA resolved It will be best to promote their [Schaapkraal] home … and to also to hide the belongings of your CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape City’s mayco member for safety and safety, has Beforehand explained to GroundUp which the CTMCA “threw money absent” on litigation with town.
“On a yearly basis like clockwork, as we method the end of your 12 months, the CTMCA picks a lawful combat with the City, above permits or another thing. We in no way initiate it. They preserve throwing money absent on vexatious litigation that they eliminate and possess prices awarded against them. This is fully self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who have been in control of all the admin, finances and jogging หวย วัน นี้ the CTMCA.” The investigators claimed they had been not able to Make contact with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “discovered a lot of equipment, some in excellent affliction, some in bad problem and many that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-web-site storage facility where “devices and many equipment” were held.
“We requested him to get us to the facility but he was evasive to our request.”
Depending on images and invoices in GroundUp’s possession, some, if not all, of the merchandise seem like gear which was illegally faraway from the CTMCA’s past premises. Stemmet is dealing with prices for this removing.
In accordance with the last progress report submitted for the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been directors at 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 company is five Crete Road, Wetton, Cape City, exactly the same address on which the museum was meant to be constructed and/or transformed,” they reported.
An audit by accountants Kopano Included, attached to the investigative report, recorded that the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.
In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million to be a deposit, which means R6.9-million continues to be owed, even though there isn't a payment day set for when this has to be paid out.
The Kopano audit plus the near hyperlink between the businesses “reveal to us that there's ‘foul Enjoy’ involved with the purchase with the machinery in the museum workshop”, the investigators said while in the report.
“We find that it is highly possible that CTMCA used the funding in the NLC to ‘refund’ one of its primary directors for the property at a greater overpriced fee than the particular price and value of the home and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant towards the CTMCA had been invested.
“In fact, an in depth report on how the funding with the NLC was utilised, could be not possible as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended on Each and every merchandise it asked for funding for. The interim report and last report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located the NLC experienced not carried out a web page pay a visit to in advance of approving the grant. But this wasn't standard apply at enough time plus they observed no proof of negligence by NLC workforce.
At some time, the NLC’s procedures didn't call for funded organisations to submit evidence of payment with interim stories, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without the need to give evidence that it experienced utilised the first tranche for its meant intent.
Subsequent the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni advised 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 within the report’s tips, the NLC – below its past administration – chose to suppress it, because it experienced done Together with the former reviews into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to send the concerns by e-mail also. But no response had been obtained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph