Minstrels perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant by the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not make use of the R5-million allocated to purchase or create a museum.
They also uncovered which the CTMCA only purchased land worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied money from the Lottery to invest in workshop devices from one among its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) through the Nationwide Lotteries Fee (NLC) to setup a museum to celebrate the town’s abundant minstrel history went astray. The museum was in no way made.
The main points of your abuse of millions of rands of Lottery funds for any museum that never ever was are disclosed within an investigative report commissioned by the NLC in 2021.
The museum grant was Section of over R64-million in Lottery resources allotted to your CTMCA between 2003 and 2017.
The very first Element of the investigation, by law agency Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for the museum. The approved spending budget for the museum was greater than R12.eight-million, with R5-million of that allotted for the making to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a developing with the museum and whether or not the museum “really existed”.
The firm was also instructed to analyze
the acquisition with Lottery resources of two autos – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
various machines “ordered to the manufacturing of your costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted legal 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 quite a few administrators with the organisation. Stemmet was reappointed as a director in Might 2021.
The investigation adopted substantial reporting by GroundUp concerning the a lot of rands of Lottery funding allocated towards the CTMCA (see right here, in this article and right here) and how the funds most likely assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at enough time by Marius Fransman.
The constructing on the ideal was the meant web page of the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph
In reaction to your Parliamentary concern, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “projects” - such as the museum - in between 2012 and 2015. All a few tasks were finished, she instructed MPs.
Even so the investigators found no proof that a museum had at any time existed.
At first the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph obtained by GroundUp on the intended Wetton museum reveals a espresso store with a few musical devices and minstrel costumes and collages of pics haphazardly hung over the partitions, in addition to a product ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni said it absolutely was “not ready” to verify if a museum had at any time operated from these premises.
Stemmet advised the investigators the museum had been moved simply because they could no longer afford to pay for the lease of R100,000 per month. He explained the CTMCA had procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar value. Schaapkraal is inside of a peri-urban spot considerably from the city.
Due to this fact, the museum were moved to a different place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But immediately after checking out the premises, which happen to be in an industrial spot, the investigators reported they doubted irrespective of whether a correct museum existed there. Photos attached for the report clearly show a mishmash of randomly exhibited uniforms, musical devices and diverse minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the floor, with no rationalization.
“You will find there's small level of objects within the museum [that] in no way symbolize the in excess of one hundred-12 months heritage with the Cape Town Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … frequently, the museum would not look to become open up to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by shifting the location with the museum to an alternative place without notifying the NLC.
The Schaapkraal assets, on which no museum was at any time created. Image: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to move with the rented Crete Highway premises because it had run up a R4-million credit card debt with the town of Cape Town and was concerned its devices could well be hooked up.
“Mainly because of the lawful battles as well as the debts, the organisation experienced to move its property from five Crete Street to avoid the sheriff from attaching the assets with the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director with the CTMCA, advised them which the two buses bought with lottery money were stored in a solution spot “concealed from the Sheriff”. Although the investigators said they have been not able to substantiate that any buses had at any time been purchased.
Stemmet also verified which the buses were concealed to halt them becoming seized. But when the investigators asked to be taken to the place exactly where the buses were saved, he instructed them that “the owner of the secret locale was not available to open up the premises for us”.
“The CTMCA could not present proof of payment for 2 automobiles that it allegedly purchased with grant dollars,” the investigators documented.
Soeker also explained to them the Schaapkraal house were sold as a result of debt.
“Mr Soeker spelled out that As outlined by his understanding, as a result of debt owed to the town of Cape City, the CTMCA determined It could be very best to offer their [Schaapkraal] home … and also to also to hide the belongings of the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has Beforehand informed GroundUp that the CTMCA “threw dollars absent” on litigation with the City.
“On a yearly basis like clockwork, as we strategy the top of the 12 months, the CTMCA picks a lawful combat with the town, around permits or another thing. We by no means initiate it. They maintain throwing cash absent on vexatious litigation that they shed and also have expenses awarded against them. This is often fully self-inflicted,” he reported.
Soeker advised the Dabishi Nthambeleni investigators that the main job players on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of every one of the admin, funds and functioning ตรวจ หวย ล่าสุด the CTMCA.” The investigators reported they had been not able to Call Momberg.
Hats
For the duration of their “investigation in loco” within the Primrose Park premises, the investigators “identified various devices, some in fantastic ailment, some in negative ailment and a few that seemed rusty and very outdated”. Stemmet explained to the investigators that there was also an off-web site storage facility the place “instruments and a few equipment” ended up held.
“We asked him to take us to the power but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise seem like machines that was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing prices for this removing.
In accordance with the last progress report submitted on the NLC because of the CTMCA, the equipment was ordered from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter have been directors at some time.
The investigators uncovered this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners and also the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, exactly the same deal with on which the museum was meant to be crafted and/or transformed,” they noted.
An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.2-million to be a deposit, indicating R6.9-million remains owed, however there is absolutely no payment date set for when this must be paid out.
The Kopano audit and the near link amongst the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase on the equipment of your museum workshop”, the investigators stated while in the report.
“We find that it is very probable that CTMCA employed the funding in the NLC to ‘refund’ considered one of its key administrators to the home at a greater overpriced price than the particular rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant to the CTMCA were spent.
“The truth is, a detailed report on how the funding with the NLC was employed, could well be extremely hard as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts invested on Just about every item it requested funding for. The interim report and ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not done a site go to just before approving the grant. But this was not standard practice at some time they usually located no evidence of negligence by NLC workforce.
At enough time, the NLC’s principles didn't call for funded organisations to submit evidence of payment with interim reports, they identified. This intended the CTMCA was in a position to get a next tranche of funding while not having to offer proof that it experienced used the primary tranche for its supposed objective.
Pursuing the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding programs in the CTMCA;
the CTMCA and any members who were linked to the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, as an alternative to act around the report’s suggestions, the NLC – under its past administration – selected to suppress it, because it experienced carried out While using the prior stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by email too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph