Minstrels conduct in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the Countrywide Lotteries Fee to your Cape City Minstrel Carnival Association (CTMCA) for your minstrels museum has found 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 produce a museum.
In addition they found which the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilized funds from the Lottery to invest in workshop equipment from considered one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted on the Cape City Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to create a museum to rejoice the town’s abundant minstrel history went astray. The museum was hardly ever developed.
The small print of your abuse of countless rands of Lottery money for your museum that in no way was are discovered within an investigative report commissioned through the NLC in 2021.
The museum grant was part of in excess of R64-million in Lottery money allotted for the CTMCA involving 2003 and 2017.
The initial Element of the investigation, by legislation company Dabishi Nthambeleni, was done among September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which bundled funding for the museum. The accredited price range for the museum was greater than R12.8-million, with R5-million of that allotted to get a making to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a building for the museum and whether the museum “basically existed”.
The business was also instructed to research
the acquisition with Lottery cash of two motor vehicles – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
different equipment “bought to the production from the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many administrators in the organisation. Stemmet was reappointed as a director in May well 2021.
The investigation followed intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allotted into the CTMCA (see listed here, here and below) and the way the money almost certainly helped finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.
The developing on the best was the intended web-site of your minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph
In response to a Parliamentary question, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “projects” - such as the museum - in between 2012 and 2015. All three assignments were concluded, she explained to MPs.
Though the investigators uncovered no proof that a museum had at any time existed.
At first the museum was due to open in rented premises in Crete Road, Wetton. A photograph received by GroundUp of the meant Wetton museum displays a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, and also a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni explained it had been “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet told the investigators the museum were moved simply because they could now not pay for the rent of R100,000 a month. He explained the CTMCA had procured residence for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been bought for a similar selling price. Schaapkraal is in a very peri-city space far from the city.
As a result, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after viewing the premises, which happen to be in an industrial region, the investigators claimed they doubted no matter if an appropriate museum existed there. Photographs connected into the report show a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, with no explanation.
“You will find there's minimal quantity of items on the museum [that] by no means symbolize the greater than one hundred-12 months historical past from the Cape City Carnival, the investigators claimed, adding that there was “no signage outdoors the premises indicating they housed a museum and … usually, the museum would not search to become open up to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving the location from the museum to an alternative place with no notifying the NLC.
The Schaapkraal residence, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA experienced to maneuver from the rented Crete Road premises since it experienced operate up a R4-million credit card debt with the town of Cape City and was concerned its gear would be hooked up.
“As a result of legal battles as well as debts, the organisation had to maneuver 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, told them which the two buses purchased with lottery money had been stored in a secret locale “hidden with the Sheriff”. Nevertheless the investigators explained they ended up unable to confirm that any buses experienced ever been bought.
Stemmet also verified the buses were concealed to prevent them currently being seized. But when the investigators requested to become taken to your area where by the buses were saved, he instructed them that “the proprietor of The key place wasn't available to open the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 autos that it allegedly procured with grant money,” the investigators claimed.
Soeker also instructed them the Schaapkraal assets had been offered because of the debt.
“Mr Soeker described that As outlined by his knowing, as a result of credit card debt owed to the City of Cape Town, the CTMCA resolved It might be ideal to provide their [Schaapkraal] assets … and also to also to cover the assets of your CTMCA to avoid the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and stability, has Formerly instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.
“On a yearly basis like clockwork, as we solution the end of your year, the CTMCA picks a legal fight with the town, about permits or another thing. We by no means initiate it. They preserve throwing cash away on vexatious litigation that they eliminate and also have expenditures awarded versus them. This is solely self-inflicted,” he claimed.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial role gamers on issues of Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been accountable for many of the admin, finances and managing ผล หวย ลาว the CTMCA.” The investigators stated they were struggling to Make contact with Momberg.
Hats
During their “investigation in loco” with the Primrose Park premises, the investigators “found a lot of equipment, some in very good condition, some in negative affliction and many that seemed rusty and very outdated”. Stemmet instructed the investigators that there was also an off-site storage facility exactly where “instruments plus some equipment” ended up retained.
“We asked him to get us to the ability but he was evasive to our request.”
Depending on pictures and invoices in GroundUp’s possession, some, if not all, from the items look like devices that was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing fees for this removal.
According to the ultimate progress report submitted to your NLC through the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization through which Stemmet, his wife and his daughter have been directors at the time.
The investigators identified this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Street, Wetton, Cape City, a similar address on which the museum was intended to be designed and/or transformed,” they reported.
An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded the CTMCA was in the entire process of buying “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.two-million as a deposit, meaning R6.nine-million remains owed, nevertheless there's no payment date established for when this need to be paid out.
The Kopano audit as well as the shut backlink among the businesses “point out to us that there is ‘foul play’ involved in the purchase of your machinery with the museum workshop”, the investigators stated in the report.
“We find that it's highly possible that CTMCA utilized the funding on the NLC to ‘refund’ one of its major administrators for that property at a higher overpriced charge than the actual value and value of the home and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant into the CTMCA had been invested.
“In reality, an in depth report on how the funding from the NLC was used, might be extremely hard because the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities used on Each and every product it asked for funding for. The interim report and ultimate report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not executed a web page stop by before approving the grant. But this wasn't conventional exercise at enough time and so they observed no evidence of carelessness by NLC workforce.
At some time, the NLC’s regulations did not require funded organisations to post proof of payment with interim reviews, they identified. This intended the CTMCA was capable to receive a 2nd tranche of funding without needing to offer evidence that it had made use of the 1st tranche for its intended reason.
Following the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these and other troubles.
Dabishi Nthambeleni recommended that
the NLC decline any potential funding apps through the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, instead of act over the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, because it experienced completed Using the prior reviews into corruption it experienced commissioned.
GroundUp despatched inquiries to Stemmet and Soeker by using SMS, and asked for email addresses to ship the concerns by e-mail way too. But no response had been acquired at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph