Minstrels accomplish in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has identified no proof that a museum ever existed.
The investigators observed which the CTMCA didn't utilize the R5-million allotted to order or produce a museum.
Additionally they located the CTMCA only bought land worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA utilized resources with the Lottery to get workshop gear from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Commission (NLC) to build a museum to rejoice the city’s wealthy minstrel heritage went astray. The museum was by no means designed.
The small print with the abuse of millions of rands of Lottery funds to get a museum that in no way was are unveiled in an investigative report commissioned through the NLC in 2021.
The museum grant was Portion of over R64-million in Lottery money allotted to your CTMCA among 2003 and 2017.
The very first part of the investigation, by legislation company Dabishi Nthambeleni, was done amongst September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which integrated funding for that museum. The authorized finances for the museum was over R12.8-million, with R5-million of that allocated for your setting up to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a developing for your museum and whether the museum “actually existed”.
The business was also instructed to analyze
the purchase with Lottery money of two autos – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
many machines “acquired for your production in the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several administrators in the organisation. Stemmet was reappointed like a director in May possibly 2021.
The investigation followed in depth reporting by GroundUp in regards to the an incredible number of rands of Lottery funding allotted to your CTMCA (see right here, right here and listed here) and just how the resources almost certainly served finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.
The developing on the proper was the intended web site with the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to your Parliamentary dilemma, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “jobs” - such as the museum - between 2012 and 2015. All a few projects were completed, she advised MPs.
But the investigators identified no proof that a museum experienced ever existed.
At the outset the museum was because of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp on the supposed Wetton museum shows a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, and also a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum had been moved since they could now not pay for the lease of R100,000 per month. He said the CTMCA had acquired property for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and had been offered for the same selling price. Schaapkraal is within a peri-urban location much from the town.
Therefore, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after checking out the premises, which can be within an industrial place, the investigators explained they doubted no matter whether a proper museum existed there. Pics attached to your report present a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without any clarification.
“You will find there's minimal level of goods within the museum [that] on no account represent the greater than 100-year record of your Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not appear to be open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by going the location with the museum to an alternative spot without notifying the NLC.
The Schaapkraal residence, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises since it had run up a R4-million debt with the City of Cape City and was worried its equipment could be attached.
“Because of the legal battles and the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery money were being stored in a very magic formula site “concealed from your Sheriff”. Though the investigators stated they ended up not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified which the buses were concealed to prevent them staying seized. But if the investigators requested being taken into the put where by the buses were being saved, he informed them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA couldn't present proof of payment for 2 autos that it allegedly bought with grant revenue,” the investigators documented.
Soeker also told them the Schaapkraal residence had been offered due to financial debt.
“Mr Soeker stated that In accordance with his understanding, a result of the personal debt owed to town of Cape City, the CTMCA decided it would be greatest to market their [Schaapkraal] house … and also to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and security, has previously told GroundUp the CTMCA “threw dollars away” on litigation with town.
“Each year like clockwork, as we strategy the end from the yr, the CTMCA picks a legal battle with the City, in excess of permits or something else. We never ever initiate it. They continue to keep throwing income away on vexatious litigation they lose and also have prices awarded from them. This is totally self-inflicted,” he reported.
Soeker told the Dabishi Nthambeleni investigators that the leading role gamers on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all the admin, funds and operating ตรวจ รางวัล the CTMCA.” The investigators said they had been unable to Make contact with Momberg.
Hats
Through their “investigation in loco” in the Primrose Park premises, the investigators “located numerous machines, some in excellent issue, some in undesirable problem and a few that appeared rusty and very aged”. Stemmet explained to the investigators that there was also an off-site storage facility where by “instruments plus some equipment” ended up retained.
“We asked him to consider us to the power but he was evasive to our request.”
Determined by images and invoices in GroundUp’s possession, some, if not all, in the items seem like tools which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with prices for this removing.
Based on the remaining progress report submitted to your NLC through the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization wherein Stemmet, his wife and his daughter had been directors at the time.
The investigators observed this “alarming”.
“With the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporate is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be crafted and/or converted,” they described.
An audit by accountants Kopano Included, hooked up to the investigative report, recorded that the CTMCA was in the process of buying “machinery, plant and inventory” valued at R8.one-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.two-million for a deposit, that means R6.9-million remains owed, even though there's no payment day established for when this have to be compensated.
The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul Participate in’ involved in the purchase on the equipment of your museum workshop”, the investigators said inside the report.
“We find that it is extremely probable that CTMCA utilized the funding in the NLC to ‘refund’ among its major directors for the property at the next overpriced amount than the actual cost and price of the house and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to your CTMCA had been expended.
“In fact, an in depth report on how the funding of the NLC was applied, could be difficult as the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every item it requested funding for. The interim report and ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC had not carried out a internet site check out ahead of approving the grant. But this was not standard observe at enough time and so they discovered no proof of negligence by NLC employees.
At some time, the NLC’s principles didn't call for funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding while not having to provide proof that it had made use of the very first tranche for its meant reason.
Following the appointment of a fresh board, commissioner and senior government crew, the NLC has tightened up on these and various issues.
Dabishi Nthambeleni suggested that
the NLC decline any future funding purposes within the CTMCA;
the CTMCA and any users who have been associated with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated resources.
But, in lieu of act around the report’s suggestions, the NLC – less than its earlier administration – selected to suppress it, mainly because it had accomplished While using the prior studies into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by electronic mail much too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph