Minstrels perform in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant through the Nationwide Lotteries Fee to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has identified no proof that a museum ever existed.
The investigators discovered which the CTMCA didn't make use of the R5-million allocated to purchase or create a museum.
They also uncovered the CTMCA only bought land truly worth R1.7-million, not R5-million as allotted.
They observed the CTMCA employed funds with the Lottery to get workshop equipment from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) from the Countrywide Lotteries Fee (NLC) to arrange a museum to rejoice the city’s abundant minstrel history went astray. The museum was by no means established.
The details on the abuse of countless rands of Lottery resources for your museum that in no way was are revealed in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of a lot more than R64-million in Lottery resources allocated on the CTMCA in between 2003 and 2017.
The very first Element of the investigation, by legislation company Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which incorporated funding for that museum. The authorized spending budget to the museum was much more than R12.eight-million, with R5-million of that allocated to get a setting up to accommodate the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the developing for the museum and whether or not the museum “really existed”.
The organization was also instructed to investigate
the purchase with Lottery cash of two vehicles – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
many equipment “ordered to the manufacturing with the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of administrators in the organisation. Stemmet was reappointed for a director in May perhaps 2021.
The investigation adopted substantial reporting by GroundUp concerning the an incredible number of rands of Lottery funding allocated for the CTMCA (see listed here, listed here and listed here) and the way in which the funds most likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at some time by Marius Fransman.
The making on the correct was the meant internet site of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “initiatives” - such as the museum - between 2012 and 2015. All three tasks had been finished, she advised MPs.
Though the investigators found no evidence that a museum experienced ever existed.
To start with the museum was resulting from open 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 pics haphazardly hung about the partitions, and also a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved since they could no more afford to pay for the rent of R100,000 a month. He mentioned the CTMCA had ordered property for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been offered for the same cost. Schaapkraal is within a peri-urban region far from town.
As a result, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, which are within an industrial region, the investigators reported they doubted irrespective of whether a correct museum existed there. Pictures hooked up into the report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and spread out on the ground, without any rationalization.
“There exists a minimal degree of things within the museum [that] by no means stand for the over one hundred-calendar year history on the Cape City Carnival, the investigators reported, adding that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum isn't going to seem being open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by transferring The placement from the museum to an alternative locale devoid of notifying the NLC.
The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA experienced to move within the rented Crete Road premises as it experienced run up a R4-million credit card debt with town of Cape Town and was fearful its equipment could well be connected.
“Mainly because of the authorized battles and the debts, the organisation experienced to maneuver its residence from 5 Crete Road to steer clear of the sheriff from attaching the residence of your organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director of your CTMCA, told them which the two buses purchased with lottery money had been saved within a secret spot “concealed from your Sheriff”. However the investigators claimed they had been not able to substantiate that any buses had ever been bought.
Stemmet also verified the buses were concealed to stop them being seized. But once the investigators requested to get taken to your place exactly where the buses have been saved, he instructed them that “the proprietor of The trick area was not available to open the premises for us”.
“The CTMCA could not provide evidence of payment for two automobiles that it allegedly obtained with grant cash,” the investigators documented.
Soeker also instructed them the Schaapkraal house had been offered due to the debt.
“Mr Soeker explained that In accordance with his understanding, a result of the personal debt owed to town of Cape City, the CTMCA decided it would be very best to market their [Schaapkraal] house … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and stability, has Earlier advised GroundUp that the CTMCA “threw revenue away” on litigation with the City.
“On a yearly basis like clockwork, as we tactic the end with the yr, the CTMCA picks a lawful fight with the town, over permits or something else. We never initiate it. They hold throwing money away on vexatious litigation they eliminate and possess expenses awarded in opposition to them. This is often entirely self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the leading job gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, finances and functioning หวย หุ้น ช่อง 9 the CTMCA.” The investigators said they had been unable to Get in touch with Momberg.
Hats
For the duration of their “investigation in loco” with the Primrose Park premises, the investigators “observed a lot of devices, some in excellent problem, some in poor condition plus some that seemed rusty and extremely outdated”. Stemmet informed the investigators that there was also an off-site storage facility wherever “instruments and many machinery” have been kept.
“We asked him to acquire us to the facility but he was evasive to our request.”
Based upon photos and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be tools that was illegally removed from the CTMCA’s preceding premises. Stemmet is struggling with rates for this removing.
In accordance with the remaining development report submitted on the NLC because of the CTMCA, the machinery was obtained from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter were being administrators at time.
The investigators located this “alarming”.
“Within the CIPC look for of Martin-Conne Milliners and the invoices submitted, we Be aware the next alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the company is five Crete Road, Wetton, Cape City, the identical handle on which the museum was intended to be created and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached for the investigative report, recorded the CTMCA was in the entire process of getting “equipment, plant and inventory” 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 amongst the directors.
In line with Dabishi Nthambeleni, the corporation has compensated R1.two-million for a deposit, indicating R6.nine-million continues to be owed, although there's no payment day set for when this must be paid out.
The Kopano audit as well as the shut hyperlink concerning the companies “point out to us that there's ‘foul Perform’ involved with the acquisition from the machinery in the museum workshop”, the investigators claimed in the report.
“We discover that it's highly possible that CTMCA made use of the funding of the NLC to ‘refund’ certainly one of its principal directors for your home at a greater overpriced charge than the particular selling price and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant on the CTMCA had been expended.
“Actually, an in depth report on how the funding on the NLC was employed, could be not possible as the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Just about every item it requested funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators located that the NLC had not carried out a web page go to right before approving the grant. But this wasn't regular exercise at enough time they usually uncovered no proof of negligence by NLC staff.
At the time, the NLC’s guidelines didn't have to have funded organisations to submit proof of payment with interim reviews, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without having to provide evidence that it had made use of the primary tranche for its supposed goal.
Following the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these and other concerns.
Dabishi Nthambeleni encouraged that
the NLC drop any future funding applications from your CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open up a legal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, as opposed to act around the report’s suggestions, the NLC – below its former administration – chose to suppress it, mainly because it had performed Using the past reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to ship the issues by email also. But no reaction were obtained at time of publication.
The minstrel “museum” in Crete Street, Wetton. Picture: Raymond Joseph