Minstrels carry out in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the Countrywide Lotteries Commission for the 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 did not utilize the R5-million allocated to acquire or establish a museum.
In addition they uncovered that the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA made use of cash within the Lottery to acquire workshop tools from considered one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Commission (NLC) to arrange a museum to celebrate town’s rich minstrel heritage went astray. The museum was by no means designed.
The small print of your abuse of a lot 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 Portion of in excess of R64-million in Lottery cash allocated to your CTMCA concerning 2003 and 2017.
The initial A part of the investigation, by law agency Dabishi Nthambeleni, was performed among September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding for that museum. The authorised price range for that museum was greater than R12.eight-million, with R5-million of that allocated for any creating to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing for that museum and whether the museum “essentially existed”.
The firm was also instructed to research
the acquisition with Lottery funds of two automobiles – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
different machines “bought for that production of the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many directors on the organisation. Stemmet was reappointed being a director in May possibly 2021.
The investigation followed extensive reporting by GroundUp regarding the countless rands of Lottery funding allocated towards the CTMCA (see in this article, below and below) and the best way the funds most likely served finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.
The making on the best was the intended web-site on the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to your Parliamentary question, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “assignments” - including the museum - amongst 2012 and 2015. All 3 tasks had been concluded, she told MPs.
Nevertheless the investigators observed no evidence that a museum experienced at any time existed.
Initially the museum was as a result of open in rented premises in Crete Road, Wetton. A photograph received by GroundUp of your meant Wetton museum shows a espresso store with some musical devices and minstrel costumes and collages of photos haphazardly hung around the partitions, and also a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum were moved given that they could no longer afford to pay for the hire of R100,000 a month. He reported the CTMCA had ordered home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were sold for the same value. Schaapkraal is in the peri-urban spot significantly from the town.
Due to this fact, the museum were moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, that happen to be in an industrial place, the investigators explained they doubted no matter whether a proper museum existed there. Shots attached into the report present a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, shown on tables and unfold out on the floor, with no rationalization.
“There's a minimum amount of objects with the museum [that] by no means depict the a lot more than 100-year heritage from the Cape Town Carnival, the investigators said, introducing that there was “no signage outside the premises indicating that they housed a museum and … generally, the museum will not glimpse for being open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni observed, by moving The placement of your museum to an alternate area with out notifying the NLC.
The Schaapkraal house, on which no museum was ever crafted. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver within the rented Crete Street premises mainly because it had operate up a R4-million debt with the City of Cape City and was afraid its tools would be attached.
“A result of the legal battles as well as debts, the organisation experienced to maneuver its assets from 5 Crete Highway to steer clear of the sheriff from attaching the property on the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The existing director with the CTMCA, advised them that the two buses acquired with lottery resources ended up saved inside a secret locale “concealed in the Sheriff”. Though the investigators reported they ended up unable to verify that any buses experienced at any time been purchased.
Stemmet also verified which the buses had been concealed to stop them being seized. But once the investigators requested to generally be taken towards the spot the place the buses have been stored, he informed them that “the owner of The trick locale wasn't available to open up the premises for us”.
“The CTMCA could not supply proof of payment for 2 cars that it allegedly acquired with grant funds,” the investigators documented.
Soeker also informed them the Schaapkraal assets had been bought as a result of debt.
“Mr Soeker explained that In accordance with his comprehending, because of the credit card debt owed to the City of Cape City, the CTMCA made the decision It will be very best to market their [Schaapkraal] house … and also to also to hide the assets of the CTMCA to steer clear of the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for basic safety and safety, has previously explained to GroundUp the CTMCA “threw funds absent” on litigation with the town.
“Yearly like clockwork, as we method the top from the calendar year, the CTMCA picks a legal combat with the City, about permits or something else. We under no circumstances initiate it. They maintain throwing dollars absent on vexatious litigation that they drop and possess costs awarded in opposition to them. This is certainly entirely self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the leading purpose gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for every one of the admin, finances and running ruay the CTMCA.” The investigators said they had been struggling to contact Momberg.
Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “identified several machines, some in superior ailment, some in terrible issue and a few that appeared rusty and very aged”. Stemmet instructed the investigators that there was also an off-website storage facility where by “instruments and many machinery” have been saved.
“We asked him to acquire us to the facility but he was evasive to our request.”
Determined by shots and invoices in GroundUp’s possession, some, Otherwise all, from the objects seem like devices which was illegally faraway from the CTMCA’s former premises. Stemmet is facing costs for this removal.
In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, a company in which Stemmet, his spouse and his daughter had been administrators at enough time.
The investigators discovered this “alarming”.
“Within the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming obtaining: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be built and/or converted,” they noted.
An audit by accountants Kopano Incorporated, connected for the investigative report, recorded the CTMCA was in the entire process of acquiring “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was considered one of the directors.
In accordance with Dabishi Nthambeleni, the organization has compensated R1.2-million as a deposit, this means R6.9-million remains owed, however there is absolutely no payment date established for when this have to be paid.
The Kopano audit plus the close connection among the businesses “suggest to us that there's ‘foul Perform’ associated with the purchase with the equipment of your museum workshop”, the investigators said inside the report.
“We find that it's highly possible that CTMCA made use of the funding of your NLC to ‘refund’ one of its most important administrators to the home at a higher overpriced level than the particular cost and price of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to determine how the grant on the CTMCA were put in.
“In reality, a detailed report on how the funding with the NLC was utilized, might be not possible as being the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities spent on Each and every merchandise it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC had not performed a web 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 enough time, the NLC’s principles didn't demand funded organisations to post proof of payment with interim stories, they identified. This meant the CTMCA was in a position to receive a next tranche of funding without having to give evidence that it experienced utilized the primary tranche for its supposed purpose.
Subsequent the appointment of a whole new board, commissioner and senior government staff, the NLC has tightened up on these and other problems.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding applications within the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards 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 begin the entire process of recovering the misappropriated funds.
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 sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the thoughts by e-mail far too. But no reaction were obtained at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Picture: Raymond Joseph