Minstrels perform in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has uncovered no proof that a museum ever existed.
The investigators located which the CTMCA didn't utilize the R5-million allocated to get or establish a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allotted.
They found the CTMCA utilized money through the Lottery to invest in workshop equipment from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) through the National Lotteries Fee (NLC) to build a museum to celebrate the town’s rich minstrel heritage went astray. The museum was never ever developed.
The main points from the abuse of an incredible number of rands of Lottery funds for the museum that by no means was are uncovered within an investigative report commissioned by the NLC in 2021.
The museum grant was Section of much more than R64-million in Lottery cash allotted to your CTMCA between 2003 and 2017.
The very first part of the investigation, by legislation company Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which incorporated funding with the museum. The authorised spending plan for that museum was more than R12.8-million, with R5-million of that allotted for a creating to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the developing for your museum and whether the museum “in fact existed”.
The firm was also instructed to investigate
the purchase with Lottery funds of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.4-million; and
various equipment “bought for your production with the costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of a number of administrators of your organisation. Stemmet was reappointed as a director in May 2021.
The investigation adopted in depth reporting by GroundUp about the countless rands of Lottery funding allotted on the CTMCA (see listed here, here and below) and just how the resources likely served finance the ANC’s 2014 election marketing campaign during the Western Cape, led by at some time by Marius Fransman.
The developing on the correct was the supposed site of your minstrels’ museum, in the course of an industrial place in Primrose Park, Cape Town. Photograph: Raymond Joseph
In response to a Parliamentary problem, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “initiatives” - such as the museum - amongst 2012 and 2015. All a few projects had been accomplished, she explained to MPs.
Even so the investigators uncovered no proof that a museum had at any time existed.
In the beginning the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp of the supposed Wetton museum exhibits a coffee shop with a few musical instruments and minstrel costumes and collages of photographs haphazardly hung within the partitions, in addition to a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it had been “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved mainly because they could not afford to pay for the hire of R100,000 a month. He reported the CTMCA had procured home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were sold for the same price tag. Schaapkraal is in a very peri-city space considerably from town.
As a result, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after viewing the premises, which happen to be in an industrial region, the investigators said they doubted whether an appropriate museum existed there. Photographs hooked up for the report show a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, with no clarification.
“You will find a minimal level of goods at the museum [that] by no means stand for the over one hundred-12 months heritage with the Cape Town Carnival, the investigators explained, including that there was “no signage outside the premises indicating they housed a museum and … normally, the museum will not look being open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by going The placement of the museum to an alternate location devoid of notifying the NLC.
The Schaapkraal home, on which no museum was at any time developed. Picture: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to move within the rented Crete Road premises because it had run up a R4-million credit card debt with town of Cape City and was afraid its gear can be connected.
“A result of the authorized battles along with the debts, the organisation had to maneuver its assets from five Crete Street to avoid the sheriff from attaching the property of your organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director of your CTMCA, explained to them that the two buses acquired with lottery cash had been saved inside a top secret site “concealed in the Sheriff”. Though the investigators mentioned they were being 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 in the event the investigators questioned to generally be taken into the place exactly where the buses had been stored, he advised them that “the proprietor of the secret place was not accessible to open up the premises for us”.
“The CTMCA could not present evidence of payment for two autos that it allegedly acquired with grant income,” the investigators described.
Soeker also advised them the Schaapkraal home were offered because of the credit card debt.
“Mr Soeker described that In line with his knowing, due to the financial debt owed to town of Cape City, the CTMCA decided it would be ideal to provide their [Schaapkraal] property … and to also to cover the belongings of the CTMCA to avoid the sheriff from attaching the assets.”
JP Smith, Cape City’s mayco member for protection and protection, has Formerly explained to GroundUp that the CTMCA “threw money away” on litigation with the town.
“Every year like clockwork, as we technique the end in the yr, the CTMCA picks a legal fight with the City, more than permits or something else. We by no means initiate it. They maintain throwing money absent on vexatious litigation they drop and also have expenditures awarded versus them. This is entirely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the main position players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who had been in control of many of the admin, finances and running หวย หุ้น ช่อง 9 the CTMCA.” The investigators claimed they were struggling to Make contact with Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “found many equipment, some in good condition, some in lousy affliction and several that seemed rusty and extremely previous”. Stemmet advised the investigators that there was also an off-web site storage facility in which “devices and some equipment” were being kept.
“We requested him to consider us to the power but he was evasive to our ask for.”
Based on photos and invoices in GroundUp’s possession, some, if not all, with the objects appear to be devices that was illegally faraway from the CTMCA’s previous premises. Stemmet is struggling with rates for this removal.
In accordance with the last development report submitted for the NLC from the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm by which Stemmet, his wife and his daughter ended up administrators at some time.
The investigators found this “alarming”.
“From your CIPC research of Martin-Conne Milliners and the invoices submitted, we note the following alarming locating: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Street, Wetton, Cape Town, the identical address on which the museum was meant to be developed and/or transformed,” they noted.
An audit by accountants Kopano Included, attached to your investigative report, recorded the CTMCA was in the whole process of paying for “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was one of the directors.
In line with Dabishi Nthambeleni, the company has compensated R1.two-million like a deposit, that means R6.9-million continues to be owed, although there's no payment date established for when this has to be compensated.
The Kopano audit plus the close backlink in between the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase in the machinery on the museum workshop”, the investigators reported within the report.
“We find that it is highly possible that CTMCA used the funding from the NLC to ‘refund’ among its principal directors for the assets at the next overpriced amount than the actual cost and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been spent.
“The truth is, an in depth report on how the funding in the NLC was used, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to substantiate the quantities invested on Each individual item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found which the NLC experienced not conducted a website go to just before approving the grant. But this was not standard observe at some time plus they identified no evidence of carelessness by NLC personnel.
At the time, the NLC’s rules did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant which the CTMCA was capable to get a second tranche of funding without the need to supply evidence that it experienced employed the first tranche for its intended function.
Next the appointment of a brand new board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni suggested that
the NLC decline any foreseeable future funding programs through the CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a felony 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, instead of act on the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it experienced done While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send out the thoughts by electronic mail much too. But no reaction were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph