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 with the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not make use of the R5-million allocated to buy or build a museum.
They also uncovered the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilised funds within the Lottery to acquire workshop gear from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Commission (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print on the abuse of a lot of rands of Lottery cash for your museum that under no circumstances was are discovered in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of greater than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.
The initial part of the investigation, by legislation firm Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which incorporated funding for that museum. The authorized funds 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 purchase of the setting up with the museum and whether or not the museum “in fact existed”.
The agency was also instructed to investigate
the acquisition with Lottery money of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
several machines “procured to the producing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director on 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 continued as two of various administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted considerable reporting by GroundUp in regards to the many rands of Lottery funding allotted on the CTMCA (see in this article, here and listed here) and the way in which the cash likely assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.
The developing on the proper was the intended web page of the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph
In response into a Parliamentary problem, former NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “initiatives” - such as the museum - concerning 2012 and 2015. All 3 assignments were completed, she informed MPs.
Nevertheless the investigators observed no evidence that a museum had ever existed.
At the beginning the museum was on account of open in rented premises in Crete Street, Wetton. A photo received by GroundUp of your meant Wetton museum reveals a coffee shop with some musical instruments and minstrel costumes and collages of pics haphazardly hung within the partitions, plus a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni mentioned it was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum had been moved because they could no longer manage the hire of R100,000 per month. He said the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been bought for the same value. Schaapkraal is in a very peri-urban space significantly from the town.
Therefore, the museum were moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following visiting the premises, which are within an industrial spot, the investigators said they doubted irrespective of whether an appropriate museum existed there. Photographs connected towards the report show a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and distribute out on the floor, without explanation.
“You will find there's small quantity of goods in the museum [that] in no way symbolize the a lot more than one hundred-year history of the Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum would not glance for being open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by going the location with the museum to an alternative area without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever designed. Image: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to maneuver from the rented Crete Road premises because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its tools will be attached.
“Because of the lawful battles plus the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses bought with lottery cash were stored in a very secret spot “concealed within the Sheriff”. Though the investigators claimed they have been not able to confirm that any buses had at any time been acquired.
Stemmet also confirmed which the buses had been concealed to halt them currently being seized. But when the investigators requested being taken towards the position where the buses have been stored, he informed them that “the owner of the secret place wasn't accessible to open the premises for us”.
“The CTMCA could not supply proof of payment for two motor vehicles that it allegedly procured with grant dollars,” the investigators documented.
Soeker also informed them the Schaapkraal assets had been bought due to the personal debt.
“Mr Soeker discussed that In accordance with his comprehending, mainly because of the credit card debt owed to town of Cape City, the CTMCA made the decision It could be best to market their [Schaapkraal] residence … also to also to cover the belongings of your CTMCA to avoid the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for safety and security, has previously informed GroundUp which the CTMCA “threw revenue absent” on litigation with the town.
“Each and every year like clockwork, as we technique the end of your 12 months, the CTMCA picks a legal combat with the City, about permits or something else. We never initiate it. They keep throwing dollars absent on vexatious litigation they drop and possess expenditures awarded versus them. This is often solely self-inflicted,” he explained.
Soeker informed the Dabishi Nthambeleni investigators that the principle function gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up accountable for all of the admin, funds and managing หวย ออก the CTMCA.” The investigators stated they had been struggling to Speak to Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “identified various machines, some in excellent affliction, some in bad condition and a few that seemed rusty and very outdated”. Stemmet instructed the investigators that there was also an off-site storage facility in which “instruments and a few machinery” were being kept.
“We asked him to consider us to the power but he was evasive to our ask for.”
Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, in the objects appear to be gear which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with expenses for this removing.
Based on the last progress report submitted to your NLC through the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm in which Stemmet, his spouse and his daughter were administrators at some time.
The investigators uncovered this “alarming”.
“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape City, the same tackle on which the museum was meant to be crafted and/or transformed,” they documented.
An audit by accountants Kopano Integrated, hooked up to your investigative report, recorded that the CTMCA was in the whole process of getting “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was considered one of the administrators.
According to Dabishi Nthambeleni, the organization has paid R1.two-million as being a deposit, which means R6.9-million continues to be owed, even though there isn't a payment day set for when this has to be paid.
The Kopano audit and the near url involving the companies “indicate to us that there's ‘foul Engage in’ involved in the purchase of the equipment of the museum workshop”, the investigators explained during the report.
“We find that it is really probable that CTMCA applied the funding from the NLC to ‘refund’ amongst its principal administrators for the home at an increased overpriced amount than the particular cost and worth of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been unable to determine how the grant into the CTMCA were spent.
“In reality, an in depth report on how the funding in the NLC was used, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to verify the quantities spent on Every single merchandise it asked for funding for. The interim report and remaining report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators discovered the NLC had not carried out a internet site take a look at right before approving the grant. But this wasn't typical exercise at enough time and so they identified no proof of carelessness by NLC staff.
At the time, the NLC’s procedures did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a next tranche of funding without needing to deliver proof that it had applied the first tranche for its intended reason.
Following the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any future funding purposes from the CTMCA;
the CTMCA and any members who were linked to the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, since it experienced completed with the earlier experiences into corruption it had commissioned.
GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the issues by electronic mail much too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph