Minstrels perform in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the National Lotteries Fee to the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has discovered no evidence that a museum at any time existed.
The investigators discovered which the CTMCA didn't use the R5-million allotted to acquire or create a museum.
In addition they discovered the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA made use of resources from the Lottery to invest in workshop devices from considered one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted into the Cape City Minstrel Carnival Association (CTMCA) via the Nationwide Lotteries Fee (NLC) to set up a museum to rejoice the town’s wealthy minstrel background went astray. The museum was by no means established.
The details in the abuse of a lot of rands of Lottery resources to get a museum that under no circumstances was are disclosed within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of in excess of R64-million in Lottery cash allocated for the CTMCA among 2003 and 2017.
The initial Portion of the investigation, by law agency Dabishi Nthambeleni, was done involving September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which involved funding to the museum. The permitted funds for that museum was more than R12.eight-million, with R5-million of that allocated to get a setting up to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the creating to the museum and whether the museum “actually existed”.
The business was also instructed to investigate
the purchase with Lottery money of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
several machines “bought to the manufacturing of the costumes and hats” for the minstrels carnival, for R5.four-million.
At enough time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few administrators from the organisation. Stemmet was reappointed to be a director in Could 2021.
The investigation adopted substantial reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated to the CTMCA (see below, here and right here) and how the resources almost certainly assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.
The constructing on the best was the intended website of the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape City. Picture: Raymond Joseph
In reaction to the Parliamentary concern, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - including the museum - concerning 2012 and 2015. All a few tasks had been done, she instructed MPs.
However the investigators identified no proof that a museum experienced at any time existed.
At the outset the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp on the supposed Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of images haphazardly hung about the partitions, plus a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni reported 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 mainly because they could not afford to pay for the hire of R100,000 per month. He said the CTMCA had obtained assets for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and were bought for the same cost. Schaapkraal is in the peri-urban location considerably from the town.
Consequently, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after viewing the premises, that happen to be within an industrial region, the investigators mentioned they doubted whether or not a suitable museum existed there. Pics hooked up to your report demonstrate a mishmash of randomly displayed uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, displayed on tables and unfold out on the ground, with no rationalization.
“You will find a minimum degree of objects for the museum [that] in no way signify the in excess of a hundred-calendar year history of the Cape Town Carnival, the investigators said, adding that there was “no signage outside the house the premises indicating which they housed a museum and … normally, the museum will not appear to be open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by transferring the location with the museum to an alternative site without having notifying the NLC.
The Schaapkraal assets, on which no museum was ever crafted. Photograph: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to maneuver from your rented Crete Street premises because it had operate up a R4-million credit card debt with town of Cape Town and was fearful its equipment could be connected.
“Mainly because of the lawful battles and the debts, the organisation experienced to maneuver its house from 5 Crete Highway to steer clear of the sheriff from attaching the residence on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director from the CTMCA, explained to them the two buses bought with lottery resources have been stored in a very key locale “hidden from the Sheriff”. Although the investigators said they have been not able to confirm that any buses had ever been purchased.
Stemmet also verified which the buses were concealed to stop them staying seized. But once the investigators asked to get taken into the location in which the buses have been stored, he instructed them that “the operator of The key site was not available to open up the premises for us”.
“The CTMCA couldn't give proof of payment for two vehicles that it allegedly bought with grant money,” the investigators noted.
Soeker also told them the Schaapkraal property were offered due to credit card debt.
“Mr Soeker spelled out that As outlined by his knowing, due to the credit card debt owed to town of Cape City, the CTMCA determined It could be best to promote their [Schaapkraal] house … also to also to cover the assets in the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and stability, has Beforehand told GroundUp which the CTMCA “threw money absent” on litigation with the town.
“On a yearly basis like clockwork, as we strategy the end of the calendar year, the CTMCA picks a lawful battle with the City, more than permits or something else. We never ever initiate it. They retain throwing revenue absent on vexatious litigation they shed and have expenditures awarded from them. That is entirely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the primary role players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were answerable for each of the admin, funds and running เช ค หวย the CTMCA.” The investigators stated they had been not able to contact Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “found numerous machines, some in excellent condition, some in negative problem plus some that appeared rusty and very old”. Stemmet told the investigators that there was also an off-internet site storage facility where “devices and many machinery” were saved.
“We requested him to choose us to the ability but he was evasive to our ask for.”
Based on images and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like gear that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing costs for this removal.
According to the remaining development report submitted to the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization by which Stemmet, his wife and his daughter ended up administrators at enough time.
The investigators uncovered this “alarming”.
“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape City, the exact same address on which the museum was intended to be crafted and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded the CTMCA was in the process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the directors.
According to Dabishi Nthambeleni, the business has paid out R1.2-million as being a deposit, that means R6.9-million continues to be owed, even though there is absolutely no payment date set for when this needs to be paid.
The Kopano audit along with the near link involving the companies “suggest to us that there is ‘foul Engage in’ linked to the purchase with the equipment in the museum workshop”, the investigators said in the report.
“We find that it is hugely possible that CTMCA employed the funding of your NLC to ‘refund’ amongst its main directors for that property at a higher overpriced fee than the particular rate and value of the property and/or equipment.”
Tips
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA were invested.
“In reality, a detailed report on how the funding of the NLC was applied, will be not possible as being the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Each and every product it asked for funding for. The interim report and remaining report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not executed a site go to just before approving the grant. But this was not regular apply at the time and they uncovered no evidence of carelessness by NLC workforce.
At time, the NLC’s guidelines didn't demand funded organisations to post proof of payment with interim reports, they pointed out. This intended that the CTMCA was in the position to receive a 2nd tranche of funding without needing to provide proof that it had applied the initial tranche for its meant intent.
Subsequent the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these along with other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any long run funding apps through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated resources.
But, as opposed to act over the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, since it experienced carried out Along with the previous reviews into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for e mail addresses to send out the thoughts by electronic mail much too. But no reaction had been acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph