Minstrels execute in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee into the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators identified that the CTMCA didn't utilize the R5-million allotted to order or make a museum.
Additionally they identified which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of cash from your Lottery to invest in workshop products from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to arrange a museum to rejoice the city’s wealthy minstrel historical past went astray. The museum was never produced.
The details from the abuse of numerous rands of Lottery money to get a museum that in no way was are uncovered within an investigative report commissioned via the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery money allotted for the CTMCA in between 2003 and 2017.
The main Section of the investigation, by regulation agency Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which involved funding for the museum. The accepted spending plan for the museum was over R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a building with the museum and whether or not the museum “essentially existed”.
The agency was also instructed to investigate
the acquisition with Lottery money of two automobiles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
different devices “purchased for your production of the costumes and hats” for your minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of many directors on the organisation. Stemmet was reappointed like a director in May perhaps 2021.
The investigation adopted comprehensive reporting by GroundUp in regards to the millions of rands of Lottery funding allotted towards the CTMCA (see listed here, below and in this article) and the way in which the money almost certainly helped finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at the time by Marius Fransman.
The creating on the appropriate was the intended website of the minstrels’ museum, in the midst of an industrial location in Primrose Park, Cape City. Picture: Raymond Joseph
In response to a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “jobs” - such as the museum - concerning 2012 and 2015. All three initiatives were done, she told MPs.
Although the investigators discovered no proof that a museum experienced at any time existed.
Initially the museum was as a result of open up in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp of your supposed Wetton museum demonstrates a coffee store with some musical instruments and minstrel costumes and collages of photographs haphazardly hung to the partitions, in addition to a model ship on its plinth in a corner.
In its report, Dabishi Nthambeleni explained it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum were moved because they could not afford the rent of R100,000 a month. He said the CTMCA had ordered home for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is within a peri-city spot significantly from the 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 traveling to the premises, which happen to be in an industrial region, the investigators reported they doubted whether a suitable museum existed there. Pictures hooked up towards the report clearly show a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the ground, without having explanation.
“There exists a small amount of products on the museum [that] under no circumstances stand for the more than 100-calendar year record of your Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to be open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by going The placement of your museum to an alternative site without having notifying the NLC.
The Schaapkraal residence, on which no museum was at any time developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators that the CTMCA had to move from your rented Crete Street premises since it had run up a R4-million financial debt with the City of Cape Town and was frightened its tools will be attached.
“As a result of legal battles and also the debts, the organisation experienced to move its home from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director on the CTMCA, informed them which the two buses bought with lottery cash were stored inside of a key locale “hidden through the Sheriff”. But the investigators explained 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 halt them remaining seized. But in the event the investigators questioned to generally be taken to the place exactly where the buses were saved, he instructed them that “the proprietor of the secret location wasn't available to open up the premises for us”.
“The CTMCA could not provide evidence of payment for two motor vehicles that it allegedly acquired with grant cash,” the investigators claimed.
Soeker also advised them the Schaapkraal property had been bought due to the credit card debt.
“Mr Soeker defined that In keeping with his comprehension, due to the financial debt owed to the town of Cape Town, the CTMCA made a decision It will be best to promote their [Schaapkraal] residence … also to also to cover the belongings in the CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for basic safety and security, has Earlier informed GroundUp that the CTMCA “threw money away” on litigation with town.
“On a yearly basis like clockwork, as we method the end in the 12 months, the CTMCA picks a authorized struggle with town, above permits or another thing. We by no means initiate it. They hold throwing funds absent on vexatious litigation they get rid of and possess prices awarded in opposition to them. This can be solely self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the key position gamers on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up in command of each of the admin, finances and managing ตรวจ สลากกินแบ่ง รัฐบาล the CTMCA.” The investigators said they had been struggling to Get hold of Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “located various equipment, some in excellent affliction, some in bad affliction and a few that looked rusty and very outdated”. Stemmet told the investigators that there was also an off-website storage facility where by “devices and many machinery” ended up saved.
“We asked him to consider us to the facility but he was evasive to our ask for.”
Based on shots and invoices in GroundUp’s possession, some, Otherwise all, of your goods appear to be tools which was illegally faraway from the CTMCA’s previous premises. Stemmet is struggling with charges for this elimination.
Based on the closing development report submitted into the NLC through the CTMCA, the machinery was acquired from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter were administrators at some time.
The investigators located this “alarming”.
“Through the CIPC research of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming acquiring: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Highway, Wetton, Cape Town, the identical handle on which the museum was intended to be created and/or transformed,” they reported.
An audit by accountants Kopano Incorporated, connected to your investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was among the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.two-million as a deposit, which means R6.nine-million remains to be owed, even though there is absolutely no payment date established for when this has to be compensated.
The Kopano audit along with the shut url among the businesses “point out to us that there is ‘foul Enjoy’ associated with the acquisition of your machinery of your museum workshop”, the investigators explained inside the report.
“We find that it is hugely possible that CTMCA made use of the funding of the NLC to ‘refund’ one among its key administrators to the residence at an increased overpriced level than the particular price and value 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 used.
“The truth is, a detailed report on how the funding on the NLC was made use of, might be difficult since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities expended on Every single product it asked for funding for. The interim report and final report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not conducted a website check out ahead of approving the grant. But this was not normal apply at the time they usually uncovered no evidence of negligence by NLC workforce.
At enough time, the NLC’s principles didn't call for funded organisations to post proof of payment with interim reports, they identified. This intended that the CTMCA was able to receive a next tranche of funding without needing to deliver proof that it had applied the very first tranche for its meant intent.
Subsequent the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni recommended that
the NLC decline any future funding applications from the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected to your NLC’s “delinquency” approach;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, instead of act around the report’s tips, the NLC – below its past administration – chose to suppress it, since it experienced completed Using the preceding experiences into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and asked for e-mail addresses to ship the issues by email as well. But no response were obtained at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph