Minstrels conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Nationwide Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has found no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not use the R5-million allotted to acquire or produce a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They identified the CTMCA utilized resources through the Lottery to buy workshop gear from certainly one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate the city’s loaded minstrel historical past went astray. The museum was by no means made.
The details with the abuse of numerous rands of Lottery resources to get a museum that hardly ever was are exposed in an investigative report commissioned by the NLC in 2021.
The museum grant was Section of more than R64-million in Lottery funds allocated into the CTMCA concerning 2003 and 2017.
The main Portion of the investigation, by law firm Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which included funding to the museum. The accepted budget for the museum was a lot more than R12.eight-million, with R5-million of that allocated for a constructing to house the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of the making with the museum and whether the museum “really existed”.
The company was also instructed to analyze
the purchase with Lottery resources of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
numerous devices “procured with the producing of your costumes and hats” with the minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few directors in the organisation. Stemmet was reappointed to be a director in Could 2021.
The investigation followed considerable reporting by GroundUp about the numerous rands of Lottery funding allocated for the CTMCA (see listed here, listed here and listed here) and the best way the money in all probability aided finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.
The making on the appropriate was the supposed site with the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to some Parliamentary dilemma, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “assignments” - such as the museum - between 2012 and 2015. All three initiatives were done, she informed MPs.
Though the investigators located no proof that a museum experienced ever existed.
At first the museum was as a result of open up in rented premises in Crete Street, Wetton. A photograph attained by GroundUp from the supposed Wetton museum exhibits a coffee shop with a few musical devices and minstrel costumes and collages of shots haphazardly hung on the partitions, plus a design ship on its plinth in the corner.
In its report, Dabishi Nthambeleni explained it was “not ready” to confirm if a museum had at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved mainly because they could no longer afford to pay for the rent of R100,000 per month. He stated the CTMCA experienced bought assets for R1.7-million in Schaapkraal for that museum, but could not get it rezoned, and had been sold for the same rate. Schaapkraal is inside a peri-urban place significantly from the town.
Because of this, the museum had been moved to a different site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which happen to be in an industrial area, the investigators said they doubted whether a suitable museum existed there. Pictures hooked up for the report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the ground, with no clarification.
“You will find a minimal level of objects within the museum [that] in no way signify the over 100-year history of the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating that they housed a museum and … frequently, the museum won't glance for being open up to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by shifting The situation from the museum to an alternate location with no notifying the NLC.
The Schaapkraal property, on which no museum was ever designed. Image: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to move with the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with town of Cape City and was concerned its devices could well be hooked up.
“Due to authorized battles along with the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the home of the organisation,” Stemmet explained to the investigators.
Sedrick Soeker, The present director of the CTMCA, instructed them that the two buses purchased with lottery resources had been stored in the mystery area “hidden from the Sheriff”. However the investigators mentioned they have been unable to substantiate that any buses had ever been bought.
Stemmet also verified that the buses had been concealed to prevent them staying seized. But once the investigators asked to be taken into the position wherever the buses had been saved, he advised them that “the operator of The key locale was not available to open the premises for us”.
“The CTMCA could not deliver proof of payment for two autos that it allegedly purchased with grant income,” the investigators claimed.
Soeker also informed them the Schaapkraal assets had been marketed because of the personal debt.
“Mr Soeker explained that In keeping with his comprehension, mainly because of the financial debt owed to the City of Cape City, the CTMCA determined It will be greatest to sell their [Schaapkraal] house … and to also to cover the assets of the CTMCA to stay away from the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for security and stability, has Beforehand instructed GroundUp which the CTMCA “threw income absent” on litigation with town.
“Each year like clockwork, as we strategy the top of your calendar year, the CTMCA picks a lawful combat with the town, about permits or another thing. We never initiate it. They keep throwing money absent on vexatious litigation that they reduce and also have charges awarded in opposition to them. This is certainly fully self-inflicted,” he explained.
Soeker informed the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who were being in command of each of the admin, funds and operating หุ้น ชอง 9 the CTMCA.” The investigators said they had been not able to Get hold of Momberg.
Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “found many machines, some in excellent problem, some in undesirable issue and several that looked rusty and extremely old”. Stemmet told the investigators that there was also an off-web page storage facility exactly where “devices and some equipment” ended up retained.
“We asked him to get us to the facility but he was evasive to our ask for.”
According to pics and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise seem like gear which was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with prices for this elimination.
In accordance with the ultimate development report submitted to the NLC with the CTMCA, the equipment was obtained from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter were being directors at the time.
The investigators located this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, a similar deal with on which the museum was intended to be crafted and/or converted,” they described.
An audit by accountants Kopano Included, connected for the investigative report, recorded which the CTMCA was in the process of getting “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was certainly one of the directors.
In keeping with Dabishi Nthambeleni, the company has compensated R1.two-million being a deposit, indicating R6.9-million continues to be owed, even though there is absolutely no payment date established for when this needs to be paid out.
The Kopano audit as well as the shut backlink in between the businesses “indicate to us that there's ‘foul play’ associated with the acquisition with the machinery on the museum workshop”, the investigators stated in the report.
“We find that it is highly probable that CTMCA made use of the funding in the NLC to ‘refund’ amongst its primary directors for your home at a greater overpriced charge than the particular price tag and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it had been unable to determine how the grant into the CTMCA had been used.
“In point of fact, a detailed report on how the funding with the NLC was employed, would be unachievable as being the CTMCA does not have any receipts, or proof of payments to substantiate the amounts expended on Every merchandise it asked for funding for. The interim report and last report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not done a internet site stop by ahead of approving the grant. But this was not conventional practice at the time they usually uncovered no proof of carelessness by NLC staff members.
At some time, the NLC’s regulations didn't call for funded organisations to submit proof of payment with interim reports, they identified. This meant which the CTMCA was ready to receive a next tranche of funding without the need to deliver proof that it experienced utilized the main tranche for its intended reason.
Following the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these as well as other difficulties.
Dabishi Nthambeleni recommended that
the NLC decline any potential funding programs within the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open a legal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – underneath its earlier administration – selected to suppress it, because it had done While using the earlier experiences into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and asked for e-mail addresses to send out the questions by email also. But no response had been acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph