Minstrels conduct in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum ever existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or make a museum.
Additionally they discovered which the CTMCA only purchased land well worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA utilised resources within the Lottery to purchase workshop tools from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to create a museum to celebrate town’s rich minstrel heritage went astray. The museum was by no means produced.
The small print in the abuse of many rands of Lottery funds for any museum that never ever was are uncovered within an investigative report commissioned with the NLC in 2021.
The museum grant was Section of more than R64-million in Lottery funds allotted to the CTMCA involving 2003 and 2017.
The very first Portion of the investigation, by regulation business Dabishi Nthambeleni, was carried out concerning September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which involved funding with the museum. The accredited spending budget to the museum was a lot more than R12.8-million, with R5-million of that allotted to get a constructing to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the setting up to the museum and if the museum “actually existed”.
The organization was also instructed to research
the purchase with Lottery cash of two automobiles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
different devices “procured for your manufacturing in the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of various directors on the organisation. Stemmet was reappointed being a director in May 2021.
The investigation followed substantial reporting by GroundUp with regards to the a lot of rands of Lottery funding allotted on the CTMCA (see listed here, here and in this article) and the best way the funds most likely aided finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.
The constructing on the right was the meant web page of your minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Image: Raymond Joseph
In reaction to some Parliamentary query, previous NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “initiatives” - including the museum - between 2012 and 2015. All a few projects were finished, she told MPs.
Although the investigators discovered no proof that a museum had at any time existed.
Initially the museum was on account of open in rented premises in Crete Street, Wetton. A photo obtained by GroundUp from the meant Wetton museum reveals a coffee shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the partitions, along with a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum were moved because they could now not pay for the hire of R100,000 per month. He reported the CTMCA experienced purchased house for R1.seven-million in Schaapkraal for that museum, but couldn't get it rezoned, and were sold for the same price tag. Schaapkraal is inside of a peri-urban spot significantly from town.
Consequently, the museum had been moved to a new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after traveling to the premises, which happen to be within an industrial location, the investigators stated they doubted regardless of whether a proper museum existed there. Pics connected for the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed into the wall, displayed on tables and distribute out on the ground, with no clarification.
“There's a small quantity of objects within the museum [that] in no way signify the a lot more than one hundred-12 months heritage with the Cape City Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum will not search for being open to the general public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni noted, by relocating the location from the museum to another locale without notifying the NLC.
The Schaapkraal assets, on which no museum was ever constructed. Picture: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA had to maneuver through the rented Crete Road premises because it had operate up a R4-million debt with the town of Cape Town and was frightened its gear might be attached.
“Due to the legal battles along with the debts, the organisation experienced to move its house from 5 Crete Road to steer clear of the sheriff from attaching the home of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director on the CTMCA, instructed them the two buses bought with lottery resources were stored inside a secret location “concealed through the Sheriff”. Nevertheless the investigators said they were being unable to substantiate that any buses had at any time been bought.
Stemmet also verified which the buses were hidden to prevent them getting seized. But when the investigators requested to generally be taken towards the position exactly where the buses ended up saved, he informed them that “the proprietor of The key area was not accessible to open the premises for us”.
“The CTMCA couldn't provide evidence of payment for 2 autos that it allegedly acquired with grant funds,” the investigators noted.
Soeker also told them the Schaapkraal residence had been offered as a result of financial debt.
“Mr Soeker discussed that Based on his understanding, due to the financial debt owed to town of Cape Town, the CTMCA made a decision It will be very best to promote their [Schaapkraal] home … and to also to cover the belongings with the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for safety and stability, has Earlier informed GroundUp that the CTMCA “threw cash absent” on litigation with town.
“Every year like clockwork, as we method the top on the year, the CTMCA picks a authorized fight with the town, over permits or something else. We never initiate it. They retain throwing money away on vexatious litigation they reduce and have fees awarded from them. This is completely self-inflicted,” he mentioned.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial role gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, finances and operating ตา ว จ หวย the CTMCA.” The investigators reported they were struggling to contact Momberg.
Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “discovered many machines, some in superior ailment, some in terrible issue and a few that appeared rusty and very old”. Stemmet instructed the investigators that there was also an off-web site storage facility where “instruments plus some machinery” ended up stored.
“We requested him to choose us to the facility but he was evasive to our request.”
Dependant on pictures and invoices in GroundUp’s possession, some, if not all, on the merchandise look like gear that was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this elimination.
Based on the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was ordered from Martin-Conne Milliners, a firm through which Stemmet, his wife and his daughter were administrators at the time.
The investigators uncovered this “alarming”.
“Through the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be constructed and/or converted,” they documented.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one of the administrators.
In keeping with Dabishi Nthambeleni, the corporate has paid out R1.2-million to be a deposit, indicating R6.9-million remains owed, however there is absolutely no payment day set for when this needs to be paid.
The Kopano audit as well as close backlink in between the companies “suggest to us that there's ‘foul Perform’ involved with the acquisition of the machinery from the museum workshop”, the investigators explained from the report.
“We discover that it's remarkably possible that CTMCA applied the funding with the NLC to ‘refund’ amongst its main administrators to the house at a greater overpriced price than the particular selling price and worth of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been expended.
“Actually, an in depth report on how the funding on the NLC was employed, would be difficult as the CTMCA does not have any receipts, or proof of payments to substantiate 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 that the NLC experienced not conducted a website go to just before approving the grant. But this was not regular practice at some time plus they identified no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not require funded organisations to post evidence of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a second tranche of funding while not having to provide proof that it had made use of the initial tranche for its meant intent.
Following the appointment of a whole new board, commissioner and senior government workforce, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni advisable that
the NLC decrease any foreseeable future funding programs through the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open up 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, as opposed to act on the report’s tips, the NLC – below its past administration – chose to suppress it, because it experienced done Together with the former reports 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 were acquired at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph