Minstrels accomplish in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Commission to the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has found no evidence that a museum ever existed.
The investigators located which the CTMCA did not utilize the R5-million allocated to get or produce a museum.
In addition they uncovered the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed money through the Lottery to purchase workshop equipment from amongst its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Commission (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was never ever made.
The small print in the abuse of a lot of rands of Lottery money for a museum that never was are revealed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Section of over R64-million in Lottery cash allotted to the CTMCA amongst 2003 and 2017.
The primary Section of the investigation, by legislation company Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which integrated funding for that museum. The authorized funds to the museum was in excess of R12.8-million, with R5-million of that allotted for the constructing to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the setting up to the museum and whether the museum “in fact existed”.
The business was also instructed to research
the purchase with Lottery funds of two automobiles – a 60-seater bus plus a 23-seater bus – for R2.4-million; and
different devices “ordered with the producing of your costumes and hats” for the minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various administrators in the organisation. Stemmet was reappointed as being a director in May well 2021.
The investigation followed intensive reporting by GroundUp with regard to the a lot of rands of Lottery funding allotted on the CTMCA (see in this article, right here and here) and the best way the resources in all probability assisted finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.
The setting up on the right was the meant web site from the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape City. Photo: Raymond Joseph
In response to a Parliamentary dilemma, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - involving 2012 and 2015. All three projects were concluded, she informed MPs.
However the investigators found no evidence that a museum experienced at any time existed.
At the beginning the museum was because of open in rented premises in Crete Road, Wetton. A photo received by GroundUp on the meant Wetton museum displays a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the walls, and a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to substantiate if a museum experienced ever operated from these premises.
Stemmet told the investigators the museum had been moved simply because they could now not afford to pay for the hire of R100,000 a month. He explained the CTMCA had obtained house for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for the same value. Schaapkraal is inside a peri-city space far from the city.
Due to this fact, the museum had been moved to a completely new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But just after going to the premises, that happen to be within an industrial place, the investigators stated they doubted whether a proper museum existed there. Photographs connected to your report display a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, exhibited on tables and distribute out on the ground, without any rationalization.
“You will find a minimal degree of products within the museum [that] in no way characterize the greater than one hundred-12 months history in the Cape City Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating they housed a museum and … typically, the museum would not glance to generally be open up to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going The placement on the museum to another area with no notifying the NLC.
The Schaapkraal property, on which no museum was at any time created. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators the CTMCA experienced to move in the rented Crete Street premises because it experienced run up a R4-million debt with the town of Cape City and was scared its products can be attached.
“A result of the legal battles as well as debts, the organisation had to maneuver its assets from five Crete Road to stay away from the sheriff from attaching the assets from the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director with the CTMCA, told them which the two buses acquired with lottery resources were saved in the top secret locale “concealed within the Sheriff”. Though the investigators reported they have been not able to confirm that any buses experienced ever been purchased.
Stemmet also verified which the buses had been hidden to prevent them getting seized. But if the investigators asked for being taken to your put exactly where the buses ended up stored, he advised them that “the owner of the secret locale wasn't accessible to open the premises for us”.
“The CTMCA couldn't deliver proof of payment for 2 autos that it allegedly bought with grant revenue,” the investigators documented.
Soeker also informed them the Schaapkraal assets had been marketed because of the financial debt.
“Mr Soeker stated that In keeping with his comprehension, due to the financial debt owed to the town of Cape Town, the CTMCA resolved it would be finest to sell their [Schaapkraal] home … also to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape City’s mayco member for protection and security, has Formerly instructed GroundUp which the CTMCA “threw money away” on litigation with the City.
“Every year like clockwork, as we solution the tip with the calendar year, the CTMCA picks a authorized struggle with the town, above permits or something else. We hardly ever initiate it. They retain throwing funds absent on vexatious litigation that they lose and also have costs awarded in opposition to them. This is totally self-inflicted,” he claimed.
Soeker told the Dabishi Nthambeleni investigators that the key position gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who ended up answerable for all the admin, funds and jogging ตรวจ หวย รัฐบาล the CTMCA.” The investigators said they had been unable to Get in touch with Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered various devices, some in very good problem, some in undesirable issue and several that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-site storage facility wherever “instruments and several equipment” have been saved.
“We asked him to acquire us to the facility but he was evasive to our request.”
Based upon pictures and invoices in GroundUp’s possession, some, if not all, on the merchandise appear to be gear that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing prices for this removing.
In accordance with the closing progress report submitted for the NLC with the CTMCA, the machinery was purchased from Martin-Conne Milliners, a company in which Stemmet, his spouse and his daughter have been directors at some time.
The investigators located 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 corporation is 5 Crete Street, Wetton, Cape Town, the same deal with on which the museum was intended to be created and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded the CTMCA was in the entire process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was among the directors.
According to Dabishi Nthambeleni, the company has paid out R1.2-million to be a deposit, indicating R6.9-million remains to be owed, even though there isn't any payment day set for when this need to be compensated.
The Kopano audit along with the shut website link concerning the companies “show to us that there's ‘foul Participate in’ involved in the purchase in the machinery on the museum workshop”, the investigators reported in the report.
“We discover that it's really possible that CTMCA applied the funding of your NLC to ‘refund’ amongst its most important administrators to the home at a greater overpriced rate than the particular value and value of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to establish how the grant into the CTMCA had been used.
“Actually, an in depth report on how the funding from the NLC was applied, could be difficult as the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every merchandise it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not executed a web-site take a look at right before approving the grant. But this wasn't normal apply at the time they usually located no evidence of carelessness by NLC staff.
At the time, the NLC’s procedures did not involve funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was able to get a next tranche of funding while not having to offer evidence that it experienced utilised the very first tranche for its supposed objective.
Pursuing the appointment of a different board, commissioner and senior govt crew, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any future funding applications in the CTMCA;
the CTMCA and any members who had been associated with the grant be subjected for the NLC’s “delinquency” procedure;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – beneath its prior administration – chose to suppress it, mainly because it had performed With all the former studies into corruption it experienced commissioned.
GroundUp despatched queries to Stemmet and Soeker via SMS, and requested for e mail addresses to mail the concerns by e mail far too. But no reaction were received at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph