Minstrels complete in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the Nationwide Lotteries Fee into the Cape Town Minstrel Carnival Association (CTMCA) for just a minstrels museum has located no evidence that a museum at any time existed.
The investigators found which the CTMCA didn't utilize the R5-million allotted to acquire or develop a museum.
Additionally they located the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA employed funds from the Lottery to purchase workshop products from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted to the Cape City Minstrel Carnival Association (CTMCA) by the National Lotteries Fee (NLC) to create a museum to celebrate town’s loaded minstrel record went astray. The museum was by no means produced.
The main points with the abuse of an incredible number of rands of Lottery cash for your museum that under no circumstances was are revealed in an investigative report commissioned through the NLC in 2021.
The museum grant was Section of much more than R64-million in Lottery cash allotted for the CTMCA concerning 2003 and 2017.
The primary Section of the investigation, by legislation agency Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which bundled funding to the museum. The approved funds for the museum was greater than R12.eight-million, with R5-million of that allocated for your creating to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a creating for your museum and whether or not the museum “really existed”.
The agency was also instructed to investigate
the purchase with Lottery money of two cars – a sixty-seater bus and a 23-seater bus – for R2.4-million; and
a variety of devices “acquired for your manufacturing from the costumes and hats” to the minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director on the 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 a number of directors from the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation followed comprehensive reporting by GroundUp about the countless rands of Lottery funding allotted towards the CTMCA (see in this article, right here and here) and the best way the resources probably assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.
The creating on the correct was the intended internet site of the minstrels’ museum, in the middle of an industrial location in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to your Parliamentary problem, previous NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “initiatives” - including the museum - amongst 2012 and 2015. All three jobs had been concluded, she explained to MPs.
Although the investigators identified no evidence that a museum had ever existed.
In the beginning the museum was as a result of open up in rented premises in Crete Highway, Wetton. A photo attained by GroundUp in the meant Wetton museum exhibits a coffee store with some musical instruments and minstrel costumes and collages of pics haphazardly hung around the walls, and a product ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it was “not in a position” to substantiate if a museum experienced at any time operated from these premises.
Stemmet instructed the investigators the museum had been moved since they could not afford the lease of R100,000 per month. He claimed the CTMCA experienced procured house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar price tag. Schaapkraal is inside of a peri-city region much 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 browsing the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter if a proper museum existed there. Pics attached on the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and spread out on the floor, without any clarification.
“You will find a negligible quantity of products on the museum [that] by no means symbolize the a lot more than one hundred-yr history of the Cape City Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum does not glimpse for being open up to the public.”
The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni mentioned, by going the location on the museum to another place devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was scared its machines could be hooked up.
“A result of the lawful battles along with the debts, the organisation had to maneuver its assets from five Crete Road to avoid the sheriff from attaching the house from the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The existing director in the CTMCA, advised them the two buses purchased with lottery money had been stored within a magic formula place “concealed in the Sheriff”. Nevertheless the investigators claimed they were being not able to substantiate that any buses experienced ever been purchased.
Stemmet also verified that the buses were concealed to halt them being seized. But if the investigators questioned being taken for the put the place the buses had been saved, he advised them that “the operator of The trick locale was not available to open the premises for us”.
“The CTMCA couldn't present evidence of payment for 2 motor vehicles that it allegedly obtained with grant revenue,” the investigators documented.
Soeker also informed them the Schaapkraal home had been marketed due to credit card debt.
“Mr Soeker described that In line with his understanding, as a result of credit card debt owed to the town of Cape City, the CTMCA determined it would be very best to provide their [Schaapkraal] house … also to also to cover the assets on the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and stability, has Formerly explained to GroundUp the CTMCA “threw cash away” on litigation with town.
“Each and every year like clockwork, as we tactic the tip on the 12 months, the CTMCA picks a lawful battle with the City, more than permits or something else. We in no way initiate it. They maintain throwing cash away on vexatious litigation which they eliminate and have prices awarded from them. That is completely self-inflicted,” he reported.
Soeker informed the Dabishi Nthambeleni investigators that the main job players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of all of the admin, finances and functioning ตรวจ หวย ลาว the CTMCA.” The investigators mentioned they were unable to Speak to Momberg.
Hats
Throughout their “investigation in loco” for the Primrose Park premises, the investigators “discovered quite a few equipment, some in superior problem, some in terrible ailment plus some that appeared rusty and very previous”. Stemmet informed the investigators that there was also an off-web site storage facility wherever “devices plus some machinery” have been stored.
“We questioned him to take us to the power but he was evasive to our ask for.”
According to photos and invoices in GroundUp’s possession, some, Otherwise all, with the things appear to be machines which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with prices for this removal.
Based on the closing development report submitted towards the NLC through the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were being directors at the time.
The investigators uncovered this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Observe the following alarming getting: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Street, Wetton, Cape City, precisely the same handle on which the museum was intended to be developed and/or transformed,” they claimed.
An audit by accountants Kopano Incorporated, attached on the investigative report, recorded that the CTMCA was in the process of acquiring “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.
Based on Dabishi Nthambeleni, the organization has paid R1.two-million for a deposit, that means R6.nine-million remains to be owed, even though there's no payment day set for when this need to be paid.
The Kopano audit as well as close backlink in between the companies “point out to us that there's ‘foul Perform’ involved with the acquisition of the machinery in the museum workshop”, the investigators claimed in the report.
“We discover that it's highly possible that CTMCA used the funding of the NLC to ‘refund’ certainly one of its principal directors for the assets at the next overpriced amount than the actual cost and price of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been spent.
“The truth is, a detailed report on how the funding on the NLC was used, might be unattainable given that the CTMCA does not have any receipts, or proof of payments to confirm the amounts expended on each item it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not executed a web-site stop by right before approving the grant. But this wasn't common follow at time and they uncovered no proof of negligence by NLC workforce.
At enough time, the NLC’s guidelines didn't demand funded organisations to post proof 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 applied the very first tranche for its meant reason.
Following the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these and other issues.
Dabishi Nthambeleni suggested that
the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who were being involved with the grant be subjected on the NLC’s “delinquency” method;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act over the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, since it experienced completed While using the prior studies into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by email as well. But no response were been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph