Minstrels accomplish in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant from the National Lotteries Fee into the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed that the CTMCA didn't utilize the R5-million allocated to order or build a museum.
They also uncovered which the CTMCA only bought land truly worth R1.7-million, not R5-million as allocated.
They observed the CTMCA utilized money with the Lottery to invest in workshop machines from certainly one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted towards the Cape City Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Commission (NLC) to build a museum to celebrate the town’s rich minstrel record went astray. The museum was hardly ever created.
The details from the abuse of many rands of Lottery money for a museum that hardly ever was are exposed in an investigative report commissioned because of the NLC in 2021.
The museum grant was part of over R64-million in Lottery money allotted to your CTMCA amongst 2003 and 2017.
The very first Component of the investigation, by law agency Dabishi Nthambeleni, was done among September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding with the museum. The authorised budget for your museum was much more than R12.eight-million, with R5-million of that allocated for your building to deal with the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a setting up for the museum and whether the museum “basically existed”.
The agency was also instructed to research
the acquisition with Lottery cash of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
various machines “acquired for that production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of several directors of the organisation. Stemmet was reappointed as a director in May perhaps 2021.
The investigation followed in depth reporting by GroundUp with regards to the millions of rands of Lottery funding allotted to your CTMCA (see below, listed here and right here) and the way the resources likely assisted finance the ANC’s 2014 election campaign during the Western Cape, led by at time by Marius Fransman.
The making on the appropriate was the supposed web page in the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In response into a Parliamentary concern, former NLC Commissioner Thabang Mampane detailed grants to a few CTMCA “tasks” - including the museum - among 2012 and 2015. All a few jobs had been completed, she explained to MPs.
However the investigators located no evidence that a museum had at any time existed.
Initially the museum was because of open up in rented premises in Crete Street, Wetton. A photograph obtained by GroundUp on the meant Wetton museum displays a espresso store with some musical instruments and minstrel costumes and collages of pictures haphazardly hung over the walls, along with a design ship on its plinth in a corner.
In its report, Dabishi Nthambeleni claimed it 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 not find the money for the hire of R100,000 per month. He stated the CTMCA had procured property for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-city spot far from town.
Subsequently, the museum were moved to a new locale in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But after traveling to the premises, that happen to be within an industrial area, the investigators stated they doubted whether or not a proper museum existed there. Photographs attached towards the report display a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed for the wall, displayed on tables and spread out on the ground, without rationalization.
“You will find there's minimum volume of objects for the museum [that] under no circumstances characterize the in excess of one hundred-12 months historical past in the Cape City Carnival, the investigators mentioned, adding that there was “no signage exterior the premises indicating which they housed a museum and … commonly, the museum does not appear being open to the public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni noted, by going the location of the museum to another locale without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever constructed. Photo: Raymond Joseph
Buses
Stemmet informed the investigators which the CTMCA experienced to maneuver in the rented Crete Road premises because it experienced operate up a R4-million credit card debt with the City of Cape Town and was frightened its equipment could well be attached.
“A result of the legal battles and the debts, the organisation experienced to maneuver its assets from 5 Crete Road to stay away from the sheriff from attaching the property with the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director in the CTMCA, instructed them which the two buses acquired with lottery cash were being stored in a secret place “concealed from your Sheriff”. Though the investigators said they were being not able to verify that any buses had at any time been purchased.
Stemmet also confirmed the buses had been hidden to halt them remaining seized. But once the investigators requested for being taken towards the place in which the buses have been stored, he instructed them that “the proprietor of The key place wasn't available to open the premises for us”.
“The CTMCA could not present evidence of payment for 2 automobiles that it allegedly procured with grant cash,” the investigators claimed.
Soeker also instructed them the Schaapkraal house had been marketed as a result of personal debt.
“Mr Soeker defined that according to his comprehending, as a result of debt owed to town of Cape Town, the CTMCA made a decision it would be best to provide their [Schaapkraal] residence … and to also to cover the belongings from the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for safety and safety, has Earlier advised GroundUp which the CTMCA “threw money away” on litigation with the City.
“Every year like clockwork, as we technique the top in the 12 months, the CTMCA picks a authorized combat with the town, about permits or something else. We in no way initiate it. They preserve throwing dollars absent on vexatious litigation that they eliminate and have expenditures awarded against them. This is often completely self-inflicted,” he claimed.
Soeker advised the Dabishi Nthambeleni investigators that the main part gamers on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for each of the admin, finances and managing ผล หวย หุ้น the CTMCA.” The investigators stated they had been not able to Get in touch with Momberg.
Hats
All through their “investigation in loco” for the Primrose Park premises, the investigators “discovered quite a few equipment, some in good affliction, some in terrible condition and several that seemed rusty and extremely previous”. Stemmet informed the investigators that there was also an off-web site storage facility in which “instruments and several machinery” had been held.
“We requested him to get us to the facility but he was evasive to our request.”
According to pictures and invoices in GroundUp’s possession, some, Otherwise all, with the things look like products which was illegally faraway from the CTMCA’s earlier premises. Stemmet is struggling with expenses for this elimination.
Based on the ultimate progress report submitted on the NLC via the CTMCA, the equipment was procured from Martin-Conne Milliners, an organization by which Stemmet, his wife and his daughter had been directors at time.
The investigators discovered this “alarming”.
“In the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Take note the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the corporation is five Crete Road, Wetton, Cape Town, the same deal with on which the museum was meant to be built and/or converted,” they documented.
An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of acquiring “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.
Based on Dabishi Nthambeleni, the corporate has compensated R1.two-million to be a deposit, this means R6.nine-million remains owed, though there is no payment day set for when this should be compensated.
The Kopano audit as well as near url among the businesses “point out to us that there's ‘foul Engage in’ linked to the purchase with the equipment on the museum workshop”, the investigators reported while in the report.
“We discover that it's extremely probable that CTMCA applied the funding from the NLC to ‘refund’ amongst its principal administrators with the property at a better overpriced fee than the actual value and value of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant on the CTMCA had been used.
“In reality, an in depth report on how the funding with the NLC was utilised, will be impossible since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Just about every item it requested funding for. The interim report and ultimate report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC experienced not executed a web page visit just before approving the grant. But this was not regular follow at enough time plus they observed no proof of carelessness by NLC staff members.
At enough time, the NLC’s regulations didn't call for funded organisations to submit evidence of payment with interim stories, they pointed out. This meant the CTMCA was able to get a second tranche of funding without having to provide evidence that it had used the main tranche for its meant purpose.
Adhering to the appointment of a whole new board, commissioner and senior government team, the NLC has tightened up on these and other difficulties.
Dabishi Nthambeleni recommended that
the NLC decline any foreseeable future funding purposes from the CTMCA;
the CTMCA and any associates who ended up involved with the grant be subjected to the NLC’s “delinquency” process;
the NLC open up a felony case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – underneath its prior administration – selected to suppress it, because it experienced carried out Along with the previous stories into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e mail addresses to mail the questions by email as well. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph