Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission to the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has located no proof that a museum at any time existed.
The investigators found that the CTMCA did not use the R5-million allotted to get or build a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allocated.
They located the CTMCA applied cash through the Lottery to get workshop gear from certainly one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Commission (NLC) to create a museum to rejoice the city’s abundant minstrel background went astray. The museum was in no way developed.
The main points from the abuse of an incredible number of rands of Lottery cash for your museum that under no circumstances was are disclosed within an investigative report commissioned via the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery cash allocated to your CTMCA amongst 2003 and 2017.
The primary Portion of the investigation, by legislation organization Dabishi Nthambeleni, was done concerning September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which involved funding with the museum. The authorised finances to the museum was a lot more than R12.8-million, with R5-million of that allocated for just a building to house the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a creating to the museum and whether the museum “basically existed”.
The organization was also instructed to investigate
the purchase with Lottery cash of two cars – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
different machines “acquired to the production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors of the organisation. Stemmet was reappointed being a director in May well 2021.
The investigation adopted extensive reporting by GroundUp with regards to the numerous rands of Lottery funding allocated to the CTMCA (see here, listed here and here) and the best way the funds 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 right was the intended web page on the minstrels’ museum, in the course of an industrial place in Primrose Park, Cape City. Picture: Raymond Joseph
In response to the Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “tasks” - such as the museum - among 2012 and 2015. All three assignments were concluded, she informed MPs.
But the investigators found no proof that a museum experienced ever existed.
In the beginning the museum was due to open in rented premises in Crete Road, Wetton. A photo attained by GroundUp with the meant Wetton museum shows a espresso shop with some musical devices and minstrel costumes and collages of images haphazardly hung within the walls, in addition to a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet informed the investigators the museum were moved given that they could no longer find the money for the hire of R100,000 a month. He explained the CTMCA experienced obtained house for R1.seven-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for the same cost. Schaapkraal is in the peri-urban spot significantly from the town.
Due to this fact, the museum were 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 reported they doubted no matter if an appropriate museum existed there. Images attached towards the report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed on the wall, exhibited on tables and spread out on the floor, without rationalization.
“There's a nominal degree of items in the museum [that] in no way symbolize the in excess of a hundred-12 months heritage with the Cape Town Carnival, the investigators mentioned, adding that there was “no signage outside the house the premises indicating which they housed a museum and … normally, the museum won't glance to generally be open to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by relocating the location of your museum to another place without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet told the investigators the CTMCA experienced to maneuver in the rented Crete Street premises as it experienced run up a R4-million credit card debt with the town of Cape Town and was concerned its machines would be hooked up.
“Due to the lawful battles as well as the debts, the organisation had to move its property from 5 Crete Highway to steer clear of the sheriff from attaching the residence with the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director of the CTMCA, explained to them the two buses acquired with lottery money were saved inside a top secret spot “hidden within the Sheriff”. Even so the investigators stated they were being unable to confirm that any buses had at any time been acquired.
Stemmet also verified the buses were concealed to halt them being seized. But once the investigators requested to get taken to your place the place the buses were being saved, he told them that “the operator of The key area wasn't accessible to open the premises for us”.
“The CTMCA could not offer evidence of payment for 2 cars that it allegedly acquired with grant funds,” the investigators noted.
Soeker also explained to them the Schaapkraal house had been sold due to debt.
“Mr Soeker defined that Based on his understanding, due to credit card debt owed to the City of Cape Town, the CTMCA made a decision it would be ideal to promote their [Schaapkraal] residence … and to also to hide the belongings on the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for security and protection, has previously explained to GroundUp which the CTMCA “threw money away” on litigation with town.
“On a yearly basis like clockwork, as we tactic the top with the year, the CTMCA picks a legal battle with the town, over permits or something else. We by no means initiate it. They preserve throwing dollars absent on vexatious litigation they eliminate and also have fees awarded versus them. This is certainly totally self-inflicted,” he stated.
Soeker advised the Dabishi Nthambeleni investigators that the key part gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who were in charge of the many admin, funds and jogging luckyvip77 the CTMCA.” The investigators said they had been not able to Call Momberg.
Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “identified various equipment, some in fantastic problem, some in negative condition and several that seemed rusty and very old”. Stemmet advised the investigators that there was also an off-web-site storage facility where by “devices and many equipment” ended up held.
“We asked him to acquire us to the ability but he was evasive to our ask for.”
Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, from the goods appear to be products which was illegally faraway from the CTMCA’s earlier premises. Stemmet is facing fees for this removing.
In accordance with the final progress report submitted for the NLC with the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his wife and his daughter had been directors at enough time.
The investigators located this “alarming”.
“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Notice the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Road, Wetton, Cape City, the same tackle on which the museum was intended to be created and/or converted,” they described.
An audit by accountants Kopano Included, connected to the investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the administrators.
In accordance with Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, that means R6.9-million is still owed, though there is not any payment day set for when this should be compensated.
The Kopano audit plus the close backlink amongst the companies “show to us that there's ‘foul Perform’ involved in the acquisition from the machinery of your museum workshop”, the investigators claimed inside the report.
“We discover that it's very probable that CTMCA used the funding from the NLC to ‘refund’ considered one of its main directors for your home at a better overpriced fee than the actual price tag and worth of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been unable to establish how the grant towards the CTMCA were put in.
“In fact, an in depth report on how the funding in the NLC was made use of, can be unattainable as the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities put in on Each and every product it requested funding for. The interim report and ultimate report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC experienced not done a internet site stop by just before approving the grant. But this was not typical observe at some time they usually uncovered no proof of negligence by NLC personnel.
At time, the NLC’s principles did not need funded organisations to post evidence of payment with interim studies, they pointed out. This intended that the CTMCA was in a position to get a next tranche of funding while not having to deliver proof that it experienced utilized the main tranche for its intended intent.
Adhering to the appointment of a brand new board, commissioner and senior government workforce, the NLC has tightened up on these and also other issues.
Dabishi Nthambeleni advisable that
the NLC drop any future funding applications from your CTMCA;
the CTMCA and any associates who have been associated with the grant be subjected for 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 resources.
But, as an alternative to act around the report’s tips, the NLC – below its past administration – selected to suppress it, because it had carried out While using the earlier stories into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to ship the issues by e mail far too. But no response had been received at the time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph