Minstrels complete in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant from the Countrywide Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has uncovered no proof that a museum at any time existed.
The investigators found that the CTMCA didn't use the R5-million allotted to get or produce a museum.
In addition they discovered that the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA employed cash within the Lottery to purchase workshop machines from one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Association (CTMCA) from the Countrywide Lotteries Fee (NLC) to arrange a museum to celebrate town’s abundant minstrel background went astray. The museum was in no way created.
The small print of your abuse of an incredible number of rands of Lottery resources for your museum that never ever was are uncovered within an investigative report commissioned through the NLC in 2021.
The museum grant was Component of more than R64-million in Lottery funds allotted into the CTMCA in between 2003 and 2017.
The initial Component of the investigation, by legislation organization Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant for the CTMCA in 2014, which incorporated funding for your museum. The authorized spending budget with the museum was in excess of R12.eight-million, with R5-million of that allocated for the making to house the museum.
Examine the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of a constructing for that museum and whether or not the museum “basically existed”.
The firm was also instructed to investigate
the acquisition with Lottery cash of two motor vehicles – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
numerous equipment “ordered for your manufacturing of your costumes and hats” with the minstrels carnival, for R5.four-million.
At some time, convicted criminal 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 on the organisation. Stemmet was reappointed to be a director in May 2021.
The investigation followed extensive reporting by GroundUp in regards to the an incredible number of rands of Lottery funding allocated to the CTMCA (see in this article, listed here and here) and just how the funds in all probability assisted finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.
The building on the right was the intended web-site in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to some Parliamentary question, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “jobs” - such as the museum - amongst 2012 and 2015. All a few assignments were finished, she explained to MPs.
But the investigators observed no proof that a museum had ever existed.
In the beginning the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photo received by GroundUp in the intended Wetton museum demonstrates a espresso shop with some musical instruments and minstrel costumes and collages of shots haphazardly hung about the partitions, plus a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni reported it was “not in a position” to confirm if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved because they could no more afford the hire of R100,000 per month. He stated the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were offered for the same value. Schaapkraal is within a peri-city spot much from the town.
Because of this, the museum were moved to a whole new location in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after checking out the premises, that are in an industrial space, the investigators said they doubted whether or not a suitable museum existed there. Shots connected into the report exhibit a mishmash of randomly displayed uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, shown on tables and distribute out on the floor, without rationalization.
“You will find a minimum degree of goods at the museum [that] under no circumstances depict the over one hundred-calendar year record from the Cape Town Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating that they housed a museum and … usually, the museum won't look to be open to the general public.”
The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by relocating The situation of your museum to an alternative locale devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver in the rented Crete Street premises mainly because it experienced operate up a R4-million debt with the town of Cape Town and was fearful its equipment will be connected.
“Mainly because of the legal battles and also the debts, the organisation had to maneuver its property from five Crete Highway to avoid the sheriff from attaching the property of the organisation,” Stemmet informed the investigators.
Sedrick Soeker, the current director on the CTMCA, instructed them that the two buses purchased with lottery funds ended up stored inside of a mystery place “concealed from your Sheriff”. However the investigators reported they had been not able to substantiate that any buses had ever been purchased.
Stemmet also verified which the buses were hidden to prevent them remaining seized. But once the investigators requested to be taken into the place the place the buses were saved, he advised them that “the operator of the secret area wasn't available to open up the premises for us”.
“The CTMCA couldn't supply evidence of payment for two motor vehicles that it allegedly purchased with grant cash,” the investigators documented.
Soeker also informed them the Schaapkraal house had been sold as a result of financial debt.
“Mr Soeker defined that In accordance with his knowing, as a result of credit card debt owed to town of Cape Town, the CTMCA made the decision It will be very best to provide their [Schaapkraal] home … and also to also to cover the assets with the CTMCA to steer clear of the sheriff from attaching the property.”
JP Smith, Cape Town’s mayco member for security and safety, has Formerly instructed GroundUp the CTMCA “threw revenue absent” on litigation with town.
“Annually like clockwork, as we approach the top from the 12 months, the CTMCA picks a lawful combat with the City, more than permits or another thing. We never initiate it. They keep throwing money absent on vexatious litigation they reduce and have prices awarded from them. That is solely self-inflicted,” he claimed.
Soeker informed the Dabishi Nthambeleni investigators that the most crucial function gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who had been in charge of every one of the admin, finances and working fox888 the CTMCA.” The investigators claimed they were unable to Speak to Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “identified a lot of machines, some in fantastic issue, some in bad problem and many that seemed rusty and very old”. Stemmet informed the investigators that there was also an off-internet site storage facility where “instruments plus some equipment” have been retained.
“We requested him to get us to the facility 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 products which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with charges for this removal.
Based on the final development report submitted for the NLC because of the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter had been directors at time.
The investigators identified this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be designed and/or transformed,” they noted.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was among the directors.
In line with Dabishi Nthambeleni, the corporate has paid out R1.two-million for a deposit, indicating R6.9-million remains owed, nevertheless there is not any payment date established for when this have to be paid.
The Kopano audit plus the close backlink in between the businesses “indicate to us that there is ‘foul Participate in’ involved in the purchase with the equipment in the museum workshop”, the investigators claimed in the report.
“We find that it is highly probable that CTMCA employed the funding in the NLC to ‘refund’ considered one of its key administrators to the house at a better overpriced charge than the actual rate and worth of the house and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant for the CTMCA were put in.
“In fact, an in depth report on how the funding from the NLC was applied, will be impossible since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it requested funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC experienced not conducted a website pay a visit to ahead of approving the grant. But this was not normal apply at the time they usually observed no evidence of carelessness by NLC staff members.
At enough time, the NLC’s principles didn't call for funded organisations to submit proof of payment with interim reports, they pointed out. This intended that the CTMCA was ready to receive a 2nd tranche of funding without having to present proof that it had made use of the initial tranche for its meant purpose.
Pursuing the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni suggested that
the NLC decline any potential funding programs from your CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected into the NLC’s “delinquency” system;
the NLC open 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 around the report’s suggestions, the NLC – under its past administration – chose to suppress it, because it experienced done While using the earlier experiences into corruption it experienced commissioned.
GroundUp sent inquiries to Stemmet and Soeker by using SMS, and asked for email addresses to deliver the queries by e mail far too. But no reaction had been obtained at time of publication.
The minstrel “museum” in Crete Road, Wetton. Image: Raymond Joseph