Minstrels perform in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant by the Nationwide Lotteries Fee for the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has found no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't utilize the R5-million allotted to purchase or create a museum.
They also discovered that the CTMCA only acquired land truly worth R1.7-million, not R5-million as allocated.
They located the CTMCA made use of resources through the Lottery to purchase workshop gear from one among its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) because of the National Lotteries Fee (NLC) to set up a museum to celebrate the town’s wealthy minstrel record went astray. The museum was hardly ever designed.
The details of the abuse of many rands of Lottery funds for just a museum that under no circumstances was are exposed in an investigative report commissioned by the NLC in 2021.
The museum grant was part of over R64-million in Lottery funds allotted to the CTMCA concerning 2003 and 2017.
The first Element of the investigation, by regulation firm Dabishi Nthambeleni, was done involving September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which bundled funding to the museum. The accepted budget for that museum was in excess of R12.8-million, with R5-million of that allocated for just a creating to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the purchase of the building for the museum and whether the museum “in fact existed”.
The organization was also instructed to investigate
the purchase with Lottery cash of two cars – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
a variety of devices “ordered to the production on the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous directors with the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed substantial reporting by GroundUp about the countless rands of Lottery funding allotted into the CTMCA (see in this article, in this article and below) and how the money possibly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The making on the correct was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - amongst 2012 and 2015. All 3 initiatives were done, she explained to MPs.
However the investigators identified no proof that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo received by GroundUp on the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of pics haphazardly hung about the partitions, plus a model ship on its plinth in a very corner.
In its report, Dabishi Nthambeleni stated it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer afford to pay for the rent of R100,000 a month. He said the CTMCA experienced procured residence for R1.7-million in Schaapkraal with the museum, but couldn't get it rezoned, and were sold for the same rate. Schaapkraal is in a peri-urban space far from the town.
Subsequently, the museum had been moved to a whole new spot in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after going to the premises, which can be in an industrial space, the investigators reported they doubted whether an appropriate museum existed there. Pics attached into the report demonstrate a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed to your wall, shown on tables and distribute out on the floor, without rationalization.
“There exists a minimal number of products with the museum [that] on no account signify the in excess of 100-calendar year historical past of the Cape Town Carnival, the investigators stated, introducing that there was “no signage outdoors the premises indicating which they housed a museum and … usually, the museum won't look to become open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by relocating The situation of your museum to an alternate area devoid of notifying the NLC.
The Schaapkraal assets, on which no museum was ever built. Picture: Raymond Joseph
Buses
Stemmet instructed the investigators that the CTMCA had to maneuver through the rented Crete Road premises since it experienced operate up a R4-million debt with town of Cape Town and was frightened its gear would be connected.
“Mainly because of the legal battles as well as debts, the organisation had to move its assets from five Crete Highway to avoid the sheriff from attaching the assets in the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The existing director from the CTMCA, informed them that the two buses bought with lottery money had been stored within a top secret place “hidden in the Sheriff”. Even so the investigators reported they were not able to confirm that any buses had at any time been bought.
Stemmet also verified which the buses were concealed to prevent them staying seized. But if the investigators asked being taken towards the put the place the buses were saved, he told them that “the proprietor of The trick area wasn't accessible to open up the premises for us”.
“The CTMCA couldn't provide proof of payment for two cars that it allegedly purchased with grant income,” the investigators reported.
Soeker also informed them the Schaapkraal house had been sold due to the debt.
“Mr Soeker described that Based on his knowing, mainly because of the personal debt owed to the town of Cape Town, the CTMCA decided It will be finest to market their [Schaapkraal] home … and also to also to cover the property from the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for basic safety and protection, has Beforehand told GroundUp which the CTMCA “threw money away” on litigation with the City.
“Yearly like clockwork, as we approach the end in the 12 months, the CTMCA picks a lawful struggle with the City, in excess of permits or something else. We under no circumstances initiate it. They retain throwing dollars away on vexatious litigation which they reduce and have costs awarded from them. That is entirely self-inflicted,” he mentioned.
Soeker explained to the Dabishi Nthambeleni investigators that the principle function players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of many of the admin, finances and managing lottovip the CTMCA.” The investigators explained they were struggling to contact Momberg.
Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “identified various equipment, some in great situation, some in negative issue and a few that looked rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-internet site storage facility in which “instruments and many machinery” ended up held.
“We questioned him to get us to the facility but he was evasive to our request.”
According to shots and invoices in GroundUp’s possession, some, Otherwise all, of the goods appear to be products which was illegally removed from the CTMCA’s former premises. Stemmet is going through charges for this elimination.
According to the ultimate development report submitted towards the NLC via the CTMCA, the machinery was purchased from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter were being directors at the time.
The investigators identified this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Highway, Wetton, Cape City, the exact same address on which the museum was intended to be created and/or transformed,” they noted.
An audit by accountants Kopano Included, hooked up towards 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 an in depth corporation of which Stemmet was considered one of the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.two-million like a deposit, which means R6.nine-million continues to be owed, though there is no payment day established for when this need to be paid out.
The Kopano audit and the near connection among the businesses “suggest to us that there is ‘foul Engage in’ linked to the purchase from the machinery on the museum workshop”, the investigators reported within the report.
“We find that it is hugely possible that CTMCA applied the funding of your NLC to ‘refund’ among its key directors to the house at a greater overpriced price than the particular rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant towards the CTMCA were invested.
“In point of fact, a detailed report on how the funding in the NLC was made use of, might be unattainable as the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities spent on Every single product it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators identified the NLC had not performed a internet site take a look at right before approving the grant. But this wasn't typical exercise at enough time and so they identified no evidence of carelessness by NLC personnel.
At time, the NLC’s guidelines didn't demand funded organisations to post evidence of payment with interim reviews, they identified. This meant the CTMCA was capable of get a next tranche of funding while not having to supply evidence that it experienced utilized the main tranche for its intended reason.
Following the appointment of a completely new board, commissioner and senior executive staff, the NLC has tightened up on these as well as other concerns.
Dabishi Nthambeleni proposed that
the NLC drop any long term funding programs through the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open up a felony 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, instead of act on the report’s suggestions, the NLC – below its previous administration – chose to suppress it, mainly because it had accomplished Using the past reviews into corruption it had commissioned.
GroundUp sent thoughts to Stemmet and Soeker via SMS, and requested for e mail addresses to mail the concerns by email also. But no response were acquired at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph