Minstrels execute in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant with the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has located no proof that a museum ever existed.
The investigators uncovered the CTMCA didn't utilize the R5-million allotted to acquire or produce a museum.
They also uncovered that the CTMCA only purchased land value R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed resources through the Lottery to invest in workshop tools from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Association (CTMCA) from the National Lotteries Commission (NLC) to set up a museum to celebrate the city’s loaded minstrel heritage went astray. The museum was in no way designed.
The small print of the abuse of many rands of Lottery funds for any museum that in no way was are uncovered in an investigative report commissioned through the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery resources allocated on the CTMCA between 2003 and 2017.
The primary part of the investigation, by regulation firm Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which provided funding to the museum. The accredited price range for the museum was more than R12.eight-million, with R5-million of that allotted for your creating to deal with the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the purchase of a setting up with the museum and whether the museum “truly existed”.
The organization was also instructed to research
the purchase with Lottery money of two automobiles – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
a variety of devices “acquired with the producing in the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several administrators of your organisation. Stemmet was reappointed as a director in May 2021.
The investigation adopted substantial reporting by GroundUp in regards to the an incredible number of rands of Lottery funding allocated on the CTMCA (see right here, here and here) and the best way the cash almost certainly served finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at time by Marius Fransman.
The making on the appropriate was the supposed web page with the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to your Parliamentary problem, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “projects” - including the museum - between 2012 and 2015. All a few initiatives had been concluded, she told MPs.
Even so the investigators found no evidence that a museum had ever existed.
At the beginning the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photo obtained by GroundUp of the intended Wetton museum exhibits a espresso shop with a few musical devices and minstrel costumes and collages of images haphazardly hung on the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni stated it was “not ready” to substantiate if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum had been moved mainly because they could now not afford to pay for the lease of R100,000 a month. He mentioned the CTMCA had purchased assets for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been marketed for a similar value. Schaapkraal is in the peri-urban place much from town.
Consequently, the museum had been moved to a whole new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But right after checking out the premises, which might be in an industrial region, the investigators said they doubted regardless of whether a proper museum existed there. Shots connected to the report show a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed towards the wall, shown on tables and distribute out on the floor, without any clarification.
“There is a small number of products with the museum [that] on no account symbolize the more than 100-year background on the Cape Town Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … generally, the museum will not seem to generally be open up to the general public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by relocating The placement of your museum to an alternate spot without notifying the NLC.
The Schaapkraal property, on which no museum was at any time developed. Image: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA experienced to move through the rented Crete Highway premises mainly because it experienced operate up a R4-million financial debt with the town of Cape City and was worried its equipment will be connected.
“Because of the authorized battles along with the debts, the organisation experienced to move its assets from 5 Crete Road to avoid the sheriff from attaching the home of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director from the CTMCA, told them which the two buses bought with lottery resources were stored in a mystery location “hidden from the Sheriff”. But the investigators explained they ended up not able to confirm that any buses had ever been bought.
Stemmet also confirmed the buses had been hidden to halt them staying seized. But once the investigators requested to generally be taken on the place the place the buses had been saved, he informed them that “the proprietor of The key site was not accessible to open up the premises for us”.
“The CTMCA couldn't present evidence of payment for 2 motor vehicles that it allegedly purchased with grant money,” the investigators reported.
Soeker also told them the Schaapkraal residence were sold because of the credit card debt.
“Mr Soeker spelled out that In accordance with his comprehending, due to the credit card debt owed to town of Cape City, the CTMCA determined It might be finest to provide their [Schaapkraal] property … and to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for security and safety, has Beforehand told GroundUp that the CTMCA “threw cash away” on litigation with the City.
“Each and every year like clockwork, as we solution the top of the calendar year, the CTMCA picks a authorized battle with the City, around permits or another thing. We by no means initiate it. They maintain throwing money absent on vexatious litigation they get rid of and have costs awarded versus them. This can be solely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the most crucial part gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of many of the admin, funds and functioning ตรวจ หวย ล่าสุด the CTMCA.” The investigators said they had been unable to Get hold of Momberg.
Hats
Throughout their “investigation in loco” on the Primrose Park premises, the investigators “observed numerous equipment, some in great situation, some in poor situation and some that looked rusty and intensely outdated”. Stemmet advised the investigators that there was also an off-internet site storage facility wherever “instruments and some equipment” ended up retained.
“We requested him to take us to the power but he was evasive to our ask for.”
Based upon photographs and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise appear to be devices that was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing expenses for this elimination.
In accordance with the ultimate progress report submitted to the NLC because of the CTMCA, the equipment was acquired from Martin-Conne Milliners, a corporation wherein Stemmet, his spouse and his daughter have been directors at some time.
The investigators uncovered this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Street, Wetton, Cape City, exactly the same tackle on which the museum was meant to be built and/or converted,” they documented.
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 stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million as a deposit, which means R6.nine-million remains to be owed, even though there is absolutely no payment date established for when this should be compensated.
The Kopano audit as well as the shut hyperlink involving the companies “show to us that there is ‘foul Engage in’ linked to the purchase on the equipment from the museum workshop”, the investigators explained during the report.
“We discover that it's extremely probable that CTMCA employed the funding on the NLC to ‘refund’ considered one of its most important administrators to the house at a better overpriced charge than the actual rate and worth of the home and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA were spent.
“In reality, a detailed report on how the funding of the NLC was utilised, could be difficult because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities spent on Just about every item it asked for funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed which the NLC experienced not done a site go to ahead of approving the grant. But this was not normal follow at time and so they discovered no proof of carelessness by NLC personnel.
At enough time, the NLC’s policies did not have to have funded organisations to submit evidence of payment with interim reports, they identified. This meant that the CTMCA was capable of receive a 2nd tranche of funding without having to give proof that it had used the 1st tranche for its intended reason.
Next the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni advised that
the NLC decrease any foreseeable future funding programs from your CTMCA;
the CTMCA and any associates who were linked to the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – underneath its previous administration – chose to suppress it, since it experienced completed While using the prior studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to deliver the queries by e-mail also. But no response had been been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph