Minstrels execute in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant with the Countrywide Lotteries Commission on the Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has observed no evidence that a museum ever existed.
The investigators identified that the CTMCA did not utilize the R5-million allotted to get or develop a museum.
They also discovered which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They found the CTMCA made use of money in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice town’s loaded minstrel history went astray. The museum was in no way designed.
The small print with the abuse of many rands of Lottery cash for your museum that under no circumstances was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of more than R64-million in Lottery cash allocated for the CTMCA among 2003 and 2017.
The main Section of the investigation, by law organization Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which integrated funding to the museum. The authorised spending budget to the museum was much more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a creating for your museum and whether the museum “basically existed”.
The organization was also instructed to investigate
the acquisition with Lottery money of two automobiles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
a variety of machines “ordered for your production of the costumes and hats” to the minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in May well 2021.
The investigation adopted intensive reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated towards the CTMCA (see here, here and in this article) and just how the cash almost certainly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The setting up on the best was the supposed internet site from the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few jobs were completed, she told MPs.
Nevertheless the investigators identified no proof that a museum experienced at any time existed.
To start with the museum was because of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp in the supposed Wetton museum shows a coffee store with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, as well as a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni said it absolutely was “not in a position” to confirm if a museum experienced ever operated from these premises.
Stemmet informed the investigators the museum were moved because they could now not manage the lease of R100,000 per month. He said the CTMCA experienced obtained home for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and were bought for a similar cost. Schaapkraal is inside of a peri-urban location much from the city.
Because of this, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after browsing the premises, that happen to be in an industrial spot, the investigators stated they doubted regardless of whether an appropriate museum existed there. Pictures connected to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, shown on tables and unfold out on the ground, without clarification.
“You will find there's minimal quantity of things with the museum [that] under no circumstances depict the in excess of one hundred-yr background from the Cape City Carnival, the investigators explained, including that there was “no signage outside the house the premises indicating they housed a museum and … usually, the museum would not seem to become open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni noted, by transferring The situation in the museum to an alternate locale without having notifying the NLC.
The Schaapkraal assets, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA had to move from your rented Crete Street premises since it had operate up a R4-million personal debt with town of Cape Town and was scared its tools will be attached.
“Because of the lawful battles as well as debts, the organisation had to maneuver its residence from 5 Crete Highway to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The present director from the CTMCA, instructed them that the two buses purchased with lottery cash were stored in a very magic formula spot “concealed from the Sheriff”. Nevertheless the investigators claimed they were being not able to substantiate that any buses experienced at any time been acquired.
Stemmet also verified the buses had been hidden to stop them being seized. But when the investigators questioned to generally be taken into the position wherever the buses ended up stored, he told them that “the operator of the secret location wasn't available to open up the premises for us”.
“The CTMCA couldn't present proof of payment for two vehicles that it allegedly ordered with grant funds,” the investigators claimed.
Soeker also informed them the Schaapkraal assets had been offered as a result of debt.
“Mr Soeker discussed that according to his comprehension, mainly because of the debt owed to the City of Cape Town, the CTMCA determined It might be greatest to market their [Schaapkraal] property … and also to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for basic safety and stability, has previously advised GroundUp the CTMCA “threw dollars absent” on litigation with town.
“Each year like clockwork, as we strategy the tip on the 12 months, the CTMCA picks a authorized battle with the City, more than permits or something else. We by no means initiate it. They maintain throwing cash absent on vexatious litigation they get rid of and have costs awarded versus them. This is certainly totally self-inflicted,” he stated.
Soeker explained to the Dabishi Nthambeleni investigators that the leading function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of every one of the admin, funds and operating ตรวจ สลากกินแบ่ง รัฐบาล the CTMCA.” The investigators reported they had been unable to Call Momberg.
Hats
Through their “investigation in loco” on the Primrose Park premises, the investigators “discovered various machines, some in superior issue, some in bad affliction and some that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-web-site storage facility where “instruments and several machinery” ended up saved.
“We questioned him to take us to the facility but he was evasive to our ask for.”
According to pictures and invoices in GroundUp’s possession, some, if not all, of the items look like machines which was illegally removed from the CTMCA’s prior premises. Stemmet is facing rates for this elimination.
According to the final development report submitted towards the NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, a firm during which Stemmet, his spouse and his daughter had been administrators at some time.
The investigators identified this “alarming”.
“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape City, a similar handle on which the museum was meant to be designed and/or converted,” they documented.
An audit by accountants Kopano Incorporated, hooked up into the investigative report, recorded the CTMCA was in the whole process of paying for “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was one of the administrators.
In keeping with Dabishi Nthambeleni, the corporation has paid out R1.2-million as a deposit, this means R6.9-million is still owed, nevertheless there is not any payment day set for when this must be paid out.
The Kopano audit as well as the shut url in between the businesses “indicate to us that there is ‘foul Participate in’ associated with the acquisition from the equipment on the museum workshop”, the investigators mentioned in the report.
“We find that it is extremely probable that CTMCA utilised the funding of your NLC to ‘refund’ certainly one of its principal administrators with the home at an increased overpriced level than the particular price and price of the property and/or equipment.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to determine how the grant for the CTMCA had been put in.
“In fact, a detailed report on how the funding in the NLC was employed, could be unattainable given that the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended on Every single item it asked for funding for. The interim report and final report with the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators observed that the NLC had not carried out a site check out right before approving the grant. But this wasn't standard follow at enough time plus they uncovered no proof of negligence by NLC personnel.
At enough time, the NLC’s procedures did not need funded organisations to submit evidence of payment with interim experiences, they identified. This intended that the CTMCA was in a position to get a 2nd tranche of funding without needing to supply proof that it had made use of the 1st tranche for its intended function.
Subsequent the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these together with other issues.
Dabishi Nthambeleni suggested that
the NLC decline any potential funding programs in the CTMCA;
the CTMCA and any members who have been involved in the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal 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, in lieu of act within the report’s recommendations, the NLC – beneath its previous administration – selected to suppress it, as it had done Together with the previous studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send out the thoughts by electronic mail as well. But no response had been obtained at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph