Minstrels accomplish in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Countrywide Lotteries Commission into the Cape Town Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has located no evidence that a museum at any time existed.
The investigators located the CTMCA did not make use of the R5-million allotted to purchase or build a museum.
They also observed that the CTMCA only purchased land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA employed resources from the Lottery to acquire workshop tools from among its possess directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Commission (NLC) to setup a museum to rejoice the town’s abundant minstrel historical past went astray. The museum was under no circumstances made.
The small print from the abuse of millions of rands of Lottery cash for your museum that under no circumstances was are disclosed within an investigative report commissioned from the NLC in 2021.
The museum grant was Section of a lot more than R64-million in Lottery cash allotted into the CTMCA involving 2003 and 2017.
The 1st Portion of the investigation, by regulation organization Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.three-million grant on the CTMCA in 2014, which included funding with the museum. The accepted finances to the museum was in excess of R12.8-million, with R5-million of that allotted for the making to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the setting up for that museum and whether or not the museum “truly existed”.
The agency was also instructed to analyze
the purchase with Lottery cash of two vehicles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
a variety of equipment “purchased to the production on the costumes and hats” to the minstrels carnival, for R5.four-million.
At enough time, convicted legal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors in the organisation. Stemmet was reappointed for a director in Might 2021.
The investigation followed extensive reporting by GroundUp about the countless rands of Lottery funding allocated for the CTMCA (see listed here, below and listed here) and how the cash likely served finance the ANC’s 2014 election campaign inside the Western Cape, led by at the time by Marius Fransman.
The setting up on the ideal was the intended website of your minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “jobs” - including the museum - among 2012 and 2015. All 3 jobs were finished, she advised MPs.
Though the investigators discovered no proof that a museum had at any time existed.
Initially the museum was on account of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp with the intended Wetton museum displays a coffee store with some musical instruments and minstrel costumes and collages of shots haphazardly hung to the walls, and a product ship on its plinth within a corner.
In its report, Dabishi Nthambeleni stated it had been “not in a position” to verify if a museum experienced ever operated from these premises.
Stemmet instructed the investigators the museum were moved as they could no longer find the money for the hire of R100,000 a month. He mentioned the CTMCA had ordered property for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and had been offered for the same price tag. Schaapkraal is in a very peri-city spot significantly from the town.
Due to this fact, the museum were moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But soon after checking out the premises, that happen to be in an industrial place, the investigators explained they doubted no matter whether a proper museum existed there. Pics attached on the report show a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, exhibited on tables and distribute out on the ground, with no clarification.
“You will find a minimal level of objects for the museum [that] on no account stand for the more than a hundred-calendar year record of your Cape City Carnival, the investigators mentioned, including that there was “no signage outside the premises indicating which they housed a museum and … normally, the museum will not appear to get open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by transferring The situation in the museum to another locale with out notifying the NLC.
The Schaapkraal property, on which no museum was ever crafted. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to maneuver through the rented Crete Highway premises because it had run up a R4-million financial debt with the town of Cape Town and was worried its products can be hooked up.
“Because of the authorized battles as well as debts, the organisation experienced to maneuver its assets from 5 Crete Road to stay away from the sheriff from attaching the residence from the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director with the CTMCA, explained to them which the two buses acquired with lottery funds were being saved in a very top secret place “hidden with the Sheriff”. Although the investigators stated they were not able to confirm that any buses experienced ever been acquired.
Stemmet also verified the buses were hidden to stop them being seized. But once the investigators requested for being taken on the location the place the buses were being saved, he informed them that “the proprietor of The key spot was not accessible to open the premises for us”.
“The CTMCA couldn't provide proof of payment for two vehicles that it allegedly ordered with grant cash,” the investigators described.
Soeker also told them the Schaapkraal residence had been sold because of the credit card debt.
“Mr Soeker defined that In accordance with his understanding, mainly because of the financial debt owed to the town of Cape City, the CTMCA made a decision it would be ideal to provide their [Schaapkraal] property … and to also to hide the assets of the CTMCA to steer clear of the sheriff from attaching the residence.”
JP Smith, Cape Town’s mayco member for safety and stability, has Earlier advised GroundUp that the CTMCA “threw revenue away” on litigation with town.
“Annually like clockwork, as we strategy the top in the calendar year, the CTMCA picks a legal combat with the City, in excess of permits or another thing. We in no way initiate it. They continue to keep throwing funds away on vexatious litigation they lose and have fees awarded from them. This is completely self-inflicted,” he mentioned.
Soeker advised the Dabishi Nthambeleni investigators that the leading job gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of all of the admin, funds and jogging cat888 the CTMCA.” The investigators reported they were struggling to Call Momberg.
Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “found various devices, some in excellent situation, some in bad ailment and several that looked rusty and very old”. Stemmet instructed the investigators that there was also an off-web site storage facility where by “instruments and many equipment” had been retained.
“We questioned him to get us to the ability but he was evasive to our ask for.”
Based on photographs and invoices in GroundUp’s possession, some, if not all, with the merchandise look like gear that was illegally removed from the CTMCA’s previous premises. Stemmet is dealing with expenses for this removal.
According to the final development report submitted to your NLC because of the CTMCA, the machinery was bought from Martin-Conne Milliners, a company wherein Stemmet, his spouse and his daughter had been administrators at time.
The investigators found this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners as well as invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Highway, Wetton, Cape City, the identical deal with on which the museum was intended to be created and/or transformed,” they claimed.
An audit by accountants Kopano Included, hooked up into the investigative report, recorded which the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was one of the administrators.
In line with Dabishi Nthambeleni, the business has paid R1.two-million as being a deposit, this means R6.9-million remains owed, even though there isn't any payment day established for when this has to be compensated.
The Kopano audit and also the near connection in between the companies “point out to us that there's ‘foul play’ involved in the purchase in the machinery on the museum workshop”, the investigators claimed during the report.
“We discover that it's hugely probable that CTMCA employed the funding in the NLC to ‘refund’ among its principal directors with the residence at a better overpriced price than the particular value and value of the residence and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant on the CTMCA were put in.
“In point of fact, a detailed report on how the funding on the NLC was used, can be impossible since the CTMCA doesn't have any receipts, or evidence of payments to verify the quantities expended on each item it requested funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators discovered that the NLC experienced not done a web page stop by right before approving the grant. But this wasn't normal practice at some time plus they identified no proof of negligence by NLC employees.
At enough time, the NLC’s principles didn't need funded organisations to post evidence of payment with interim studies, they identified. This intended that the CTMCA was ready to receive a second tranche of funding while not having to provide proof that it had utilised the first tranche for its intended goal.
Pursuing the appointment of a completely new board, commissioner and senior govt team, the NLC has tightened up on these along with other concerns.
Dabishi Nthambeleni advisable that
the NLC decline any long term funding applications from the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected to the NLC’s “delinquency” system;
the NLC open a prison situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated cash.
But, instead of act to the report’s recommendations, the NLC – beneath its former administration – selected to suppress it, as it had accomplished with the earlier studies into corruption it had commissioned.
GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for e mail addresses to send out the inquiries by e mail way too. But no response were been given at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph