Minstrels carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant because of the National Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) to get a minstrels museum has found no evidence that a museum at any time existed.
The investigators discovered the CTMCA did not make use of the R5-million allotted to get or create a museum.
They also discovered that the CTMCA only acquired land value R1.seven-million, not R5-million as allocated.
They located the CTMCA used money with the Lottery to purchase workshop products from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted on the Cape Town Minstrel Carnival Association (CTMCA) with the Nationwide Lotteries Commission (NLC) to put in place a museum to celebrate the city’s abundant minstrel history went astray. The museum was by no means made.
The small print with the abuse of countless rands of Lottery funds for just a museum that never ever was are unveiled within an investigative report commissioned by the NLC in 2021.
The museum grant was Element of much more than R64-million in Lottery money allotted on the CTMCA involving 2003 and 2017.
The main part of the investigation, by law agency Dabishi Nthambeleni, was carried out in between September 2020 and January 2021 and focused on a R27.3-million grant on the CTMCA in 2014, which integrated funding with the museum. The accredited spending plan for your museum was a lot more than R12.8-million, with R5-million of that allocated for a setting up to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of a developing for your museum and whether or not the museum “really existed”.
The company was also instructed to investigate
the acquisition with Lottery money of two vehicles – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
many machines “obtained to the producing on the costumes and hats” with the minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director of 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 ongoing as two of various directors from the organisation. Stemmet was reappointed as a director in May possibly 2021.
The investigation followed considerable reporting by GroundUp with regards to the numerous rands of Lottery funding allocated into the CTMCA (see in this article, below and right here) and how the resources most likely assisted finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The building on the best was the intended web page in the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Image: Raymond Joseph
In reaction to the Parliamentary query, former NLC Commissioner Thabang Mampane shown grants to a few CTMCA “assignments” - such as the museum - in between 2012 and 2015. All three initiatives had been done, she explained to MPs.
Though the investigators discovered no evidence that a museum had at any time existed.
At the beginning the museum was resulting from open in rented premises in Crete Highway, Wetton. A photo received by GroundUp with the intended Wetton museum demonstrates a espresso shop with some musical devices and minstrel costumes and collages of photos haphazardly hung on the partitions, plus a product ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni explained it absolutely was “not in a position” to confirm if a museum had at any time operated from these premises.
Stemmet explained to the investigators the museum were moved given that they could now not pay for the rent of R100,000 a month. He explained the CTMCA experienced bought house for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for a similar selling price. Schaapkraal is inside of a peri-city space far from the town.
Because of this, the museum were moved to a fresh area in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after going to the premises, that are in an industrial place, the investigators stated they doubted whether a suitable museum existed there. Pictures attached to your report display a mishmash of randomly shown uniforms, musical instruments and assorted minstrel paraphernalia nailed on the wall, shown on tables and spread out on the ground, with no explanation.
“There exists a small degree of objects at the museum [that] by no means characterize the much more than one hundred-yr background of the Cape Town Carnival, the investigators reported, adding that there was “no signage outdoors the premises indicating they housed a museum and … commonly, the museum does not search to become open up to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by moving the location in the museum to an alternate area without the need of notifying the NLC.
The Schaapkraal house, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet advised the investigators that the CTMCA experienced to move through the rented Crete Road premises mainly because it had operate up a R4-million financial debt with the town of Cape City and was worried its machines could well be connected.
“A result of the lawful battles as well as the debts, the organisation experienced to maneuver its house from five Crete Highway to avoid the sheriff from attaching the assets in the organisation,” Stemmet advised the investigators.
Sedrick Soeker, The present director of the CTMCA, informed them that the two buses bought with lottery funds ended up stored in a solution spot “concealed through the Sheriff”. Even so the investigators mentioned they were unable to verify that any buses experienced at any time been acquired.
Stemmet also verified that the buses had been concealed to halt them getting seized. But if the investigators asked for being taken to your put where the buses were saved, he explained to them that “the operator of The key site was not available to open up the premises for us”.
“The CTMCA could not supply proof of payment for 2 autos that it allegedly bought with grant money,” the investigators described.
Soeker also advised them the Schaapkraal home were sold as a result of financial debt.
“Mr Soeker stated that In keeping with his comprehension, because of the personal debt owed to the City of Cape Town, the CTMCA resolved It might be most effective to sell their [Schaapkraal] house … and also to also to cover the property of your CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for safety and safety, has previously advised GroundUp the CTMCA “threw funds away” on litigation with the town.
“Each year like clockwork, as we technique the tip in the yr, the CTMCA picks a legal combat with town, about permits or something else. We under no circumstances initiate it. They preserve throwing revenue away on vexatious litigation they eliminate and have prices awarded in opposition to them. This is completely self-inflicted,” he claimed.
Soeker explained to the Dabishi Nthambeleni investigators that the primary purpose gamers on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were accountable for the many admin, finances and managing สลาก กิน the CTMCA.” The investigators stated they had been unable to Speak to Momberg.
Hats
Through their “investigation in loco” at the Primrose Park premises, the investigators “found numerous equipment, some in fantastic affliction, some in terrible problem and a few that appeared rusty and very old”. Stemmet instructed the investigators that there was also an off-web site storage facility where “devices and a few equipment” were retained.
“We questioned him to get us to the power but he was evasive to our ask for.”
Depending on shots and invoices in GroundUp’s possession, some, Otherwise all, from the objects look like machines which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with expenses for this elimination.
Based on the ultimate progress report submitted for the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were administrators at time.
The investigators discovered this “alarming”.
“From the CIPC research of Martin-Conne Milliners along with the invoices submitted, we note the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered deal with of the corporation is 5 Crete Street, Wetton, Cape City, the same deal with on which the museum was intended to be built and/or converted,” they noted.
An audit by accountants Kopano Integrated, connected to your investigative report, recorded which the CTMCA was in the whole process of purchasing “equipment, plant and inventory” 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 certainly one of the directors.
In accordance with Dabishi Nthambeleni, the organization has paid R1.2-million as being a deposit, which means R6.9-million remains owed, however there is absolutely no payment date set for when this needs to be paid out.
The Kopano audit as well as close backlink in between the companies “suggest to us that there is ‘foul Engage in’ involved with the acquisition from the machinery of your museum workshop”, the investigators explained from the report.
“We find that it's extremely probable that CTMCA employed the funding on the NLC to ‘refund’ considered one of its most important administrators with the house at an increased overpriced rate than the particular rate and price of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant towards the CTMCA were expended.
“The truth is, a detailed report on how the funding of your NLC was utilised, could be not possible as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts expended on Each and every product it requested funding for. The interim report and last report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators located which the NLC experienced not performed a internet site stop by before approving the grant. But this was not typical observe at enough time plus they found no proof of carelessness by NLC staff members.
At enough time, the NLC’s rules did not need funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was in the position to get a second tranche of funding while not having to present proof that it experienced utilized the first tranche for its meant objective.
Next the appointment of a whole new board, commissioner and senior govt crew, the NLC has tightened up on these along with other difficulties.
Dabishi Nthambeleni recommended that
the NLC decline any foreseeable future funding apps with the CTMCA;
the CTMCA and any customers who ended up linked to the grant be subjected to your NLC’s “delinquency” system;
the NLC open up a criminal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather then act about the report’s tips, the NLC – beneath its previous administration – chose to suppress it, mainly because it had performed With all the previous reviews into corruption it experienced commissioned.
GroundUp sent queries to Stemmet and Soeker by means of SMS, and requested for email 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