Minstrels carry out in Athlone on two January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant because of the Countrywide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators identified which the CTMCA did not utilize the R5-million allocated to get or create a museum.
In addition they observed that the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They uncovered the CTMCA employed cash from your Lottery to invest in workshop machines from one among its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) from the National Lotteries Fee (NLC) to arrange a museum to rejoice the town’s loaded minstrel history went astray. The museum was under no circumstances designed.
The small print of your abuse of countless rands of Lottery funds for just a museum that in no way was are discovered in an investigative report commissioned with the NLC in 2021.
The museum grant was Component of over R64-million in Lottery cash allocated for the CTMCA amongst 2003 and 2017.
The primary Portion of the investigation, by law business Dabishi Nthambeleni, was performed among September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which involved funding for the museum. The approved price range to the museum was over R12.eight-million, with R5-million of that allocated for the setting up to house the museum.
Study the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to research the acquisition of the building for your museum and if the museum “truly existed”.
The firm was also instructed to research
the purchase with Lottery funds of two motor vehicles – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
many machines “procured for the manufacturing in the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of directors in the organisation. Stemmet was reappointed for a director in May well 2021.
The investigation followed comprehensive reporting by GroundUp about the millions of rands of Lottery funding allocated to the CTMCA (see here, in this article and below) and the way in which the funds most likely assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.
The developing on the best was the intended web site on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Photo: Raymond Joseph
In response to the Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “assignments” - including the museum - involving 2012 and 2015. All 3 jobs were done, she told MPs.
Even so the investigators observed no proof that a museum experienced ever existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp of the intended Wetton museum shows a espresso store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung to the walls, along with a design ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni claimed it had been “not ready” to substantiate if a museum had ever operated from these premises.
Stemmet advised the investigators the museum had been moved because they could now not pay for the rent of R100,000 per month. He mentioned the CTMCA had bought house for R1.7-million in Schaapkraal for your museum, but could not get it rezoned, and were bought for the same value. Schaapkraal is in a very peri-city spot considerably from town.
Subsequently, the museum were moved to a new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which can be within an industrial area, the investigators explained they doubted regardless of whether a correct museum existed there. Pics connected into the report exhibit a mishmash of randomly shown uniforms, musical devices and diverse minstrel paraphernalia nailed into the wall, exhibited on tables and distribute out on the floor, with no explanation.
“There exists a minimum level of products in the museum [that] by no means characterize the more than a hundred-year history on the Cape Town Carnival, the investigators said, including that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum does not look to become open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by shifting the location on the museum to another site without having notifying the NLC.
The Schaapkraal home, on which no museum was at any time created. Photo: Raymond Joseph
Buses
Stemmet told the investigators that the CTMCA had to maneuver within the rented Crete Street premises because it experienced operate up a R4-million credit card debt with the City of Cape City and was afraid its equipment could well be attached.
“Because of the authorized battles along with the debts, the organisation had to move its residence from five Crete Road to stay away from the sheriff from attaching the assets with the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, the current director of the CTMCA, advised them the two buses purchased with lottery money had been stored inside a secret location “concealed through the Sheriff”. But the investigators mentioned they were being not able to confirm that any buses experienced ever been acquired.
Stemmet also confirmed the buses had been hidden to halt them getting seized. But once the investigators questioned to become taken to the position exactly where the buses were being saved, he advised them that “the operator of The trick place was not available to open up the premises for us”.
“The CTMCA couldn't provide proof of payment for 2 automobiles that it allegedly ordered with grant money,” the investigators described.
Soeker also advised them the Schaapkraal house had been offered due to the credit card debt.
“Mr Soeker discussed that according to his understanding, because of the credit card debt owed to the town of Cape Town, the CTMCA resolved It could be greatest to sell their [Schaapkraal] assets … and also to also to cover the belongings from the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for security and security, has Earlier advised GroundUp which the CTMCA “threw funds absent” on litigation with town.
“Annually like clockwork, as we strategy the tip of the yr, the CTMCA picks a authorized battle with the City, over permits or something else. We by no means initiate it. They maintain throwing cash absent on vexatious litigation which they eliminate and also have fees awarded against them. This is fully self-inflicted,” he claimed.
Soeker explained to the Dabishi Nthambeleni investigators that the most crucial part gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of every one of the admin, finances and managing ตรวจ หวย ล่าสุด the CTMCA.” The investigators stated they were unable to Speak to Momberg.
Hats
All through their “investigation in loco” in the Primrose Park premises, the investigators “identified several devices, some in excellent issue, some in undesirable affliction and many that seemed rusty and extremely old”. Stemmet informed the investigators that there was also an off-web site storage facility exactly where “devices and a few equipment” have been kept.
“We requested him to consider us to the power but he was evasive to our request.”
Based upon pictures and invoices in GroundUp’s possession, some, Otherwise all, of the objects look like equipment that was illegally faraway from the CTMCA’s previous premises. Stemmet is experiencing costs for this elimination.
In accordance with the ultimate development report submitted into the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter ended up administrators at enough time.
The investigators located this “alarming”.
“With the CIPC lookup of Martin-Conne Milliners as well as the invoices submitted, we note the subsequent alarming locating: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the organization is five Crete Highway, Wetton, Cape Town, a similar address on which the museum was intended to be designed and/or transformed,” they documented.
An audit by accountants Kopano Included, hooked up on the investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.
In accordance with Dabishi Nthambeleni, the business has paid out R1.2-million like a deposit, that means R6.9-million continues to be owed, even though there is absolutely no payment day set for when this should be compensated.
The Kopano audit as well as the close backlink among the businesses “show to us that there's ‘foul Participate in’ associated with the purchase of your machinery with the museum workshop”, the investigators stated during the report.
“We find that it is remarkably possible that CTMCA utilized the funding with the NLC to ‘refund’ among its most important administrators with the home at a greater overpriced fee than the actual value and worth of the home and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been used.
“In point of fact, a detailed report on how the funding on the NLC was utilised, will be not possible as the CTMCA doesn't have any receipts, or proof of payments to verify the amounts put in on Every single product it requested funding for. The interim report and closing report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not executed a website take a look at before approving the grant. But this was not common observe at time and so they located no proof of negligence by NLC staff.
At enough time, the NLC’s policies did not need funded organisations to post evidence of payment with interim studies, they pointed out. This intended the CTMCA was capable to receive a next tranche of funding while not having to give proof that it experienced utilised the very first tranche for its supposed objective.
Pursuing the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni advised that
the NLC drop any future funding programs through the CTMCA;
the CTMCA and any users who were associated with the grant be subjected on the NLC’s “delinquency” course of action;
the NLC open up a legal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as an alternative to act about the report’s recommendations, the NLC – below its previous administration – selected to suppress it, as it had carried out with the previous studies into corruption it had commissioned.
GroundUp despatched thoughts to Stemmet and Soeker through SMS, and questioned for email addresses to deliver the issues by email way too. But no reaction were been given at some time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph