Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or make a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They discovered the CTMCA used cash from your Lottery to purchase workshop products from among its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s loaded minstrel history went astray. The museum was never ever made.
The main points of your abuse of millions of rands of Lottery resources for just a museum that hardly ever was are disclosed within an investigative report commissioned with the NLC in 2021.
The museum grant was Portion of greater than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.
The initial part of the investigation, by legislation business Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant into the CTMCA in 2014, which integrated funding for that museum. The approved price range for that museum was much more than R12.eight-million, with R5-million of that allotted for a building to house the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the constructing to the museum and whether the museum “actually existed”.
The business was also instructed to research
the purchase with Lottery resources of two autos – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
various devices “purchased to the producing in the costumes and hats” with the minstrels carnival, for R5.4-million.
At enough time, convicted prison Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of numerous directors on the organisation. Stemmet was reappointed to be a director in Might 2021.
The investigation followed substantial reporting by GroundUp about the countless rands of Lottery funding allocated to the CTMCA (see here, in this article and below) and the best way the money most likely served finance the ANC’s 2014 election campaign within the Western Cape, led by at some time by Marius Fransman.
The constructing on the proper was the intended website with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photo: Raymond Joseph
In response to your Parliamentary question, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - including the museum - among 2012 and 2015. All 3 assignments were concluded, she explained to MPs.
But the investigators discovered no evidence that a museum experienced at any time existed.
To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp in the supposed Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung around the partitions, plus a product ship on its plinth in the corner.
In its report, Dabishi Nthambeleni stated it had been “not ready” to confirm if a museum experienced at any time operated from these premises.
Stemmet told the investigators the museum had been moved mainly because they could no longer manage the hire of R100,000 per month. He reported the CTMCA experienced purchased assets for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is inside a peri-urban region far from town.
Due to this fact, the museum had been moved to a different area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after viewing the premises, which are within an industrial spot, the investigators mentioned they doubted no matter whether a correct museum existed there. Images attached to your report present a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the floor, without any clarification.
“There is a minimum quantity of goods at the museum [that] by no means characterize the over 100-year record with the Cape Town Carnival, the investigators stated, introducing that there was “no signage exterior the premises indicating that they housed a museum and … commonly, the museum will not look being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement with the museum to an alternative area without the need of notifying the NLC.
The Schaapkraal home, on which no museum was ever created. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver with the rented Crete Highway premises as it experienced run up a R4-million financial debt with the City of Cape City and was worried its machines could well be connected.
“A result of the authorized battles and also the debts, the organisation experienced to move its assets from 5 Crete Highway to stay away from the sheriff from attaching the home of your organisation,” Stemmet advised the investigators.
Sedrick Soeker, the current director on the CTMCA, told them the two buses acquired with lottery resources have been saved in a key site “concealed in the Sheriff”. Even so the investigators reported they were unable to confirm that any buses experienced at any time been purchased.
Stemmet also confirmed the buses had been concealed to halt them remaining seized. But in the event the investigators questioned to get taken on the area in which the buses had been saved, he instructed them that “the owner of The trick spot was not accessible to open the premises for us”.
“The CTMCA could not provide evidence of payment for 2 autos that it allegedly bought with grant dollars,” the investigators noted.
Soeker also instructed them the Schaapkraal property had been marketed because of the financial debt.
“Mr Soeker spelled out that In accordance with his knowledge, because of the financial debt owed to the City of Cape Town, the CTMCA made the decision It might be ideal to market their [Schaapkraal] house … and also to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw funds absent” on litigation with the town.
“Each year like clockwork, as we solution the end of your yr, the CTMCA picks a lawful fight with the town, around permits or something else. We under no circumstances initiate it. They maintain throwing dollars absent on vexatious litigation that they drop and also have prices awarded against them. That is fully self-inflicted,” he claimed.
Soeker explained to the Dabishi Nthambeleni investigators that the main role gamers on problems with Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who had been in control of all of the admin, funds and managing ผล หวย the CTMCA.” The investigators stated they had been unable to Get in touch with Momberg.
Hats
In the course of their “investigation in loco” on the Primrose Park premises, the investigators “identified many machines, some in superior affliction, some in undesirable problem and some that appeared rusty and extremely aged”. Stemmet advised the investigators that there was also an off-site storage facility wherever “instruments and several equipment” had been retained.
“We questioned him to get us to the power but he was evasive to our ask for.”
According to images and invoices in GroundUp’s possession, some, Otherwise all, of your items appear to be tools that was illegally removed from the CTMCA’s earlier premises. Stemmet is going through fees for this elimination.
Based on the last progress report submitted to the NLC by the CTMCA, the equipment was ordered from Martin-Conne Milliners, an organization wherein Stemmet, his wife and his daughter have been administrators at some time.
The investigators discovered this “alarming”.
“With the CIPC look for of Martin-Conne Milliners and also the invoices submitted, we Notice the next alarming acquiring: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered handle of the company is five Crete Highway, Wetton, Cape City, precisely the same deal with on which the museum was intended to be built and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, attached into the investigative report, recorded the CTMCA was in the process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.
In accordance with Dabishi Nthambeleni, the corporation has paid R1.2-million to be a deposit, which means R6.9-million remains to be owed, nevertheless there's no payment date set for when this need to be compensated.
The Kopano audit and the shut link in between the companies “indicate to us that there is ‘foul Participate in’ linked to the acquisition on the machinery from the museum workshop”, the investigators said in the report.
“We discover that it is really possible that CTMCA utilized the funding of the NLC to ‘refund’ considered one of its major administrators to the property at an increased overpriced price than the particular price and worth of the residence and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it had been not able to determine how the grant for the CTMCA had been expended.
“In reality, a detailed report on how the funding in the NLC was utilised, might be impossible because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities expended on Just about every merchandise it requested funding for. The interim report and final report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators observed the NLC had not executed a website check out before approving the grant. But this was not regular follow at time plus they uncovered no proof of carelessness by NLC personnel.
At time, the NLC’s policies did not call for funded organisations to submit proof of payment with interim reports, they identified. This intended that the CTMCA was capable to receive a second tranche of funding without having to offer evidence that it experienced utilised the very first tranche for its supposed function.
Subsequent the appointment of a fresh board, commissioner and senior govt staff, the NLC has tightened up on these as well as other troubles.
Dabishi Nthambeleni proposed that
the NLC drop any upcoming funding purposes within the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a legal circumstance of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC start out the entire process of recovering the misappropriated funds.
But, in lieu of act about the report’s tips, the NLC – beneath its past administration – selected to suppress it, as it had accomplished With all the past reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to deliver the queries by e-mail far too. But no response had been been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph