Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to buy or build a museum.
In addition they observed the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA employed funds with the Lottery to get workshop equipment from amongst its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) because of the Countrywide Lotteries Fee (NLC) to create a museum to celebrate the town’s abundant minstrel record went astray. The museum was in no way designed.
The small print with the abuse of a lot of 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 Portion of over R64-million in Lottery resources allocated for the CTMCA in between 2003 and 2017.
The first Component of the investigation, by regulation agency Dabishi Nthambeleni, was conducted between September 2020 and January 2021 and centered on a R27.3-million grant towards the CTMCA in 2014, which integrated funding with the museum. The accredited spending budget for that museum was greater than R12.8-million, with R5-million of that allotted for your setting up to accommodate the museum.
Go through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a constructing for that museum and whether the museum “truly existed”.
The company was also instructed to analyze
the purchase with Lottery resources of two vehicles – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
several equipment “ordered for your manufacturing with the costumes and hats” with the minstrels carnival, for R5.four-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of numerous administrators of your organisation. Stemmet was reappointed to be a director in May well 2021.
The investigation followed in depth reporting by GroundUp regarding the an incredible number of rands of Lottery funding allocated to your CTMCA (see below, right here and in this article) and the way the cash possibly served finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at enough time by Marius Fransman.
The making on the proper was the intended web-site of your minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph
In response to some Parliamentary question, former NLC Commissioner Thabang Mampane mentioned grants to a few CTMCA “jobs” - including the museum - involving 2012 and 2015. All three jobs had been done, she advised MPs.
However the investigators uncovered no evidence that a museum had ever existed.
At the outset the museum was due to open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp of the meant Wetton museum displays a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung within the partitions, plus a model ship on its plinth in the corner.
In its report, Dabishi Nthambeleni mentioned it absolutely was “not in a position” to verify if a museum experienced at any time operated from these premises.
Stemmet informed the investigators the museum were moved since they could no more afford to pay for the rent of R100,000 a month. He mentioned the CTMCA experienced ordered assets for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and were bought for a similar rate. Schaapkraal is inside of a peri-city place considerably from the town.
Due to this fact, the museum had been moved to a whole new area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But after visiting the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter if a correct museum existed there. Pics attached on the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, displayed on tables and unfold out on the floor, without rationalization.
“You will find there's minimal level of objects with the museum [that] under no circumstances characterize the in excess of one hundred-yr background from the Cape Town Carnival, the investigators explained, introducing that there was “no signage outside the premises indicating that they housed a museum and … frequently, the museum isn't going to appear to generally be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by transferring the location on the museum to another place devoid of notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Picture: Raymond Joseph
Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver within the rented Crete Highway premises mainly because it experienced operate up a R4-million credit card debt with the town of Cape Town and was frightened its gear could be attached.
“Because of the lawful battles plus the debts, the organisation had to maneuver its residence from 5 Crete Highway to stay away from the sheriff from attaching the property of the organisation,” Stemmet told the investigators.
Sedrick Soeker, the current director with the CTMCA, explained to them which the two buses purchased with lottery money had been saved in a very top secret locale “concealed through the Sheriff”. Although the investigators explained they were not able to confirm that any buses experienced ever been acquired.
Stemmet also confirmed which the buses were concealed to stop them staying seized. But once the investigators requested to generally be taken to your location the place the buses were stored, he told them that “the proprietor of The key spot wasn't accessible to open the premises for us”.
“The CTMCA could not supply proof of payment for two cars that it allegedly procured with grant funds,” the investigators documented.
Soeker also advised them the Schaapkraal residence were bought due to personal debt.
“Mr Soeker discussed that In accordance with his comprehending, mainly because of the credit card debt owed to the town of Cape City, the CTMCA determined It might be very best to sell their [Schaapkraal] property … and to also to hide the property of the CTMCA to stay away from the sheriff from attaching the residence.”
JP Smith, Cape City’s mayco member for security and protection, has previously explained to GroundUp the CTMCA “threw funds absent” on litigation with the City.
“Yearly like clockwork, as we strategy the tip from the yr, the CTMCA picks a authorized battle with the town, around permits or another thing. We in no way initiate it. They hold throwing income away on vexatious litigation that they drop and have expenditures awarded against them. That is completely self-inflicted,” he explained.
Soeker told the Dabishi Nthambeleni investigators that the main position gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who had been in charge of the many admin, funds and running หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators claimed they had been not able to contact Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered a lot of equipment, some in good situation, some in terrible condition and a few that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-web site storage facility in which “instruments and a few machinery” have been stored.
“We asked him to acquire us to the ability but he was evasive to our request.”
Based on photos and invoices in GroundUp’s possession, some, Otherwise all, on the objects appear to be devices which was illegally removed from the CTMCA’s prior premises. Stemmet is struggling with costs for this removing.
According to the last progress report submitted into the NLC through the CTMCA, the machinery was acquired from Martin-Conne Milliners, a firm wherein Stemmet, his spouse and his daughter ended up directors at time.
The investigators identified this “alarming”.
“From your 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 deal with of the corporation is 5 Crete Road, Wetton, Cape Town, the identical handle on which the museum was intended to be developed and/or transformed,” they noted.
An audit by accountants Kopano Integrated, connected into the investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.
In line with Dabishi Nthambeleni, the corporate has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, though there isn't any payment day set for when this must be paid out.
The Kopano audit and also the near hyperlink concerning the companies “point out to us that there's ‘foul Perform’ involved with the acquisition from the machinery with the museum workshop”, the investigators said while in the report.
“We discover that it is hugely probable that CTMCA applied the funding of your NLC to ‘refund’ certainly one of its primary directors for your home at a greater overpriced price than the actual rate and price of the residence and/or machinery.”
Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant towards the CTMCA were invested.
“In fact, an in depth report on how the funding in the NLC was used, could well be extremely hard because the CTMCA does not have any receipts, or evidence of payments to confirm the amounts expended on Every single product it asked for funding for. The interim report and final report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not conducted a internet site stop by before approving the grant. But this wasn't conventional observe at some time plus they identified no evidence of carelessness by NLC staff members.
At enough time, the NLC’s policies did not involve funded organisations to submit evidence of payment with interim studies, they pointed out. This meant which the CTMCA was capable to get a second tranche of funding without the need to supply evidence that it experienced utilised the first tranche for its meant reason.
Following the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni recommended that
the NLC decline any potential funding programs through the CTMCA;
the CTMCA and any associates who have been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act to the report’s recommendations, the NLC – underneath its prior administration – chose to suppress it, mainly because it had performed Using the past reports into corruption it had commissioned.
GroundUp sent issues to Stemmet and Soeker via SMS, and asked for email addresses to deliver the inquiries by e mail much too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph