Minstrels carry out in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the Countrywide Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has observed no evidence that a museum ever existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or make a museum.
Additionally they discovered which the CTMCA only purchased land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of cash in the Lottery to invest in workshop products from certainly one of its have directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted towards the Cape Town Minstrel Carnival Association (CTMCA) via the National Lotteries Commission (NLC) to create a museum to rejoice the town’s abundant minstrel record went astray. The museum was by no means developed.
The small print on the abuse of a lot of rands of Lottery cash for the museum that under no circumstances was are discovered in an investigative report commissioned from the NLC in 2021.
The museum grant was A part of more than R64-million in Lottery cash allocated into the CTMCA amongst 2003 and 2017.
The very first Element of the investigation, by legislation business Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which included funding to the museum. The authorised spending budget to the museum was much more than R12.eight-million, with R5-million of that allotted for just a building to deal with the museum.
Read the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the constructing to the museum and whether the museum “actually existed”.
The business was also instructed to analyze
the purchase with Lottery resources of two cars – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous equipment “bought with the manufacturing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous administrators with the organisation. Stemmet was reappointed as a director in Might 2021.
The investigation followed substantial reporting by GroundUp concerning the numerous rands of Lottery funding allocated towards the CTMCA (see right here, here and here) and just how the cash possibly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The setting up on the best was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Photograph: Raymond Joseph
In reaction to the Parliamentary query, former NLC Commissioner Thabang Mampane stated grants to 3 CTMCA “projects” - including the museum - amongst 2012 and 2015. All 3 initiatives were concluded, she explained to MPs.
But the investigators discovered no proof that a museum experienced at any time existed.
At the outset the museum was as a consequence of open up in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum reveals a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung within 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 informed the investigators the museum were moved since they could no more find the money for the lease of R100,000 a month. He explained the CTMCA experienced purchased property for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for the same price. Schaapkraal is in a very peri-urban area far from the town.
Consequently, the museum had been moved to a different location in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But immediately after visiting the premises, that happen to be in an industrial spot, the investigators claimed they doubted whether a suitable museum existed there. Pictures connected to the report exhibit a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and spread out on the floor, without any clarification.
“You will find a negligible amount of products on the museum [that] by no means depict the in excess of one hundred-yr background from the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outdoors the premises indicating which they housed a museum and … normally, the museum doesn't look being open to the public.”
The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni observed, by moving The placement of the museum to an alternate locale without having notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Photograph: Raymond Joseph
Buses
Stemmet advised the investigators the CTMCA experienced to move with the rented Crete Street premises as it experienced run up a R4-million financial debt with the City of Cape Town and was afraid its equipment would be hooked up.
“Mainly because of the lawful battles along with the debts, the organisation had to maneuver its house from 5 Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director in the CTMCA, told them the two buses acquired with lottery funds have been saved inside a solution location “hidden with the Sheriff”. But the investigators mentioned they ended up not able to substantiate that any buses experienced ever been purchased.
Stemmet also confirmed the buses had been hidden to halt them being seized. But when the investigators questioned to generally be taken into the put where by the buses ended up stored, he informed them that “the operator of The key place wasn't available to open up the premises for us”.
“The CTMCA could not offer proof of payment for two automobiles that it allegedly obtained with grant income,” the investigators described.
Soeker also instructed them the Schaapkraal residence had been offered because of the debt.
“Mr Soeker stated that according to his understanding, due to the credit card debt owed to the City of Cape City, the CTMCA made the decision it would be ideal to promote their [Schaapkraal] assets … and to also to cover the belongings in the CTMCA to steer clear of the sheriff from attaching the home.”
JP Smith, Cape Town’s mayco member for protection and security, has Formerly instructed GroundUp which the CTMCA “threw money away” on litigation with the City.
“Each and every year like clockwork, as we solution the top of the year, the CTMCA picks a legal fight with the City, over permits or another thing. We never initiate it. They maintain throwing cash absent on vexatious litigation they get rid of and have costs awarded versus them. This is often fully self-inflicted,” he mentioned.
Soeker told the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing ตรวจ สลาก the CTMCA.” The investigators said they were unable to contact Momberg.
Hats
All through their “investigation in loco” with the Primrose Park premises, the investigators “discovered a lot of machines, some in very good condition, some in undesirable condition and several that appeared rusty and intensely old”. Stemmet informed the investigators that there was also an off-web-site storage facility where “instruments and a few machinery” had been stored.
“We asked him to get us to the facility but he was evasive to our request.”
Based on pictures and invoices in GroundUp’s possession, some, Otherwise all, with the goods seem like tools which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with rates for this elimination.
According to the remaining progress report submitted into the NLC because of the CTMCA, the machinery was acquired from Martin-Conne Milliners, an organization where Stemmet, his wife and his daughter have been administrators at the time.
The investigators located this “alarming”.
“Within the CIPC search of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape Town, exactly the same address on which the museum was meant to be designed and/or transformed,” they documented.
An audit by accountants Kopano Incorporated, hooked up to your investigative report, recorded the CTMCA was in the process of paying for “machinery, 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 line with Dabishi Nthambeleni, the company has paid out R1.two-million as a deposit, that means R6.nine-million is still owed, even though there is not any payment date set for when this has to be paid out.
The Kopano audit plus the shut connection between the businesses “suggest to us that there's ‘foul Participate in’ linked to the acquisition on the machinery of the museum workshop”, the investigators said in the report.
“We discover that it is highly possible that CTMCA employed the funding of the NLC to ‘refund’ amongst its key directors for that home at the next overpriced charge than the particular cost and worth of the property and/or machinery.”
Suggestions
Dabishi Nthambeleni concluded that it absolutely was unable to ascertain how the grant to your CTMCA had been spent.
“In point of fact, an in depth report on how the funding from the NLC was used, could well be difficult since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities put in on Every product it requested funding for. The interim report and remaining report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not carried out a web page check out right before approving the grant. But this was not normal exercise at enough time plus they found no proof of carelessness by NLC employees.
At the time, the NLC’s policies did not demand funded organisations to submit evidence of payment with interim studies, they pointed out. This intended which the CTMCA was able to get a 2nd tranche of funding while not having to present proof that it experienced employed the 1st tranche for its intended reason.
Adhering to the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these along with other difficulties.
Dabishi Nthambeleni suggested that
the NLC decrease any long term funding apps in the CTMCA;
the CTMCA and any users who were associated with the grant be subjected to your NLC’s “delinquency” process;
the NLC open a criminal case of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated funds.
But, as opposed to act on the report’s tips, the NLC – below its former administration – chose to suppress it, as it had completed with the past studies into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker through SMS, and questioned for email addresses to ship the thoughts by e-mail far too. But no reaction were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Image: Raymond Joseph