Minstrels accomplish in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant via the National Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) to get a minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed which the CTMCA didn't make use of the R5-million allocated to order or make a museum.
Additionally they identified that the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied cash from your Lottery to purchase workshop machines from considered one of 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 Commission (NLC) to create a museum to celebrate the town’s abundant minstrel history went astray. The museum was in no way made.
The small print with the abuse of many rands of Lottery resources for just a museum that hardly ever was are disclosed in an investigative report commissioned through the NLC in 2021.
The museum grant was A part of over R64-million in Lottery resources allocated to the CTMCA concerning 2003 and 2017.
The 1st A part of the investigation, by regulation company Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.three-million grant to the CTMCA in 2014, which provided funding for your museum. The permitted spending budget for your museum was greater than R12.8-million, with R5-million of that allocated to get a constructing to house the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a developing for that museum and if the museum “truly existed”.
The agency was also instructed to research
the purchase with Lottery cash of two autos – a 60-seater bus plus a 23-seater bus – for R2.four-million; and
numerous machines “obtained to the producing with the costumes and hats” to the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of several administrators in the organisation. Stemmet was reappointed for a director in May possibly 2021.
The investigation adopted substantial reporting by GroundUp in regards to the millions of rands of Lottery funding allocated for the CTMCA (see here, below and here) and the way in which the funds likely served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.
The setting up on the ideal was the supposed internet site of the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Image: Raymond Joseph
In response to a Parliamentary question, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “jobs” - including the museum - amongst 2012 and 2015. All three assignments were completed, she explained to MPs.
Although the investigators discovered no proof that a museum had ever existed.
At first the museum was as a result of open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp with the intended Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of pics haphazardly hung to the walls, and a design ship on its plinth within a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet explained to the investigators the museum had been moved mainly because they could not find the money for the hire of R100,000 a month. He explained the CTMCA experienced purchased home for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar rate. Schaapkraal is inside a peri-urban region much from the city.
Because of this, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after going to the premises, that are within an industrial location, the investigators stated they doubted whether or not an appropriate museum existed there. Photographs hooked up for the report show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the ground, with no clarification.
“You will find a negligible level of goods within the museum [that] on no account represent the over 100-year history of the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating which they housed a museum and … commonly, the museum isn't going to appear to be open up to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternate site without having notifying the NLC.
The Schaapkraal residence, on which no museum was at any time constructed. Photograph: Raymond Joseph
Buses
Stemmet instructed the investigators which the CTMCA experienced to maneuver from the rented Crete Road premises since it had run up a R4-million debt with the City of Cape City and was afraid its equipment could be attached.
“Because of the lawful battles as well as debts, the organisation experienced to move its assets from five Crete Road to steer clear of the sheriff from attaching the house in the organisation,” Stemmet told the investigators.
Sedrick Soeker, The present director from the CTMCA, explained to them that the two buses purchased with lottery funds ended up saved within a top secret area “concealed from the Sheriff”. Even so the investigators reported they were unable to confirm that any buses had ever been bought.
Stemmet also confirmed that the buses had been concealed to halt them being seized. But when the investigators asked to be taken towards the location exactly where the buses had been saved, he instructed them that “the proprietor of the secret area wasn't available to open the premises for us”.
“The CTMCA couldn't present evidence of payment for two motor vehicles that it allegedly ordered with grant income,” the investigators noted.
Soeker also explained to them the Schaapkraal house were sold as a result of financial debt.
“Mr Soeker defined that In keeping with his understanding, because of the debt owed to the City of Cape City, the CTMCA resolved It might be very best to market their [Schaapkraal] home … also to also to hide the property of the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and stability, has Beforehand advised GroundUp which the CTMCA “threw cash away” on litigation with the town.
“Yearly like clockwork, as we tactic the end on the calendar year, the CTMCA picks a lawful struggle with town, above permits or something else. We in no way initiate it. They preserve throwing funds away on vexatious litigation they get rid of and also have fees awarded in opposition to them. This really is entirely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the leading function gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been answerable for every one of the admin, finances and operating หวย ไทยรัฐ the CTMCA.” The investigators said they had been not able to Get hold of Momberg.
Hats
In the course of their “investigation in loco” for the Primrose Park premises, the investigators “discovered quite a few devices, some in fantastic condition, some in negative issue plus some that appeared rusty and intensely outdated”. Stemmet explained to the investigators that there was also an off-website storage facility where “devices and several machinery” were kept.
“We questioned him to just take us to the ability but he was evasive to our request.”
Depending on photographs and invoices in GroundUp’s possession, some, if not all, of your goods seem like gear which was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with charges for this elimination.
In accordance with the final progress report submitted to your NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a company during which Stemmet, his spouse and his daughter were administrators at the time.
The investigators observed this “alarming”.
“From the CIPC search of Martin-Conne Milliners as well as invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be designed and/or transformed,” they noted.
An audit by accountants Kopano Integrated, attached into the investigative report, recorded that the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.
According to Dabishi Nthambeleni, the organization has paid R1.2-million being a deposit, indicating R6.9-million continues to be owed, even though there is absolutely no payment date established for when this has to be compensated.
The Kopano audit as well as close connection amongst the businesses “reveal to us that there's ‘foul play’ associated with the purchase of your machinery from the museum workshop”, the investigators claimed in the report.
“We find that it's highly probable that CTMCA utilized the funding in the NLC to ‘refund’ one among its key administrators with the residence at an increased overpriced level than the particular selling price and worth of the assets and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to determine how the grant to your CTMCA were put in.
“Actually, an in depth report on how the funding of the NLC was applied, could well be impossible given that the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended 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 located which the NLC experienced not executed a site go to just before approving the grant. But this was not regular practice at the time they usually observed no evidence of negligence by NLC workforce.
At enough time, the NLC’s principles didn't have to have funded organisations to submit evidence of payment with interim reviews, they identified. This meant which the CTMCA was capable of get a second tranche of funding without the need to supply evidence that it experienced employed the main tranche for its intended function.
Next the appointment of a fresh board, commissioner and senior govt workforce, the NLC has tightened up on these and also other difficulties.
Dabishi Nthambeleni proposed that
the NLC drop any future funding purposes from the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a criminal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, in lieu of act within the report’s tips, the NLC – below its past administration – chose to suppress it, because it experienced carried out Along with the previous studies into corruption it experienced commissioned.
GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and requested for e-mail addresses to send out the issues by electronic mail as well. But no response were been given at some time of publication.
The minstrel “museum” in Crete Highway, Wetton. Picture: Raymond Joseph