Minstrels perform in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks
A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the Countrywide Lotteries Fee to your Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has uncovered no evidence that a museum ever existed.
The investigators found which the CTMCA didn't utilize the R5-million allotted to order or develop a museum.
In addition they discovered the CTMCA only purchased land worthy of R1.seven-million, not R5-million as allocated.
They observed the CTMCA utilized cash from the Lottery to get workshop tools from amongst its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Fee (NLC) to put in place a museum to rejoice the town’s prosperous minstrel heritage went astray. The museum was by no means produced.
The small print with the abuse of countless rands of Lottery funds for a museum that by no means was are unveiled in an investigative report commissioned via the NLC in 2021.
The museum grant was Section of over R64-million in Lottery resources allotted to the CTMCA amongst 2003 and 2017.
The initial part of the investigation, by law firm Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.three-million grant for the CTMCA in 2014, which incorporated funding for the museum. The accepted budget for the museum was more than R12.eight-million, with R5-million of that allotted for your constructing to deal with the museum.
Browse the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to investigate the purchase of the constructing to the museum and if the museum “actually existed”.
The business was also instructed to analyze
the purchase with Lottery resources of two automobiles – a sixty-seater bus and a 23-seater bus – for R2.four-million; and
several machines “procured for the production of your costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators of your organisation. Stemmet was reappointed like a director in Might 2021.
The investigation followed extensive reporting by GroundUp with regards to the millions of rands of Lottery funding allotted for the CTMCA (see right here, right here and listed here) and the way the cash almost certainly helped finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.
The creating on the ideal was the meant site of your minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In reaction to some Parliamentary concern, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “initiatives” - such as the museum - between 2012 and 2015. All a few assignments had been accomplished, she advised MPs.
Though the investigators found no evidence that a museum had at any time existed.
Initially the museum was due to open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp in the meant Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of photographs haphazardly hung over the partitions, in addition to a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni mentioned it had been “not able” to confirm if a museum experienced at any time operated from these premises.
Stemmet explained to the investigators the museum had been moved because they could not afford the hire of R100,000 per month. He said the CTMCA had obtained assets for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were bought for a similar price. Schaapkraal is inside a peri-city space far from town.
Therefore, the museum were moved to a whole new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But soon after visiting the premises, which happen to be within an industrial region, the investigators explained they doubted no matter if a proper museum existed there. Pictures attached for the report exhibit a mishmash of randomly displayed uniforms, musical devices and various minstrel paraphernalia nailed for the wall, displayed on tables and spread out on the floor, without explanation.
“There's a negligible volume of products for the museum [that] in no way characterize the more than 100-yr historical past with the Cape City Carnival, the investigators explained, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum does not search to get open to the public.”
The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by shifting The placement with the museum to another locale with out notifying the NLC.
The Schaapkraal property, on which no museum was ever developed. Image: Raymond Joseph
Buses
Stemmet advised the investigators which the CTMCA had to move with the rented Crete Street premises because it had operate up a R4-million financial debt with town of Cape City and was scared its machines would be attached.
“A result of the authorized battles and the debts, the organisation had to move its assets from five Crete Street to steer clear of the sheriff from attaching the assets of your organisation,” Stemmet told the investigators.
Sedrick Soeker, The existing director of your CTMCA, instructed them the two buses bought with lottery cash ended up stored in a solution place “concealed from your Sheriff”. Even so the investigators mentioned they had been not able to confirm that any buses experienced at any time been bought.
Stemmet also confirmed which the buses had been hidden to prevent them getting seized. But in the event the investigators asked being taken to the spot wherever the buses had been stored, he advised them that “the proprietor of The key site wasn't available to open up the premises for us”.
“The CTMCA couldn't deliver evidence of payment for 2 cars that it allegedly procured with grant money,” the investigators noted.
Soeker also informed them the Schaapkraal house had been marketed due to the debt.
“Mr Soeker defined that As outlined by his comprehension, a result of the debt owed to the City of Cape Town, the CTMCA resolved It might be finest to provide their [Schaapkraal] property … and to also to hide the assets in the CTMCA to stay away from the sheriff from attaching the house.”
JP Smith, Cape Town’s mayco member for security and security, has Beforehand explained to GroundUp which the CTMCA “threw money absent” on litigation with town.
“On a yearly basis like clockwork, as we method the end of your 12 months, the CTMCA picks a legal combat with the City, about permits or something else. We hardly ever initiate it. They preserve throwing revenue away on vexatious litigation they lose and also have costs awarded in opposition to them. This is often completely self-inflicted,” he explained.
Soeker explained to the Dabishi Nthambeleni investigators that the primary position players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who have been answerable for each of the admin, finances and working หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators mentioned they were unable to Get hold of Momberg.
Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “discovered a lot of equipment, some in superior condition, some in bad situation and several that looked rusty and intensely outdated”. Stemmet informed the investigators that there was also an off-internet site storage facility the place “devices and many machinery” ended up stored.
“We questioned him to consider us to the ability but he was evasive to our request.”
Dependant on images and invoices in GroundUp’s possession, some, Otherwise all, from the products seem like devices that was illegally removed from the CTMCA’s past premises. Stemmet is dealing with prices for this removing.
In accordance with the final progress report submitted to the NLC because of the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were being administrators at enough time.
The investigators uncovered this “alarming”.
“From your CIPC search of Martin-Conne Milliners along with the invoices submitted, we Take note the subsequent alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is 5 Crete Highway, Wetton, Cape Town, precisely the same handle on which the museum was intended to be designed and/or converted,” they reported.
An audit by accountants Kopano Included, attached to your investigative report, recorded the CTMCA was in the entire process of acquiring “equipment, plant and stock” 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 directors.
In line with Dabishi Nthambeleni, the business has paid out R1.2-million as being a deposit, which means R6.nine-million is still owed, although there is absolutely no payment date established for when this need to be paid.
The Kopano audit as well as the shut connection involving the companies “indicate to us that there's ‘foul play’ linked to the purchase from the equipment in the museum workshop”, the investigators stated during the report.
“We find that it is highly probable that CTMCA made use of the funding from the NLC to ‘refund’ certainly one of its key administrators for the home at a better overpriced charge than the actual cost and value of the house and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant to the CTMCA were used.
“In point of fact, a detailed report on how the funding with the NLC was utilised, will be extremely hard because the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts invested on each merchandise it asked for funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators found that the NLC had not performed a web page go to ahead of approving the grant. But this was not common observe at some time and they discovered no evidence of negligence by NLC workers.
At time, the NLC’s principles did not call for funded organisations to submit evidence of payment with interim studies, they identified. This meant that the CTMCA was ready to get a second tranche of funding without having to offer proof that it experienced utilized the main tranche for its meant intent.
Subsequent the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these together with other troubles.
Dabishi Nthambeleni proposed that
the NLC decline any long run funding apps from the CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected to your NLC’s “delinquency” course of action;
the NLC open a criminal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated funds.
But, rather then act to the report’s recommendations, the NLC – underneath its earlier administration – selected to suppress it, as it had finished Along with the previous studies into corruption it experienced commissioned.
GroundUp despatched questions to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send out the thoughts by email as well. But no response were been given at some time of publication.
The minstrel “museum” in Crete Street, Wetton. Photograph: Raymond Joseph