Minstrels accomplish in Athlone on 2 January 2017. Archive Image: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.3-million grant by 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 did not use the R5-million allocated to obtain or establish a museum.
In addition they observed that the CTMCA only acquired land worthy of R1.7-million, not R5-million as allotted.
They located the CTMCA employed resources with the Lottery to buy workshop equipment 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 National Lotteries Commission (NLC) to create a museum to rejoice the town’s loaded minstrel history went astray. The museum was in no way made.
The main points of your abuse of countless rands of Lottery funds for a museum that by no means was are exposed within an investigative report commissioned because of the NLC in 2021.
The museum grant was Component of in excess of R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.
The first Component of the investigation, by law organization Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.3-million grant on the 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 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 “really existed”.
The firm was also instructed to analyze
the purchase with Lottery resources of two cars – a 60-seater bus and a 23-seater bus – for R2.4-million; and
various devices “bought with the manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of many administrators of your organisation. Stemmet was reappointed as a director in Could 2021.
The investigation followed intensive reporting by GroundUp concerning the numerous rands of Lottery funding allocated to the CTMCA (see here, here and in this article) and how the money almost certainly helped finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at the time by Marius Fransman.
The making on the correct was the meant internet site of the minstrels’ museum, in the midst of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph
In reaction to a Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - involving 2012 and 2015. All a few jobs were done, she told MPs.
Nevertheless the investigators identified no proof that a museum had at any time existed.
At the beginning the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photo obtained by GroundUp of the meant Wetton museum reveals a coffee shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung about the walls, along with a design ship on its plinth inside of a corner.
In its report, Dabishi Nthambeleni said it absolutely was “not able” to substantiate if a museum had at any time operated from these premises.
Stemmet instructed the investigators the museum were moved mainly because they could not afford to pay for the rent of R100,000 per month. He stated the CTMCA had ordered assets for R1.seven-million in Schaapkraal for the museum, but could not get it rezoned, and had been sold for a similar price. Schaapkraal is inside a peri-urban region far from town.
Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But soon after checking out the premises, that happen to be within an industrial spot, the investigators stated they doubted whether or not a suitable museum existed there. Pictures connected into the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the ground, without having rationalization.
“There's a nominal number of merchandise within the museum [that] in no way signify the over 100-calendar year heritage with the Cape Town Carnival, the investigators stated, introducing that there was “no signage exterior the premises indicating that they housed a museum and … frequently, the museum isn't going to search to be open to the general public.”
The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by shifting The placement of the museum to an alternate site with out notifying the NLC.
The Schaapkraal residence, on which no museum was at any time built. Photo: Raymond Joseph
Buses
Stemmet informed the investigators the CTMCA had to move from your rented Crete Street premises since it had operate up a R4-million personal debt with town of Cape Town and was scared its products can be attached.
“As a result of legal battles as well as debts, the organisation experienced to move its residence from 5 Crete Highway to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.
Sedrick Soeker, The existing director from the CTMCA, instructed them that the two buses purchased with lottery cash were stored in a very magic formula spot “concealed from the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses experienced at any time been acquired.
Stemmet also verified the buses had been hidden to stop them being seized. But when the investigators questioned to generally be taken to your location wherever the buses were being stored, he informed them that “the proprietor of The key site wasn't accessible 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 documented.
Soeker also advised them the Schaapkraal assets were offered as a result of credit card debt.
“Mr Soeker described that As outlined by his knowledge, due to financial debt owed to town of Cape Town, the CTMCA decided It could be very best to provide their [Schaapkraal] home … also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the house.”
JP Smith, Cape City’s mayco member for protection and security, has Formerly instructed GroundUp which the CTMCA “threw cash away” on litigation with the City.
“Each and every year like clockwork, as we solution the top with the 12 months, the CTMCA picks a lawful fight with the City, over permits or another thing. We never initiate it. They keep throwing revenue absent on vexatious litigation they shed and have prices awarded from them. That is completely self-inflicted,” he said.
Soeker instructed the Dabishi Nthambeleni investigators that the most crucial position players on issues of Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing cat888 the CTMCA.” The investigators claimed they had been struggling to Make contact with Momberg.
Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in superior problem, some in lousy problem and many that appeared rusty and extremely old”. Stemmet advised the investigators that there was also an off-web page storage facility exactly where “instruments and a few machinery” had been held.
“We asked him to choose us to the power but he was evasive to our ask for.”
Based upon pics and invoices in GroundUp’s possession, some, if not all, in the products appear to be machines which was illegally removed from the CTMCA’s former premises. Stemmet is experiencing expenses for this removal.
Based on the last development report submitted towards the NLC via the CTMCA, the machinery was procured from Martin-Conne Milliners, a business wherein Stemmet, his wife and his daughter have been administrators at the time.
The investigators identified this “alarming”.
“With the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Notice the subsequent alarming getting: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the organization is 5 Crete Highway, Wetton, Cape City, the exact same tackle on which the museum was intended to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected for the investigative report, recorded that the CTMCA was in the entire process of acquiring “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the directors.
In accordance with Dabishi Nthambeleni, the company has paid out R1.2-million for a deposit, which means R6.nine-million remains owed, although there is no payment day established for when this should be paid.
The Kopano audit as well as the close connection among the companies “point out to us that there is ‘foul Enjoy’ linked to the acquisition from the machinery in the museum workshop”, the investigators reported inside the report.
“We discover that it's highly probable that CTMCA employed the funding of your NLC to ‘refund’ considered one of its main directors to the house at a higher overpriced charge than the actual value and value of the assets and/or machinery.”
Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant on the CTMCA had been put in.
“In point of fact, an in depth report on how the funding of the NLC was applied, could be impossible as being the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts put in on Each individual item it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered that the NLC had not carried out a web-site visit prior to approving the grant. But this wasn't conventional observe at enough time and so they identified no evidence of carelessness by NLC staff.
At the time, the NLC’s regulations did not need funded organisations to post proof of payment with interim stories, they pointed out. This meant which the CTMCA was in the position to receive a 2nd tranche of funding without needing to provide proof that it experienced utilized the 1st tranche for its supposed objective.
Adhering to the appointment of a completely new board, commissioner and senior executive team, the NLC has tightened up on these together with other challenges.
Dabishi Nthambeleni proposed that
the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected to the NLC’s “delinquency” system;
the NLC open a criminal scenario 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 around the report’s suggestions, the NLC – under its earlier administration – selected to suppress it, mainly because it had completed with the prior studies into corruption it experienced commissioned.
GroundUp despatched issues to Stemmet and Soeker by using SMS, and questioned for electronic mail addresses to mail the questions by email too. But no reaction were gained at enough time of publication.
The minstrel “museum” in Crete Street, Wetton. Photo: Raymond Joseph