Minstrels accomplish in Athlone on two January 2017. Archive Image: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant via the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) for just a minstrels museum has observed no evidence that a museum ever existed.
The investigators observed which the CTMCA did not make use of the R5-million allotted to buy or develop a museum.
In addition they uncovered that the CTMCA only bought land well worth R1.7-million, not R5-million as allocated.
They identified the CTMCA utilised cash with the Lottery to acquire workshop devices from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to setup a museum to rejoice the city’s loaded minstrel historical past went astray. The museum was never ever designed.

The main points of the abuse of an incredible number of rands of Lottery money for any museum that by no means was are disclosed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Component of much more than R64-million in Lottery money allocated on the CTMCA in between 2003 and 2017.

The 1st part of the investigation, by regulation business Dabishi Nthambeleni, was carried out amongst September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which provided funding to the museum. The accredited budget to the museum was greater than R12.eight-million, with R5-million of that allotted for any creating to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of a constructing for the museum and whether or not the museum “basically existed”.

The business was also instructed to research

the purchase with Lottery funds of two automobiles – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
many equipment “ordered for that production of the costumes and hats” to the minstrels carnival, for R5.4-million.
At the time, convicted felony Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of a number of directors of your organisation. Stemmet was reappointed like a director in May perhaps 2021.

The investigation followed extensive reporting by GroundUp regarding the countless rands of Lottery funding allocated on the CTMCA (see here, here and here) and how the money in all probability assisted finance the ANC’s 2014 election campaign from the Western Cape, led by at enough time by Marius Fransman.



The developing on the proper was the intended web-site on the minstrels’ museum, in the middle of an industrial space in Primrose Park, Cape Town. Picture: Raymond Joseph

In response to some Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “tasks” - such as the museum - in between 2012 and 2015. All 3 jobs had been concluded, she told MPs.

Nevertheless the investigators discovered no evidence that a museum had at any time existed.

Initially the museum was due to open up in rented premises in Crete Road, Wetton. A photograph acquired by GroundUp of the meant Wetton museum demonstrates a coffee store with a few musical devices and minstrel costumes and collages of pictures haphazardly hung over the walls, and also a product ship on its plinth in the corner.

In its report, Dabishi Nthambeleni stated it was “not able” to verify if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum were moved as they could now not afford to pay for the hire of R100,000 per month. He claimed the CTMCA experienced acquired house for R1.seven-million in Schaapkraal for that museum, but could not get it rezoned, and were sold for a similar value. Schaapkraal is in a peri-urban space much from the town.

Because of this, the museum were moved to a new area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But soon after going to the premises, which are in an industrial location, the investigators reported they doubted no matter whether a suitable museum existed there. Images connected for the report demonstrate a mishmash of randomly displayed uniforms, musical devices and diverse minstrel paraphernalia nailed towards the wall, exhibited on tables and distribute out on the floor, with no rationalization.

“You will find a nominal level of products on the museum [that] by no means signify the a lot more than one hundred-calendar year heritage from the Cape Town Carnival, the investigators reported, including that there was “no signage outdoors the premises indicating they housed a museum and … generally, the museum will not seem being open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting the location of the museum to another location with out notifying the NLC.



The Schaapkraal property, on which no museum was at any time developed. Image: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA experienced to maneuver through the rented Crete Highway premises since it experienced operate up a R4-million financial debt with town of Cape City and was scared its machines will be connected.

“Due to the legal battles along with the debts, the organisation experienced to maneuver its residence from five Crete Highway to steer clear of the sheriff from attaching the assets of the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of the CTMCA, told them which the two buses acquired with lottery cash have been stored inside of a secret locale “concealed from your Sheriff”. However the investigators said they ended up unable to substantiate that any buses had ever been acquired.

Stemmet also confirmed the buses were hidden to prevent them being seized. But if the investigators questioned to become taken on the spot where by the buses ended up stored, he explained to them that “the proprietor of The trick place wasn't available to open up the premises for us”.

“The CTMCA could not deliver proof of payment for 2 cars that it allegedly ordered with grant dollars,” the investigators claimed.

Soeker also informed them the Schaapkraal assets were sold because of the financial debt.

“Mr Soeker spelled out that In accordance with his being familiar with, due to the personal debt owed to the City of Cape City, the CTMCA determined It might be greatest to market their [Schaapkraal] house … also to also to hide the property in the CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for protection and protection, has Beforehand instructed GroundUp which the CTMCA “threw funds absent” on litigation with the City.

“On a yearly basis like clockwork, as we strategy the top on the year, the CTMCA picks a authorized fight with the City, about permits or another thing. We never ever initiate it. They keep throwing funds away on vexatious litigation that they shed and also have expenditures awarded against them. This can be solely self-inflicted,” he said.

Soeker informed the Dabishi Nthambeleni investigators that the key job gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, finances and managing ตรวจ รางวัล the CTMCA.” The investigators stated they had been not able to contact Momberg.

Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered numerous machines, some in great affliction, some in bad problem and a few that looked rusty and intensely previous”. Stemmet advised the investigators that there was also an off-web site storage facility where “devices and several equipment” ended up stored.

“We asked him to acquire us to the ability but he was evasive to our ask for.”

Determined by photographs and invoices in GroundUp’s possession, some, Otherwise all, from the objects appear to be tools that was illegally faraway from the CTMCA’s previous premises. Stemmet is struggling with expenses for this elimination.

According to the ultimate progress report submitted for the NLC because of the CTMCA, the machinery was obtained from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter were administrators at the time.

The investigators uncovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we note the next alarming getting: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the corporate is five Crete Highway, Wetton, Cape City, the same deal with on which the museum was intended to be created and/or transformed,” they documented.

An audit by accountants Kopano Integrated, connected for the investigative report, recorded that the CTMCA was in the process of purchasing “equipment, plant and stock” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was certainly one of the directors.

In line with Dabishi Nthambeleni, the organization has compensated R1.two-million like a deposit, meaning R6.9-million is still owed, however there isn't a payment date set for when this have to be compensated.

The Kopano audit and also the close url involving the companies “show to us that there is ‘foul Perform’ involved with the acquisition on the machinery from the museum workshop”, the investigators mentioned inside the report.

“We find that it's remarkably probable that CTMCA applied the funding in the NLC to ‘refund’ amongst its main administrators to the property at the next overpriced level than the actual cost and price of the home and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to establish how the grant on the CTMCA were invested.

“Actually, an in depth report on how the funding of the NLC was made use of, will be impossible as the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities expended on Just about every merchandise it requested funding for. The interim report and remaining report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified which the NLC experienced not conducted a web page check out prior to approving the grant. But this wasn't standard observe at time they usually discovered no proof of carelessness by NLC employees.

At time, the NLC’s procedures did not call for funded organisations to post evidence of payment with interim experiences, they identified. This intended which the CTMCA was capable of receive a second tranche of funding without needing to offer proof that it experienced used the first tranche for its supposed intent.

Next the appointment of a new board, commissioner and senior executive workforce, the NLC has tightened up on these and other issues.

Dabishi Nthambeleni proposed that

the NLC decline any future funding apps from the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected into the NLC’s “delinquency” approach;
the NLC open up a criminal situation of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start out the process of recovering the misappropriated cash.
But, rather then act within the report’s suggestions, the NLC – underneath its former administration – chose to suppress it, because it experienced carried out Together with the past stories into corruption it had commissioned.

GroundUp sent thoughts to Stemmet and Soeker by means of SMS, and asked for e mail addresses to deliver the issues by e-mail much too. But no response were acquired at the time of publication.



The minstrel “museum” in Crete Street, Wetton. Image: Raymond Joseph

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