Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Fee towards the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA did not utilize the R5-million allotted to order or make a museum.
Additionally they identified that the CTMCA only acquired land value R1.7-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 Affiliation (CTMCA) via the National Lotteries Commission (NLC) to put in place a museum to rejoice the town’s loaded 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 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 law organization Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and centered on a R27.3-million grant for the CTMCA in 2014, which bundled funding for your museum. The accredited spending plan for the museum was over R12.8-million, with R5-million of that allocated for any constructing to accommodate the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the setting up for that museum and if the museum “truly existed”.

The firm was also instructed to analyze

the purchase with Lottery funds of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
numerous devices “bought for that manufacturing on the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors of the organisation. Stemmet was reappointed to be a director in May 2021.

The investigation adopted substantial reporting by GroundUp with regard to the many rands of Lottery funding allocated for the CTMCA (see right here, in this article and in this article) and the way the funds possibly assisted finance the ANC’s 2014 election campaign in the Western Cape, led by at the time by Marius Fransman.



The constructing on the appropriate was the intended web site on the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In response to some Parliamentary issue, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “jobs” - such as the museum - among 2012 and 2015. All 3 tasks were completed, she advised MPs.

But the investigators located no evidence that a museum experienced ever existed.

At the beginning the museum was as a result of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp from the meant Wetton museum demonstrates a coffee store with some musical devices and minstrel costumes and collages of pictures haphazardly hung on the walls, along with a design ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni reported it was “not able” to substantiate if a museum had ever operated from these premises.

Stemmet instructed the investigators the museum were moved given that they could now not afford the rent of R100,000 a month. He mentioned the CTMCA had ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for the same value. Schaapkraal is in the peri-urban location much from the city.

As a result, the museum were moved to a different spot in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which happen to be in an industrial area, the investigators claimed they doubted no matter if a proper museum existed there. Pics hooked up for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to your wall, exhibited on tables and distribute out on the ground, with no explanation.

“There's a nominal number of goods within the museum [that] on no account stand for the much more than a hundred-12 months background from the Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum does not glance for being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location in the museum to another location with no notifying the NLC.



The Schaapkraal assets, on which no museum was at any time constructed. Photograph: Raymond Joseph

Buses
Stemmet advised the investigators the CTMCA experienced to move through the rented Crete Street premises since it had run up a R4-million debt with town of Cape City and was concerned its tools can be attached.

“Because of the lawful battles as well as debts, the organisation had to maneuver its residence from 5 Crete Street 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 secret spot “concealed within the Sheriff”. Nevertheless the investigators explained they were being not able to substantiate that any buses experienced at any time been purchased.

Stemmet also confirmed that the buses had been concealed to prevent them staying seized. But if the investigators requested for being taken for the spot in which the buses were saved, he advised them that “the owner of The trick spot was not accessible to open up the premises for us”.

“The CTMCA could not provide evidence of payment for 2 autos that it allegedly purchased with grant dollars,” the investigators noted.

Soeker also explained to them the Schaapkraal home had been bought because of the credit card debt.

“Mr Soeker stated that In accordance with his being familiar with, as a result of credit card debt owed to the town of Cape Town, the CTMCA made a decision It could be finest to provide their [Schaapkraal] assets … and also to also to hide the assets of the CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for security and stability, has Earlier informed GroundUp which the CTMCA “threw dollars away” on litigation with town.

“Each and every year like clockwork, as we method the top from the calendar year, the CTMCA picks a legal combat with town, above permits or another thing. We by no means initiate it. They retain throwing income away on vexatious litigation they reduce and also have fees awarded against them. This really is fully self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the principle role gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of each of the admin, funds and working ผล หวย the CTMCA.” The investigators reported they had been not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “located numerous machines, some in excellent issue, some in negative problem and several that seemed rusty and very previous”. Stemmet explained to the investigators that there was also an off-site storage facility exactly where “instruments and several machinery” were being kept.

“We asked him to choose us to the power but he was evasive to our request.”

Determined by shots and invoices in GroundUp’s possession, some, if not all, of your goods seem like machines that was illegally faraway from the CTMCA’s prior premises. Stemmet is facing expenses for this elimination.

In accordance with the remaining development report submitted for the NLC by the CTMCA, the equipment was purchased from Martin-Conne Milliners, a business wherein Stemmet, his spouse and his daughter were directors at time.

The investigators observed this “alarming”.

“Within the CIPC research of Martin-Conne Milliners and the invoices submitted, we note the subsequent alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape Town, the identical handle on which the museum was intended to be crafted and/or converted,” they described.

An audit by accountants Kopano Integrated, connected to the investigative report, recorded the CTMCA was in the whole process of acquiring “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, meaning R6.nine-million is still owed, though there isn't any payment day set for when this need to be paid.

The Kopano audit along with the shut url between the companies “point out to us that there is ‘foul Engage in’ linked to the purchase in the equipment of the museum workshop”, the investigators stated while in the report.

“We find that it is remarkably possible that CTMCA utilized the funding in the NLC to ‘refund’ considered one of its most important administrators for that assets at an increased overpriced amount than the actual cost and value of the assets and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA were invested.

“In point of fact, a detailed report on how the funding of the NLC was applied, can be not possible since the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts expended on Each and every product it asked for funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not done a web site check out right before approving the grant. But this wasn't typical exercise at enough time and so they identified no evidence of carelessness by NLC staff members.

At some time, the NLC’s regulations did not demand funded organisations to post proof of payment with interim reviews, they identified. This meant the CTMCA was capable to receive a 2nd tranche of funding without needing to provide evidence that it experienced employed the main tranche for its intended reason.

Following the appointment of a different board, commissioner and senior executive crew, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advisable that

the NLC decrease any long run funding purposes within the CTMCA;
the CTMCA and any users who were being linked to the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated funds.
But, rather than act over the report’s suggestions, the NLC – under its preceding administration – selected to suppress it, as it experienced done While using the earlier experiences into corruption it had commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for email addresses to ship the thoughts by email also. But no response had been obtained at the time of publication.



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