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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Countrywide Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has found no evidence that a museum ever existed.
The investigators identified which the CTMCA did not make use of the R5-million allocated to get or produce a museum.
They also observed which the CTMCA only acquired land worth R1.7-million, not R5-million as allocated.
They discovered the CTMCA made use of cash with the Lottery to invest in workshop machines from one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to arrange a museum to celebrate the town’s prosperous minstrel history went astray. The museum was in no way designed.

The small print with the abuse of an incredible number of rands of Lottery money for the museum that under no circumstances was are discovered in an investigative report commissioned via the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery resources allotted into the CTMCA concerning 2003 and 2017.

The initial part of the investigation, by regulation firm Dabishi Nthambeleni, was performed between September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which incorporated funding to the museum. The approved funds for that museum was a lot more than R12.eight-million, with R5-million of that allotted for the creating to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a building for your museum and whether or not the museum “in fact existed”.

The firm was also instructed to research

the acquisition with Lottery resources of two automobiles – a 60-seater bus and also a 23-seater bus – for R2.four-million; and
several devices “purchased to the producing on the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of directors of your organisation. Stemmet was reappointed like a director in May possibly 2021.

The investigation followed substantial reporting by GroundUp about the numerous rands of Lottery funding allocated towards the CTMCA (see in this article, below and in this article) and the way in which the resources in all probability assisted finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.



The building on the best was the meant website on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph

In response into a Parliamentary concern, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “jobs” - including the museum - amongst 2012 and 2015. All 3 assignments had been concluded, she informed MPs.

Nevertheless the investigators discovered no proof that a museum experienced at any time existed.

In the beginning the museum was due to open in rented premises in Crete Street, Wetton. A photograph attained by GroundUp from the supposed Wetton museum reveals a espresso store with a few musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, plus a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni claimed it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved mainly because they could now not manage the hire of R100,000 a month. He claimed the CTMCA had purchased residence for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for the same cost. Schaapkraal is inside of a peri-urban area much from the town.

Subsequently, the museum were moved to a new locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But following visiting the premises, which can be in an industrial space, the investigators explained they doubted irrespective of whether a suitable museum existed there. Pictures hooked up for the report show a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, without having clarification.

“There is a small level of merchandise in the museum [that] by no means stand for the a lot more than one hundred-12 months record from the Cape City Carnival, the investigators reported, introducing that there was “no signage exterior the premises indicating that they housed a museum and … typically, the museum doesn't search to get open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni famous, by shifting The placement in the museum to an alternative locale without the need of notifying the NLC.



The Schaapkraal assets, on which no museum was ever developed. Image: Raymond Joseph

Buses
Stemmet instructed the investigators which the CTMCA had to maneuver through the rented Crete Highway premises since it experienced operate up a R4-million financial debt with the town of Cape City and was worried its gear might be hooked up.

“Because of the legal battles as well as the debts, the organisation had to maneuver its assets from five Crete Road to avoid the sheriff from attaching the assets of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director in the CTMCA, informed them which the two buses bought with lottery resources were being stored inside a magic formula location “hidden from the Sheriff”. Although the investigators explained they were not able to confirm that any buses had ever been purchased.

Stemmet also verified that the buses were concealed to stop them getting seized. But if the investigators questioned to get taken into the position in which the buses had been stored, he informed them that “the operator of The trick spot wasn't available to open the premises for us”.

“The CTMCA couldn't supply evidence of payment for 2 autos that it allegedly obtained with grant revenue,” the investigators reported.

Soeker also told them the Schaapkraal home were marketed due to personal debt.

“Mr Soeker defined that according to his knowing, due to credit card debt owed to the City of Cape City, the CTMCA determined It will be finest to sell their [Schaapkraal] house … also to also to cover the belongings of the CTMCA to stay away from the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for protection and stability, has previously told GroundUp that the CTMCA “threw cash away” on litigation with town.

“On a yearly basis like clockwork, as we solution the tip in the yr, the CTMCA picks a authorized battle with the City, around permits or something else. We hardly ever initiate it. They retain throwing income away on vexatious litigation they get rid of and have costs awarded versus them. This is certainly totally self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the most crucial purpose gamers on problems with Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing ผล สลากกินแบ่ง the CTMCA.” The investigators reported they had been not able to Make contact with Momberg.

Hats
Through their “investigation in loco” with the Primrose Park premises, the investigators “identified various machines, some in excellent ailment, some in negative issue and many that appeared rusty and intensely outdated”. Stemmet explained to the investigators that there was also an off-web page storage facility where by “devices and many machinery” were being saved.

“We requested him to take us to the power but he was evasive to our ask for.”

Dependant on photos and invoices in GroundUp’s possession, some, Otherwise all, with the objects appear to be gear which was illegally removed from the CTMCA’s former premises. Stemmet is going through expenses for this removing.

According to the closing development report submitted towards the NLC because of the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter were being administrators at enough time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners as well as invoices submitted, we Observe the following alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Road, Wetton, Cape City, precisely the same handle on which the museum was intended to be designed and/or transformed,” they reported.

An audit by accountants Kopano Incorporated, connected into the investigative report, recorded that the CTMCA was in the process of paying for “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was considered one of the administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million to be a deposit, this means R6.nine-million continues to be owed, although there's no payment day set for when this should be compensated.

The Kopano audit plus the close hyperlink between the businesses “show to us that there's ‘foul Engage in’ linked to the acquisition of the machinery in the museum workshop”, the investigators said during the report.

“We find that it is remarkably possible that CTMCA used the funding from the NLC to ‘refund’ considered one of its most important administrators for the property at a greater overpriced charge than the actual cost and value of the assets and/or equipment.”

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

“In reality, an in depth report on how the funding of the NLC was made use of, will be unattainable as the CTMCA does not have any receipts, or proof of payments to verify the quantities invested on Just about every merchandise it asked for funding for. The interim report and final report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered that the NLC experienced not conducted a internet site stop by before approving the grant. But this wasn't conventional practice at the time and they identified no evidence of carelessness by NLC personnel.

At enough time, the NLC’s principles did not involve funded organisations to post proof of payment with interim experiences, they pointed out. This intended that the CTMCA was in a position to get a second tranche of funding without the need to give evidence that it had used the main tranche for its meant intent.

Subsequent the appointment of a completely new board, commissioner and senior executive crew, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any future funding applications in the CTMCA;
the CTMCA and any members who were being linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a felony situation of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated cash.
But, as opposed to act around the report’s tips, the NLC – below its former administration – chose to suppress it, since it experienced accomplished Using the past reports into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by using SMS, and questioned for email addresses to deliver the queries by e mail far too. But no reaction had been acquired at time of publication.



The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph