Minstrels carry out in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Nationwide Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has observed no evidence that a museum at any time existed.
The investigators observed that the CTMCA didn't make use of the R5-million allocated to buy or produce a museum.
They also observed which the CTMCA only purchased land truly worth R1.7-million, not R5-million as allocated.
They observed the CTMCA used funds with the Lottery to acquire workshop gear from considered one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted into the Cape City Minstrel Carnival Affiliation (CTMCA) because of the Nationwide Lotteries Fee (NLC) to set up a museum to celebrate town’s abundant minstrel historical past went astray. The museum was never ever made.

The details in the abuse of millions of rands of Lottery resources for any museum that never was are revealed in an investigative report commissioned through the NLC in 2021.

The museum grant was Portion of over R64-million in Lottery resources allotted for the CTMCA involving 2003 and 2017.

The 1st Element of the investigation, by legislation agency Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.three-million grant to your CTMCA in 2014, which provided funding for the museum. The approved budget with the museum was in excess of R12.8-million, with R5-million of that allocated for a setting up to house the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the acquisition of the creating to the museum and whether the museum “basically existed”.

The company was also instructed to investigate

the acquisition with Lottery resources of two cars – a 60-seater bus along with a 23-seater bus – for R2.four-million; and
various equipment “purchased for that production in the costumes and hats” for the minstrels carnival, for R5.4-million.
At time, convicted legal Richard “Pot” Stemmet was director from the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators of the organisation. Stemmet was reappointed being a director in May 2021.

The investigation adopted substantial reporting by GroundUp regarding the a lot of rands of Lottery funding allotted to your CTMCA (see right here, listed here and in this article) and the way the funds probably assisted finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at time by Marius Fransman.



The making on the ideal was the supposed web page on the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to your Parliamentary dilemma, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “projects” - such as the museum - concerning 2012 and 2015. All a few assignments had been done, she told MPs.

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

Initially the museum was because of open up in rented premises in Crete Highway, Wetton. A photo attained by GroundUp on the meant Wetton museum exhibits a espresso store with some musical devices and minstrel costumes and collages of pictures haphazardly hung to the walls, as well as a product ship on its plinth inside a corner.

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

Stemmet advised the investigators the museum had been moved since they could not manage the rent of R100,000 per month. He mentioned the CTMCA had bought assets for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for a similar selling price. Schaapkraal is in the peri-urban area far from town.

Subsequently, the museum were moved to a fresh spot in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after visiting the premises, that happen to be in an industrial area, the investigators explained they doubted whether a proper museum existed there. Pics attached for the report clearly show a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and distribute out on the ground, without any clarification.

“There's a small quantity of objects for the museum [that] on no account characterize the much more than one hundred-year record on the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage exterior the premises indicating which they housed a museum and … usually, the museum doesn't seem to become open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni observed, by relocating The situation on the museum to an alternative place with out notifying the NLC.



The Schaapkraal house, on which no museum was ever created. Photo: Raymond Joseph

Buses
Stemmet advised the investigators which the CTMCA experienced to maneuver within the rented Crete Road premises because it experienced run up a R4-million debt with the town of Cape Town and was frightened its gear would be connected.

“A result of the legal battles and also the debts, the organisation experienced to move its house from five Crete Road to avoid the sheriff from attaching the residence from the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director on the CTMCA, informed them the two buses acquired with lottery money were stored in a top secret place “hidden in the Sheriff”. However the investigators claimed they were not able to substantiate that any buses experienced at any time been bought.

Stemmet also verified which the buses were concealed to halt them becoming seized. But in the event the investigators requested for being taken to your spot where the buses were being saved, he told them that “the proprietor of The key location was not available to open up the premises for us”.

“The CTMCA couldn't provide proof of payment for 2 vehicles that it allegedly ordered with grant cash,” the investigators claimed.

Soeker also informed them the Schaapkraal assets were offered due to debt.

“Mr Soeker discussed that Based on his knowing, a result of the credit card debt owed to the town of Cape Town, the CTMCA decided It will be finest to provide their [Schaapkraal] assets … also to also to hide the assets from the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for basic safety and protection, has previously explained to GroundUp the CTMCA “threw money away” on litigation with the town.

“Each year like clockwork, as we technique the tip of your year, the CTMCA picks a legal struggle with town, over permits or another thing. We by no means initiate it. They hold throwing dollars absent on vexatious litigation which they reduce and possess prices awarded versus them. This is solely self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the key job gamers on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who have been accountable for every one of the admin, finances and running ตรวจ หวย the CTMCA.” The investigators stated they were not able to contact Momberg.

Hats
During their “investigation in loco” at the Primrose Park premises, the investigators “found a lot of machines, some in fantastic issue, some in negative condition and many that appeared rusty and intensely previous”. Stemmet instructed the investigators that there was also an off-web page storage facility where by “devices and several machinery” ended up kept.

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

Determined by pics and invoices in GroundUp’s possession, some, if not all, of the goods appear to be equipment which was illegally removed from the CTMCA’s prior premises. Stemmet is going through fees for this removal.

Based on the last development report submitted on the NLC with the CTMCA, the machinery was procured from Martin-Conne Milliners, a business by which Stemmet, his spouse and his daughter have been administrators at enough time.

The investigators discovered this “alarming”.

“Through the CIPC look for of Martin-Conne Milliners as well as the invoices submitted, we Observe the subsequent alarming finding: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Highway, Wetton, Cape Town, precisely the same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected for the investigative report, recorded which the CTMCA was in the entire process of acquiring “machinery, plant and stock” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was considered one of the directors.

In line with Dabishi Nthambeleni, the company has paid R1.2-million like a deposit, that means R6.9-million remains to be owed, however there is no payment day established for when this need to be paid out.

The Kopano audit as well as the close link between the businesses “point out to us that there is ‘foul play’ linked to the purchase of the equipment on the museum workshop”, the investigators mentioned within the report.

“We discover that it is really probable that CTMCA made use of the funding on the NLC to ‘refund’ certainly one of its key directors to the residence at a higher overpriced charge than the particular rate and value of the house and/or machinery.”

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

“Actually, an in depth report on how the funding of your NLC was used, could be difficult as the CTMCA does not have any receipts, or evidence of payments to confirm the quantities used on Every item it requested funding for. The interim report and final report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC experienced not conducted a site visit in advance of approving the grant. But this was not normal exercise at the time and so they observed no proof of carelessness by NLC workers.

At time, the NLC’s policies didn't involve funded organisations to post evidence of payment with interim reviews, they identified. This intended the CTMCA was ready to get a 2nd tranche of funding without needing to give proof that it experienced applied the primary tranche for its meant purpose.

Following the appointment of a brand new board, commissioner and senior govt crew, the NLC has tightened up on these along with other challenges.

Dabishi Nthambeleni encouraged that

the NLC drop any foreseeable future funding programs within the CTMCA;
the CTMCA and any members who had been involved with the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open a criminal case of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC get started the entire process of recovering the misappropriated money.
But, as an alternative to act about the report’s suggestions, the NLC – below its prior administration – selected to suppress it, because it had finished Along with the earlier reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by way of SMS, and requested for email addresses to ship the questions by e mail too. But no response were received at time of publication.



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

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