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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant by the Nationwide Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has discovered no proof that a museum ever existed.
The investigators located that the CTMCA didn't utilize the R5-million allocated to get or make a museum.
Additionally they uncovered which the CTMCA only bought land well worth R1.seven-million, not R5-million as allocated.
They discovered the CTMCA made use of cash from your Lottery to invest in workshop machines from one of its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted into the Cape Town Minstrel Carnival Association (CTMCA) through the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice the town’s prosperous minstrel historical past went astray. The museum was under no circumstances developed.

The main points from the abuse of an incredible number of rands of Lottery cash for any museum that under no circumstances was are uncovered in an investigative report commissioned from the NLC in 2021.

The museum grant was A part of much more than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.

The initial Element of the investigation, by legislation agency Dabishi Nthambeleni, was done between September 2020 and January 2021 and focused on a R27.three-million grant towards the CTMCA in 2014, which bundled funding for the museum. The accepted spending budget with the museum was in excess of R12.eight-million, with R5-million of that allocated for any developing to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the purchase of a developing for the museum and whether the museum “truly existed”.

The business was also instructed to investigate

the purchase with Lottery funds of two cars – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
a variety of equipment “bought with the manufacturing in the costumes and hats” for that minstrels carnival, for R5.4-million.
At some time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors of the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation adopted considerable reporting by GroundUp concerning the an incredible number of rands of Lottery funding allotted for the CTMCA (see below, in this article and in this article) and the way in which the funds possibly aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The setting up on the ideal was the supposed internet site on the minstrels’ museum, in the course of an industrial space in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction into a Parliamentary question, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “initiatives” - including the museum - concerning 2012 and 2015. All 3 projects had been completed, she instructed MPs.

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

In the beginning the museum was due to open in rented premises in Crete Road, Wetton. A photo received by GroundUp of your meant Wetton museum shows a coffee shop with a few musical devices and minstrel costumes and collages of pictures haphazardly hung around the walls, as well as a design ship on its plinth in the corner.

In its report, Dabishi Nthambeleni reported it had been “not ready” to verify if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum had been moved given that they could no longer pay for the rent of R100,000 per month. He explained the CTMCA experienced acquired home for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were offered for a similar cost. Schaapkraal is inside of a peri-urban spot considerably from the town.

Subsequently, the museum had been moved to a fresh site in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after traveling to the premises, which are within an industrial area, the investigators stated they doubted no matter whether a suitable museum existed there. Images attached towards the report display a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to the wall, exhibited on tables and spread out on the ground, without any rationalization.

“You will find a minimum amount of goods in the museum [that] on no account symbolize the much more than 100-12 months record from the Cape Town Carnival, the investigators claimed, introducing that there was “no signage outside the premises indicating that they housed a museum and … usually, the museum isn't going to glance to generally be open up to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by shifting the location from the museum to another site devoid of notifying the NLC.



The Schaapkraal residence, on which no museum was ever built. Picture: Raymond Joseph

Buses
Stemmet advised the investigators that the CTMCA had to move from your rented Crete Road premises because it had operate up a R4-million financial debt with the town of Cape Town and was scared its devices could be connected.

“Due to the legal battles and also the debts, the organisation experienced to move its property from 5 Crete Road to stay away from the sheriff from attaching the home on the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director in the CTMCA, instructed them the two buses purchased with lottery funds were saved within a secret locale “hidden within the Sheriff”. Though the investigators stated they were unable to confirm that any buses had at any time been bought.

Stemmet also confirmed the buses were concealed to halt them being seized. But if the investigators requested being taken towards the put in which the buses ended up saved, he advised them that “the proprietor of The key area was not accessible to open the premises for us”.

“The CTMCA couldn't present proof of payment for 2 automobiles that it allegedly procured with grant dollars,” the investigators noted.

Soeker also explained to them the Schaapkraal home were bought due to the credit card debt.

“Mr Soeker defined that Based on his being familiar with, as a result of credit card debt owed to town of Cape City, the CTMCA resolved It will be best to promote their [Schaapkraal] home … and to also to cover the belongings with the CTMCA to stay away from the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for protection and protection, has Formerly informed GroundUp which the CTMCA “threw income away” on litigation with town.

“Annually like clockwork, as we solution the tip with the calendar year, the CTMCA picks a authorized struggle with the City, around permits or something else. We under no circumstances initiate it. They preserve throwing dollars absent on vexatious litigation that they drop and possess costs awarded towards them. This is certainly solely self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the principle purpose gamers on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were in charge of all the admin, funds and jogging ตา ว จ หวย the CTMCA.” The investigators reported they were unable to contact Momberg.

Hats
For the duration of their “investigation in loco” at the Primrose Park premises, the investigators “uncovered several devices, some in fantastic ailment, some in bad condition plus some that seemed rusty and extremely aged”. Stemmet instructed the investigators that there was also an off-web site storage facility where “devices and a few equipment” were retained.

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

Based upon pictures and invoices in GroundUp’s possession, some, if not all, with the items seem like machines which was illegally removed from the CTMCA’s prior premises. Stemmet is experiencing charges for this removal.

Based on the ultimate progress report submitted on the NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter had been directors at the time.

The investigators identified this “alarming”.

“From your CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered handle of the corporation is five Crete Road, Wetton, Cape Town, exactly the same tackle on which the museum was meant to be created and/or transformed,” they claimed.

An audit by accountants Kopano Incorporated, attached for the investigative report, recorded which the CTMCA was in the whole process of paying for “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.

According to Dabishi Nthambeleni, the organization has paid R1.two-million as being a deposit, meaning R6.nine-million continues to be owed, though there is no payment date established for when this has to be compensated.

The Kopano audit along with the shut website link between the companies “reveal to us that there's ‘foul Perform’ involved with the acquisition on the equipment from the museum workshop”, the investigators claimed within the report.

“We find that it is highly possible that CTMCA used the funding of the NLC to ‘refund’ certainly one of its primary directors for the property at the next overpriced amount than the actual cost and price of the house and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant into the CTMCA had been expended.

“In fact, an in depth report on how the funding from the NLC was applied, could be unachievable because the CTMCA does not have any receipts, or proof of payments to verify the quantities used on Every merchandise it requested funding for. The interim report and ultimate report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed the NLC had not carried out a internet site take a look at in advance of approving the grant. But this was not normal apply at the time they usually observed no evidence of carelessness by NLC personnel.

At the time, the NLC’s procedures did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was able to receive a 2nd tranche of funding without needing to present evidence that it had utilised the first tranche for its intended goal.

Pursuing the appointment of a new board, commissioner and senior executive group, the NLC has tightened up on these and also other difficulties.

Dabishi Nthambeleni proposed that

the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its past administration – selected to suppress it, as it had performed Using the preceding experiences into corruption it experienced commissioned.

GroundUp despatched questions to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to deliver the queries by e-mail also. But no response had been received at some time of publication.



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