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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no proof that a museum ever existed.
The investigators discovered that the CTMCA didn't utilize the R5-million allotted to acquire or produce a museum.
In addition they observed the CTMCA only bought land really worth R1.seven-million, not R5-million as allocated.
They found the CTMCA used cash with the Lottery to get workshop gear from amongst its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how many rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) through the Countrywide Lotteries Fee (NLC) to setup a museum to celebrate the town’s loaded minstrel background went astray. The museum was under no circumstances established.

The details from the abuse of numerous rands of Lottery money for any museum that under no circumstances was are exposed within an investigative report commissioned because of the NLC in 2021.

The museum grant was part of much more than R64-million in Lottery cash allotted into the CTMCA amongst 2003 and 2017.

The initial Element of the investigation, by law business Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which provided funding to the museum. The accredited spending plan for that museum was a lot more than R12.eight-million, with R5-million of that allotted to get a making to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the setting up with the museum and if the museum “truly existed”.

The organization was also instructed to research

the acquisition with Lottery cash of two cars – a sixty-seater bus as well as a 23-seater bus – for R2.4-million; and
numerous machines “bought for your manufacturing of the costumes and hats” with the minstrels carnival, for R5.4-million.
At some time, convicted felony Richard “Pot” Stemmet was director in the CTMCA. He was appointed a director of your CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of a number of administrators from the organisation. Stemmet was reappointed to be a director in May possibly 2021.

The investigation adopted substantial reporting by GroundUp regarding the many rands of Lottery funding allotted towards the CTMCA (see listed here, below and below) and the way in which the money in all probability served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at time by Marius Fransman.



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

In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane detailed grants to 3 CTMCA “tasks” - such as the museum - involving 2012 and 2015. All 3 tasks were finished, she told MPs.

Though the investigators located no evidence that a museum experienced at any time existed.

To start with the museum was because of open in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp on the meant Wetton museum reveals a coffee store with a few musical devices and minstrel costumes and collages of photos haphazardly hung over the partitions, plus a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni reported it had been “not ready” to substantiate if a museum had at any time operated from these premises.

Stemmet informed the investigators the museum were moved as they could not pay for the lease of R100,000 per month. He explained the CTMCA experienced acquired assets for R1.7-million in Schaapkraal for the museum, but could not get it rezoned, and were sold for the same price tag. Schaapkraal is inside a peri-urban spot considerably from town.

Consequently, the museum had been moved to a whole new site in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after visiting the premises, which can be in an industrial place, the investigators reported they doubted whether a suitable museum existed there. Photographs hooked up on the report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and spread out on the floor, with no rationalization.

“There is a nominal quantity of objects for the museum [that] in no way depict the much more than a hundred-calendar year background in the Cape Town Carnival, the investigators explained, including that there was “no signage exterior the premises indicating that they housed a museum and … typically, the museum isn't going to seem for being open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by shifting The situation of the museum to an alternate site with out notifying the NLC.



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

Buses
Stemmet explained to the investigators that the CTMCA had to move with the rented Crete Highway premises because it had run up a R4-million financial debt with the town of Cape Town and was concerned its products can be connected.

“A result of the legal battles and also the debts, the organisation experienced to move its property from five Crete Street to stay away from the sheriff from attaching the property from the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director on the CTMCA, advised them that the two buses bought with lottery money ended up stored inside a magic formula site “hidden with the Sheriff”. But the investigators reported they were being not able to confirm that any buses experienced at any time been bought.

Stemmet also confirmed which the buses had been hidden to stop them becoming seized. But in the event the investigators asked to generally be taken for the place in which the buses ended up saved, he explained to them that “the operator of The key location wasn't accessible to open the premises for us”.

“The CTMCA couldn't present proof of payment for two motor vehicles that it allegedly ordered with grant dollars,” the investigators noted.

Soeker also told them the Schaapkraal assets had been marketed because of the credit card debt.

“Mr Soeker defined that In accordance with his understanding, due to personal debt owed to the City of Cape Town, the CTMCA made a decision It will be most effective to sell their [Schaapkraal] home … and to also to hide the assets of the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for basic safety and safety, has previously told GroundUp which the CTMCA “threw funds away” on litigation with town.

“Each and every year like clockwork, as we strategy the end of your yr, the CTMCA picks a legal combat with the City, about permits or something else. We under no circumstances initiate it. They preserve throwing revenue away on vexatious litigation they reduce and have charges awarded versus them. This can be solely self-inflicted,” he stated.

Soeker informed the Dabishi Nthambeleni investigators that the principle job gamers on problems with Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for the many admin, finances and managing ตรวจ หวย the CTMCA.” The investigators reported they were unable to Make contact with Momberg.

Hats
All through their “investigation in loco” at the Primrose Park premises, the investigators “discovered many machines, some in good ailment, some in lousy affliction and several that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility wherever “instruments and several equipment” had been retained.

“We asked him to acquire us to the facility 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 devices which was illegally faraway from the CTMCA’s former premises. Stemmet is dealing with expenses for this removal.

Based on the last progress report submitted towards the NLC through the CTMCA, the machinery was purchased from Martin-Conne Milliners, a corporation wherein Stemmet, his wife and his daughter had been administrators at enough time.

The investigators identified this “alarming”.

“In the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we note the next alarming finding: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Highway, Wetton, Cape Town, the exact same handle on which the museum was intended to be developed and/or transformed,” they reported.

An audit by accountants Kopano Integrated, connected towards the investigative report, recorded the CTMCA was in the entire process of paying for “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was considered one of the administrators.

As outlined by Dabishi Nthambeleni, the corporation has paid out R1.2-million for a deposit, indicating R6.9-million remains to be owed, even though there is absolutely no payment day set for when this need to be paid.

The Kopano audit plus the close url between the companies “point out to us that there's ‘foul play’ associated with the purchase with the equipment of your museum workshop”, the investigators said inside the report.

“We find that it is hugely possible that CTMCA applied the funding with the NLC to ‘refund’ one of its main administrators for that house at a better overpriced charge than the actual price and price of the house and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant for the CTMCA were expended.

“Actually, an in depth report on how the funding on the NLC was used, might be unattainable as being the CTMCA doesn't have any receipts, or proof of payments to verify the amounts used on Just about every product it asked for funding for. The interim report and last report in the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not performed a web site take a look at right before approving the grant. But this wasn't normal apply at the time they usually observed no evidence of carelessness by NLC personnel.

At time, the NLC’s rules didn't need funded organisations to post proof of payment with interim stories, they pointed out. This intended that the CTMCA was able to receive a next tranche of funding without needing to deliver proof that it had applied the very first tranche for its meant reason.

Following the appointment of a fresh board, commissioner and senior government workforce, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any upcoming funding purposes with the CTMCA;
the CTMCA and any customers who have been involved with the grant be subjected for the NLC’s “delinquency” method;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated cash.
But, as opposed to act over the report’s suggestions, the NLC – less than its prior administration – chose to suppress it, mainly because it had completed with the prior studies into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the inquiries by e mail way too. But no response had been received at some time of publication.



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