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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant because of the Countrywide Lotteries Fee to the Cape City Minstrel Carnival Affiliation (CTMCA) for the minstrels museum has located no proof that a museum ever existed.
The investigators found which the CTMCA did not make use of the R5-million allotted to obtain or produce a museum.
Additionally they discovered which the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA utilised resources from your Lottery to acquire workshop machines from one among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) from the Nationwide Lotteries Commission (NLC) to create a museum to celebrate the town’s prosperous minstrel history went astray. The museum was never ever designed.

The details with the abuse of a lot of rands of Lottery money for just a museum that never ever was are unveiled within an investigative report commissioned through the NLC in 2021.

The museum grant was part of in excess of R64-million in Lottery funds allocated into the CTMCA in between 2003 and 2017.

The primary Component of the investigation, by regulation firm Dabishi Nthambeleni, was conducted in between September 2020 and January 2021 and focused on a R27.three-million grant to your CTMCA in 2014, which bundled funding with the museum. The authorised spending plan for that museum was much more than R12.8-million, with R5-million of that allotted for your making to accommodate the museum.

Study the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the building for that museum and whether or not the museum “essentially existed”.

The company was also instructed to analyze

the acquisition with Lottery money of two vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
many devices “purchased to the production of the costumes and hats” for your minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of quite a few directors of your organisation. Stemmet was reappointed as being a director in May possibly 2021.

The investigation followed in depth reporting by GroundUp about the millions of rands of Lottery funding allotted for the CTMCA (see here, below and right here) and the way the money most likely served finance the ANC’s 2014 election campaign from 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 midst of an industrial region in Primrose Park, Cape Town. Image: Raymond Joseph

In reaction to your Parliamentary problem, previous NLC Commissioner Thabang Mampane shown grants to a few CTMCA “assignments” - including the museum - concerning 2012 and 2015. All three assignments were done, she explained to MPs.

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

At the outset the museum was on account of open up in rented premises in Crete Highway, Wetton. A photo received by GroundUp from the intended Wetton museum reveals a espresso shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung over the partitions, plus a product ship on its plinth in a corner.

In its report, Dabishi Nthambeleni mentioned it absolutely was “not ready” to confirm if a museum experienced at any time operated from these premises.

Stemmet told the investigators the museum were moved since they could not pay for the lease of R100,000 a month. He explained the CTMCA had obtained house for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and were marketed for the same rate. Schaapkraal is inside a peri-city area much from town.

Consequently, the museum were moved to a completely new site in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But after viewing the premises, which are in an industrial area, the investigators claimed they doubted whether a correct museum existed there. Pics hooked up to the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed into the wall, displayed on tables and distribute out on the ground, with no clarification.

“You will find there's minimum level of goods for the museum [that] in no way represent the over 100-year historical past on the Cape Town Carnival, the investigators explained, adding that there was “no signage outdoors the premises indicating which they housed a museum and … usually, the museum won't look for being open to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni mentioned, by shifting the location in the museum to an alternative area without the need of notifying the NLC.



The Schaapkraal home, on which no museum was ever constructed. Photo: Raymond Joseph

Buses
Stemmet informed the investigators the CTMCA had to move in the rented Crete Road premises since it experienced operate up a R4-million financial debt with town of Cape Town and was concerned its tools will be hooked up.

“Mainly because of the authorized battles and the debts, the organisation had to move its assets from 5 Crete Street to avoid the sheriff from attaching the residence from the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director of your CTMCA, advised them which the two buses purchased with lottery resources had been stored in a solution spot “hidden with the Sheriff”. However the investigators claimed they were unable to verify that any buses had ever been purchased.

Stemmet also confirmed that the buses had been hidden to prevent them staying seized. But in the event the investigators asked to become taken to the put where the buses were being stored, he told them that “the proprietor of The trick spot wasn't available to open up the premises for us”.

“The CTMCA could not provide evidence of payment for two cars that it allegedly bought with grant dollars,” the investigators described.

Soeker also advised them the Schaapkraal property were bought due to the personal debt.

“Mr Soeker spelled out that As outlined by his comprehending, due to credit card debt owed to the town of Cape Town, the CTMCA decided It could be very best to offer their [Schaapkraal] house … and to also to cover the assets with the CTMCA to avoid the sheriff from attaching the residence.”

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

“On a yearly basis like clockwork, as we technique the tip on the yr, the CTMCA picks a lawful fight with the town, more than permits or another thing. We under no circumstances initiate it. They hold throwing dollars absent on vexatious litigation which they lose and have expenditures awarded from them. This really is fully self-inflicted,” he mentioned.

Soeker advised the Dabishi Nthambeleni investigators that the leading job gamers on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who have been accountable for the many admin, finances and operating ตรวจ รางวัล the CTMCA.” The investigators reported they had been unable to Call Momberg.

Hats
Throughout their “investigation in loco” at the Primrose Park premises, the investigators “observed several equipment, some in excellent ailment, some in terrible situation plus some that seemed rusty and intensely outdated”. Stemmet instructed the investigators that there was also an off-web-site storage facility wherever “devices and many equipment” were being kept.

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

Determined by photos and invoices in GroundUp’s possession, some, if not all, from the products look like gear that was illegally faraway from the CTMCA’s past premises. Stemmet is experiencing prices for this elimination.

Based on the ultimate progress report submitted towards the NLC from the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were being directors at some time.

The investigators uncovered this “alarming”.

“With the CIPC lookup of Martin-Conne Milliners and the invoices submitted, we Notice the subsequent alarming locating: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the company is five Crete Highway, Wetton, Cape Town, a similar tackle on which the museum was intended to be created and/or converted,” they noted.

An audit by accountants Kopano Included, connected for the investigative report, recorded which the CTMCA was in the entire process of obtaining “machinery, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was among the directors.

Based on Dabishi Nthambeleni, the corporation has paid out R1.two-million as a deposit, meaning R6.9-million remains to be owed, though there is not any payment date set for when this need to be compensated.

The Kopano audit and also the close url involving the businesses “suggest to us that there's ‘foul Perform’ linked to the acquisition of the equipment with the museum workshop”, the investigators reported during the report.

“We discover that it is highly probable that CTMCA used the funding with the NLC to ‘refund’ amongst its major administrators for the house at an increased overpriced price than the particular price and worth of the assets and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was unable to ascertain how the grant to your CTMCA had been invested.

“In point of fact, an in depth report on how the funding of the NLC was utilized, will be unachievable because the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts invested on Every single item it asked for funding for. The interim report and ultimate report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC had not done a web-site check out prior to approving the grant. But this wasn't conventional apply at enough time they usually discovered no evidence of carelessness by NLC workforce.

At time, the NLC’s regulations didn't need funded organisations to submit proof of payment with interim studies, they pointed out. This meant that the CTMCA was capable to get a second tranche of funding while not having to present evidence that it experienced applied the main tranche for its supposed purpose.

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

Dabishi Nthambeleni advised that

the NLC drop any long run funding applications within the CTMCA;
the CTMCA and any associates who were being involved with the grant be subjected into the NLC’s “delinquency” course of action;
the NLC open up a criminal situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start off the process of recovering the misappropriated money.
But, in lieu of act on the report’s recommendations, the NLC – below its past administration – selected to suppress it, since it had performed Using the previous reports into corruption it experienced commissioned.

GroundUp despatched inquiries to Stemmet and Soeker through SMS, and asked for electronic mail addresses to send out the inquiries by e-mail much too. But no response were acquired at the time of publication.



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

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