Minstrels conduct in Athlone on 2 January 2017. Archive Picture: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant from the National Lotteries Fee towards the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has identified no evidence that a museum at any time existed.
The investigators uncovered the CTMCA didn't make use of the R5-million allotted to buy or make a museum.
They also observed that the CTMCA only acquired land value R1.7-million, not R5-million as allotted.
They uncovered the CTMCA utilised resources from the Lottery to purchase workshop tools from one of its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape City Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Fee (NLC) to set up a museum to rejoice the town’s prosperous minstrel historical past went astray. The museum was hardly ever created.

The main points of your abuse of an incredible number of rands of Lottery funds to get a museum that never ever was are revealed within an investigative report commissioned from the NLC in 2021.

The museum grant was A part of a lot more than R64-million in Lottery money allotted to your CTMCA in between 2003 and 2017.

The primary Component of the investigation, by regulation business Dabishi Nthambeleni, was conducted amongst September 2020 and January 2021 and focused on a R27.3-million grant to the CTMCA in 2014, which included funding with the museum. The permitted finances to the museum was in excess of R12.8-million, with R5-million of that allotted for your constructing to deal with the museum.

Read through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the creating for the museum and if the museum “really existed”.

The organization was also instructed to analyze

the purchase with Lottery money of two motor vehicles – a 60-seater bus in addition to a 23-seater bus – for R2.4-million; and
many machines “acquired with the manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At the time, convicted prison Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of many administrators from the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation adopted extensive reporting by GroundUp in regards to the many rands of Lottery funding allotted on the CTMCA (see below, in this article and right here) and the best way the resources likely aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at the time by Marius Fransman.



The making on the correct was the supposed web site from the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response to some Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to a few CTMCA “projects” - such as the museum - among 2012 and 2015. All 3 projects had been completed, she advised MPs.

Even so the investigators discovered no evidence that a museum had ever existed.

Initially the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the meant Wetton museum reveals a coffee shop with some musical devices and minstrel costumes and collages of photographs haphazardly hung on the partitions, plus a product ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni said it had been “not able” to substantiate if a museum experienced ever operated from these premises.

Stemmet advised the investigators the museum had been moved given that they could not afford the hire of R100,000 per month. He said the CTMCA had bought home for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been bought for the same price tag. Schaapkraal is within a peri-city location considerably from the city.

Consequently, the museum were moved to a different area in Primrose Park in February 2021, Stemmet instructed the Dabishi Nthambeleni investigators. But right after traveling to the premises, which can be in an industrial space, the investigators stated they doubted whether a proper museum existed there. Pics attached on the report clearly show a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed for the wall, exhibited on tables and unfold out on the floor, without any clarification.

“There is a minimum volume of things at the museum [that] on no account stand for the in excess of a hundred-yr history with the Cape City Carnival, the investigators stated, introducing that there was “no signage outdoors the premises indicating they housed a museum and … generally, the museum doesn't seem to become open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by shifting the location of your museum to an alternate locale without the need of notifying the NLC.



The Schaapkraal home, on which no museum was ever built. Image: Raymond Joseph

Buses
Stemmet informed the investigators that the CTMCA experienced to move from your rented Crete Highway premises as it experienced operate up a R4-million credit card debt with the City of Cape City and was frightened its machines could well be connected.

“As a result of authorized battles as well as the debts, the organisation had to maneuver its property from 5 Crete Street to steer clear of the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them the two buses purchased with lottery money were being stored within a solution locale “concealed from your Sheriff”. Though the investigators explained they had been not able to confirm that any buses experienced ever been bought.

Stemmet also verified which the buses had been hidden to prevent them being seized. But once the investigators asked for being taken into the area where the buses ended up stored, he informed them that “the proprietor of The key locale wasn't accessible to open the premises for us”.

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

Soeker also informed them the Schaapkraal residence had been offered due to debt.

“Mr Soeker defined that As outlined by his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA made the decision It will be ideal to offer their [Schaapkraal] property … and also to also to hide the property with the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape City’s mayco member for safety and stability, has Formerly explained to GroundUp that the CTMCA “threw income absent” on litigation with town.

“Every year like clockwork, as we strategy the top of the yr, the CTMCA picks a legal struggle with the town, in excess of permits or another thing. We never initiate it. They maintain throwing money absent on vexatious litigation which they lose and have expenses awarded towards them. This is certainly fully self-inflicted,” he reported.

Soeker instructed the Dabishi Nthambeleni investigators that the principle part gamers on issues of Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who had been accountable for the many admin, funds and functioning หวย วัน นี้ the CTMCA.” The investigators explained they were not able to Call Momberg.

Hats
In the course of their “investigation in loco” in the Primrose Park premises, the investigators “observed quite a few devices, some in good affliction, some in bad situation plus some that looked rusty and very outdated”. Stemmet instructed the investigators that there was also an off-site storage facility wherever “devices plus some equipment” were being saved.

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

Dependant on shots and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise seem like gear which was illegally removed from the CTMCA’s earlier premises. Stemmet is going through charges for this elimination.

In accordance with the ultimate development report submitted on the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, a company wherein Stemmet, his wife and his daughter ended up administrators at enough time.

The investigators uncovered this “alarming”.

“Within the CIPC research of Martin-Conne Milliners and the invoices submitted, we Be aware the subsequent alarming finding: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered deal with of the organization is 5 Crete Highway, Wetton, Cape City, precisely the same deal with on which the museum was meant to be created and/or converted,” they noted.

An audit by accountants Kopano Included, attached into the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one among the administrators.

Based on Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, which means R6.9-million remains to be owed, while there is no payment day set for when this needs to be compensated.

The Kopano audit plus the near website link amongst the companies “point out to us that there is ‘foul Participate in’ associated with the acquisition on the machinery with the museum workshop”, the investigators stated during the report.

“We find that it is hugely possible that CTMCA used the funding from the NLC to ‘refund’ considered one of its primary directors for your house at the next overpriced level than the actual cost and value of the home and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant on the CTMCA had been spent.

“In point of fact, an in depth report on how the funding in the NLC was employed, would be impossible given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts invested on Each and every merchandise it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not performed a internet site stop by prior to approving the grant. But this wasn't standard follow at time plus they observed no proof of negligence by NLC employees.

At the time, the NLC’s rules didn't have to have funded organisations to post proof of payment with interim reports, they identified. This meant which the CTMCA was ready to receive a second tranche of funding without the need to present proof that it experienced used the main tranche for its intended intent.

Pursuing the appointment of a fresh board, commissioner and senior govt group, the NLC has tightened up on these and other troubles.

Dabishi Nthambeleni recommended that

the NLC decline any long term funding programs through the CTMCA;
the CTMCA and any customers who were being linked to the grant be subjected into the NLC’s “delinquency” system;
the NLC open up a felony case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, instead of act on the report’s suggestions, the NLC – under its previous administration – selected to suppress it, mainly because it had done Along with the previous reviews into corruption it had commissioned.

GroundUp sent issues to Stemmet and Soeker via SMS, and asked for e-mail addresses to ship the issues by email too. But no response had been received at some time of publication.



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