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

A report by attorneys Dabishi Nthambeleni into a R27.3-million grant via the Nationwide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for your minstrels museum has discovered no evidence that a museum at any time existed.
The investigators uncovered which the CTMCA did not use the R5-million allocated to get or create a museum.
They also uncovered the CTMCA only acquired land value R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA applied resources within the Lottery to get workshop tools from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape City Minstrel Carnival Affiliation (CTMCA) from the Countrywide Lotteries Commission (NLC) to put in place a museum to rejoice the city’s prosperous minstrel background went astray. The museum was hardly ever created.

The details from the abuse of numerous rands of Lottery money for any museum that by no means was are disclosed in an investigative report commissioned through the NLC in 2021.

The museum grant was Section of greater than R64-million in Lottery money allotted into the CTMCA involving 2003 and 2017.

The very first Section of the investigation, by regulation organization Dabishi Nthambeleni, was carried out among September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which bundled funding to the museum. The accepted finances for your museum was more than R12.eight-million, with R5-million of that allotted for the making to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a making with the museum and if the museum “actually existed”.

The agency was also instructed to analyze

the acquisition with Lottery money of two cars – a 60-seater bus and also a 23-seater bus – for R2.4-million; and
various devices “purchased with the producing with the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted criminal Richard “Pot” Stemmet was director from 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 continued as two of numerous directors of the organisation. Stemmet was reappointed for a director in May possibly 2021.

The investigation followed substantial reporting by GroundUp about the millions of rands of Lottery funding allocated to your CTMCA (see listed here, here and below) and the best way the money possibly served finance the ANC’s 2014 election campaign while in the Western Cape, led by at time by Marius Fransman.



The constructing on the appropriate was the meant web page of the minstrels’ museum, in the middle of an industrial area in Primrose Park, Cape Town. Picture: Raymond Joseph

In response to the Parliamentary issue, previous NLC Commissioner Thabang Mampane listed grants to three CTMCA “tasks” - including the museum - in between 2012 and 2015. All a few jobs were finished, she told MPs.

Although the investigators identified no evidence that a museum experienced at any time existed.

At the outset the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp from the intended Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of pictures haphazardly hung to the partitions, as well as a design ship on its plinth inside a corner.

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

Stemmet instructed the investigators the museum had been moved simply because they could no more afford the rent of R100,000 a month. He stated the CTMCA experienced obtained residence for R1.7-million in Schaapkraal for that museum, but couldn't get it rezoned, and were marketed for a similar rate. Schaapkraal is in a very peri-urban location far from the city.

Because of this, the museum had been moved to a new locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after checking out the premises, which might be in an industrial region, the investigators reported they doubted whether a suitable museum existed there. Shots hooked up towards the report present a mishmash of randomly exhibited uniforms, musical devices and various minstrel paraphernalia nailed towards the wall, displayed on tables and spread out on the ground, with no explanation.

“There exists a minimal quantity of goods on the museum [that] in no way signify the greater than one hundred-calendar year historical past of your Cape Town Carnival, the investigators reported, adding that there was “no signage exterior the premises indicating which they housed a museum and … typically, the museum isn't going to glimpse to become open to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by relocating the location from the museum to an alternate spot without notifying the NLC.



The Schaapkraal home, on which no museum was at any time built. Photo: Raymond Joseph

Buses
Stemmet informed the investigators the CTMCA experienced to maneuver from the rented Crete Street premises mainly because it experienced run up a R4-million financial debt with the town of Cape City and was worried its machines can be connected.

“Mainly because of the legal battles plus the debts, the organisation experienced to move its home from five Crete Street to avoid the sheriff from attaching the property of your organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The present director with the CTMCA, advised them which the two buses acquired with lottery cash were saved in a magic formula location “concealed with the Sheriff”. Even so the investigators mentioned they have been unable to substantiate that any buses had at any time been bought.

Stemmet also verified which the buses had been concealed to prevent them being seized. But once the investigators questioned for being taken to the position exactly where the buses were being stored, he advised them that “the owner of The key location was not available to open up the premises for us”.

“The CTMCA couldn't supply evidence of payment for two autos that it allegedly procured with grant cash,” the investigators described.

Soeker also explained to them the Schaapkraal property had been sold due to the financial debt.

“Mr Soeker stated that In line with his comprehension, a result of the financial debt owed to town of Cape Town, the CTMCA decided It will be ideal to promote their [Schaapkraal] property … also to also to hide the assets of the CTMCA to stay away from the sheriff from attaching the assets.”

JP Smith, Cape Town’s mayco member for protection and security, has previously explained to GroundUp that the CTMCA “threw dollars away” on litigation with the City.

“Each and every year like clockwork, as we solution the top from the 12 months, the CTMCA picks a authorized combat with town, over permits or something else. We in no way initiate it. They hold throwing revenue absent on vexatious litigation they shed and have prices awarded versus them. This is often fully self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who were being accountable for all of the admin, finances and running ตรวจ สลาก the CTMCA.” The investigators explained they had been unable to contact Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “discovered a lot of equipment, some in good issue, some in bad problem and several that seemed rusty and extremely previous”. Stemmet explained to the investigators that there was also an off-site storage facility where “instruments and a few equipment” ended up saved.

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

Dependant on images and invoices in GroundUp’s possession, some, if not all, on the things seem like equipment that was illegally removed from the CTMCA’s previous premises. Stemmet is experiencing expenses for this removing.

According to the remaining progress report submitted for the NLC by the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company through which Stemmet, his wife and his daughter have been directors at time.

The investigators located this “alarming”.

“Through the CIPC research of Martin-Conne Milliners as well as invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporation is 5 Crete Highway, Wetton, Cape Town, the identical address on which the museum was intended to be crafted and/or converted,” they described.

An audit by accountants Kopano Included, connected 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, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the directors.

In keeping with Dabishi Nthambeleni, the organization has paid R1.2-million being a deposit, this means R6.nine-million remains owed, while there is no payment date established for when this need to be paid out.

The Kopano audit and the near website link in between the businesses “reveal to us that there is ‘foul Enjoy’ involved in the purchase of the equipment of your museum workshop”, the investigators explained within the report.

“We find that it's highly probable that CTMCA employed the funding of your NLC to ‘refund’ one among its primary directors for your residence at a higher overpriced amount than the particular cost and value of the house and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA were used.

“The truth is, an in depth report on how the funding on the NLC was utilised, might be unachievable as being the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts used on Every single product it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located which the NLC experienced not carried out a website stop by ahead of approving the grant. But this wasn't common exercise at some time they usually identified no evidence of negligence by NLC workers.

At time, the NLC’s principles did not require funded organisations to post proof of payment with interim experiences, they pointed out. This meant which the CTMCA was ready to receive a second tranche of funding without having to offer evidence that it had utilized the 1st tranche for its intended intent.

Adhering to the appointment of a new board, commissioner and senior government workforce, the NLC has tightened up on these together with other concerns.

Dabishi Nthambeleni encouraged that

the NLC drop any long term funding apps within the CTMCA;
the CTMCA and any associates who ended up linked to the grant be subjected into the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated resources.
But, as opposed to act within the report’s recommendations, the NLC – under its past administration – chose to suppress it, because it experienced accomplished With all the previous studies into corruption it experienced commissioned.

GroundUp sent inquiries to Stemmet and Soeker via SMS, and requested for electronic mail addresses to deliver the issues by email much too. But no reaction were received at time of publication.



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