Minstrels complete in Athlone on 2 January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Fee towards the Cape City Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has discovered no evidence that a museum at any time existed.
The investigators found that the CTMCA did not use the R5-million allocated to order or produce a museum.
They also identified that the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA applied resources within the Lottery to invest in workshop machines from one of its personal administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted on the Cape Town Minstrel Carnival Association (CTMCA) because of the National Lotteries Commission (NLC) to build a museum to celebrate the town’s wealthy minstrel historical past went astray. The museum was in no way made.

The details on the abuse of countless rands of Lottery resources 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 more than R64-million in Lottery funds allocated on the CTMCA concerning 2003 and 2017.

The main Component of the investigation, by legislation agency Dabishi Nthambeleni, was performed in between September 2020 and January 2021 and centered on a R27.three-million grant on the CTMCA in 2014, which integrated funding for that museum. The authorized finances for your museum was in excess of R12.8-million, with R5-million of that allocated for just a creating to deal with the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the building to the museum and whether the museum “in fact existed”.

The firm was also instructed to research

the purchase with Lottery money of two autos – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
several machines “purchased to the producing with the costumes and hats” for your minstrels carnival, for R5.four-million.
At the time, convicted legal Richard “Pot” Stemmet was director of the 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 administrators from the organisation. Stemmet was reappointed being a director in May possibly 2021.

The investigation followed intensive reporting by GroundUp concerning the millions of rands of Lottery funding allocated to the CTMCA (see below, here and listed here) and just how the funds likely assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The developing on the appropriate was the supposed web-site of the minstrels’ museum, in the midst of an industrial region in Primrose Park, Cape Town. Picture: Raymond Joseph

In reaction to a Parliamentary problem, previous NLC Commissioner Thabang Mampane mentioned grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All three tasks had been completed, she instructed MPs.

Nevertheless the investigators identified no proof that a museum experienced ever existed.

Initially the museum was resulting from open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp in the intended Wetton museum demonstrates a espresso shop with some musical instruments and minstrel costumes and collages of pictures haphazardly hung within the walls, plus a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not able” to confirm if a museum experienced ever operated from these premises.

Stemmet explained to the investigators the museum had been moved since they could now not manage the hire of R100,000 a month. He explained the CTMCA experienced bought house for R1.seven-million in Schaapkraal for your museum, but could not get it rezoned, and were offered for a similar rate. Schaapkraal is in the peri-city region considerably from town.

Therefore, the museum were moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But right after going to the premises, which can be in an industrial area, the investigators reported they doubted whether a suitable museum existed there. Pics hooked up on the report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, displayed on tables and unfold out on the ground, without having explanation.

“You will find there's nominal degree of products with the museum [that] on no account symbolize the much more than 100-12 months record from the Cape Town Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating that they housed a museum and … normally, the museum isn't going to glance to generally be open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni observed, by going The situation with the museum to an alternate locale with out notifying the NLC.



The Schaapkraal assets, on which no museum was ever designed. Photo: Raymond Joseph

Buses
Stemmet instructed the investigators that the CTMCA had to move with the rented Crete Road premises since it experienced run up a R4-million debt with the town of Cape City and was frightened its machines will be connected.

“Mainly because of the lawful battles and also the debts, the organisation had to maneuver its property from five Crete Street to avoid the sheriff from attaching the property of the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director on the CTMCA, informed them which the two buses bought with lottery resources had been saved within a secret site “hidden within the Sheriff”. Even so the investigators stated they ended up not able to confirm that any buses had ever been bought.

Stemmet also confirmed that the buses had been concealed to halt them becoming seized. But if the investigators asked for being taken to your place in which the buses had been stored, he advised them that “the proprietor of the secret place was not accessible to open the premises for us”.

“The CTMCA could not deliver evidence of payment for two vehicles that it allegedly bought with grant money,” the investigators noted.

Soeker also told them the Schaapkraal property had been sold due to personal debt.

“Mr Soeker discussed that In keeping with his comprehension, as a result of personal debt owed to the City of Cape Town, the CTMCA determined It could be greatest to provide their [Schaapkraal] house … also to also to hide the assets in the CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for safety and safety, has Beforehand advised GroundUp that the CTMCA “threw dollars absent” on litigation with the City.

“On a yearly basis like clockwork, as we technique the top with the calendar year, the CTMCA picks a lawful fight with the town, more than permits or something else. We never initiate it. They maintain throwing cash absent on vexatious litigation which they reduce and possess costs awarded in opposition to them. That is totally self-inflicted,” he mentioned.

Soeker informed the Dabishi Nthambeleni investigators that the primary purpose players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were being answerable for each of the admin, finances and jogging หุ้น ชอง 9 the CTMCA.” The investigators said they were struggling to Make contact with Momberg.

Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “discovered quite a few equipment, some in good problem, some in lousy condition and several that appeared rusty and intensely aged”. Stemmet explained to the investigators that there was also an off-site storage facility in which “instruments plus some equipment” ended up held.

“We asked him to acquire us to the ability but he was evasive to our request.”

According to shots and invoices in GroundUp’s possession, some, if not all, of your things look like gear which was illegally removed from the CTMCA’s past premises. Stemmet is dealing with rates for this removal.

According to the ultimate progress report submitted for the NLC with the CTMCA, the equipment was procured from Martin-Conne Milliners, a company by which Stemmet, his wife and his daughter had been directors at some time.

The investigators found this “alarming”.

“In the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the next alarming discovering: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered tackle of the business is five Crete Road, Wetton, Cape Town, exactly the same handle on which the museum was meant to be constructed and/or transformed,” they described.

An audit by accountants Kopano Incorporated, attached to your investigative report, recorded that the CTMCA was in the entire process of purchasing “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was amongst the administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million as a deposit, meaning R6.nine-million continues to be owed, however there isn't a payment date established for when this have to be paid.

The Kopano audit as well as close link amongst the companies “reveal to us that there's ‘foul Engage in’ involved in the purchase of your machinery on the museum workshop”, the investigators reported inside the report.

“We discover that it is remarkably possible that CTMCA made use of the funding in the NLC to ‘refund’ considered one of its key administrators for that residence at an increased overpriced amount than the particular selling price and worth of the home and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it had been unable to determine how the grant on the CTMCA had been expended.

“Actually, a detailed report on how the funding with the NLC was employed, would be impossible since the CTMCA doesn't have any receipts, or proof of payments to verify the amounts put in on Each and every product it requested funding for. The interim report and ultimate report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC had not carried out a web page go to just before approving the grant. But this was not regular practice at the time and they discovered no proof of carelessness by NLC personnel.

At enough time, the NLC’s policies did not need funded organisations to post proof of payment with interim experiences, they pointed out. This intended the CTMCA was capable to get a 2nd tranche of funding without needing to offer proof that it experienced employed the very first tranche for its meant purpose.

Subsequent the appointment of a completely new board, commissioner and senior executive group, the NLC has tightened up on these and other problems.

Dabishi Nthambeleni advisable that

the NLC drop any future funding applications in the CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a felony situation of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated cash.
But, as an alternative to act within the report’s recommendations, the NLC – less than its preceding administration – selected to suppress it, because it experienced carried out with the preceding reports into corruption it had commissioned.

GroundUp despatched questions to Stemmet and Soeker through SMS, and requested for electronic mail addresses to send the queries by e mail much too. But no reaction were acquired at enough time of publication.



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