Minstrels carry out in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant from the Nationwide Lotteries Fee to your Cape Town Minstrel Carnival Affiliation (CTMCA) for just a minstrels museum has found no proof that a museum ever existed.
The investigators located the CTMCA did not make use of the R5-million allocated to obtain or produce a museum.
Additionally they located which the CTMCA only bought land worthy of R1.seven-million, not R5-million as allotted.
They identified the CTMCA utilized money from your Lottery to acquire workshop equipment from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape City Minstrel Carnival Association (CTMCA) from the Nationwide Lotteries Fee (NLC) to create a museum to rejoice town’s loaded minstrel historical past went astray. The museum was in no way made.

The small print from the abuse of an incredible number of rands of Lottery cash for just a museum that under no circumstances was are discovered within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of over R64-million in Lottery resources allocated towards the CTMCA between 2003 and 2017.

The 1st Portion of the investigation, by law firm Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which provided funding for the museum. The authorized finances with the museum was much more than R12.eight-million, with R5-million of that allocated for a setting up to deal with the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up with the museum and whether or not the museum “in fact existed”.

The company was also instructed to investigate

the purchase with Lottery resources of two cars – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
different devices “acquired for that producing with the costumes and hats” for that minstrels carnival, for R5.four-million.
At time, convicted legal Richard “Pot” Stemmet was director on 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 ongoing as two of various administrators in the organisation. Stemmet was reappointed as being a director in May 2021.

The investigation adopted in depth reporting by GroundUp regarding the countless rands of Lottery funding allotted to the CTMCA (see listed here, here and listed here) and just how the funds in all probability served finance the ANC’s 2014 election campaign inside the Western Cape, led by at time by Marius Fransman.



The setting up on the right was the supposed website on the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In reaction to the Parliamentary dilemma, former NLC Commissioner Thabang Mampane detailed grants to three CTMCA “jobs” - such as the museum - among 2012 and 2015. All a few initiatives had been done, she advised MPs.

However the investigators found no proof that a museum experienced ever existed.

At the outset the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo acquired by GroundUp of your supposed Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of photos haphazardly hung within the walls, plus a design ship on its plinth in a very corner.

In its report, Dabishi Nthambeleni reported it absolutely was “not ready” to verify if a museum had ever operated from these premises.

Stemmet told the investigators the museum were moved mainly because they could no more find the money for the rent of R100,000 per month. He explained the CTMCA had procured residence for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were sold for a similar cost. Schaapkraal is inside of a peri-urban place far from the town.

As a result, the museum had been moved to a different place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, which might be within an industrial space, the investigators said they doubted no matter whether a suitable museum existed there. Images connected for the report display a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed to your wall, exhibited on tables and unfold out on the floor, without having clarification.

“You will find a nominal level of items for the museum [that] by no means stand for the more than 100-yr background from the Cape Town Carnival, the investigators stated, adding that there was “no signage outside the house the premises indicating they housed a museum and … generally, the museum would not seem to get open to the general public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni famous, by relocating The situation in the museum to an alternate location without notifying the NLC.



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

Buses
Stemmet instructed the investigators the CTMCA experienced to maneuver from the rented Crete Road premises because it experienced run up a R4-million financial debt with the City of Cape Town and was frightened its tools can be connected.

“Due to legal battles plus the debts, the organisation had to move its house from five Crete Street to stay away from the sheriff from attaching the assets of your organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director from the CTMCA, explained to them which the two buses purchased with lottery funds were being saved in the top secret place “hidden through the Sheriff”. However the investigators claimed they had been unable to verify that any buses had ever been acquired.

Stemmet also confirmed that the buses had been concealed to halt them remaining seized. But when the investigators requested being taken into the position where the buses ended up stored, he explained to them that “the proprietor of The key spot was not accessible to open the premises for us”.

“The CTMCA couldn't offer proof of payment for two vehicles that it allegedly procured with grant income,” the investigators documented.

Soeker also explained to them the Schaapkraal home were bought because of the financial debt.

“Mr Soeker spelled out that As outlined by his comprehending, a result of the credit card debt owed to the town of Cape Town, the CTMCA determined it would be most effective to provide their [Schaapkraal] assets … and to also to hide the belongings with the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape Town’s mayco member for security and stability, has Formerly told GroundUp the CTMCA “threw income absent” on litigation with the City.

“Each year like clockwork, as we method the top of the year, the CTMCA picks a authorized fight with town, about permits or something else. We under no circumstances initiate it. They hold throwing cash away on vexatious litigation that they get rid of and also have prices awarded towards them. This can be totally self-inflicted,” he mentioned.

Soeker explained to the Dabishi Nthambeleni investigators that the main job players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of each of the admin, finances and managing หุ้น ชอง 9 the CTMCA.” The investigators stated they were unable to Get hold of Momberg.

Hats
Throughout their “investigation in loco” within the Primrose Park premises, the investigators “located numerous machines, some in very good condition, some in undesirable ailment and a few that looked rusty and very outdated”. Stemmet explained to the investigators that there was also an off-website storage facility in which “instruments and a few equipment” were being saved.

“We questioned him to choose us to the power but he was evasive to our request.”

Depending on photographs and invoices in GroundUp’s possession, some, Otherwise all, on the products look like tools which was illegally removed from the CTMCA’s past premises. Stemmet is going through charges for this elimination.

In accordance with the final progress report submitted to your NLC from the CTMCA, the machinery was ordered from Martin-Conne Milliners, a company during which Stemmet, his wife and his daughter have been administrators at enough time.

The investigators uncovered this “alarming”.

“From the CIPC look for of Martin-Conne Milliners and the invoices submitted, we note the following alarming finding: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the corporate is 5 Crete Highway, Wetton, Cape Town, exactly the same handle on which the museum was intended to be built and/or converted,” they reported.

An audit by accountants Kopano Integrated, hooked up for the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was among the administrators.

Based on Dabishi Nthambeleni, the company has compensated R1.2-million as being a deposit, meaning R6.nine-million continues to be owed, though there isn't any payment day set for when this need to be paid.

The Kopano audit as well as near connection amongst the businesses “show to us that there's ‘foul Participate in’ associated with the purchase of your equipment from the museum workshop”, the investigators explained during the report.

“We discover that it's highly probable that CTMCA employed the funding in the NLC to ‘refund’ considered one of its key administrators for that residence at an increased overpriced fee than the actual cost and value of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was not able to establish how the grant into the CTMCA had been invested.

“In point of fact, a detailed report on how the funding of the NLC was applied, will be impossible as being the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Just about every product it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC had not carried out a web-site visit prior to approving the grant. But this was not standard practice at the time they usually uncovered no proof of carelessness by NLC staff.

At some time, the NLC’s guidelines didn't demand funded organisations to submit evidence of payment with interim experiences, they identified. This intended which the CTMCA was able to get a next tranche of funding without the need to deliver evidence that it had used the first tranche for its meant goal.

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

Dabishi Nthambeleni encouraged that

the NLC drop any foreseeable future funding purposes in the CTMCA;
the CTMCA and any customers who were being involved in the grant be subjected for the NLC’s “delinquency” process;
the NLC open a felony circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC start out the whole process of recovering the misappropriated resources.
But, instead of act within the report’s recommendations, the NLC – under its prior administration – selected to suppress it, since it experienced accomplished Along with the preceding reviews into corruption it experienced commissioned.

GroundUp sent questions to Stemmet and Soeker via SMS, and requested for email addresses to mail the issues by e-mail far too. But no response were acquired at some time of publication.



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

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