Minstrels carry out in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant by the Countrywide Lotteries Fee into the Cape Town Minstrel Carnival Affiliation (CTMCA) for a minstrels museum has discovered no evidence that a museum ever existed.
The investigators located the CTMCA did not make use of the R5-million allotted to buy or build a museum.
Additionally they found the CTMCA only purchased land worth R1.7-million, not R5-million as allocated.
They observed the CTMCA employed resources from your Lottery to acquire workshop equipment from considered one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted for the Cape City Minstrel Carnival Association (CTMCA) through the National Lotteries Commission (NLC) to arrange a museum to rejoice the town’s prosperous minstrel history went astray. The museum was in no way made.

The small print with the abuse of a lot of rands of Lottery cash to get a museum that never was are discovered in an investigative report commissioned by the NLC in 2021.

The museum grant was Component of over R64-million in Lottery resources allocated to your CTMCA between 2003 and 2017.

The 1st part of the investigation, by law company Dabishi Nthambeleni, was executed between September 2020 and January 2021 and focused on a R27.3-million grant towards the CTMCA in 2014, which provided funding for the museum. The accredited spending budget for your museum was greater than R12.8-million, with R5-million of that allocated for the creating to house the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a developing with the museum and whether the museum “essentially existed”.

The organization was also instructed to investigate

the purchase with Lottery money of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.4-million; and
many equipment “obtained to the production of the costumes and hats” for that minstrels carnival, for R5.four-million.
At enough time, convicted prison Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah ongoing as two of various directors from the organisation. Stemmet was reappointed as being a director in Might 2021.

The investigation followed considerable reporting by GroundUp with regard to the a lot of rands of Lottery funding allotted into the CTMCA (see right here, in this article and listed here) and the best way the cash possibly aided finance the ANC’s 2014 election campaign within the Western Cape, led by at enough time by Marius Fransman.



The building on the proper was the intended website on the minstrels’ museum, in the middle of an industrial spot in Primrose Park, Cape Town. Photo: Raymond Joseph

In response into a Parliamentary question, previous NLC Commissioner Thabang Mampane stated grants to a few CTMCA “projects” - including the museum - involving 2012 and 2015. All three initiatives had been finished, she advised MPs.

However the investigators identified no proof that a museum had at any time existed.

At first the museum was due to open in rented premises in Crete Road, Wetton. A photograph obtained by GroundUp of your intended Wetton museum reveals a coffee shop with a few musical devices and minstrel costumes and collages of photos haphazardly hung about the partitions, as well as a design ship on its plinth in the corner.

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

Stemmet told the investigators the museum were moved since they could not pay for the hire of R100,000 per month. He said the CTMCA had purchased property for R1.seven-million in Schaapkraal for the museum, but couldn't get it rezoned, and had been sold for a similar value. Schaapkraal is in the peri-city place much from the city.

Subsequently, the museum had been moved to a completely new spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after viewing the premises, which happen to be within an industrial spot, the investigators reported they doubted regardless of whether a correct museum existed there. Photographs attached to the report present a mishmash of randomly shown uniforms, musical instruments and various minstrel paraphernalia nailed into the wall, shown on tables and spread out on the ground, without rationalization.

“You will find a small volume of goods within the museum [that] on no account stand for the in excess of a hundred-yr record in the Cape City Carnival, the investigators mentioned, incorporating that there was “no signage outside the premises indicating they housed a museum and … generally, the museum will not glimpse to become open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni noted, by moving The situation of the museum to another site devoid of notifying the NLC.



The Schaapkraal house, on which no museum was ever crafted. Photograph: Raymond Joseph

Buses
Stemmet informed the investigators that the CTMCA had to maneuver within the rented Crete Highway premises as it had operate up a R4-million credit card debt with the City of Cape City and was scared its gear would be connected.

“Due to legal battles plus the debts, the organisation experienced to maneuver its house from five Crete Road to stay away from the sheriff from attaching the home with the organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director of the CTMCA, instructed them which the two buses bought with lottery cash had been saved in a mystery locale “concealed from the Sheriff”. Nevertheless the investigators claimed they were not able to verify that any buses had ever been purchased.

Stemmet also confirmed that the buses had been hidden to halt them getting seized. But when the investigators asked to become taken towards the put where the buses had been stored, he told them that “the operator of The key site wasn't accessible to open the premises for us”.

“The CTMCA couldn't deliver proof of payment for 2 autos that it allegedly bought with grant money,” the investigators reported.

Soeker also explained to them the Schaapkraal residence had been marketed because of the personal debt.

“Mr Soeker discussed that In keeping with his understanding, mainly because of the credit card debt owed to town of Cape Town, the CTMCA made a decision It might be finest to promote their [Schaapkraal] residence … and to also to hide the assets on the CTMCA to stay away from the sheriff from attaching the house.”

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

“Yearly like clockwork, as we technique the end from the year, the CTMCA picks a authorized battle with town, in excess of permits or something else. We hardly ever initiate it. They retain throwing cash away on vexatious litigation that they lose and possess fees awarded versus them. This is often completely self-inflicted,” he reported.

Soeker told the Dabishi Nthambeleni investigators that the principle function players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who had been in command of each of the admin, finances and managing ตรวจ หวย the CTMCA.” The investigators claimed they had been not able to Get hold of Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “uncovered various equipment, some in good ailment, some in lousy affliction and many that looked rusty and extremely outdated”. Stemmet advised the investigators that there was also an off-site storage facility where by “instruments and some equipment” had been saved.

“We requested him to choose us to the ability but he was evasive to our request.”

Determined by shots and invoices in GroundUp’s possession, some, Otherwise all, of your goods look like devices that was illegally removed from the CTMCA’s former premises. Stemmet is facing costs for this removal.

According to the final development report submitted for the NLC by the CTMCA, the machinery was procured from Martin-Conne Milliners, a company where Stemmet, his wife and his daughter ended up administrators at time.

The investigators observed this “alarming”.

“From the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Take note the following alarming locating: Mr Stemmet himself is often a director of Martin-Conne Milliners. The registered tackle of the corporation is 5 Crete Road, Wetton, Cape Town, exactly the same address on which the museum was meant to be built and/or transformed,” they described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the whole process of obtaining “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a close corporation of which Stemmet was one among the administrators.

Based on Dabishi Nthambeleni, the business has paid out R1.two-million being a deposit, this means R6.nine-million remains to be owed, nevertheless there isn't any payment date established for when this need to be paid out.

The Kopano audit along with the close link concerning the businesses “show to us that there's ‘foul Enjoy’ associated with the acquisition in the equipment in the museum workshop”, the investigators said from the report.

“We find that it is remarkably probable that CTMCA employed the funding of your NLC to ‘refund’ among its most important directors for the house at an increased overpriced level than the particular price and value of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant into the CTMCA were expended.

“The truth is, a detailed report on how the funding from the NLC was utilized, would be impossible given that the CTMCA does not have any receipts, or evidence of payments to verify the quantities put in on Every product it requested funding for. The interim report and closing report from the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found the NLC experienced not conducted a internet site visit ahead of approving the grant. But this wasn't conventional practice at time and so they observed no proof of carelessness by NLC staff members.

At some time, the NLC’s procedures didn't involve funded organisations to post proof of payment with interim reviews, they pointed out. This intended the CTMCA was capable to receive a next tranche of funding without the need to deliver proof that it experienced applied the primary tranche for its intended reason.

Adhering to the appointment of a brand new board, commissioner and senior govt group, the NLC has tightened up on these and other troubles.

Dabishi Nthambeleni recommended that

the NLC decrease any upcoming funding applications through the CTMCA;
the CTMCA and any users who were involved in the grant be subjected for the NLC’s “delinquency” course of action;
the NLC open up a felony scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start off the whole process of recovering the misappropriated cash.
But, in lieu of act to the report’s suggestions, the NLC – below its previous administration – selected to suppress it, because it experienced performed Together with the prior experiences into corruption it had commissioned.

GroundUp despatched queries to Stemmet and Soeker by using SMS, and requested for electronic mail addresses to deliver the issues by email way too. But no reaction were obtained at enough time of publication.



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

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