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

A report by attorneys Dabishi Nthambeleni right into a R27.three-million grant from the National Lotteries Commission to your Cape City Minstrel Carnival Association (CTMCA) for any minstrels museum has found no proof that a museum at any time existed.
The investigators identified the CTMCA didn't make use of the R5-million allotted to order or make a museum.
In addition they uncovered which the CTMCA only acquired land worth R1.seven-million, not R5-million as allotted.
They identified the CTMCA applied funds through the Lottery to acquire workshop gear from considered one of its personal directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how millions of rand granted on the Cape City Minstrel Carnival Affiliation (CTMCA) with the National Lotteries Fee (NLC) to build a museum to rejoice town’s rich minstrel background went astray. The museum was in no way produced.

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

The museum grant was Section of much more than R64-million in Lottery resources allocated to the CTMCA involving 2003 and 2017.

The 1st Section of the investigation, by legislation agency Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which included funding with the museum. The approved finances to the museum was a lot more than R12.8-million, with R5-million of that allocated for your creating to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the building for your museum and if the museum “truly existed”.

The business was also instructed to analyze

the purchase with Lottery funds of two motor vehicles – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
several devices “purchased to the manufacturing on the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director with the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of various administrators from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted extensive reporting by GroundUp with regard to the millions of rands of Lottery funding allotted to the CTMCA (see here, here and in this article) and just how the cash possibly assisted finance the ANC’s 2014 election marketing campaign from the Western Cape, led by at time by Marius Fransman.



The developing on the ideal was the intended site with the minstrels’ museum, in the middle of an industrial place in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary issue, previous NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - such as the museum - involving 2012 and 2015. All a few projects had been finished, she advised MPs.

Though the investigators found no evidence that a museum experienced at any time existed.

At the outset the museum was as a consequence of open up in rented premises in Crete Street, Wetton. A photo obtained by GroundUp with the intended Wetton museum exhibits a espresso shop with some musical instruments and minstrel costumes and collages of images haphazardly hung to the walls, along with a design ship on its plinth within a corner.

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

Stemmet informed the investigators the museum had been moved as they could not pay for the lease of R100,000 per month. He claimed the CTMCA had ordered assets for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and had been bought for the same value. Schaapkraal is within a peri-city spot far from town.

Therefore, the museum had been moved to a fresh locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But after checking out the premises, that happen to be in an industrial region, the investigators explained they doubted whether a suitable museum existed there. Images attached into the report exhibit a mishmash of randomly displayed uniforms, musical instruments and diverse minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the ground, without having rationalization.

“There's a nominal degree of items in the museum [that] in no way symbolize the a lot more than one hundred-year history of the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum does not glimpse to get open up to the public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni famous, by moving The placement of your museum to an alternative site with out notifying the NLC.



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

Buses
Stemmet advised the investigators that the CTMCA experienced to maneuver through the rented Crete Road premises as it experienced run up a R4-million credit card debt with the City of Cape Town and was worried its tools could well be attached.

“Due to lawful battles and also the debts, the organisation had to move its house from 5 Crete Street to stay away from the sheriff from attaching the residence with the organisation,” Stemmet explained to the investigators.

Sedrick Soeker, The existing director of your CTMCA, explained to them which the two buses purchased with lottery money had been stored in a secret locale “concealed from your Sheriff”. However the investigators said they ended up unable to substantiate that any buses had at any time been bought.

Stemmet also verified which the buses had been concealed to stop them currently being seized. But when the investigators requested to be taken on the place in which the buses were being saved, he informed them that “the proprietor of The key locale was not available to open up the premises for us”.

“The CTMCA could not offer proof of payment for two automobiles that it allegedly obtained with grant income,” the investigators described.

Soeker also instructed them the Schaapkraal residence had been offered because of the debt.

“Mr Soeker explained that Based on his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA made a decision it would be most effective to market their [Schaapkraal] property … and also to also to cover the assets on the CTMCA to avoid the sheriff from attaching the house.”

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

“Every year like clockwork, as we method the tip on the 12 months, the CTMCA picks a authorized combat with the town, in excess of permits or something else. We never ever initiate it. They retain throwing dollars away on vexatious litigation that they shed and have prices awarded from them. This is certainly totally self-inflicted,” he mentioned.

Soeker told the Dabishi Nthambeleni investigators that the most crucial position gamers on issues of Lottery funding were being Stemmet and former CTMCA board member Kevin Momberg, “who ended up in control of many of the admin, finances and managing cat888 the CTMCA.” The investigators explained they had been not able to Get in touch with Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “identified various machines, some in fantastic situation, some in terrible condition and several that seemed rusty and intensely aged”. Stemmet informed the investigators that there was also an off-internet site storage facility wherever “devices plus some equipment” were being saved.

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

Determined by images and invoices in GroundUp’s possession, some, if not all, from the items look like devices that was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with charges for this elimination.

According to the closing progress report submitted to your NLC through the CTMCA, the equipment was bought from Martin-Conne Milliners, a corporation during which Stemmet, his spouse and his daughter were being directors at time.

The investigators observed this “alarming”.

“In the CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the following alarming discovering: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered deal with of the business is 5 Crete Road, Wetton, Cape City, the same handle on which the museum was meant to be developed and/or converted,” they claimed.

An audit by accountants Kopano Included, connected towards the investigative report, recorded which the CTMCA was in the entire process of acquiring “equipment, plant and stock” 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 one among the administrators.

As outlined by Dabishi Nthambeleni, the organization has paid out R1.two-million as a deposit, that means R6.nine-million remains owed, although there is not any payment day established for when this must be paid.

The Kopano audit as well as the near url amongst the businesses “reveal to us that there is ‘foul Engage in’ linked to the acquisition in the equipment of your museum workshop”, the investigators mentioned while in the report.

“We discover that it's really probable that CTMCA made use of the funding with the NLC to ‘refund’ one among its main directors to the assets at the next overpriced price than the actual selling price and price of the residence and/or machinery.”

Suggestions
Dabishi Nthambeleni concluded that it had been unable to ascertain how the grant towards the CTMCA were used.

“In point of fact, an in depth report on how the funding from the NLC was employed, would be not possible as the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts put in on Each and every merchandise it asked for funding for. The interim report and remaining report of the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC experienced not executed a site pay a visit to right before approving the grant. But this wasn't conventional observe at the time and they located no proof of negligence by NLC personnel.

At time, the NLC’s guidelines didn't have to have funded organisations to submit evidence of payment with interim reviews, they identified. This intended that the CTMCA was in a position to get a next tranche of funding while not having to offer proof that it experienced used the 1st tranche for its supposed objective.

Pursuing the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni encouraged that

the NLC drop any long run funding apps with the CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected towards the NLC’s “delinquency” procedure;
the NLC open up a legal circumstance of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC start the whole process of recovering the misappropriated money.
But, instead of act on the report’s suggestions, the NLC – under its past administration – selected to suppress it, because it had accomplished While using the previous reviews into corruption it had commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by using SMS, and questioned for e mail addresses to send out the inquiries by e-mail as well. But no reaction had been obtained at some time of publication.



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