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

A report by Lawyers Dabishi Nthambeleni into a R27.three-million grant because of the National Lotteries Fee on the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has identified no proof that a museum at any time existed.
The investigators uncovered that the CTMCA didn't use the R5-million allocated to acquire or produce a museum.
In addition they observed the CTMCA only purchased land truly worth R1.seven-million, not R5-million as allocated.
They identified the CTMCA used money from your Lottery to invest in workshop devices from amongst its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted for the Cape Town Minstrel Carnival Association (CTMCA) by the Countrywide Lotteries Fee (NLC) to setup a museum to rejoice town’s loaded minstrel historical past went astray. The museum was never ever developed.

The main points with the abuse of countless rands of Lottery cash to get a museum that in no way was are discovered within an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of much more than R64-million in Lottery funds allotted to your CTMCA among 2003 and 2017.

The first Portion of the investigation, by law business Dabishi Nthambeleni, was performed concerning September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which integrated funding for the museum. The permitted budget to the museum was over R12.eight-million, with R5-million of that allocated for a creating to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the developing to the museum and whether the museum “really existed”.

The agency was also instructed to investigate

the acquisition with Lottery money of two cars – a 60-seater bus as well as a 23-seater bus – for R2.four-million; and
different equipment “acquired for your manufacturing with the costumes and hats” for the minstrels carnival, for R5.4-million.
At some time, convicted criminal 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 ongoing as two of several administrators from the organisation. Stemmet was reappointed for a director in May 2021.

The investigation followed intensive reporting by GroundUp in regards to the countless rands of Lottery funding allotted for the CTMCA (see right here, listed here and below) and the way the resources most likely served finance the ANC’s 2014 election campaign from the Western Cape, led by at enough time by Marius Fransman.



The developing on the ideal was the intended web page of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape Town. Photograph: Raymond Joseph

In response into a Parliamentary problem, previous NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “jobs” - such as the museum - involving 2012 and 2015. All a few tasks had been completed, she informed MPs.

Even so the investigators identified no evidence that a museum experienced ever existed.

At the beginning the museum was on account of open in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp of the intended Wetton museum shows a coffee store with some musical devices and minstrel costumes and collages of images haphazardly hung to the partitions, as well as a design ship on its plinth in the corner.

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

Stemmet advised the investigators the museum had been moved since they could no longer afford the rent of R100,000 per month. He explained the CTMCA had purchased residence for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were marketed for the same price tag. Schaapkraal is in the peri-city location considerably from the city.

Subsequently, the museum had been moved to a different spot in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But just after browsing the premises, that are in an industrial region, the investigators explained they doubted whether a correct museum existed there. Photographs connected to your report display a mishmash of randomly shown uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and distribute out on the floor, without having rationalization.

“You will find a minimal number of merchandise within the museum [that] on no account symbolize the over a hundred-12 months heritage with the Cape Town Carnival, the investigators said, introducing that there was “no signage outside the premises indicating that they housed a museum and … typically, the museum does not seem being open up to the public.”

The CTMCA had breached the grant agreement, Dabishi Nthambeleni famous, by shifting The placement from the museum to an alternative location without having notifying the NLC.



The Schaapkraal residence, on which no museum was ever constructed. Photograph: Raymond Joseph

Buses
Stemmet explained to the investigators that the CTMCA had to maneuver in the rented Crete Street premises as it experienced run up a R4-million debt with the town of Cape City and was afraid its gear will be connected.

“A result of the legal battles and also the debts, the organisation experienced to maneuver its home from five Crete Highway to avoid the sheriff from attaching the home of your organisation,” Stemmet told the investigators.

Sedrick Soeker, The present director of your CTMCA, informed them that the two buses bought with lottery resources were stored inside a key locale “concealed with the Sheriff”. Nevertheless the investigators mentioned they have been not able to substantiate that any buses experienced at any time been purchased.

Stemmet also confirmed the buses had been concealed to halt them getting seized. But in the event the investigators questioned to get taken into the place wherever the buses had been stored, he explained to them that “the owner of The trick location wasn't accessible to open the premises for us”.

“The CTMCA couldn't provide proof of payment for two automobiles that it allegedly obtained with grant income,” the investigators claimed.

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

“Mr Soeker defined that In keeping with his comprehending, because of the personal debt owed to the town of Cape City, the CTMCA resolved It could be ideal to market their [Schaapkraal] home … and also to also to cover the assets of your CTMCA to steer clear of the sheriff from attaching the property.”

JP Smith, Cape Town’s mayco member for security and security, has Formerly told GroundUp that the CTMCA “threw funds away” on litigation with the town.

“Each year like clockwork, as we solution the end on the calendar year, the CTMCA picks a legal fight with the City, more than permits or something else. We never initiate it. They keep throwing revenue absent on vexatious litigation that they lose and also have fees awarded against them. This is certainly completely self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the main part players on issues of Lottery funding have been Stemmet and former CTMCA board member Kevin Momberg, “who had been accountable for the many admin, finances and working hihuay the CTMCA.” The investigators reported they were unable to Get in touch with Momberg.

Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “uncovered various equipment, some in very good affliction, some in undesirable problem and a few that appeared rusty and very old”. Stemmet explained to the investigators that there was also an off-internet site storage facility exactly where “devices and a few equipment” ended up saved.

“We asked him to acquire us to the facility but he was evasive to our ask for.”

Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, of your things look like tools that was illegally faraway from the CTMCA’s prior premises. Stemmet is struggling with costs for this removal.

Based on the ultimate progress report submitted to your NLC because of the CTMCA, the equipment was procured from Martin-Conne Milliners, a corporation in which Stemmet, his spouse and his daughter ended up directors at the time.

The investigators found this “alarming”.

“From the CIPC research of Martin-Conne Milliners as well as the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered handle of the organization is five Crete Highway, Wetton, Cape Town, a similar address on which the museum was meant to be built and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected on the investigative report, recorded the CTMCA was in the whole process of purchasing “equipment, 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 one of the administrators.

Based on Dabishi Nthambeleni, the corporate has paid out R1.2-million as a deposit, meaning R6.nine-million remains to be owed, while there isn't a payment date established for when this has to be compensated.

The Kopano audit as well as the shut hyperlink between the companies “suggest to us that there is ‘foul Engage in’ involved in the acquisition from the equipment of the museum workshop”, the investigators claimed within the report.

“We find that it's remarkably possible that CTMCA made use of the funding of the NLC to ‘refund’ one among its most important administrators for that residence at an increased overpriced amount than the actual price tag and worth of the house and/or machinery.”

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

“The truth is, a detailed report on how the funding of the NLC was made use of, will be extremely hard since the CTMCA does not have any receipts, or evidence of payments to substantiate the amounts expended on Every merchandise it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators located the NLC had not carried out a web page visit just before approving the grant. But this wasn't typical observe at enough time and so they identified no evidence of negligence by NLC workers.

At the time, the NLC’s policies did not demand funded organisations to submit evidence of payment with interim stories, they pointed out. This intended which the CTMCA was able to get a second tranche of funding without the need to give evidence that it had made use of the initial tranche for its meant purpose.

Subsequent the appointment of a new board, commissioner and senior government staff, the NLC has tightened up on these as well as other troubles.

Dabishi Nthambeleni encouraged that

the NLC drop any upcoming funding programs from your CTMCA;
the CTMCA and any customers who have been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a felony scenario 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 opposed to act on the report’s suggestions, the NLC – under its preceding administration – chose to suppress it, since it experienced carried out While using the earlier experiences into corruption it experienced commissioned.

GroundUp sent queries to Stemmet and Soeker by means of SMS, and questioned for electronic mail addresses to send the thoughts by electronic mail too. But no response were been given at some time of publication.



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