Minstrels accomplish in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni right into a R27.3-million grant via the National Lotteries Commission to your Cape City Minstrel Carnival Affiliation (CTMCA) for your minstrels museum has uncovered no proof that a museum at any time existed.
The investigators identified that the CTMCA did not use the R5-million allotted to purchase or establish a museum.
They also observed that the CTMCA only acquired land really worth R1.seven-million, not R5-million as allotted.
They discovered the CTMCA utilised cash in the Lottery to acquire workshop gear from one of its individual directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Fee (NLC) to put in place a museum to rejoice the city’s wealthy minstrel heritage went astray. The museum was in no way created.

The details on the abuse of a lot of rands of Lottery resources for just a museum that in no way was are unveiled within an investigative report commissioned because of the NLC in 2021.

The museum grant was Section of a lot more than R64-million in Lottery resources allocated to your CTMCA amongst 2003 and 2017.

The main Portion of the investigation, by legislation firm Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.three-million grant towards the CTMCA in 2014, which bundled funding for your museum. The accepted price range for your museum was a lot more than R12.8-million, with R5-million of that allocated for any building to accommodate the museum.

Go through the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the setting up for your museum and whether or not the museum “essentially existed”.

The firm was also instructed to investigate

the purchase with Lottery funds of two autos – a 60-seater bus as well as a 23-seater bus – for R2.4-million; and
different machines “purchased with the production from the costumes and hats” with the minstrels carnival, for R5.4-million.
At some time, convicted legal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director with the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of quite a few directors in the organisation. Stemmet was reappointed like a director in Could 2021.

The investigation adopted extensive reporting by GroundUp in regards to the countless rands of Lottery funding allotted towards the CTMCA (see right here, below and listed here) and the way the cash most likely aided finance the ANC’s 2014 election campaign from the Western Cape, led by at some time by Marius Fransman.



The building on the correct was the intended web-site of the minstrels’ museum, in the course of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction to the Parliamentary problem, former NLC Commissioner Thabang Mampane outlined grants to 3 CTMCA “projects” - such as the museum - involving 2012 and 2015. All a few jobs had been finished, she told MPs.

Though the investigators located no proof that a museum experienced ever existed.

At first the museum was as a consequence of open in rented premises in Crete Road, Wetton. A photo attained by GroundUp of the intended Wetton museum displays a coffee store with a few musical instruments and minstrel costumes and collages of shots haphazardly hung to the walls, and also a product ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni mentioned it was “not in a position” to substantiate if a museum experienced at any time operated from these premises.

Stemmet instructed the investigators the museum had been moved simply because they could now not pay for the lease of R100,000 per month. He stated the CTMCA experienced purchased house for R1.seven-million in Schaapkraal for your museum, but couldn't get it rezoned, and were bought for the same cost. Schaapkraal is in a very peri-city spot significantly from town.

Therefore, the museum were moved to a different locale in Primrose Park in February 2021, Stemmet told the Dabishi Nthambeleni investigators. But soon after viewing the premises, that are in an industrial space, the investigators reported they doubted no matter whether a suitable museum existed there. Pics connected on the report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the ground, without any explanation.

“You will find there's small level of goods in the museum [that] by no means depict the over one hundred-yr historical past on the Cape Town Carnival, the investigators said, introducing that there was “no signage exterior the premises indicating that they housed a museum and … generally, the museum does not appear to become open up to the public.”

The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni noted, by moving The placement in the museum to an alternative site with no notifying the NLC.



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

Buses
Stemmet instructed the investigators which the CTMCA experienced to move with the rented Crete Highway premises mainly because it experienced operate up a R4-million personal debt with the City of Cape City and was worried its equipment would be hooked up.

“Because of the lawful battles and the debts, the organisation experienced to move its property from five Crete Road to steer clear of the sheriff from attaching the house in the organisation,” Stemmet told the investigators.

Sedrick Soeker, The existing director with the CTMCA, instructed them that the two buses acquired with lottery cash have been stored inside a magic formula locale “hidden in the Sheriff”. Though the investigators stated they have been not able to verify that any buses experienced ever been purchased.

Stemmet also verified the buses were hidden to stop them currently being seized. But if the investigators requested for being taken for the spot in which the buses had been stored, he explained to them that “the proprietor of the secret location wasn't available to open up the premises for us”.

“The CTMCA could not provide proof of payment for 2 autos that it allegedly obtained with grant revenue,” the investigators described.

Soeker also advised them the Schaapkraal property were marketed due to the personal debt.

“Mr Soeker discussed that In line with his comprehension, because of the personal debt owed to the City of Cape Town, the CTMCA resolved It could be best to promote their [Schaapkraal] house … also to also to cover the property of the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for security and safety, has previously informed GroundUp that the CTMCA “threw revenue absent” on litigation with the City.

“Every year like clockwork, as we solution the tip from the calendar year, the CTMCA picks a legal combat with the City, about permits or something else. We under no circumstances initiate it. They hold throwing money away on vexatious litigation they lose and also have expenditures awarded towards them. This is certainly entirely self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the most crucial function players on problems with Lottery funding were Stemmet and former CTMCA board member Kevin Momberg, “who were in control of each of the admin, finances and operating หวย ลาว ออก วัน นี้ สด the CTMCA.” The investigators reported they were struggling to Get in touch with Momberg.

Hats
For the duration of their “investigation in loco” for the Primrose Park premises, the investigators “observed a lot of devices, some in very good problem, some in poor situation and some that seemed rusty and extremely aged”. Stemmet advised the investigators that there was also an off-web site storage facility where “devices and some machinery” were held.

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

Determined by pics and invoices in GroundUp’s possession, some, if not all, in the merchandise seem like equipment which was illegally removed from the CTMCA’s preceding premises. Stemmet is facing rates for this removal.

Based on the remaining progress report submitted for the NLC via the CTMCA, the equipment was bought from Martin-Conne Milliners, a business in which Stemmet, his wife and his daughter were being administrators at enough time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners and the invoices submitted, we note the next alarming locating: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the corporation is five Crete Highway, Wetton, Cape City, the exact same address on which the museum was meant to be developed and/or transformed,” they reported.

An audit by accountants Kopano Included, hooked up for the investigative report, recorded which the CTMCA was in the process of acquiring “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.

In accordance with Dabishi Nthambeleni, the business has paid R1.two-million as a deposit, this means R6.nine-million remains to be owed, even though there is absolutely no payment date established for when this has to be compensated.

The Kopano audit along with the shut url in between the businesses “indicate to us that there is ‘foul Enjoy’ involved in the purchase of your equipment from the museum workshop”, the investigators claimed within the report.

“We find that it is extremely probable that CTMCA utilized the funding in the NLC to ‘refund’ one among its key directors for your home at a greater overpriced price than the particular selling price and worth of the home and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it was not able to establish how the grant to the CTMCA were invested.

“In point of fact, a detailed report on how the funding of your NLC was utilised, would be difficult because the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities spent on Each individual item it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators uncovered which the NLC experienced not done a website check out ahead of approving the grant. But this was not common follow at enough time and so they discovered no proof of negligence by NLC staff.

At the time, the NLC’s procedures did not need funded organisations to post proof of payment with interim stories, they pointed out. This intended that the CTMCA was in the position to receive a second tranche of funding without the need to give evidence that it experienced employed the main tranche for its intended goal.

Next the appointment of a whole new board, commissioner and senior govt team, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni encouraged that

the NLC drop any future funding applications from your CTMCA;
the CTMCA and any members who were involved in the grant be subjected into the NLC’s “delinquency” procedure;
the NLC open up a felony situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC start off the entire process of recovering the misappropriated resources.
But, in lieu of act about the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, as it had finished With all the former reports into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by way of SMS, and asked for e-mail addresses to ship the issues by electronic mail much too. But no reaction were acquired at time of publication.



The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph