Minstrels complete in Athlone on two January 2017. Archive Picture: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant because of the Nationwide Lotteries Fee on the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has uncovered no proof that a museum ever existed.
The investigators observed which the CTMCA didn't use the R5-million allocated to acquire or establish a museum.
They also located which the CTMCA only acquired land well worth R1.seven-million, not R5-million as allocated.
They located the CTMCA utilized money with the Lottery to purchase workshop gear from amongst its very own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to your Cape Town Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to put in place a museum to celebrate town’s rich minstrel background went astray. The museum was in no way made.

The small print of your abuse of countless rands of Lottery funds for your museum that hardly ever was are exposed in an investigative report commissioned with the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery funds allocated to your CTMCA concerning 2003 and 2017.

The initial A part of the investigation, by regulation organization Dabishi Nthambeleni, was executed amongst September 2020 and January 2021 and focused on a R27.three-million grant into the CTMCA in 2014, which bundled funding for your museum. The authorised spending budget for your museum was more than R12.eight-million, with R5-million of that allotted for a developing to deal with the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of a building for that museum and if the museum “actually existed”.

The company was also instructed to analyze

the purchase with Lottery resources of two automobiles – a sixty-seater bus plus a 23-seater bus – for R2.four-million; and
several devices “purchased with the production from the costumes and hats” for that minstrels carnival, for R5.four-million.
At some time, convicted felony Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director from the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah continued as two of many directors in the organisation. Stemmet was reappointed to be a director in May possibly 2021.

The investigation followed considerable reporting by GroundUp with regard to the millions of rands of Lottery funding allotted on the CTMCA (see below, below and in this article) and the best way the money in all probability aided finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.



The constructing on the correct was the meant web site of the minstrels’ museum, in the midst of an industrial spot in Primrose Park, Cape City. Image: Raymond Joseph

In reaction to some Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to 3 CTMCA “initiatives” - such as the museum - in between 2012 and 2015. All three projects had been finished, she advised MPs.

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

To start with the museum was as a result of open up in rented premises in Crete Road, Wetton. A photo attained by GroundUp on the meant Wetton museum shows a coffee store with some musical devices and minstrel costumes and collages of pics haphazardly hung about the partitions, in addition to a model ship on its plinth in a corner.

In its report, Dabishi Nthambeleni explained it had been “not in a position” to confirm if a museum experienced ever operated from these premises.

Stemmet informed the investigators the museum were moved because they could not afford the lease of R100,000 per month. He stated the CTMCA had obtained property for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and had been bought for the same selling price. Schaapkraal is inside of a peri-city area far from town.

Consequently, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But just after traveling to the premises, which happen to be in an industrial area, the investigators reported they doubted irrespective of whether a correct museum existed there. Shots connected into the report present a mishmash of randomly exhibited uniforms, musical instruments and diverse minstrel paraphernalia nailed into the wall, displayed on tables and spread out on the floor, without rationalization.

“There is a minimum number of merchandise at the museum [that] in no way signify the in excess of one hundred-yr background from the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating which they housed a museum and … typically, the museum doesn't look to generally be 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 house, on which no museum was at any time built. Photograph: Raymond Joseph

Buses
Stemmet advised the investigators the CTMCA experienced to move with the rented Crete Highway premises as it experienced run up a R4-million financial debt with the town of Cape Town and was frightened its gear will be attached.

“As a result of legal battles and also the debts, the organisation experienced to move its home from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources have been saved inside a solution location “hidden through the Sheriff”. However the investigators explained they were being not able to substantiate that any buses experienced at any time been acquired.

Stemmet also verified the buses were hidden to stop them staying seized. But in the event the investigators asked to become taken for the place in which the buses have been stored, he advised them that “the owner of the secret location was not available to open the premises for us”.

“The CTMCA couldn't offer proof of payment for 2 cars that it allegedly acquired with grant funds,” the investigators noted.

Soeker also informed them the Schaapkraal assets were sold due to financial debt.

“Mr Soeker defined that In keeping with his comprehending, as a result of debt owed to town of Cape Town, the CTMCA resolved It could be ideal to promote their [Schaapkraal] residence … and to also to cover the assets in the CTMCA to avoid the sheriff from attaching the house.”

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

“Every year like clockwork, as we tactic the top from the yr, the CTMCA picks a legal battle with the City, around permits or another thing. We under no circumstances initiate it. They hold throwing income away on vexatious litigation which they shed and possess charges awarded in opposition to them. That is completely self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the principle function gamers on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who were in command of all of the admin, funds and operating ผล หวย ลาว the CTMCA.” The investigators claimed they had been unable to Speak to Momberg.

Hats
Throughout their “investigation in loco” in the Primrose Park premises, the investigators “located various equipment, some in great issue, some in lousy situation and some that appeared rusty and very aged”. Stemmet explained to the investigators that there was also an off-web-site storage facility in which “devices and many machinery” have been kept.

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

Depending on shots and invoices in GroundUp’s possession, some, Otherwise all, from the things seem like devices which was illegally faraway from the CTMCA’s former premises. Stemmet is facing costs for this removal.

According to the final development report submitted to the NLC by the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter have been directors at time.

The investigators located this “alarming”.

“With the CIPC look for of Martin-Conne Milliners plus the invoices submitted, we Notice the following alarming obtaining: Mr Stemmet himself is actually a director of Martin-Conne Milliners. The registered address of the business is five Crete Street, Wetton, Cape City, precisely the same handle on which the museum was meant to be developed and/or converted,” they described.

An audit by accountants Kopano Included, attached for the investigative report, recorded the CTMCA was in the entire process of getting “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed corporation of which Stemmet was one among the directors.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million like a deposit, meaning R6.nine-million remains to be owed, although there isn't any payment day set for when this need to be paid.

The Kopano audit as well as close backlink among the businesses “suggest to us that there is ‘foul Perform’ involved with the acquisition of your machinery from the museum workshop”, the investigators mentioned while in the report.

“We discover that it is hugely probable that CTMCA employed the funding on the NLC to ‘refund’ considered one of its most important administrators with the residence at an increased overpriced fee than the actual price and price of the house and/or machinery.”

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

“Actually, a detailed report on how the funding with the NLC was employed, would be unachievable since the CTMCA doesn't have any receipts, or evidence of payments to confirm the amounts expended on Every merchandise it requested funding for. The interim report and closing report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found which the NLC experienced not conducted a site go to prior to approving the grant. But this was not standard observe at enough time and so they discovered no proof of negligence by NLC staff.

At the time, the NLC’s rules did not need funded organisations to post evidence of payment with interim stories, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding while not having to provide proof that it experienced used the primary tranche for its supposed purpose.

Subsequent the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these and also other troubles.

Dabishi Nthambeleni proposed that

the NLC drop any long run funding apps with the CTMCA;
the CTMCA and any associates who had been involved in the grant be subjected to the NLC’s “delinquency” system;
the NLC open a criminal scenario of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated funds.
But, rather then act within the report’s tips, the NLC – below its preceding administration – selected to suppress it, as it had performed Using the preceding stories into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker via SMS, and asked for email addresses to send the concerns by email as well. But no reaction were acquired at time of publication.



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