Minstrels conduct in Athlone on 2 January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Commission towards the Cape Town Minstrel Carnival Association (CTMCA) for a minstrels museum has observed no proof that a museum at any time existed.
The investigators observed the CTMCA did not utilize the R5-million allocated to order or create a museum.
Additionally they found the CTMCA only acquired land well worth R1.seven-million, not R5-million as allocated.
They uncovered the CTMCA made use of funds within the Lottery to buy workshop products from one of its individual administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted to your Cape City Minstrel Carnival Association (CTMCA) by the Nationwide Lotteries Commission (NLC) to put in place a museum to rejoice the town’s prosperous minstrel record went astray. The museum was never ever made.

The details of your abuse of an incredible number of rands of Lottery cash to get a museum that in no way was are exposed in an investigative report commissioned through the NLC in 2021.

The museum grant was Portion of greater than R64-million in Lottery resources allotted towards the CTMCA in between 2003 and 2017.

The main Section of the investigation, by regulation firm Dabishi Nthambeleni, was conducted among September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which involved funding for that museum. The accredited price range for the museum was greater than R12.eight-million, with R5-million of that allotted for just a building to house the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the developing to the museum and whether or not the museum “in fact existed”.

The business was also instructed to analyze

the purchase with Lottery money of two motor vehicles – a 60-seater bus and a 23-seater bus – for R2.four-million; and
several machines “purchased for your production on the costumes and hats” for that minstrels carnival, for R5.4-million.
At time, convicted prison Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of quite a few administrators of the organisation. Stemmet was reappointed like a director in Could 2021.

The investigation followed substantial reporting by GroundUp concerning the numerous rands of Lottery funding allocated for the CTMCA (see below, below and below) and just how the resources most likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at time by Marius Fransman.



The building on the best was the meant internet site in the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction into a Parliamentary question, previous NLC Commissioner Thabang Mampane detailed grants to three CTMCA “projects” - including the museum - among 2012 and 2015. All 3 projects were done, she informed MPs.

Although the investigators located no proof that a museum had at any time existed.

To start with the museum was as a result of open up in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp of your supposed Wetton museum demonstrates a espresso store with a few musical devices and minstrel costumes and collages of shots haphazardly hung around the partitions, and a model ship on its plinth in the corner.

In its report, Dabishi Nthambeleni claimed it had been “not able” to confirm if a museum had at any time operated from these premises.

Stemmet instructed the investigators the museum were moved since they could now not manage the rent of R100,000 a month. He stated the CTMCA experienced obtained property for R1.7-million in Schaapkraal with the museum, but could not get it rezoned, and were bought for the same selling price. Schaapkraal is within a peri-city space far from the city.

Therefore, the museum were moved to a completely new locale in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But immediately after visiting the premises, that happen to be within an industrial place, the investigators said they doubted no matter if a suitable museum existed there. Pics connected for the report display a mishmash of randomly exhibited uniforms, musical instruments and various minstrel paraphernalia nailed on the wall, displayed on tables and unfold out on the ground, with no clarification.

“There's a negligible amount of goods in the museum [that] on no account depict the over one hundred-12 months record of the Cape City Carnival, the investigators said, adding that there was “no signage outside the house the premises indicating which they housed a museum and … frequently, the museum doesn't glance to generally be open up to the general public.”

The CTMCA experienced breached the grant settlement, Dabishi Nthambeleni observed, by relocating The placement on the museum to an alternative location with out notifying the NLC.



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

Buses
Stemmet informed the investigators that the CTMCA experienced to maneuver within the rented Crete Street premises because it had run up a R4-million credit card debt with the City of Cape City and was scared its equipment might be hooked up.

“Mainly because of the legal battles as well as debts, the organisation had to maneuver its property from 5 Crete Highway to stay away from the sheriff from attaching the property from the organisation,” Stemmet told the investigators.

Sedrick Soeker, the current director of your CTMCA, told them which the two buses bought with lottery funds ended up stored inside a top secret location “concealed from your Sheriff”. However the investigators claimed they were being not able to substantiate that any buses had ever been purchased.

Stemmet also verified the buses had been concealed to halt them being seized. But if the investigators asked being taken for the place where the buses had been saved, he explained to them that “the owner of the secret spot wasn't available to open the premises for us”.

“The CTMCA could not give proof of payment for two cars that it allegedly obtained with grant income,” the investigators claimed.

Soeker also told them the Schaapkraal house had been bought because of the personal debt.

“Mr Soeker defined that As outlined by his understanding, as a result of financial debt owed to town of Cape Town, the CTMCA determined It could be best to provide their [Schaapkraal] house … and to also to hide the belongings on the CTMCA to stay away from the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for security and protection, has Beforehand advised GroundUp which the CTMCA “threw cash absent” on litigation with the City.

“On a yearly basis like clockwork, as we technique the top in the 12 months, the CTMCA picks a lawful battle with the town, over permits or something else. We in no way initiate it. They continue to keep throwing dollars away on vexatious litigation that they drop and also have charges awarded versus them. This is fully self-inflicted,” he mentioned.

Soeker instructed the Dabishi Nthambeleni investigators that the leading position gamers on issues of Lottery funding had been Stemmet and previous CTMCA board member Kevin Momberg, “who have been in command of every one of the admin, funds and working หวย the CTMCA.” The investigators said they had been not able to Get in touch with Momberg.

Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “discovered quite a few equipment, some in great issue, some in bad problem and several that seemed rusty and very outdated”. Stemmet instructed the investigators that there was also an off-site storage facility exactly where “devices plus some machinery” had been kept.

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

Based on pics and invoices in GroundUp’s possession, some, Otherwise all, in the products seem like equipment that was illegally faraway from the CTMCA’s prior premises. Stemmet is facing prices for this removing.

Based on the remaining progress report submitted to your NLC with the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his spouse and his daughter were being directors at the time.

The investigators discovered this “alarming”.

“From your CIPC lookup of Martin-Conne Milliners plus the invoices submitted, we Take note the next alarming finding: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered tackle of the corporation is 5 Crete Highway, Wetton, Cape Town, the same tackle on which the museum was meant to be crafted and/or transformed,” they reported.

An audit by accountants Kopano Included, connected into the investigative report, recorded that the CTMCA was in the entire process of paying for “equipment, 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 among the directors.

In line with Dabishi Nthambeleni, the corporate has paid out R1.2-million being a deposit, indicating R6.9-million continues to be owed, although there's no payment day set for when this have to be paid.

The Kopano audit as well as near website link among the businesses “point out to us that there's ‘foul Engage in’ involved in the purchase with the machinery of your museum workshop”, the investigators claimed within the report.

“We discover that it is really probable that CTMCA made use of the funding on the NLC to ‘refund’ among its major administrators with the assets at a higher overpriced price than the actual value and value of the property and/or equipment.”

Suggestions
Dabishi Nthambeleni concluded that it had been not able to determine how the grant on the CTMCA had been spent.

“In point of fact, an in depth report on how the funding in the NLC was utilized, would be impossible as being the CTMCA doesn't have any receipts, or proof of payments to substantiate the amounts expended on Each and every product it requested funding for. The interim report and closing report in the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators found that the NLC had not carried out a web page go to just before approving the grant. But this was not common exercise at some time they usually found no proof of carelessness by NLC workforce.

At the time, the NLC’s guidelines didn't need funded organisations to post evidence of payment with interim stories, they pointed out. This intended the CTMCA was capable of get a next tranche of funding while not having to give evidence that it had utilized the very first tranche for its meant purpose.

Adhering to the appointment of a brand new board, commissioner and senior government workforce, the NLC has tightened up on these and various problems.

Dabishi Nthambeleni advised that

the NLC decrease any long run funding purposes within the CTMCA;
the CTMCA and any users who ended up involved with the grant be subjected on the NLC’s “delinquency” approach;
the NLC open a criminal case of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC get started the process of recovering the misappropriated resources.
But, rather then act to the report’s recommendations, the NLC – less than its past administration – chose to suppress it, because it experienced accomplished With all the former stories into corruption it experienced commissioned.

GroundUp despatched queries to Stemmet and Soeker by means of SMS, and questioned for email addresses to ship the thoughts by email also. But no response had been obtained at the time of publication.



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