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

A report by Lawyers Dabishi Nthambeleni right into a R27.three-million grant because of the Countrywide Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no proof that a museum at any time existed.
The investigators uncovered which the CTMCA didn't make use of the R5-million allocated to get or develop a museum.
They also discovered which the CTMCA only purchased land well worth R1.7-million, not R5-million as allotted.
They located the CTMCA utilised money from the Lottery to invest in workshop devices from one among its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted towards the Cape City Minstrel Carnival Affiliation (CTMCA) with the Countrywide Lotteries Commission (NLC) to put in place a museum to rejoice the city’s prosperous minstrel record went astray. The museum was in no way made.

The main points of the abuse of countless rands of Lottery money for the museum that hardly ever was are revealed within an investigative report commissioned because of the NLC in 2021.

The museum grant was Element of much more than R64-million in Lottery cash allocated towards the CTMCA in between 2003 and 2017.

The first Element of the investigation, by legislation firm Dabishi Nthambeleni, was executed among September 2020 and January 2021 and centered on a R27.3-million grant to your CTMCA in 2014, which incorporated funding with the museum. The accredited budget to the museum was much more than R12.8-million, with R5-million of that allocated for any making to deal with the museum.

Read the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to research the purchase of the developing for your museum and whether or not the museum “really existed”.

The agency was also instructed to research

the purchase with Lottery cash of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
many machines “procured for that manufacturing on the costumes and hats” for the minstrels carnival, for R5.four-million.
At some time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his wife Zainonesa and daughter Raziah continued as two of numerous directors on the organisation. Stemmet was reappointed being a director in Could 2021.

The investigation followed extensive reporting by GroundUp about the millions of rands of Lottery funding allotted to the CTMCA (see listed here, in this article and in this article) and just how the funds almost certainly served finance the ANC’s 2014 election marketing campaign inside the Western Cape, led by at enough time by Marius Fransman.



The creating on the correct was the meant website in the minstrels’ museum, in the middle of an industrial region in Primrose Park, Cape City. Photograph: Raymond Joseph

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

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

At the beginning the museum was due to open up in rented premises in Crete Street, Wetton. A photo attained by GroundUp of your intended Wetton museum displays a espresso store with a few musical devices and minstrel costumes and collages of pictures haphazardly hung on the partitions, along with a product ship on its plinth within a corner.

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

Stemmet told the investigators the museum had been moved mainly because they could no longer manage the hire of R100,000 per month. He said the CTMCA had bought house for R1.7-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been offered for the same value. Schaapkraal is in the peri-urban location much from the city.

As a result, the museum were moved to a different site in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after going to the premises, that are within an industrial region, the investigators reported they doubted whether a correct museum existed there. Shots attached to your report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed to the wall, shown on tables and unfold out on the floor, without clarification.

“You will find there's minimal level of objects with the museum [that] under no circumstances characterize the in excess of one hundred-yr background of the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating they housed a museum and … usually, the museum does not glance for being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni mentioned, by transferring the location in the museum to another location with no notifying the NLC.



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

Buses
Stemmet instructed the investigators the CTMCA experienced to move with the rented Crete Street premises as it had run up a R4-million debt with the City of Cape City and was fearful its devices might be connected.

“A result of the legal battles and the debts, the organisation experienced to move its assets from 5 Crete Highway to stay away from the sheriff from attaching the property of your organisation,” Stemmet advised the investigators.

Sedrick Soeker, The existing director in the CTMCA, explained to them that the two buses purchased with lottery resources had been saved in a key locale “concealed from your Sheriff”. Although the investigators said they had been unable to confirm that any buses had ever been acquired.

Stemmet also verified which the buses were hidden to stop them getting seized. But once the investigators asked to become taken towards the place where the buses were being saved, he informed them that “the operator of The key place wasn't available to open up the premises for us”.

“The CTMCA could not present proof of payment for 2 automobiles that it allegedly procured with grant income,” the investigators reported.

Soeker also advised them the Schaapkraal property had been marketed as a result of financial debt.

“Mr Soeker discussed that In line with his comprehension, as a result of debt owed to the town of Cape City, the CTMCA made a decision It could be finest to promote their [Schaapkraal] assets … and to also to cover the assets in the CTMCA to steer clear of the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for safety and security, has Beforehand informed GroundUp the CTMCA “threw income away” on litigation with the City.

“Every year like clockwork, as we method the end of the year, the CTMCA picks a legal struggle with the town, more than permits or another thing. We never initiate it. They keep throwing cash absent on vexatious litigation they reduce and also have expenses awarded from them. That is completely self-inflicted,” he stated.

Soeker instructed the Dabishi Nthambeleni investigators that the key job players on issues of Lottery funding ended up Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, finances and working หวย ออก the CTMCA.” The investigators explained they were struggling to Get in touch with Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “found numerous machines, some in superior ailment, some in lousy affliction and several that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and a few equipment” were held.

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

Based on photographs and invoices in GroundUp’s possession, some, Otherwise all, with the items appear to be tools that was illegally removed from the CTMCA’s earlier premises. Stemmet is experiencing prices for this removing.

Based on the ultimate progress report submitted towards the NLC through the CTMCA, the machinery was procured from Martin-Conne Milliners, a corporation where Stemmet, his wife and his daughter were being administrators at the time.

The investigators observed this “alarming”.

“Through the CIPC search of Martin-Conne Milliners plus the invoices submitted, we Be aware the subsequent alarming locating: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Highway, Wetton, Cape Town, precisely the same tackle on which the museum was meant to be built and/or converted,” they reported.

An audit by accountants Kopano Integrated, connected for the investigative report, recorded the CTMCA was in the entire process of acquiring “machinery, plant and inventory” valued at R8.one-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.

In line with Dabishi Nthambeleni, the business has paid R1.two-million as being a deposit, this means R6.9-million is still owed, while there is absolutely no payment day set for when this need to be paid.

The Kopano audit along with the shut hyperlink involving the businesses “indicate to us that there is ‘foul Engage in’ involved with the acquisition of your equipment of the museum workshop”, the investigators stated while in the report.

“We find that it is extremely probable that CTMCA used the funding of the NLC to ‘refund’ one of its main administrators for that house at a greater overpriced rate than the particular value and value of the residence and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to establish how the grant into the CTMCA had been expended.

“In fact, an in depth report on how the funding of the NLC was utilised, would be extremely hard as the CTMCA does not have any receipts, or proof of payments to verify the amounts expended on Each individual item it asked for funding for. The interim report and final report from the CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC experienced not done a web page visit before approving the grant. But this wasn't common apply at the time they usually located no evidence of carelessness by NLC staff.

At some time, the NLC’s policies didn't call for funded organisations to submit proof of payment with interim experiences, they pointed out. This meant which the CTMCA was capable of get a next tranche of funding without needing to deliver evidence that it had employed the main tranche for its supposed objective.

Adhering to the appointment of a different board, commissioner and senior govt workforce, the NLC has tightened up on these as well as other concerns.

Dabishi Nthambeleni advised that

the NLC decline any potential funding applications from the CTMCA;
the CTMCA and any users who ended up associated with the grant be subjected towards the NLC’s “delinquency” process;
the NLC open up a criminal circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the entire process of recovering the misappropriated funds.
But, in lieu of act around the report’s suggestions, the NLC – under its earlier administration – selected to suppress it, mainly because it had completed While using the prior studies into corruption it had commissioned.

GroundUp sent inquiries to Stemmet and Soeker by means of SMS, and questioned for e mail addresses to mail the thoughts by electronic mail much too. But no reaction had been acquired at the time of publication.



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