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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant via the National Lotteries Commission for the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has found no evidence that a museum at any time existed.
The investigators observed which the CTMCA did not use the R5-million allotted to buy or establish a museum.
In addition they observed the CTMCA only bought land truly worth R1.7-million, not R5-million as allocated.
They uncovered the CTMCA made use of cash from your Lottery to buy workshop equipment from considered one of its very own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted into the Cape Town Minstrel Carnival Association (CTMCA) with the Countrywide Lotteries Fee (NLC) to set up a museum to celebrate the city’s prosperous minstrel heritage went astray. The museum was never produced.

The details from the abuse of an incredible number of rands of Lottery money for any museum that in no way was are uncovered in an investigative report commissioned via the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery money allotted on the CTMCA in between 2003 and 2017.

The very first Section of the investigation, by regulation company Dabishi Nthambeleni, was executed concerning September 2020 and January 2021 and centered on a R27.3-million grant into the CTMCA in 2014, which involved funding for your museum. The permitted price range for the museum was greater than R12.8-million, with R5-million of that allocated to get a constructing to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the setting up to the museum and whether or not the museum “truly existed”.

The company was also instructed to analyze

the acquisition with Lottery funds of two cars – a sixty-seater bus in addition to a 23-seater bus – for R2.4-million; and
numerous machines “purchased with the production in the costumes and hats” for your minstrels carnival, for R5.four-million.
At time, convicted prison Richard “Pot” Stemmet was director in 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 many administrators of your organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted in depth reporting by GroundUp about the numerous rands of Lottery funding allocated towards the CTMCA (see right here, right here and here) and the way the resources likely aided finance the ANC’s 2014 election campaign in the Western Cape, led by at some time by Marius Fransman.



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

In response into a Parliamentary question, former NLC Commissioner Thabang Mampane shown grants to 3 CTMCA “projects” - including the museum - amongst 2012 and 2015. All a few jobs were completed, she informed MPs.

Although the investigators uncovered no evidence that a museum experienced ever existed.

To start with the museum was resulting from open in rented premises in Crete Road, Wetton. A photograph received by GroundUp on the supposed Wetton museum shows a espresso shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung to the walls, and a design ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni reported 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 find the money for the hire of R100,000 per month. He stated the CTMCA had acquired residence for R1.seven-million in Schaapkraal with the museum, but couldn't get it rezoned, and were marketed for a similar selling price. Schaapkraal is inside of a peri-city place significantly from the town.

Due to this fact, the museum had been moved to a fresh area in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following visiting the premises, which are in an industrial region, the investigators reported they doubted irrespective of whether a correct museum existed there. Shots attached to your report display a mishmash of randomly shown uniforms, musical devices and assorted minstrel paraphernalia nailed for the wall, shown on tables and distribute out on the ground, without having explanation.

“There exists a nominal degree of items in the museum [that] by no means symbolize the a lot more than 100-year history of the Cape City Carnival, the investigators explained, including that there was “no signage outside the premises indicating they housed a museum and … typically, the museum doesn't look being open to the general public.”

The CTMCA experienced breached the grant agreement, Dabishi Nthambeleni pointed out, by shifting The placement of the museum to an alternate locale devoid of notifying the NLC.



The Schaapkraal house, on which no museum was ever designed. Photograph: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA had to move from the rented Crete Street premises because it had operate up a R4-million debt with the town of Cape City and was afraid its products would be connected.

“Mainly because of the legal battles along with the debts, the organisation experienced to maneuver its residence from five Crete Highway to steer clear of the sheriff from attaching the property from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, The present director in the CTMCA, advised them the two buses bought with lottery funds were being saved in a very mystery spot “hidden from the Sheriff”. Though the investigators claimed they have been unable to verify that any buses experienced ever been acquired.

Stemmet also confirmed which the buses had been hidden to halt them getting seized. But in the event the investigators asked to generally be taken for the location the place the buses were stored, he advised them that “the operator of The trick locale was not available to open the premises for us”.

“The CTMCA could not offer evidence of payment for 2 cars that it allegedly procured with grant dollars,” the investigators described.

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

“Mr Soeker spelled out that according to his being familiar with, because of the credit card debt owed to the town of Cape Town, the CTMCA resolved it would be greatest to offer their [Schaapkraal] house … and also to also to cover the property with the CTMCA to avoid the sheriff from attaching the residence.”

JP Smith, Cape City’s mayco member for protection and protection, has Earlier instructed GroundUp the CTMCA “threw revenue away” on litigation with the town.

“Each year like clockwork, as we solution the top of the year, the CTMCA picks a legal struggle with the town, more than permits or another thing. We hardly ever initiate it. They retain throwing funds absent on vexatious litigation which they get rid of and possess fees awarded versus them. This can be fully self-inflicted,” he stated.

Soeker advised the Dabishi Nthambeleni investigators that the most crucial function players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who have been in charge of each of the admin, finances and managing หวย หุ้น ช่อง 9 วัน นี้ the CTMCA.” The investigators reported they had been not able to contact Momberg.

Hats
In the course of their “investigation in loco” with the Primrose Park premises, the investigators “uncovered numerous machines, some in very good ailment, some in terrible issue and several 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” were being held.

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

According to images and invoices in GroundUp’s possession, some, Otherwise all, of your products appear to be tools that was illegally removed from the CTMCA’s preceding premises. Stemmet is experiencing rates for this removing.

In accordance with the remaining development report submitted on the NLC with the CTMCA, the machinery was bought from Martin-Conne Milliners, an organization by which Stemmet, his spouse and his daughter have been directors at some time.

The investigators located this “alarming”.

“From your CIPC look for of Martin-Conne Milliners along with the invoices submitted, we Be aware the subsequent alarming discovering: Mr Stemmet himself is usually a director of Martin-Conne Milliners. The registered address of the corporate is five Crete Road, Wetton, Cape Town, the exact same handle on which the museum was meant to be constructed and/or converted,” they documented.

An audit by accountants Kopano Integrated, connected on the investigative report, recorded the CTMCA was in the whole process of purchasing “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was a close Company of which Stemmet was amongst the administrators.

As outlined by Dabishi Nthambeleni, the business has paid R1.two-million being a deposit, which means R6.nine-million continues to be owed, nevertheless there is not any payment date established for when this should be paid out.

The Kopano audit and also the near connection among the businesses “suggest to us that there is ‘foul Engage in’ involved with the acquisition of the machinery from the museum workshop”, the investigators explained from the report.

“We discover that it's remarkably possible that CTMCA utilised the funding with the NLC to ‘refund’ considered one of its most important administrators to the home at a greater overpriced rate than the particular price tag and value of the assets and/or machinery.”

Tips
Dabishi Nthambeleni concluded that it had been not able to ascertain how the grant to the CTMCA had been spent.

“The truth is, a detailed report on how the funding on the NLC was utilized, might be not possible as being the CTMCA doesn't have any receipts, or proof of payments to confirm the amounts expended on each item it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators observed which the NLC experienced not executed a web-site take a look at right before approving the grant. But this wasn't common follow at the time they usually observed no evidence of carelessness by NLC staff members.

At time, the NLC’s guidelines didn't demand funded organisations to post proof of payment with interim experiences, they pointed out. This intended which the CTMCA was capable to get a second tranche of funding while not having to offer proof that it experienced made use of the initial tranche for its meant intent.

Subsequent the appointment of a whole new board, commissioner and senior govt workforce, the NLC has tightened up on these along with other troubles.

Dabishi Nthambeleni encouraged that

the NLC decrease any long run funding apps through 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 circumstance of fraud with SAPS or even the Hawks for allegations of fraud; and
the NLC begin the whole process of recovering the misappropriated money.
But, rather than act to the report’s recommendations, the NLC – beneath its previous administration – chose to suppress it, since it experienced finished Using the earlier studies into corruption it had commissioned.

GroundUp sent concerns to Stemmet and Soeker by way of SMS, and asked for email addresses to mail the thoughts by electronic mail far too. But no response were gained at enough time of publication.



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