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

A report by Lawyers Dabishi Nthambeleni into a R27.3-million grant by the Nationwide Lotteries Commission into the Cape City Minstrel Carnival Association (CTMCA) for the minstrels museum has observed no proof that a museum ever existed.
The investigators found that the CTMCA didn't utilize the R5-million allocated to get or establish a museum.
They also identified that the CTMCA only bought land worthy of R1.7-million, not R5-million as allocated.
They discovered the CTMCA made use of resources through the Lottery to buy workshop products from amongst its own administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how a lot of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the National Lotteries Fee (NLC) to put in place a museum to celebrate town’s rich minstrel history went astray. The museum was hardly ever created.

The main points in the abuse of millions of rands of Lottery resources for just a museum that never ever was are revealed in an investigative report commissioned from the NLC in 2021.

The museum grant was Component of greater than R64-million in Lottery resources allotted on the CTMCA among 2003 and 2017.

The very first A part of the investigation, by regulation agency Dabishi Nthambeleni, was performed involving September 2020 and January 2021 and focused on a R27.three-million grant to the CTMCA in 2014, which integrated funding with the museum. The authorised spending budget for that museum was much more than R12.eight-million, with R5-million of that allotted for your creating to accommodate the museum.

Examine the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to analyze the acquisition of the building for the museum and whether the museum “truly existed”.

The organization was also instructed to analyze

the purchase with Lottery resources of two autos – a sixty-seater bus and also a 23-seater bus – for R2.four-million; and
many devices “purchased to the manufacturing from the costumes and hats” for your minstrels carnival, for R5.4-million.
At some time, convicted criminal Richard “Pot” Stemmet was director from 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 ongoing as two of several directors of the organisation. Stemmet was reappointed as a director in Could 2021.

The investigation adopted extensive reporting by GroundUp concerning the numerous rands of Lottery funding allotted into the CTMCA (see listed here, listed here and right here) and the best way the funds likely helped finance the ANC’s 2014 election campaign while in the Western Cape, led by at enough time by Marius Fransman.



The making on the right was the supposed website in the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph

In reaction to a Parliamentary problem, former NLC Commissioner Thabang Mampane listed grants to a few CTMCA “jobs” - including the museum - in between 2012 and 2015. All a few projects had been concluded, she informed MPs.

Though the investigators discovered no proof that a museum had ever existed.

At the outset the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph acquired by GroundUp from the meant Wetton museum reveals a coffee shop with a few musical instruments and minstrel costumes and collages of photos haphazardly hung over the walls, along with a product ship on its plinth in the corner.

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

Stemmet explained to the investigators the museum had been moved as they could no longer manage the hire of R100,000 per month. He said the CTMCA had obtained 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 in a peri-city space considerably from town.

Subsequently, the museum were moved to a whole new spot in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But right after checking out the premises, that are within an industrial location, the investigators said they doubted whether a suitable museum existed there. Photos connected into the report demonstrate a mishmash of randomly exhibited uniforms, musical devices and assorted minstrel paraphernalia nailed on the wall, exhibited on tables and distribute out on the ground, with no clarification.

“You will find a negligible volume of items within the museum [that] under no circumstances signify the much more than 100-12 months historical past of your Cape City Carnival, the investigators claimed, including that there was “no signage outside the premises indicating that they housed a museum and … frequently, the museum will not appear being open up to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni pointed out, by moving The situation with the museum to an alternative locale without the need of notifying the NLC.



The Schaapkraal residence, on which no museum was ever constructed. Image: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA experienced to move with the rented Crete Road premises since it experienced operate up a R4-million financial debt with the town of Cape Town and was worried its products will be hooked up.

“Mainly because of the legal battles and also the debts, the organisation had to move its property from five Crete Street to avoid the sheriff from attaching the assets on the organisation,” Stemmet instructed the investigators.

Sedrick Soeker, the current director of your CTMCA, instructed them the two buses acquired with lottery cash were saved in a secret place “hidden from your Sheriff”. Though the investigators claimed they were being unable to substantiate that any buses experienced ever been purchased.

Stemmet also confirmed the buses had been hidden to prevent them being seized. But when the investigators asked to get taken to your put where by the buses were being saved, he instructed them that “the proprietor of the secret location wasn't available to open up the premises for us”.

“The CTMCA could not supply evidence of payment for 2 vehicles that it allegedly procured with grant revenue,” the investigators described.

Soeker also advised them the Schaapkraal house were marketed because of the credit card debt.

“Mr Soeker explained that Based on his knowledge, as a result of credit card debt owed to the town of Cape City, the CTMCA resolved it would be very best to market their [Schaapkraal] house … and to also to hide the belongings of your CTMCA to steer clear of the sheriff from attaching the assets.”

JP Smith, Cape City’s mayco member for security and security, has Beforehand instructed GroundUp that the CTMCA “threw money absent” on litigation with the City.

“Every year like clockwork, as we tactic the end of your yr, the CTMCA picks a lawful battle with the town, more than permits or another thing. We by no means initiate it. They retain throwing cash away on vexatious litigation they lose and have charges awarded versus them. This really is totally self-inflicted,” he claimed.

Soeker explained to the Dabishi Nthambeleni investigators that the main function players on problems with Lottery funding were being Stemmet and previous CTMCA board member Kevin Momberg, “who ended up in command of many of the admin, funds and working สลาก กิน รัฐบาล the CTMCA.” The investigators said they had been unable to Make contact 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 great situation, some in bad ailment and many that looked rusty and intensely previous”. Stemmet told the investigators that there was also an off-web page storage facility the place “devices and several equipment” had been retained.

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

Depending on pics and invoices in GroundUp’s possession, some, Otherwise all, on the items seem like machines that was illegally removed from the CTMCA’s previous premises. Stemmet is going through prices for this removing.

According to the last progress report submitted towards the NLC through the CTMCA, the machinery was obtained from Martin-Conne Milliners, a business during which Stemmet, his wife and his daughter were being administrators at time.

The investigators discovered this “alarming”.

“In the CIPC look for of Martin-Conne Milliners as well as invoices submitted, we Notice the following alarming acquiring: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered address of the corporate is 5 Crete Street, Wetton, Cape City, the identical tackle on which the museum was meant to be developed and/or transformed,” they claimed.

An audit by accountants Kopano Incorporated, 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 one among the directors.

In accordance with Dabishi Nthambeleni, the organization has paid R1.two-million like a deposit, meaning R6.nine-million continues to be owed, although there is no payment day established for when this have to be compensated.

The Kopano audit along with the shut website link concerning the companies “reveal to us that there's ‘foul Participate in’ associated with the purchase with the equipment of the museum workshop”, the investigators mentioned during the report.

“We discover that it is hugely possible that CTMCA used the funding in the NLC to ‘refund’ considered one of its most important directors for your home at a greater overpriced charge than the actual cost and price of the residence and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it absolutely was unable to determine how the grant to your CTMCA had been put in.

“In fact, an in depth report on how the funding from the NLC was made use of, might be extremely hard as the CTMCA does not have any receipts, or evidence of payments to substantiate the quantities invested on Just about every product it requested funding for. The interim report and ultimate report with the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered that the NLC had not carried out a internet site stop by before approving the grant. But this wasn't typical exercise at enough time and so they identified no evidence of carelessness by NLC workforce.

At some time, the NLC’s regulations did not require funded organisations to submit evidence of payment with interim studies, they identified. This meant the CTMCA was capable of get a second tranche of funding without the need to give evidence that it had made use of the primary tranche for its supposed objective.

Pursuing the appointment of a fresh board, commissioner and senior government staff, the NLC has tightened up on these as well as 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 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 past administration – chose to suppress it, because it experienced finished Together with the former reports into corruption it had commissioned.

GroundUp sent queries to Stemmet and Soeker through SMS, and requested for e mail addresses to send out the thoughts by electronic mail much too. But no reaction had been acquired at time of publication.



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