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

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant because of the Nationwide Lotteries Fee to the Cape Town Minstrel Carnival Affiliation (CTMCA) for any minstrels museum has uncovered no proof that a museum at any time existed.
The investigators discovered which the CTMCA did not use the R5-million allocated to buy or produce a museum.
They also located which the CTMCA only acquired land truly worth R1.seven-million, not R5-million as allotted.
They uncovered the CTMCA employed money with the Lottery to invest in workshop gear from one among its have administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to the Cape City Minstrel Carnival Affiliation (CTMCA) via the Nationwide Lotteries Commission (NLC) to arrange a museum to celebrate town’s abundant minstrel heritage went astray. The museum was never ever produced.

The small print of your abuse of many rands of Lottery funds to get a museum that under no circumstances was are exposed within an investigative report commissioned with the NLC in 2021.

The museum grant was Portion of greater than R64-million in Lottery funds allocated to your CTMCA between 2003 and 2017.

The 1st Portion of the investigation, by regulation company Dabishi Nthambeleni, was executed in between September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which bundled funding with the museum. The authorised finances with the museum was in excess of R12.8-million, with R5-million of that allotted for a making to house the museum.

Browse the report (PDF, 7MB)

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

The agency was also instructed to analyze

the acquisition with Lottery funds of two autos – a sixty-seater bus in addition to a 23-seater bus – for R2.four-million; and
several devices “ordered to the producing on the costumes and hats” to the minstrels carnival, for R5.4-million.
At time, convicted criminal Richard “Pot” Stemmet was director from the 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 a number of directors on the organisation. Stemmet was reappointed for a director in Might 2021.

The investigation followed intensive reporting by GroundUp with regards to the an incredible number of rands of Lottery funding allotted to your CTMCA (see below, here and below) and the best way the money likely assisted finance the ANC’s 2014 election marketing campaign while in the Western Cape, led by at the time by Marius Fransman.



The creating on the right was the intended internet site on the minstrels’ museum, in the course of an industrial region in Primrose Park, Cape Town. Photo: Raymond Joseph

In response to the Parliamentary query, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “tasks” - such as the museum - concerning 2012 and 2015. All a few projects had been accomplished, she instructed MPs.

Although the investigators observed no evidence that a museum had at any time existed.

To start with the museum was resulting from open in rented premises in Crete Street, Wetton. A photograph acquired by GroundUp of the meant Wetton museum shows a coffee store with a few musical devices and minstrel costumes and collages of pictures haphazardly hung to the partitions, in addition to a model ship on its plinth inside of a corner.

In its report, Dabishi Nthambeleni reported it was “not ready” to substantiate if a museum experienced ever operated from these premises.

Stemmet instructed the investigators the museum were moved given that they could now not manage the lease of R100,000 per month. He claimed the CTMCA experienced obtained property for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been sold for a similar rate. Schaapkraal is in the peri-urban region considerably from the town.

Therefore, the museum had been moved to a new location in Primrose Park in February 2021, Stemmet informed the Dabishi Nthambeleni investigators. But following viewing the premises, which are in an industrial area, the investigators mentioned they doubted no matter whether a suitable museum existed there. Shots connected to your report clearly show a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed on the wall, displayed on tables and distribute out on the floor, without explanation.

“You will find a minimal number of things with the museum [that] in no way symbolize the much more than 100-yr historical past of your Cape City Carnival, the investigators explained, incorporating that there was “no signage exterior the premises indicating they housed a museum and … commonly, the museum does not seem being open to the public.”

The CTMCA had breached the grant settlement, Dabishi Nthambeleni famous, by shifting the location of the museum to an alternate spot with no notifying the NLC.



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

Buses
Stemmet informed the investigators the CTMCA experienced to maneuver from your rented Crete Street premises mainly because it had run up a R4-million financial debt with the town of Cape Town and was afraid its products will be hooked up.

“As a result of authorized battles and the debts, the organisation had to move its residence from five Crete Street to avoid the sheriff from attaching the home with the organisation,” Stemmet informed the investigators.

Sedrick Soeker, the current director of your CTMCA, told them which the two buses bought with lottery resources have been saved in the key area “concealed with the Sheriff”. Nevertheless the investigators claimed they were unable to confirm that any buses had at any time been purchased.

Stemmet also verified that the buses had been concealed to prevent them becoming seized. But in the event the investigators asked to be taken to your spot where by the buses have been stored, he instructed them that “the proprietor of The trick location wasn't available to open the premises for us”.

“The CTMCA couldn't offer proof of payment for two vehicles that it allegedly obtained with grant dollars,” the investigators claimed.

Soeker also explained to them the Schaapkraal home had been offered because of the financial debt.

“Mr Soeker defined that Based on his comprehending, because of the debt owed to the town of Cape City, the CTMCA made the decision it would be finest to promote their [Schaapkraal] residence … also to also to hide the assets in the CTMCA to steer clear of the sheriff from attaching the home.”

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

“Annually like clockwork, as we tactic the tip on the yr, the CTMCA picks a legal fight with town, over permits or another thing. We hardly ever initiate it. They hold throwing cash absent on vexatious litigation they reduce and also have prices awarded towards them. This is certainly completely self-inflicted,” he said.

Soeker instructed the Dabishi Nthambeleni investigators that the key job players on problems with Lottery funding were Stemmet and previous CTMCA board member Kevin Momberg, “who were being in command of all of the admin, finances and jogging ตรวจ สลากกินแบ่ง รัฐบาล the CTMCA.” The investigators reported they had been not able to Call Momberg.

Hats
Through their “investigation in loco” within the Primrose Park premises, the investigators “discovered several devices, some in fantastic condition, some in negative problem and several that looked rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-site storage facility where “instruments and some machinery” were retained.

“We questioned him to get us to the power but he was evasive to our request.”

Based on images and invoices in GroundUp’s possession, some, if not all, with the products seem like equipment that was illegally removed from the CTMCA’s preceding premises. Stemmet is facing fees for this elimination.

In accordance with the closing development report submitted to the NLC from the CTMCA, the machinery was obtained from Martin-Conne Milliners, an organization during which Stemmet, his wife and his daughter were being administrators at enough time.

The investigators observed this “alarming”.

“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Be aware the subsequent alarming obtaining: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered tackle of the organization is 5 Crete Highway, Wetton, Cape City, precisely the same handle on which the museum was intended to be crafted and/or converted,” they noted.

An audit by accountants Kopano Integrated, attached on the investigative report, recorded which the CTMCA was in the process of obtaining “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, investing as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was one of the administrators.

Based on Dabishi Nthambeleni, the organization has paid R1.two-million being a deposit, this means R6.9-million is still owed, though there isn't any payment day established for when this need to be paid out.

The Kopano audit and the near link concerning the companies “suggest to us that there is ‘foul Enjoy’ involved in the acquisition from the machinery of your museum workshop”, the investigators explained in the report.

“We find that it is really possible that CTMCA utilized the funding in the NLC to ‘refund’ certainly one of its major administrators with the property at an increased overpriced amount than the particular price tag and worth of the home and/or machinery.”

Recommendations
Dabishi Nthambeleni concluded that it was not able to determine how the grant into the CTMCA were expended.

“The truth is, a detailed report on how the funding from the NLC was used, could well be impossible given that the CTMCA does not have any receipts, or evidence of payments to confirm the amounts spent on each merchandise it asked for funding for. The interim report and ultimate report of your CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators identified the NLC experienced not conducted a web site stop by prior to approving the grant. But this was not common exercise at enough time plus they observed no evidence of negligence by NLC staff.

At time, the NLC’s principles did not demand funded organisations to submit proof of payment with interim reports, they identified. This meant which the CTMCA was ready to get a second tranche of funding without having to provide evidence that it had applied the 1st tranche for its meant objective.

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

Dabishi Nthambeleni proposed that

the NLC drop any future funding applications from your CTMCA;
the CTMCA and any associates who have been involved with the grant be subjected to the NLC’s “delinquency” procedure;
the NLC open a prison circumstance of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC begin the process of recovering the misappropriated resources.
But, rather than act around the report’s tips, the NLC – beneath its earlier administration – selected to suppress it, as it experienced carried out with the former studies into corruption it experienced commissioned.

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



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