Staff Reporter
Public Protector Busisiwe Mkhwebane has ordered that the Vrede dairy project be resuscitated within two months with the full participation of the intended beneficiaries.
She said this when she released a report on her investigation on the implementation of the failed dairy project in which she found former Free State Premier Ace Magashule and members of his executive council (EXCO) failed to play an oversight role on its implementation.
The project was meant to benefit about 100 poor black farmers in and around the small farming town of Vrede in the northern Free State when it was started around 2012.
“It is unfortunate that the beneficiaries were sold an empty dream by those who were elected to change the local community’s lives for the better,” said Mkhwebane in the report.
Former Agriculture and Rural Development MECs Mosebenzi Zwane and Mamiki Qabathe are also cited in the report as having failed in their roles of overseeing the project.
Mkhwebane ordered the Free State government to implement several remedial measures, chief among them bringing the project back to life.
“Within (working) 60 days of receipt of this report . . . ensure the project is revived with the beneficiaries as 51 percent shareholders . . .” said the public protector.
About R250 million was invested into the project by the Free State provincial government but it’s believed most of the funds were diverted and deposited into bank accounts belonging to Gupta companies and their associates.
As a result, the farmers were left high and dry as they were not included in the project as promised.
The public protector found the project failed largely due to poor oversight, political interference and the influence of people close to the controversial Gupta family on politicians.
She also ordered that the report be tabled in the provincial legislature within 30 working days for her findings to be deliberated upon.
Mkhwebane also wants measures to be put in place within 30 working days for EXCO members as well as Magashule, now secretary general of the ANC, to be sufficiently trained on accountability and oversight responsibilities.
Agriculture MEC William Bulwane is to issue an apology to the farmers for the failed project.
In his defence, Magashule told the public protector during the investigation that he was not involved in the planning or implementation of the Vrede dairy farm project.
But Mkhwebane disputed this saying Magashule was involved when the project idea was presented to his EXCO.
“From evidence in my possession, Magashule appointed Ashok Narayan as a special advisor in the Premier’s Office a day after he had approved a memorandum indicating that Narayan would undertake a trip to India with former head of Free State agriculture Peter Thabethe for the purposes of the Vrede dairy project,” she said.
The investigation also found there was political involvement in the implementation of the Vrede project which saw politicians breaching some laws in the approving and allocation of funds for the project.
It found that EXCO improperly appropriated funds to ensure payment of Estina even after the Department of Agriculture and Rural Development had cancelled the contract.
“Members of the provincial executive are entrusted with providing coherent strategist leadership and coordination in policy making, implementation, and overseeing service delivery planning and implementation in support of national and provincial priorities in line with the provincial budget plan.
“They are further held accountable for their decisions as EXCO members collectively and individually…
“The Vrede project and its proposed implementation could not have been left solely to the accounting officer with no oversight from EXCO,” the investigation found.
Mkhwebane also wants her findings to be taken into account by the police priority crime investigating unit, the Hawks, who are currently probing the project for a criminal case.