ActionSA has written to the Provincial Treasury requesting their intervention as the Vrede Integrated Farming Trust has failed to live up to its expectations. It's evident that this project was never intended to benefit Vrede’s community, instead, it was only ever set up to enrich the Gupta family.
Even after the Zondo Commission’s recommendations, the Provincial Department has failed to implement them. They have brazenly defied the Commission.
The Free State Provincial Treasury derives its core functions and responsibilities from the Public Finance Management Act (PFMA) Act 1 of 1999, as amended, and the Treasury Regulations promulgated in terms of Section 76 of the Act. One of their core functions is to promote accountability and transparency through a substantive reflection of financial activities within the Province, as well as ensure effective compliance with prevailing financial norms and standards. It is for this reason that ActionSA is requesting their intervention.
Currently the farm is operated by a committee appointed by the department without consulting the beneficiaries. On the 22nd of July 2022 the beneficiaries submitted a petition to the department requesting the MEC and the HOD to remove the committee and appoint a qualified Farm Manager and qualified Financial Manager to run the farm, but that request fell on deaf ears.
On the 31st of August 2022, the beneficiaries wrote a letter to Mr T.J Masiteng, the HOD of Free State Department of Agriculture and Rural Development requesting him to issue them with their share certificates as the equity shareholders in the Vrede Integrated Farming Trust. This was after the bogus handing over ceremony held on the 14th of January 2022. Thus far, no legal documentation certifies them as the 51% owners of the Trust. This request was also ignored by the department.
The beneficiaries allege that:
- There’s no transparency in the Trust’s operations.
- Sales of cattle are approved without their consent.
- They are in the dark regarding the Trust’s financial standing due to the fact that they do not receive banking statements.
- They do not receive quarterly financial reports that details the financial status of the shareholder’s funds
- No monthly meetings held to give an update to the direction of the Trust and its affairs
- Minutes of the committee meetings have not been shared to the beneficiaries
- Beneficiaries are denied site visits
- Only one member of the household is supposed to be a beneficiary but in this instance there are more than one beneficiaries in one household.
- Firing and hiring of employees without following the Labour Relations Act.
- No dividends or remuneration has been paid to the beneficiaries
- The opinions of the beneficiaries are overruled only the committee has the final say
- There’s an R20m that is allocated per-annum for operations but is not accounted for
Clearly this project has not benefited the Vrede Community. R 475 368 000 has been spent this far, which is what compelled the ActionSA to write to the Provincial Treasury requesting them to take over this project and create a viable economic environment. They should further assist with coaching, mentoring and securing market for the beneficiaries. This project should be in the position to economically empower the Vrede community.
Furthermore, ActionSA will advocate for the beneficiaries to own 100% of this farm. The initial contract between the Free State Department of Agriculture and Rural Development (DARD) indicates that the beneficiaries would own 51% now that Estina is no longer involved in the project, and we believe that there is no reason why they should not own it completely.
The people of Vrede deserve a government that will ensure that resources meant for the public good are not plundered by unethical politicians, civil servants, and tenderpreneurs. ActionSA will ensure that every cent of state money is spent on delivering services to the people of South Africa in the interest of building a prosperous and inclusive society.
Issued by ActionSA Free State Premier Candidate Patricia Kopane