Land Affairs: full forensic audit is now needed
The Democratic Alliance (DA) welcomes the action taken by the Department of Rural Development and Land Reform to investigate the Land Reform purchase of farms in the Elandslaagte district near Ladysmith, KZN where allegations of fraud have been made against officials and other persons involved in the purchase of land for land reform purposes. This action is the result of months of investigation by the DA which aired on Carte Blanche on Sunday.
It is believed that, as a result of the DA investigation, persons connected to the Ladysmith office have confessed that they were also involved in Land Reform projects where members of their own families were registered as "ghost beneficiaries" for purposes of the purchase of farms for land reform.
These allegations come at a time when the budget for the current year for land reform and purchases was completely depleted a mere 3 months into the year. Despite there being many land reform land deals signed, as well as other willing seller deals being available, the State has not been able to purchase these genuine land reform farms as a result of the lack of funds. Many of these farms are now no longer available and will not contribute towards the urgently required process of Land Reform in post Apartheid South Africa.
In the land deal under investigation some R 36,0 mil was spent to purchase about 3 700 ha apparently for a mere 3 genuine "Land Claimants" who in any event were not aware that they were beneficiaries. The new "legal" owners of the farms, a company known as ABRINA 6822 (PTY) LTD, is controlled by a husband and wife who are part of a Ladysmith business family. Despite the husband having a criminal conviction and thus precluded by law from being a director of a company, he was listed as director of ABRINA 6822 (PTY) LTD. Attempts were made by these directors to move the genuine "Land Claimants" off the main farms and onto a small farm which is removed from the main farms.
Included in this deal is a luxurious farmhouse which was left fully furnished, including content which appear to be Persian carpets, linen, etc, by the previous owner. Whilst this was reported to be a "going concern" deal there seems to be no justification for the deal to include the furnishings and other contents of the house.
The management of the farms as a "going concern" was allegedly awarded to a member of the family of the directors of the company which owns the farms. This person allegedly has had no farming experience for the past 30 years and is apparently engaged full-time in running his own extensive business activities both in and outside of Ladysmith. An existing and experienced Farm Manager was allegedly dismissed by the new "owner" and cattle have been sold off with no apparent accounting for the funds, estimated to be in the region of R 500 000,00, received from these sales. The livestock have allegedly been poorly managed and not only have lost condition and value but many have experienced agonising deaths lasting days and weeks. (photos available).
The same business family is also allegedly involved in another separate Land Reform project whereby a farm, known as "Lower Arcadia", of approximately 400 ha was purchased for a sum of R 7,5 mil and is seemingly now controlled by a member of this family of business people. Here again there are rumours that "ghost beneficiaries" were involved.
Further rumours are now emerging that a "Land Reform" deal involving the purchase of a game farm, also in the Ladysmith district, at a cost to the taxpayer of some R 800,0 mil may also be part of the "land scams" within the Department of Rural Development and Land Reform. A person connected to this "deal" allegedly has close connections to the KZN Premier, Zweli Mkhize, and questions are being asked about the possible involvement of the KZN Premier in this "Land Reform" deal.
The ANC has repeatedly and publicly stated that it's going to deal swiftly and without favour with fraud and corruption. The DA therefore calls on the Minister to immediately commission a forensic audit of all Land Reform projects undertaken both by the Ladysmith office as well as throughout KZN. The DA will also write to SARS to conduct a full Lifestyle and Asset audit of all officials, members of their families and other persons connected to these "Land Reform" deals.
Statement issued by Alf Lees, MP, Democratic Alliance member of the National Council of Provinces, March 24 2010
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