POLITICS

KZN's R1,8m bee investment returns R7,710 in honey - DA

John Steenhuisen says provincial govt's Tembe honey project has been a massive flop

AN AMBITIOUS project, set up by KwaZulu-Natal's department of Economic Development and Tourism and aimed at positioning the province as a key producer of honey, has been exposed as a massive flop, with a paltry R7 710 generated in revenue by 97 bee-keepers last year, despite provincial government having pumped almost R2 million into establishing the scheme.

The figures, revealed by the Democratic Alliance, form the basis of an April 2011 parliamentary reply about the Tembe honey project by KZN MEC, Mike Mabuyakhulu to DA KZN legislature leader, John Steenhuisen.  Steenhuisen has labelled the project a ‘spectacular failure', calling for a full explanation from Mabuyakhulu. 

"The sum total revenue of R7 710 is the result of two harvests, in June and December 2010, which netted R3 450 and R4 260 respectively.  This meagre figure is the result of two tons of honey, produced by 97 bee-keepers, sold at R30 per kilogram.  To say that the project is both an embarrassment and a dismal waste of public funding is an understatement - not even the most basic costs have been covered. 

The DA will be looking for an explanation from the MEC.  We want to know why the project is being allowed to continue, given the massive drain it is.  The DA believes it's time for a reality check.  Provincial government needs to face up to the fact that co-op's in KwaZulu-Natal have, in general, been an exercise in futility with vast sums of money invested in schemes that produce little or nothing. 

We need to see this funding redirected to other areas where there is at least some chance of success.  Another prime example of throwing good money after bad is the Premier's much-touted agrarian revolution, which, despite provincial government having injected more than R7 million into the scheme since 2009, had only benefitted some 1 000 KwaZulu-Natal citizens by November 2010."

Steenhuisen said 15% of the revenue was retained by the Maputaland Honey Secondary Co-operative with the balance then distributed to each primary co-operative, according to how much honey they had harvested.  The honey was then sold to a bottling and distributing company based in Howick. He described the department's financial investment of R1 810 million as astonishing.

"We are also told that some 80% of the hives are currently operational and that the empty hives were due to be moved to new apiary sites scheduled for completion in March 2011.  A new central processing facility is also due to be established this year, with harvesting currently taking place at the premises provided by the project facilitator in Tembe.  So, while the department has already spent close on R2 million, it appears that there is still a lot more money that it is prepared to invest in this project, despite the writing being on the wall."

JUNE 2010 HARVEST

Primary co-op: Revenue directly to primary co-op:

Magugu - R1 343.09
Mfilhlweni- R533.71
Mshudu - R225.80
Mnyayiza - R269.79
Mnganini - R560.11

Total- R2 932.50

DECEMBER HARVEST:

Primary Co-op

Revenue -Revenue to primary co-op after 15%

share to secondary co-op

Mshudu

R1 022 

R869.55

Jiji

R1,092

R928.20

Mfihlweni

R972

R826.20

Makhanya

R774

R657.90

Gazini 

R396

R339.15

Total

R4,260

R3 621.00

FINANCIAL SUPPORT PROVIDED DURING 2010 BY THE DEPARTMENT:

ACTIVITY

BUDGET

Training

R380 000

Beehives and equipment

R480 000

Protective clothing and working tools

R100 000

Facilitation

R480 000

Mentorship

R304 000

Extracting equipment

R66 000

Total

R1 810 000

Statement issued by John Steenhuisen, MPP, Leader of the DA in the KZN Legislature, June 6 2011

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