The National Department of Land Reform and Rural Development has been mum on a forensic report that recommended criminal proceedings against private project managers and officials over the alleged misappropriation of more than R27-million meant to develop beneficiaries of land claim projects in Mpumalanga.
The money was allocated to two communal property associations, Bunye Betfu CPA and Mbuyane CPA, under a state support programme designed to help land reform beneficiaries turn restored farms into productive agricultural businesses.
But an August 2021 forensic report, commissioned by the Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs and compiled by Morar Incorporated Chartered Accountants, found that the funds were allegedly mismanaged and recommended criminal, civil and disciplinary action.
The investigation followed complaints regarding the handling of money from the recapitalisation and development programme, earmarked for the two
projects.
According to the report, which Sunday World has seen, investigators recommended that “the department initiate criminal proceedings for fraud and misrepresentation” against a private company appointed as a strategic partner.
The company had responsibilities that included mentorship, co-management and helping beneficiaries run viable farming enterprises. Instead, investigators concluded that both projects had failed.
The report recommended that funds placed directly under the control of the company be recovered.
The total amount recommended for recovery was listed as R27 296 842, comprising R19 264 342 linked to Mbuyane and R8 032 500 tied to Bunye Betfu.
Investigators said business plans prepared for the projects were “inadequate and incomplete” and failed to comply with the governing agreements.
The report also flagged an alleged undisclosed conflict of interest. Investigators found that the business plans cited a single-source poultry customer whose management had ties to the strategic partner.
“This constitutes a conflict of interest not declared… and is regarded as an act of corruption,” the report states. Banking controls were also allegedly bypassed.
Investigators reported that a director used the banking password of a CPA official and appointed bank signatory to facilitate transactions “that have not been approved” by the CPA.
On the departmental side, investigators recommended disciplinary action against Hector Khoza, a senior project officer, and Edwin Mosabale, then director of land redistribution and development.
They were accused of failing to properly monitor the projects, verify business plans, collect payment documents and exercise adequate oversight. On the ground, the projects were described as ruins.
The report said Mbuyane had no poultry operations, no functioning infrastructure and signs of destruction and vandalism. Bunye Betfu was similarly described as a failed project with destroyed infrastructure and missing equipment.
Investigators recorded one of the most striking findings: money intended for equipment suppliers was not properly accounted for.
The report says a director confirmed the funds had simply “disappeared”.
Nearly five years later, it remains unclear whether criminal charges were laid or any money was recovered or whether disciplinary steps were finalised.
Mpumalanga Land Reform and Rural Development spokesperson Zithini Dlamini referred Sunday World’s enquiry to national department spokesperson Linda Page, who acknowledged receipt but had not provided a response at the time of publication.
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- The National Department of Land Reform and Rural Development has remained silent on a forensic report.
- The report recommends criminal proceedings against private project managers and officials.
- The allegations involve misappropriation of over R27 million.
- The funds were intended for the development of beneficiaries of land claim projects in Mpumalanga.
- Further details are available in the full story through the Sunday World e-edition.
But an August 2021 forensic report, commissioned by the
projects.
Investigators said business plans prepared for the projects were “inadequate and incomplete” and failed to comply with the governing agreements.
“
Investigators reported that a director used the banking password of a CPA official and appointed bank signatory to facilitate transactions “that have not been approved” by the CPA.
On the departmental side, investigators recommended disciplinary action against Hector
Investigators recorded one of the most striking findings: money intended for equipment suppliers was not properly accounted for.
Nearly five years later, it remains unclear whether criminal charges were laid or any money was recovered or whether disciplinary steps were finalised.
Visit SW YouTube Channel for our video content
