The Department of Land Reform and Rural Development says processes are underway following a forensic report that recommended criminal, disciplinary and recovery steps over the alleged misuse of more than R27-million meant for land claim beneficiaries in Mpumalanga.
The department was responding to a Sunday World enquiry on a 2021 forensic report into the Bunye Betfu CPA and Mbuyane CPA projects, where public money was allocated under the Recapitalisation and Development Programme (RADP) to help turn restored farms into viable agricultural businesses.
The report, compiled by Morar Incorporated Chartered Accountants (SA), identified governance and financial shortcomings and recommended that criminal proceedings be considered against a private strategic partner appointed to both projects.
“The forensic investigation into the Mbuyane and Bunye Betfu CPA projects was commissioned precisely because the department detected serious governance, financial management and implementation shortcomings in the execution of the projects,” said the department.
Basis for further processes
It added that the report confirmed “significant mismanagement of Recapitalisation and Development Programme funds by the appointed strategic partner, as well as failures in project oversight.”
According to the department, the report formed the basis for further processes rather than serving as the final step.
“The report was not an end in itself but formed the evidentiary basis for subsequent legal, disciplinary, and recovery processes, which, by their nature, must follow due process and statutory requirements,” said the department.
The department pointed out that those processes included consideration of criminal matters, civil recovery options, contractual remedies against implicated external parties and reporting matters to SAPS.
It added that officials also initiated internal disciplinary processes where they identified negligence.
Sunday World previously reported that the forensic report recommended the recovery of R27 296 842, comprising R19 264 342 linked to Mbuyane CPA and R8 032 500 tied to Bunye Betfu CPA.
Investigators found that business plans were “inadequate and incomplete,” while both projects were described as failed operations.
Improving project oversight
The report also recorded that money intended for suppliers was not properly accounted for, with one director allegedly stating that the funds had “disappeared”.
The department said that certain matters require confidentiality while processes continue, explaining why it has not made some outcomes public.
“Some processes are necessarily confidential and cannot be conducted through the public domain while they are ongoing,” said the department.
“The department has been required to balance transparency, accountability and compliance with labour law, criminal procedure, and the Public Finance Management Act.”
It said the forensic probe was needed to establish facts, protect public funds, enable recovery where possible, and support consequence management based on evidence.
The department added that it remains committed to improving project oversight, strengthening controls over strategic partnerships, and ensuring land reform funds achieve their intended impact.
- A forensic report revealed alleged misuse of over R27 million in land reform funds for Bunye Betfu CPA and Mbuyane CPA projects in Mpumalanga, prompting criminal, disciplinary, and recovery actions.
- The Department of Land Reform and Rural Development identified governance, financial management failures, and project oversight shortcomings linked to the appointed private strategic partner.
- The forensic investigation, commissioned due to detected mismanagement, found inadequate business plans and failed operations, with significant funds unaccounted for or "disappeared."
- Processes initiated include legal actions, civil recovery, internal disciplinary steps, and reporting to SAPS, though some details remain confidential to protect ongoing investigations.
- The department commits to enhancing project oversight, reinforcing controls on strategic partnerships, and ensuring effective use of land reform funds for beneficiary impact.
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It added that the report confirmed “significant mismanagement of Recapitalisation and Development Programme funds by the appointed strategic partner, as well as failures in project oversight.”
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It added that officials also initiated internal disciplinary processes where they identified negligence.
Investigators found that business plans were “inadequate and incomplete,” while both projects were described as failed operations.
“Some processes are necessarily confidential and cannot be conducted through the public domain while they are ongoing,” said the department.
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It said the forensic probe was needed to establish facts, protect public funds, enable recovery where possible, and support consequence management based on evidence.
