Public Protector releases finding on Vrede Dairy farm

It is alleged that R220 million was laundered from the farm to individuals at the expense of what supposed to be an empowerment project.

The report comes after the Asset Forfeiture Unit's (AFU) recent court application for a court order to freeze assets worth around R220 million belonging to individuals who had benefited from the ill-fated project, including members of the Gupta family and some of their associates.

The Hawks raided the offices of Free State Premier Ace Magashule, as well as the office of the MEC of Agriculture at the end of January. At the time of the project, the MEC was Mosebenzi Zwane, who is the current Minister of Mineral Resources. 

In the report, Busisiwe Mkhwebane, says the Free State Department of Agriculture did not improperly enter into a Private/Public Partnership with Estina. 

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Mkhwebane's report finds that the Free State Head of Department of Agriculture, Peter Thabethe, "did not follow the normal procurement process as prescribed by the Constitution, PFMA and National Treasury regulations."

The report also states the provincial Agriculture Department's accounting officer continued to make a payment to Estina of R143.9m, even after the Accountant General flagged the project for possible breaches of PFMA. 

Mkhwebane has found the Department failed to "manage and monitor implementation of the terms of the agreement" signed with Estina.

She also pointed to a serious lack of any document keeping by the Free State Agriculture Department and that the lack of internal controls amount to "gross negligence & maladministration" regarding the Estina project. 

Mkhwebane recommended as remedial action that Free State premier Ace Magashule should institute disciplinary action against all officials implicated in the project.  

Read the full report below: