Estina ‘pocketed R160m without delivering services’ at Vrede dairy project

Among shocking revelations to emerge in the hearings into the failed multimillion-rand Estina dairy farm project in Vrede, the Commission of Inquiry into State Capture heard yesterday how intended beneficiaries were duped by former agriculture MEC Mosebenzi Zwane and other officials.

During his testimony before Deputy Chief Justice Raymond Zondo, Ephraim Dhlamini, one of the project’s intended beneficiaries, told how Zwane raised the hopes of local cattle farmers in the Free State in four public meetings between 2012 and 2014, but later took his church choir to India “for training, instead of us”.

Dhlamini added: “Some of us sold our cattle, expecting to be allocated dairy cows through the project. They (government) promised to buy 10 cows for each beneficiary. These were to go to the dairy.

“Then we would be flown to India to undergo training. Instead of taking us to India for training, Zwane took his Msingizane church choir.”

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The identity documents of the emerging black farmers were copied at the public meetings ahead of the expected India trip, and Zwane and then department head Peter Thabethe made promises to them that were never fulfilled.

Among several twists in the Gupta-linked Estina dairy farm project, the commission earlier heard that neither former Free State premier Ace Magashule nor Zwane attached their signatures to the cession agreement.

This was to transfer responsibility of the dairy farm from the Phumelela district municipality to the provincial agriculture department.

Quizzed by Zondo and commission senior counsel Zinhle Buthelezi on the legal processes followed for the department to take control of the farm from the municipality, deputy director-general in the premier’s office Albertus Venter said Magashule delegated his authority to Zwane, who in turn entrusted that power to Thabethe.

Thabethe, who assumed responsibility as the driver of the project, was cited in last year’s public protector’s report into the Estina scandal, which saw millions of taxpayers’ money diverted to Gupta-linked businesses, as among the officials Magashule had to institute disciplinary action against – a recommendation which was never enforced.

Intended as a public-private partnership with Estina, a black economic empowerment company, the project was established in 2012 by the Free State department of agriculture on the Krynaauwslust farm with a 99-year lease.

Venter was asked at a 2012 executive council meeting chaired by Magashule whether delegation of authority was lawful.

Venter said: “The agreement was supposed to be signed by the former premier (Magashule), but that did not happen. I advised the executive council that delegation of authority was possible. The cession was not for a limited period and there were no provisions for compensation.”

He said a questionable beneficiary agreement was brought to him by a government official in 2013.

“My opinion was also sought on the beneficiary agreement. When I look back, I am embarrassed at the agreement. It was signed by the official who had no delegated authority to do so. I picked up that it was not clear.

“It said beneficiaries could dispose of assets of the project and I pointed out that this was inappropriate.”

Venter also said Estina, which held 49% shares in the dairy project, had to contribute R228 million to the project, but ended up pocketing R106 million without delivering the agreed services.

“When I initially heard about the project, I was excited and thought it was a good idea that would grow the provincial economy and create jobs. It would have been great if it was executed properly,” added Venter.

– brians@citizen.co.za

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