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Former FS Treasury MEC appears before #ZondoCommission

───   KATLEHO MORAPELA 10:01 Wed, 16 Oct 2019

Former FS Treasury MEC appears before #ZondoCommission | News Article

The controversial Vrede Dairy project in the Free State is today under scrutiny again as the former Free State Finance MEC Elzabe Rockman takes the stand.


Rockman’s testimony regarding the multimillion-rand project comes after the commission heard evidence from the national Department of Agriculture, Forestry and Fisheries’ Programme Management Coordinator, Elder Mtshiza, who confirmed that the Free State failed to conduct a proper feasibility study, draw up a proper business plan nor follow proper technical processes before coughing out millions for the controversial Gupta-linked Estina project. During her testimony just over a week ago, Mtshiza told the commission that her department withheld conditional grants for the province once they discovered that there were several red flags with regard to the project. She went on to explain that their dairy expects and agriculture economists highlighted concerns over assumptions made and projected profits.

She said the Free State Agriculture Department also ignored a directive to conduct a proper feasibility study for the project, which would have informed a proper business plan. She said an application for water rights was also not concluded by the department. As a results of these flaws, her department then withheld an amount of about R53 million meant for the province.

In August, the Free State former Agriculture Head, Peter Thabethe, during his testimony came under fire for signing off on the project without doing any risk assessments. This was after the commission heard how Estina’s account had a balance of just over R16 on 4 July 2012, days before the provincial government deposited an amount of R30 million into its account.

The State Capture Inquiry evidence leader, advocate Leah Gcabashe, grilled Thabethe over what she said was irresponsible of the head of the department and asked him how he was expecting Estina to keep their end of the bargain, without money in their account.

The Gupta family and their associates allegedly looted more than R220 million meant for the project to help emerging black farmers. It is alleged that the Agriculture Department paid this amount into the Gupta-linked Estina Nedbank account, which was thereafter moved to the Bank of Baroda pool account.


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