The dairy farm project made headlines when the #GuptaLeaks revealed that the money siphoned off from the project paid for the family’s much publicised Sun City wedding. The project was initially going to cost the Provincial Agriculture Department R251 million in terms of a public/private partnership agreement with the Gupta-linked and Indian based company – Estina (Pty)Ltd.

The company was appointed by the department without any tender procedures. The public/private partnership agreement entitled Estina to a 49% share of the project that would cost R228 million. The rest of the 51% shares would then be owned by approximately 100 emerging farmers who were listed as beneficiaries of the project. But questions are now hanging over the list of beneficiaries to whom the project was never handed over. The Free State Development Corporation (FDC) also indicated that it was not aware that the project had any beneficiaries.

No money was invested by Estina and by the time the department terminated this contract, R144 million was already spent and another R107 million was paid over to settle invoices, according to the AG’s report. It also confirms that National Treasury has been investigating the public/private agreement and included in the scope of the investigation is the appointment of the implementing agent.

Although the project was transferred, it cost the department in the 2016/17 financial year R21 million. A total of R51 million was paid toward the project since it is under the care of the FDC. The Auditor-General warned that the financial woes of the Free State Agriculture Department might lead to it not being able to meet its financial obligations.

Amid concerns expressed by the AG, a Free State farmer is now threatening to file a petition in the Provincial Legislature as the department owes him more than a million. Lucas Mokoena, owner of the Kareelaagte Farm outside Bloemfontein, says the department ordered 87 pregnant cows and 3 bulls from him at a total cost – including the transportation – of R1.8 million. No tender procedures were followed with the project meant to assist emerging farmers.

The AG said before the start of the current financial year, the department had accruals of more than R2 million and another R6 million payables not recognised. This, the report found, cast serious doubt on the department’s ability to meet its financial obligations during the 2017/18 financial year. Mokoena says the department promised to pay him within three days of delivery, but still did not cough up. The non-payment is in contravention of a National Treasury directive that stipulates that service providers should be paid within the stipulated 30 days. Mokoena said he gave the department seven days to pay or face being petitioned through the Free State Legislature. The department said in an answer on detailed questions from OFM News that there seem to be irregularities with the transaction and that the department started an internal investigation.

Years later the outcome of the investigation by National Treasury – which is believed to be the second one – is still unknown. A report by the office of the Public Protector following an investigation that was started years ago, has also not been released yet.

(PICTURE GALLERY: The DA leader, Mmusi Maimane, visited the controversial dairy farm in Vrede in the Free State earlier this year. Opposition parties allege that the Free State provincial government acquired the farm in 2012 and brought in a Gupta-linked Indian company called Estina as implementing agents and then proceeded to pay the company millions. )