R106 million Gupta-linked milk processing plant at the Vrede Dairy redundant

Issued by Dr Roy Jankielsohn MPL – Leader of the Opposition in the Free State Legislature
16 Feb 2020 in Press Statements

The milk processing plant at the Gupta-linked Vrede Dairy Project remains redundant and in a state of decay. The joint committee that includes the committees of public accounts and agriculture that was established on the insistence of the Democratic Alliance (DA) to investigate issues relating to the Vrede Dairy Project visited the project this week.

The site visit confirmed the evidence of former head of the Free State Department of Agriculture and Rural Development, Peter Thabete, at the Zondo Commission in October 2019. The Commission heard that the R106 million spent was on equipment was ineffective. After arriving from India in a state of decay, the equipment remains outdated and has visibly deteriorated further.

 See photos here, here and here.

The Free State Development Corporation, who managed the project after the withdrawal of the initial company Estina, previously informed the Legislature that the processing plant will require a huge investment if it is to be revived. The Department of Agriculture and Rural Development have indicated that an additional excess of R30 million will be required to initiate this plant.

It is clear that the people of the Free State were robbed of R106 million under the watch of former Premier Ace Magashule whose family members had close ties with the Guptas. The current provincial government appear to be intent on throwing more taxpayers money into a single plant in an attempt to justify the initial wasteful expenditure in order to protect their political head in Luthuli House.

The provincial government should rather invest in much needed basic services and ensure that the excluded beneficiaries of the project are accommodated and assisted. The current Premier should assist investigators with information that will ensure political accountability for her predecessors in the Executive Committee in the Provincial Government who were responsible for malfeasance, instead of attempting to resuscitate a dead cow that is a victim of the corruption virus.