Note to Editors: Please find attached English and Afrikaans soundbites by Roy Jankielsohn MPL and Sesotho soundbite by Jafta Mokoena MPL
Beneficiaries of the Gupta-linked Vrede Dairy Project in the Free State continue to live in poverty after almost half a billion-rand investment by taxpayers. In replies to questions in the Free State Legislature, the MEC for the Department of Agriculture and Rural Development indicated that about R20 million continues to be spent on the project annually with little to show for this investment.
The project has cost taxpayers R475 368 000,00 since its inception. An initial R336 368 000, 00 was capital expenditure between the 2012/13 and 2016/17 financial years, and in the past seven financial years since then an additional amount of R139 000 000,00 was spent annually on running costs.
Between January 2022 and December 2023, a total of R5 686 059,90 was brought in through the sale of cattle and milk, while almost R19 million was spent on the project. The 65 beneficiaries, who own 51% of the project through a trust, each received a R1300 gift card and 5kg of meat from the slaughter of an ox and old cow. In February this year R5 million was spent on the Premier’s State of the Province Address which shows where the Free State Government’s priorities lie.
The total investment into the project through the capital and running costs divided between the 61 beneficiaries works out to R7 313 353,85 per beneficiary.
The expenditure versus the benefits of the Vrede Dairy project is proof that agricultural projects of this nature are not created to benefit beneficiaries or make profits, but to milk taxpayers of their hard-earned income. The Vrede Dairy project has been fraught with corruption, has no value for money, no reasonable return on investment and no beneficiation. This project highlights government’s flawed communist-based land reform models. After an exhaustive investigation into state capture and recommendations for extensive criminal investigations into this project by the Zondo-commission, not a single person has been convicted. The DA believes in investment in land reform through partnerships between the private sector and intended beneficiaries with the necessary time bound support.