A: Introduction
Good morning ladies and gentleman, members of the media
Allow me to acknowledge Hon. Minister Gugile Nkwinti;
Deputy Minister Mcebisi Skwatsha;
Deputy Minister Candice Mashego-Dlamini;
Head of the SIU, Adv Andy Mothibi
Acting Director-General, Leona Archary;
Deputy National Director of Public Prosecutions, Adv Nomvula Mokhatla; and
Acting Special Director of Public Prosecutions, Adv Knorx Molelle
B: Background
Allow me the opportunity to extend my warmest and sincerest gratitude to Minister Nkwinti and his team at the Department of Rural Development and Land Reform for facilitating this historical event.
The Department of Rural Development and Land Reform (DRDLR), in terms of its various programs was involved in the acquisition of productive commercial agricultural land for redistribution, particularly for the benefit of previously disadvantaged individuals.
The aforementioned programs were conducted in terms of the following enabling legislation:
The Land Reform Act 3 of 1996 (Labour Tenant Act), which was intended for persons who had been affected by the labour Tenancy system to enable them to lodge claims as labour tenants on farms where they had been employed as farm labourers;
The Restitution Act 22 of 1994 (The Restitution Act), which provides for persons who had been dispossessed of land due to past discriminatory laws, such as forced removals;
The Provision of Land Assistance Act 126 of 1993 (Land Assistance Act), which was meant to assist persons under the aforementioned legislation, to acquire land with financial assistance from Government;
The Extension of Security Tenure Act 62 of 1997 (The Security Tenure Act), which was intended to protect the rights of people residing on land with the consent of land owners, without necessarily having to put up a formal claim against the land and further providing assistance to the persons involved to acquire rights in land.
Eligible targeted beneficiaries, inter alia, included the following categories of persons:
- Persons who reside or have the right to reside on a farm;
- Persons who otherwise have or had the right to use the land for cropping or grazing and in consideration of such rights provide or provided labour to the owner of such farm;
- Persons whose parents or grandparents reside or resided on the farm and have or had the use, for cropping or grazing, land on such farm or another farm and in consideration of such rights provided labour to the owner of such other farm.
Pursuant to the aforementioned programs the Department of Rural Development and Land Reform (DRLD) acquired and purchased several commercial farms for the benefit of the targeted beneficiaries as defined in the aforementioned legislation.
Each program had its own set of requirements which eligible persons had to satisfy.
Several Community Trusts were subsequently established on behalf of the numeorus rural community beneficiaries.
C. Allegations of fraud and corruption
During March 2009 the National Prosecuting Authority (NPA) received several complaints relating to the circumstances under which the several farms were acquired and transferred to several persons and entities, including Community Trusts.
These allegations, inter alia, included the following:
- That the farms were fraudulently sold and transferred to the aforementioned individuals and Community Trusts for the benefit of several individuals who were not eligible to be beneficiaries in compliance with the Department of Rural Development and Land Reform’s (DRDL’s) various programs;
- That the beneficiaries were excluded from the beneficiaries list on the various farms and further substituted with non-existent (fictitious) persons, including persons and individuals who were family members of the several Department of Rural Development and Land Reform (DRDLR) officials;
- That several Department of Rural Development and Land Reform (DRDLR) officials colluded with several farm owners and/or sellers in the sale of the farms to the Department of Rural Development and Land Reform (DRDLR) at excessively high amounts. Despite these farms being acquired by the Department of Rural Development and Land Reform (DRLDRL), the sellers remained the de facto owners; and
That several farms had been stripped of the assets by several individuals including the sellers, fraudulent beneficiaries and certain Department of Rural Development and Land Reform (DRLDR) officials.
These complaints were further referred to the South African Police Service (SAPS), which led to the initiation of criminal investigations.
During March 2010 the Asset Forfeiture Unit (AFU), and the Police with the assistance of the Department of Rural Development and Land Reform (DRDLR), investigated these allegations.
On 18 February 2011, the President of the Republic of South Africa issues proclamation R8 of 2011 to the SIU as alluded to by the Head of SIU. From this point onwards the SIU together with all the role players investigated the aforesaid allegations.
D. The Ministerial Task Team (MTT)
In light of the number of farms that were acquired by the Department of Rural Development and Land Reform (DRDLR) and the gravity and impact of the identified irregularities, the Minister established a Task Team (constituted by the NPA (including the AFU) and the SIU), to coordinate and support the investigative activities, which included: criminal investigations, the prosecution of those implicated and the recovery of losses suffered by the Department of Rural Development and Land Reform (DRDLR).
E. The findings of the investigations and the progress made to date
Honourable Minister Nkwinti; Honourable Deputy Ministers Skwatsha and Mashego-Dlamini, in reporting on the progress made to date in respect of the investigations we can confidently say that significant strides have been made in the following areas;
35 Preservation Orders to the value of R462 910.74 were obtained during the period resulting in forfeitures orders with a total value of R373 912 541.00.
15 of the farms with a total value of R142 447 392.00 have since been transferred back to the Department of Rural Development and Land Reform (DRDLR).
Transfer is however still pending on the remainder of the farms.
Approximately 12 cases have been referred for criminal investigations and prosecution.
The suspects include several officials from the Department of Rural Development and Land Reform, the sellers of the farms and transferring attorneys.
I digress to point out the glaring unjustices that were uncovered by the investigations in some of the farms:
The Charnaud Farm (Kwacekwane Trust): Where legitimate beneficiaries were excluded from participating in the farming activities and instead the family members of the Department of Rural Development and Land Reform official took occupation of the farm; and
The Sizanemvelo Farm: Where, despite the Department of Rural Development and Land Reform having acquired the farm for the benefit of the identified beneficiaries, the sellers remained the de facto owners and enjoyed beneficial ownership in the activities of the farm.
The Harte Rivier Farm: where certain Department of Rural Development and Land Reform officials colluded in the stripping of the farm assets, including farm implements, equipment and livestock, including livestock).
15. Honourable Minister and Deputy Ministers, the NPA together with its partners have identified several other farms and cases which require similar investigations with the view of recovering the losses suffered by the Department of Rural Development and Land Reform and prosecuting those that were involved.
The total value of those assets is estimated in the amount of R400 million.
F. Conclusion
Honourable Minister and Deputy Ministers, right from the outset, the AFU correctly recognised Department of Rural Development and Land Reform’s efforts to redistribute land, in terms of its mandate and in line with government’s Constitutional imperatives.
The decision to return the land to the Department of Rural Development and Land Reform instead of selling the forfeited property and paying the proceeds into the Criminal Assets Recovery Account (CARA) was occasioned by shared vision and unity in purpose, more particularly, the much needed inter-governmental cooperation and in the fight against crime and ensuring that Government departments are able to execute their mandates effectively.
The significance of the above investigations and recoveries is that the alleged offences affect the rural communities, our most vulnerable members of society, who often continue to be deprived and marginalised by the delay in the delivery of the much needed services in society.
The NPA and the AFU in particular, together with its stakeholders, will continue to work together in ensuring that it renders the much needed assistance to the Department of Rural Development and Land Reform by ensuring that all farms that were unlawfully transferred to illegitimate individuals and entities, are recovered and re-allocated to the rightful beneficiaries.
The NPA will further ensure that the prosecution of those implicated is expedited so that a loud and clear message is conveyed to all those concerned that crime does not pay.
