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THREE farms bought by the government as part of its land restitution programme in the Sundays River Valley have been run into the ground, with one being auctioned off after beneficiaries battled to keep it going.
Trenly in Addo, valued at about R16-million and which could have fetched R30-million had it been productive, was sold on public auction for R8,25-million in January.
Now the new owner, veteran farmer Johan Venter, says he has to spend millions more.
A Herald team saw weeds in the fields, dead citrus trees, missing fences and rusting farming implements this week.
The land affairs department paid about R4-million for the 286 hectare citrus farm and handed it over to the Ikhuba Trust in 2005.
The trust borrowed more than R2-million from the Land Bank, but with interest the debt escalated to R6-million this year.
Under the management of Ikhuba, which consists of 12 members, the farm collapsed.
Trust chairman Lukes Phillips refused to comment, but a provincial agriculture department official, who did not want to be named, said: “At some point, the beneficiaries didn‘t even live on the farm.”
The official added that:
The government “dumps” people on farms, giving them little or no financial or managerial support, and with no mechanisms to monitor farms or the progress of projects.
Some of the beneficiaries don‘t live on the land or in the area, making it impossible for them to manage the farms effectively.
Some have too many beneficiaries and the group dynamics become impossible to manage, leading to conflict and confusion.
Money for capital and farm operations is used for personal needs.
In peak season, most beneficiaries dump their projects and pack fruit and vegetables to earn salaries.
Some don‘t pay rates bills for months, leading to the irrigation board attaching farms or implements.
Beneficiaries sell assets like stock and ploughs.
The official said another farm had been attached by the local irrigation board between 2005 and 2006 as the beneficiaries could not pay their water bills.
Nomzamo in Kirkwood, which was handed over to 94 families in 1996, has also collapsed completely, with the former managers said to have sold farming implements, beef and dairy stock and allegedly misappropriating funds.
About 9ha of land was recently auctioned to pay electricity and water bills.
Philisile Ntshinga, a ember of one of the 94 family claimants, was recently appointed by his community to take over the running of the farm when the previous managers “disappeared after misappropriating funds”, he said.
“We sold 9ha to pay R37000 in water bills because the irrigation board was about to attach our farm,” he said.
“This was a dairy farm, but they sold off the cows and killed the rest for meat.
“The milking area was closed down and the equipment was looted.”
Venter, a farmer for 30 years and who plans to farm lucerne at Trenly, said Ikhuba Trust had auctioned the farm because of financial problems
Had the farm been productive, “it could well have sold for about R30-million”.
“There is a lot of work to be done there,” he said.
“I put up millions of rand to get it up to production. I am busy preparing a dam now and it‘s costing me a fortune.”
Venter said land claims beneficiaries wanted to succeed, but had no guidance or experience.
“Somebody must help. Those guys need help.”
A source close to the original deal, who did not want to be named, said the government had made a considerable loss.
“After selling the land, Ikhuba had to repay the Land Bank, leaving them with about R2-million.
“That money will have to pay suppliers, water and electricity and other bills and they will be left with nothing.
“The government‘s initial capital of R4-million is lost. The land was not sold at its market value and they lost a chance to implement land reform programmes.”
Eastern Cape agriculture department spokesman Fikile Black said yesterday he did not know the specifics for Trenly and Nomzamo, “but what we normally do is ask farmers to contact our regional offices to request assistance with infrastructure”.
“The department considers their requests and, based on the budget, we assist them.”
District manager Thembani Nyokana said he would only be able to provide detailed information on the farms today.
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