Nothing wrong with Vrede Dairy project

Nothing wrong with Vrede Dairy project

The Free State Department of Agriculture and Rural Development says the Democratic Alliance (DA) in the Free State has the answers to their questions regarding the Vrede Dairy Project but insist on recycling the same questions while they know that there is nothing wrong with the project.

The DA’s Free State Leader and Premier candidate and Member of Legislature Dr Roy Jankielsohn, alleges that the beneficiaries of the Gupta-linked project continue to live in poverty despites the department spending R20 million on the project annually.

According to Jankielsohn; the project has cost taxpayers R475 368 000,00 since its inception. He says 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,” said Dr. Roy Jankielsohn.

Jankielsohn painted out a shameful picture saying, the beneficiaries received way less than their expected dividends. According to Jankielsohn, 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,” said the DA Free State Leader and Premier candidate.

The Spokesperson for the Department of Agriculture and Rural Development in the Free State Zimasa Mbewu told The Business Weekly that the DA posed these same questions on the project a while ago in Legislature and it seems the opposition party wants to raise the same questions over and over again. She says they are raising matters that they have answers to.

“There is nothing wrong with the Vrede Dairy Project and they know it too,” said Mbewu.

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