A parliamentary committee has called for special investigations into farm equity schemes after finding that many farmworkers in the Western Cape have not benefited from projects intended to promote shared ownership and rural development.
The Portfolio Committee on Land Reform and Rural Development made the call after completing the second day of a three-day oversight visit to farms in Tulbagh.
The visit forms part of a broader inspection of farms in the Clanwilliam, Citrusdal and Ceres areas following a petition from organisations representing farm equity schemes.
The committee said it uncovered serious problems with the schemes, including alleged mismanagement, lack of transparency and possible corruption.
“In over R700 million investment to the schemes, only nine out of 88 schemes launched between 1996 and 2008 declared dividends,” the committee said.
According to the committee, many farmworkers told MPs that they had been misled into selling their shares for very small amounts and that some beneficiaries had died without ever receiving any financial returns.
The farm equity schemes were originally introduced to promote inclusive economic growth, encourage rural development and help address historical inequalities in land ownership.
However, evidence presented to the committee during its oversight visit suggests the programme has largely failed to deliver on these goals.
The committee said farmworkers reported that they were often treated as ordinary labourers despite being shareholders in the projects.
“The committee heard from some farmworkers that they never received any benefit and instead of being active shareholders or trustees, they are still farmworkers living in abject conditions and earning below the minimum wage,” the committee said.
Workers also told MPs that they continue to live in extremely difficult circumstances on the farms.
“They told the committee that they live under very difficult and unbearable conditions in the farms.”
The Farm Equity Scheme programme was halted in 2009 when government placed a moratorium on new transactions following widespread concerns about how the projects were being run.
Although the Recapitalisation and Development Programme (RECAP) was later introduced in 2010 to try to revive struggling projects, the committee said the original scheme has largely been unsuccessful.
The committee believes the failure was partly due to a lack of government monitoring and support.
The committee will now request an investigation into how farmworkers ended up selling their shares back to original farmers and, in some cases, to new owners.
“The committee will request an investigation into the circumstances that led to the farmworkers selling their shares to the original farmers and in some instances, they are not even aware of who bought the farm,” the committee said, citing the example of Verlorenvlei Farm which was reportedly sold to a Belgian businessman.
The committee is expected to continue its oversight work as it assesses the impact of land reform programmes on farmworkers in the region.
IOL News
Wendy Dondolo
iol.co.za