Share

Free State department leased entire Vrede area to Estina, commission hears

The former municipal manager of the Phumelela Municipality, Moses Moremi, has detailed how the Free State Department of Agriculture entered into an agreement that not only leased a large portion of land, but the entire area of Vrede (including suburbs) to the Estina dairy project for a period of 99 years.

Moremi was testifying at the Zondo commission into state capture on Tuesday. 

He gave a breakdown of an extremely rushed process to bring the municipality on board.

Beginning on June 12, 2012, Moremi said the department, led by head Peter Thabethe, paid an unannounced visit to the municipality during a pre-planned council meeting.

They were accompanied by business people and local farmers, he said, adding the group had asked the council if it could show it a presentation on the dairy project.

Moremi said they also requested the municipality to avail farmland for the project.

He added the presentation was not on the council meeting's agenda and no one had pre-empted the presentation, except possibly the executive mayor of Vrede, John Motaung.

After the presentation, Moremi explained the council had unanimously decided to draw up a resolution that would support the project. The resolution was adopted by all 14 councillors in attendance.

Commission chairperson Deputy Chief Justice Raymond Zondo said this saga was strange because the council was too quick in making its resolutions shortly after the presentation without any documents, background or being able to ask questions about the financial impact on the municipality or the viability of the project.

Zondo questioned the rushed nature of the entire process, which he said was also evident in previous testimony.

A month after this, Moremi said he had received a call from the director general (DG) in the Office of the Premier who wanted him to attend a meeting with delegates from India who were interested in investing in Vrede.

He was told Motaung would also attend.

Moremi said the DG had told him if he needed legal advice, he should go through his office.

At the meeting, Ashok Narayan, representing the investors, was in attendance with lawyer Johan Schalkwyk. Previous evidence at the commission alleged that Nayaran was an adviser to former Free State premier Ace Magashule.

However, Moremi said he had not known this.

He added he was presented with an agreement between Estina and the agriculture department that he had to sign then and there, which the mayor would then take to the council.

However, after reading the agreement, Moremi said it was clear he could not sign it.

He explained that it mentioned 4% ordinary shares for the municipality that would only come into effect after three years. It also indicated the municipality should agree to a rent free 99-year lease, with the municipality being responsible for rates and taxes.

The agreement also mentioned 4 400 hectares of land, which encompassed much more than the farm.

The land was already being leased to farmers and there was an existing contract between them and the municipality, Moremi added.

Before signing the document, he said he had sought an opinion from the National Treasury and state law advisers who asked Narayan to justify the agreement.

They subsequently advised Moremi not to sign.

Despite this, he said, pressure from the mayor as well as Thabethe had mounted.

Moremi claimed they told him that if he did not sign the investors would pull out. He then signed off on the agreement. 

GET THE NEWS at your fingertips and download the News24 app for Android here now. Get it for your iPhone here.

KEEP UPDATED on the latest news by subscribing to our FREE newsletter.

- FOLLOW News24 on Twitter



We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
41% - 539 votes
Yes, the ANC caucus will protect her
59% - 771 votes
Vote
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE