/ 16 May 1997

Mabuza farm deal probed

A special investigative unit arrived in Mpumalanga this week and is uncovering politicians’ dicey deals, reports Justin Arenstein

THE National Parks Board chairman and respected former homeland leader, Dr Enos Mabuza, is being probed by the most powerful government investigative unit in South Africa for a state farm he bought for R6 000 in 1991 and mortgaged for almost R500 000 two years later.

Two previous provincial government investigations into the sale were stalled last year after records allegedly went missing and former homeland officials refused to co-operate with either the auditor general or Mpumalanga Director General, Frank Mbatha.

Reports on the issue in the Mail & Guardian last year, however, prompted Judge Willem Heath to bring his special investigative unit to Mpumalanga this week to begin interviewing officials and to visit Mabuza’s farm and three other properties near Barberton.

All four farms were sold to “political incumbents” in 1991 without tender-board approval or public auction and were sold for only the legal transfer costs of between R6 045 and R7 500 each.

According to records at the deeds office, Mabuza mortgaged his property for R480 000 two years later, with agricultural economists pointing out that the farm’s true market value would be far higher as banks always keep a 35% reserve on mortgaged properties to protect themselves.

Auditors are concerned that the state made absolutely no money out of the deal, which was described by Mabuza at the time as a “gesture of thanks for our service by a grateful people”.

The three other recipients are still serving politicians, including South Africa’s current ambassador to Mozambique, Mangisi Zitha, member of Parliament Professor Simon Ripinga and member of Mpumalanga’s House of Traditional Leaders Tikhontele Dlamini.

Fallout from the investigation could also include Mpumalanga’s speaker of the legislature, Elias Ginindza, who signed the power of attorney authorising the sale while he was minister of the interior in KaNgwane.

Judge Heath’s special unit, which was created in November 1996 after the success of his commission into corruption in the Eastern Cape, has the same executive civil powers as a high court and has already reputedly recovered or saved the government R10-billion through its “search-and- seizure” operations.

Assisted by a special tribunal of three high court judges, the unit has the power to initiate its own investigations, serve summons for civil action and pass judgment either to reclaim former state assets or goods to their value.

In addition to investigating the Eastern Cape farm occupied by former PAC leader, Clarence Makwetu, the unit has discovered that former Transkei military leader, Bantu Holomisa, and his military council irregularly promoted themselves just one day before 1994’s historic elections to qualify for better military pensions.

According to Judge Heath, the government is losing an amount of roughly R342 400 per month because of the promotions.

Both Heath and his investigation unit head, Jon Dutton, met with Mpumalanga’s provincial auditor general, various retired homeland officials who were involved in the sales and with the departments of land affairs and local government in Nelspruit on Wednesday.

They were, however, unable to meet with Mpumalanga Premier, Mathews Phosa, to inform him that the unit would start operating in the province, despite attempting to set up an appointment with him for two weeks.

“After the visit this week, we have also found a number of other issues which may need investigation in the province, including various other land deals,” said Judge Heath.

A full team from the unit will set up an office in the province within the next month or two. – African Eye News Service