FRIDAY, 1.00PM
STATE farms sold for tens of thousands of rands below their market value by the Agricultural Credit Board (ACB) in the early 1990s should be reviewed by the national treasury to see if permission ”ex post facto” should be granted for the sales, according to the sixth report of the De Meyer commission into irregularities in the transfer of state land.
The report, tabled in Parliament on Thursday, recommends that sales of farms which saw purchasers paying well below the market price should be reviewd by government, implying that prices determined by the ACB could be changed.
About 19 farms which were sold privately, and not by public auction, are listed in the report. Many were held by the state as part of the homeland consolidation plan which, when rejected, were simply sold. Allegations are that the opinions of the local agricultural committee dominated many of the sales, ensuring farms were substantially underpriced. A source close to the commission says it was petty thievery, which demonstrated nepotism and favouritism.
Concerning the sale of a farm worth R1,2-million in the Barberton area, the commission reported that while ”the board acted within its powers in determining the selling price, it is most alarming that such a valuable farm was sold at such a low price.” The farm was sold for R450 000. The commission’s investigation reveals that ”an apparently inconsistent policy was followed”.