North West province’s agriculture department has effectively collapsed after the arrest of four top officials on corruption charges relating to the issuing of tenders and fraudulent claims.
The woes of the stricken department have led to a war of words in the North West government, with provincial finance minister Maureen Modiselle ranged against Premier Edna Molewa and provincial agriculture minister Eliot Mayisela.
The four arrested directors are among seven department officials suspended following a forensic audit. At least six businessmen were also arrested and released on bail.
The Department of Agriculture, Conservation and Environment has denied it is on its last legs. But Modiselle told Parliament in January that it is “a non-functioning entity” because of corruption.
The National Assembly’s agriculture committee heard the department had collapsed because of fraud and corruption and was unlikely to spend more than 2% of its R140million budget this year.
When asked why the agriculture department had grossly underspent its budget in the past year, Modiselle told Parliament “that, simply speaking, there is no Department of Agriculture in the North West”.
According to her research, a mere 1,2% of the department’s estimated R55million grant had been spent, and only 0,8% of the R91million infrastructure-development grant had been spent by the beginning of the year.
Molewa hit back, saying the provincial minister’s report was “not factual, wrong and grossly misleading”. Molewa, the province’s former agriculture minister, is said to retain strong links with the agriculture department.
A source in the department told the Mail & Guardian that tensions between the premier and Modiselle had been mounting since the parliamentary hearing. But head of the finance department Phineas Tjie, who accompanied Modiselle to Parliament, denied this. He said there had been no backlash from Molewa or anyone else in government. “We have not had any trouble,” he said, refusing to comment on Molewa’s earlier rejection of Modiselle’s parliamentary presentation.
Mayisela insisted that any allegation that his department was not functioning “is unfounded”.
He said that, to date, the department has spent about 90% of its current budget compared to about 96% of its budget in 2004/5.
“The rationale behind the statement made by the provincial minister for finance is unknown and has not been explained to the department,” said Mayisela, adding that it is “not true and unsubstantiated”.
He said the national Department of Agriculture had approved a conditional grant of R44,7million for North West’s land care and comprehensive agriculture support programme for 2006/2007. His department had also received a R427,8-million budget allocation from the province.
“The national department and provincial treasury would not make conditional grant and budget allocations to a non-existent department as that would constitute a fruitless and wasteful expenditure in terms of the Public Finance Management Act,” he said.
Mayisela denied that his department had special ties with Molewa, saying “she treats the department in the same way as she does others”.
Since August last year, six directors in the department have been suspended on allegations of corruption, fraud and maladministration following a forensic audit by private auditors Ramaithe Fivaz. Three service providers from Rustenburg — Letsapa Boweni, Gwendoline and Ralph Welsch — were charged with fraud in February.
The three allegedly made fraudulent claims to the department, which were allegedly approved by co-accused Phindi Mokoena.
Mokoena, the department’s director of entrepreneurial development, also faces similar charges relating to deals she did with service providers Hennie Weideman and Aggrey Mwase. Weideman and Mwase have also been charged with fraud, along with another Rustenburg businessman and farmer, Tshapelo Tshepe.
The chief director of agricultural services, Mogomotsi Kgantsi has also been charged, together with the director of policy planning, Lovejoy Malambo.
A source inside the department said more arrests are expected, and that ex-employees of the department might also be implicated.
“The process of forensic investigation has continued and resulted in further suspensions,” Mayisela said. “The department continues to cooperate closely with the forensic investigators and the police.”
Emily Mogajane, former head of the department, was also suspended in August for flouting provincial policy and “exceeding her authority … in respect of language policy at the agricultural colleges”.
The National Education Health and Allied Workers Union, which has been calling for a forensic audit since 2004, believes Mogajane was suspended because she initiated steps to address corruption and fraud in the department, including appointing the Ramaithe Fivaz forensic audit. Nehawu is calling for her immediate reinstatement.
Despite winning her disciplinary hearing inside the department last year, Mogajane is still on suspension, because the department challenged the hearing in the Labour Court. The case is due to be heard this week.
Mogajane would not comment on the state of the department, as her Labour Court hearing was scheduled for Friday.