Economic Opportunities

With reference to the Vuyani Development Trust in Nelspoort:

(1)       When was the land and the property handed over to the community as part of broader land reform in the Western Cape;

The Nelspoort farm was transferred to the Beaufort West Municipality during the 2002/2003 financial year for their management as part of commonage land programme. The extent of the farm is 6 744 hectares. The farm was leased to the Vuyani Development Trust in October 2004 for a period of 9 years and 11 months. During this period, the Department of Agriculture appointed Casidra for 5 years to help with skills development of the Trustees to enhance the viability and suitability of the business. Casidra exited in 2014 on the request of the Trust and at this time the business was making a profit and it was able to cover its costs.

(2)       Whether the farm is currently making a profit or managing to support itself financially; if not, why not; if so, what are the relevant details;

The farm is currently not making a profit and therefore is not in a position to support itself financially. This is as a result of serious financial mismanagement, conflicts and the fact that the farm is now run by a committee.

These challenges were raised with the Trust on several occasions, but they seemed uninterested in heeding the advice. During 2015, the Department contracted Exceed, an accounting firm, to assist the Trust with financial and production records to enhance its bankability. Through this process, it was discovered that finances were mismanaged. Poor decisions were made which included the selling of livestock to the informal market at reduced prices and no reinvestment was taken from the profits.

During June 2016, the Department again raised these concerns with the Trust and the Beaufort West Municipality (landlord). At the end of 2016, the livestock numbers were reduced from over 800 sheep to below 30 sheep. The amount of conflict within the Trust and the community had made it practically impossible for a viable business.

(3)       Whether the members of the board of trustees are paid; if not, why not; if so, by whom?

The current Trust Deed does not make provision for the remuneration of the Trustees. The Trustees are elected by the community voluntarily and their duty was to oversee the management of the farm on behalf of the community. It must be noted that any remuneration to the board of trustees remains a decision by the Trust itself.