Land deal: 2nd head rolls

2004-10-10 21:44

Justin Arenstein

Badplaas - A second Mpumalanga Land Claims Commission (LCC) official, project manager Linda Mbatha, has been suspended as part of the forensic investigation into a dodgy R72m land restitution scheme in the Badplaas valley.

Mbatha's suspension follows that of his boss, regional LCC commissioner Nceba Nqana, three weeks ago following indications that the sales price for 21 vegetable and dairy farms were systematically inflated by local land speculators.

The scam allegedly saw the taxpayer over-charged by up to 300% on some of the transactions.

"Mbatha's suspension forms part of the precautionary measures necessary to ensure complete transparency in the investigation.

"The [independent] investigators are working at a fast pace, but it is still too early to make any pronouncements yet," said LCC spokesperson Hilgard Mathews.

No formal charges have been levelled against either Nqana or Mbatha, but chief land claims commissioner Tozi Gwanya has publicly expressed concern about the validity of their research into land claims in the Badplaas valley, the management of land valuations and acquisitions, as well as other general management issues.

Prices inflated by 300% - claims

The LCC's chief investigator, SA Institute of Valuers executive member Derrick Griffiths, meanwhile wrapped up his physical inspections of the suspect farms this week and is expected to begin comparing the official written valuations with actual values next week.

"The investigation is on track, and we are satisfied with the progress," said Mathews.

Amongst the farms Griffiths has inspected is Doornhoek which was sold to government for R5.7m - just months after speculators bought it from the original owner for R250 000.

Local developers claim prices were inflated by 300% on at least six other farms, and that the Mpumalanga LCC also irregularly helped land speculators set up the deals by issuing illegal financial guarantees.

Mathews continued to decline to comment on specific charges for fear of prejudicing investigations, but has previously confirmed that the two-prong investigation will test allegations that Nqana irregularly issued financial guarantees to help land speculators buy up land for resale to the LCC at massively inflated prices.

In one case the LCC allegedly issued a guarantee in favour of local farmer Pieter Visagie, allowing him to purchase Vygeboom farm for R1.6m in 2002.

Nqana then bought the farm from Visagie just months later for R4.4m million - even though the LCC's own experts warned that the property was at the most only worth R2.9m.

Nqana has consistently refused to answer 51 detailed written questions on the matter, but Visagie has formally denied any wrongdoing and dismissed critics as opponents of land reform.

The local farmers' union, Agri Badplaas, has condemned the investigation as a smear campaign.

- African Eye