Board supporting Magwa was paid R4m to be at 75 meetings

Board members at the Eastern Cape Rural Development Agency (ECRDA) were paid more than R4-million to attend about 70 board and special meetings during the last financial year.

The ECRDA is responsible for supporting a number of state-owned agricultural schemes, including the poorly performing Magwa and Majola tea estates in Lusikisiki. It does not own them.

The agency also runs Kangela Citrus farms, which was clouded in controversy when former agriculture MEC Max Mamase and his then wife, Neo Moerane-Mamase, were charged with taking kickbacks for its purchase.

Yesterday the Daily Dispatch reported that the embattled tea estates had applied for a R66-million bailout. Today we can reveal that of the R4-million paid to board members for attending meetings over a one-year period, more than R1.5-million went to two board members.

Prince Zolile Burns-Ncamashe and chair Vanguard Skosana claimed R662500 and R867500 – excluding travel costs. Skosana also chairs the board of Mayibuye Transport Corporation. Burns-Ncamashe is deputy chair of the provincial house of traditional leaders and has a subsidised vehicle from the state.

ECRDA spokeswoman Nobatembu Pako said the agency’s board meetings were not linked to Magwa’s operations.

The ECRDA’s 2013-14 annual report shows Skosana attended 75 meetings and Burns-Ncamashe 63. In 2012-13 the agency paid its board members R3.1-million in fees, with Burns-Ncamashe receiving just over R1-million and Skosana R320697.

If the R66-million request is granted, this will bring the amount sunk in the failed estates to more than R200-million in five years. There was a R62-million bailout for Magwa and a R5-million bailout for Majola in 2011-12. For the current financial year the rural development department set aside a rescue package of R2.67-million for wages at Magwa and R1.5-million for Majola.

According to ECRDA’s annual report, R14-million was spent on Magwa and R11.5-million on Majola between April 2013 and March 2014. Magwa employs 767 people, but during picking seasons an additional 600 casual employees are drafted into picking operations. Majola has 150 to 200 permanent staff.

About R42-million went to Magwa in 2012 from the national government after production came to a halt when a labour dispute turned violent.

ECRDA chief executive Thozi Gwanya was not available for comment yesterday.

A calculator reveals Skosana is paid just over R11500 a meeting and Burns Ncamashe R10500.

An ordinary board member is paid R7500 a meeting.

According to the agency’s 2012-13 rates, the board chairman is paid R8223 a meeting.

Rural development and agrarian reform MEC Mlibo Qoboshiyane was not available for comment. — mphumziz@dispatch.co.za

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