THE Limpopo department of agriculture has vowed to take drastic action against the Mamphoku-Makgoba Community Trust after a forensic report showed that it was responsible "for the deterioration of 42 farms and assets worth more than R121-million".

The forensic audit report shows that the trust illegally changed the provisions of the original trust deed, thereby giving unprecedented powers to only four trustees to formulate and implement decisions which have now left the 42 farms in a state of disrepair.

Department spokesman Kenny Mathivha said MEC Dipuo Letsatsi-Duba had been instructed by the Department of Rural Development and Land Reform to rectify the situation.

The report, compiled by the SAB&T, Indyebo and PricewaterhouseCoopers consortium, revealed that trustees had removed assets from the farms, let out some of the land and houses for free and entered into contracts involving the payment of huge commissions to agents.

The trust also failed to prepare annual financial statements from 2004 to 2009.

The annual financial statements prepared for the year ending February 2010 by an unregistered audit firm showed only R80 net profit from a R121-million asset base.

But the trust's chairman, Thupane Makgoba, blamed the government for the collapse of the farms, which include a tea estate at the picturesque Magoebaskloof Valley.

He said the government was reluctant to assist and had also encouraged the changing of provisions in the original trust deed. The trustees did not get the chance to give their version before the report was made public.