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Probe into missing R8m meant to benefit local business on West Rand

Isigayo Mill was supposed to be completed in the 2015/2016 financial year and open in 2017.
Isigayo Mill was supposed to be completed in the 2015/2016 financial year and open in 2017.
Image: Gauteng portfolio committee on economic development, environment, agriculture and rural development.

A mill plant which was supposed to start working in 2017 in Randfontein to help grow the agricultural and retail sector on the West Rand is still not functioning.

The Gauteng portfolio committee on economic development, environment, agriculture and rural development made the shocking discovery last week.

Chairperson of the committee Lindiwe Lasindwa said Isigayo Mill  was supposed to be completed in the 2015/2016 financial year and open in 2017. 

Lasindwa said she was shocked and disappointed that the project meant to benefit the people by empowering local SMEs and retailers was still not functional.

She said the project could have ensured that local businesses become  meaningful players in the food industry and help promote the emergence of black industrialists.

“It has come to the committee's attention that the Gauteng department of agriculture and rural development has transferred an amount of R8m to Rand West municipality to assist in the operational and assets of the mill and the amount is alleged that is not accounted for by both the department and municipality,” Lasindwa said.

She further claimed that R2m went towards costs incurred in the project for furniture but this was not spent properly.

“It is against this background that the committee is going to call all stakeholders to a meeting so that they should account on the alleged missing of funds that was supposed to assist local businesses in running the milling plant. The committee will probe further as to why the amount of R8m was transferred to the municipality by the department,” Lasindwa.

“It is very unfortunate that the department failed to give adequate explanation to the committee on the role of the Rand Water foundation in the projects and what was the content of the memorandum of understanding on the private-public partnership. 

“It is not acceptable that funds meant to empower local business are missing and no one is held accountable. If anyone is found to be guilty in the process, the committee will recommend that the law enforcement agencies open cases of fraud and criminal activities.”

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