More cash woes for East Cape tea estate

MAGWA Tea Estate employees in Lusikisiki have not received their August salaries, making this the third month in a row they have been paid late.

Eastern Cape Rural Development Agency (ECRDA) chief executive Dr Lubabalo Mrwebi confirmed that employees had been paid late. Magwa employees were only paid their June wages at the end of July.

However, Mrwebi said the provincial Rural Development and Agrarian Reform Department had a bold plan to rescue the beleaguered tea estate in Lusikisiki, which has been plagued with financial irregularities.

Mrwebi said more than R8.5-million had been deposited in the estate’s account to pay employees’ salaries for August and September.

The most recent blow to the estate came when employees went on a violent strike earlier this year, damaging part of the administration block. Damage was estimated at R2-million.

Other problems faced include non and late payment of about 2 000 workers since January. The estate has been without a general manager for more than two years.

The estate, which covers 2 600ha, is the biggest employer in the area and has the potential to produce 3.5 tons of tea a year. However, it is expected to produce only 665 000kg this season.

Mrwebi said his agency planned to resuscitate the dairy and maize fields alongside the tea estate. The ECRDA announced that R26-million had been budgeted for Magwa this year.

The department had allocated Magwa a further R60-million for a turnaround plan. The allocation is in addition to the R42-million the estate received last year from national government after production came to a halt following incidents of violence and looting amid a labour dispute.

The Eastern Cape Development Corporation also loaned the estate more than R15-million over three years.

Rural Development and Agrarian Reform MEC Zoleka Capa attributed the problems facing the estate to poor management and a lack of funding.