Business, jobs at risk

In 2010, the department of rural development and agrarian reform (DRDAR) approved an application for a comprehensive agricultural support programme grant to establishan abattoir, feedlot and waste management on Pakamisa Xashimba’s property at a cost of R19.600,000.

The abattoir project was due to be completed in 2013. A company was appointed to carry out the construction.

The firm responsible for installing the relays discovered the plans of the abattoir and the actual steel installed did not correspond. This resulted in the project being suspended.

Xashimba attempted to engage with the department for the project to be completed on many occasions, finally following the legal route in an attempt to finalise the project.

The court decided in favour of Xashimba and a new company was appointed to complete the work.

The project was only completed and handed over in 2016, three years after the expected completion date.

In a report to the portfolio committee on rural development and agrarian reform, the committee noted there was an allegation that the department had funded the project to the tune of R43m. However, according to the financial institution evaluations, the actual value of the project was R17m, with R23m reserved for infrastructure. This begs the question, where did the money go to and why was the abattoir built to substandard conditions?

Furthermore, the backup engine supplied was not according to specifications. The committee recommended an investigation be done and a progress report be submitted within 30 days.

Recommendations were made for alternative power in the form of a generator, which was never supplied. Further litigation may be necessary.

The committee recommended the department tar or pave the access road, which has not been done despite another report request.

Due to these operational difficulties and structural defects, the abattoir faces closure. Failure to provide a generator has resulted in bulk meat being discarded since 2018 to the value of millions of rands, which has incapacitated business operations and the ability to pay employees regularly. Fifty jobs are at risk and the surrounding farming community will suffer if the authorities abandon this thriving business venture.