Mawande Jack

The board managing the government-funded Magwa Tea plantation in the former Transkei has been suspended while forensic investigators gets to work after allegations of mismanagement and corruption.

The project, which employs more than 3000 seasonal and non-seasonal workers, especially from the EmaMpondweni and Lusikisiki areas, is on the verge of collapse, after workers went on strike in February for better pay.

Management is alleged to have abandoned the operation after workers went on the rampage, allegedly assaulting some managers and shooting dead a security guard.

Rural development and agrarian reform department MEC Zoleka Capa on Wednesday announced a plan to turn around the troubled multi-million rand tea estate in Lusikisiki.

“The old board has been suspended pending a forensic investigation,” said the department’s spokesperson, Ayabulela Ngoqo.

Three new board members have been appointed, including the department’s Leon Coetzee as chairperson, former Chris Hani Municipality mayor Mafuza Sigabi, and former Amathole District Municipality mayor Sakhumzi Somyo.

An amount of R42m has been allocated by the department to restructure the whole entity, which used to be the “jewel of Pondoland” and was a massive employment creation venture under the old Transkei government.

“The board will look at all the operations of Magwa Tea and has only six months to develop a turnaround plan, including systems of managing it,” Ngoqo said.

The new plan includes a massive development in the Pondoland district, where Magwa would be linked to the Mkhambathi project to create jobs for mainly young people dropping out of school and for former mine workers.

Ngoqo said child labour had been endemic in the Magwa tea estate and the government was determined to put and end to the exploitative practice.

“We intend working together with the construction Seta to provide youngsters with skills in order to establish cooperatives that will give them an income.”

Linked to the whole scheme was the opening of Mama’s Shops under the control of chain store Shoprite, which was aimed at economic empowerment of women in the area. And Eskom has been called to install electricity in the whole area.

Ngoqo said the investigation into mismanagement was launched after allegations from workers who claim that the management, which had been appointed by the Eastern Cape Development Corporation, “ran it like a spaza shop”.

“One manager who was in charge is alleged to have even paid workers from his own pocket. Management of the operation was dictatorial and had no accounting systems in place, which resulted in endless fights with workers,” said Ngoqo.

Even the R15000 given to each worker by the department for them to buy shares could not be accounted for, he said.

Food and Allied Workers Union provincial secretary Mbalisi Tonga said “the union welcomes the move by the department to appoint a new board and launch an investigation into the project.”

“We will cooperate with the board and commission in its efforts to dig deeper into all matters concerning the operation.”

He gave the example of when the operation received R17m from local government last year but the use of the funds remained unaccounted for.

He said workers had long ago decided to end their strike and go back to work.