Community seizes farms

Johannesburg - Malelane community members have seized control of farms they believe are being badly managed by their strategic partner, Makhombo Farm Management.

This was despite being informed that they should not expect immediate profits, Makhombo's operating partner Umlimi Holdings said on Tuesday.

"The action is severely compromising farming operations and accordingly jeopardising the ultimate flow of benefits to the community," it said in a statement.

Community members had commandeered farm assets, physically threatened management and staff and rendered the properties ungovernable by Makhombo, it said.

The 3 200 hectares of citrus, sugar cane and banana farms in Nkomazi, near Malelane in Mpumalanga, were awarded to the community in land claims and are held by the Mjejane Trust.

The trust appointed as its strategic partner Makhombo Farm Management, a joint venture company between the Lugedlane Community and operating partner Umlimi Holdings.

"The Makhombo farms were all affected by the long and protracted government acquisition process, which resulted in the farm output at the time of transfer being well below regional average yields and economically viable levels," Umlimi said on Tuesday.

"The turnaround to profitability is progressing well and Umlimi has invested R38m in the farms to date, although bureaucratic delays have meant that government has not been forthcoming with any of its funding for which the properties qualify.

"However, the reality of Makhombo being unable to generate profits from inception has created a high degree of disillusionment among the beneficiaries of the trust."

Umlimi said Mjejane Trust manager John Mhlongo told Makhombo on March 30 that the community was taking control of the farms.

He and certain other trustees had promised community beneficiaries immediate dividends.

"This deliberate misinformation, which has raised beneficiary expectations, was bound to create further dissatisfaction among the beneficiaries and has been used by these individuals to garner resentment towards Umlimi," it said.

Umlimi said its pleas for government assistance had gone unheeded, although it understood that Minister of Agriculture and Land Affairs Lulu Xingwana had asked for a report on the situation.

"Makhombo has taken legal advice and are engaged in a process to enforce their clear rights to the farms," it said.

Xingwana's spokesperson was not immediately available for comment.

- Sapa