Question NW3590 to the Minister of Agriculture, Land Reform and Rural Development
07 November 2022 - NW3590
Cebekhulu, Inkosi RN to ask the Minister of Agriculture, Land Reform and Rural Development
Whether, in light of the cancelled beef and sheep abattoir construction project in Butterworth, any remedial action will be taken regarding the farmers who requested the financial assistance in order to recapitalise the dilapidated old tannery and transform it into an abattoir; if not, why not; if so, what are the relevant details; (2) whether an alternative project will be implemented; if not, why not; if so, what (a) are the relevant details and (b) consequence management measures will be implemented by her department in instances of wasteful expenditure emanating from the specified project?
Reply:
(1) No remedial action will be taken against the farmers as the beef and sheep abattoir construction project has not been cancelled but the contract with the appointed contractor was terminated due to challenges experienced in the project. After the contract was terminated, the Department of Agriculture, Land Reform and Rural Development (DALRRD) handed the project to the Eastern Cape Development Corporation (ECDC) to assist with the implementation. A Service Level Agreement (SLA) between DALRRD and ECDC was signed in May 2020 and work is in progress.
(2) No; the construction of the abattoir will continue. ECDC has appointed a Consultant to resuscitate and bring the project to completion. The Consultant is busy with the Condition Assessment and Cost Report to complete the project. A termination account will be concluded, and the contractor will be referred to termination penalty clauses as per the SLA.
(a),(b) Falls away.