South Africa to investigate failed farm worker equity schemes

The South African Department of Land Reform and Rural Development has requested the Special Investigating Unit (SIU) to investigate the failure of farm worker equity schemes (FWES). These schemes, established in the 1990s, were intended to provide historically disadvantaged farm workers with shares and dividends in the farms where they worked to improve their economic standing.

Parliamentary reports indicate that nearly R700 million was disbursed to 89 equity schemes. A significant portion of these funds went to the Western Cape, which received R366 million for 54 schemes, and the Eastern Cape, which received R103 million for 21 schemes.

An investigation by officials revealed widespread issues: out of 65 schemes visited, only 18 were fully functional. Other findings included 16 schemes with limited functionality and minimal worker participation, and 19 instances where workers had sold their shares. The move to involve the SIU follows sustained pressure from civil society organizations and Parliament to account for the millions of rands that have become untraceable or failed to achieve their intended purpose.