Speaker, in 2001 Makhathini Cotton was encouraged by government to invest in the cotton ginnery on the Makhathini Flats. Production went from 2 774 to 14 600 bells of cotton linter in 2003. The gin closed down at the end of 2007, when it was placed under liquidation by the Land Bank.
In July 2009, 300 members unsuccessfully made an offer to the liquidators to purchase the cotton gin. Instead, this failed and the Department of Agriculture, Forestry and Fisheries purchased the gin in 2010 for R30 million but to date it has not been opened. The Department of Agriculture, Forestry and Fisheries committed an additional R20 million in 2012 to the recommissioning of the gin. A steering committee was formed in 2012 to undertake a full assessment; no action was taken. The withdrawal of security from the premises has caused theft of cables to the value of an additional R1,4 million. A further R6 million was made available by the Department of Agriculture, Forestry and Fisheries to farmers for seed and other inputs, but without support the millions that had been poured into the project were wasted. The livelihood of black farmers looking for new hope in the free and democratic South Africa has been dashed. Cotton production in Makhathini has the potential to create roughly 5 jobs per hectare; the primary production of cotton 10 jobs in the downstream value-adding activities. The total of 6 190 hectares can create 61 900 jobs and an additional 30 800 jobs on the Makhathini Flats alone. Around 24 200 farmers, inclusive of their families, depend on the cotton gin and its operation for their livelihood.
The Department of Agriculture, Forestry and Fisheries needs to explain to Parliament and South Africa why R36 million committed to an important project was spent and yielded nothing. It must also explain what ... [Interjections.] ... is happening at Makhathini. It is a disgrace and warrants a proper ... [Interjections.][Time expired.]