Revealed in a report by veteran investigative journalist unit amaBhungane, a flagship land reform project has fallen apart. Reflecting the broader failures of the national land reform program, the North West Department of Agriculture, Land Reform and Rural Development has failed to disburse R87.1 million in post-settlement funding for a 'megafarm' project.

But lack of funding wasn't the only issue, as several distorted notions of agricultural management were revealed by the report. The project, intended to be a communist-style communal farming project under a Communal Property Association (CPA), has been marred by mismanagement allegations against the former CPA committee, disputes with the former landowner, and a lack of transparency from government officials.

This reflects similar experiments with historical collective farming elsewhere, from the Soviet Union, to Afghanistan, to Tanzania and Zimbabwe, where collectivised farming demonstrated massive inefficiencies, financial confusion, infighting, and lack of productivity.

The Khutso-Naketsi CPA, located in Skeerpoort, has been at the center of the controversy. The CPA was formed to oversee the transfer of a significant portion of a large vegetable farm to communal control, costing nearly half a billion rands. However, the project has been beset by challenges, illustrating broader issues within the CPA model and revealing gaps in government oversight.

The troubles began when the former committee, responsible for managing the farm, was accused of misappropriating around R24 million from the CPA and its subsidiaries. This included alleged irregularities such as self-appointed salaries of up to R60,000 per month per person. The mismanagement extended to risky agreements that jeopardized the CPA's chief land asset.

The project's post-settlement success depended on adequate funding, skills transfer, and effective management. However, delays in the release of the R87.1 million in post-settlement funding by the North West Department of Agriculture contributed to a cash shortfall. The former landowner stepped in with a loan, securing the CPA's 70% share as collateral, leading to a contentious court battle.

A critical issue emerged as the department failed to provide the full funding on time, causing the CPA's main corporate assets, Damsig Poultry and Khutso-Naketsi Agri, to face financial challenges. The delay in funding prompted the former landowner to lend money, creating a precarious situation for the CPA.

Attempts to seek accountability from government officials faced non-responsiveness and indifference. The lack of transparency and bureaucratic delays raised questions about the department's capacity to handle such complex land reform projects.

The Khutso-Naketsi case sheds light on broader challenges within the CPA system in South Africa. With 1,720 CPAs collectively holding millions of hectares of land, only 23% are compliant with required standards, while two-thirds are non-compliant. The model, established in 1994 for land reform, faces issues of infighting, opaque management procedures, and inconsistent government support.

Left-wing experts argue that the CPA model could be potent if appropriately set up and if its primary focus is on holding land rather than running businesses. However, a lack of political will and ongoing support from the Department of Agriculture, Land Reform and Rural Development has hampered the success of CPAs, leaving many dysfunctional.

The Khutso-Naketsi case exemplifies the broader challenges faced by land reform proponents, the implementation of which underscores the need for a less intrusive and ideologically driven approach to agricultural reform.