Part Two: Dodgy Nguni Cattle Deals Uncovered at Fort Hare

An investigation has uncovered dodgy cattle sales at Fort Hare’s research farm.

• A leaked investigation report reveals how Nguni cattle at the University of Fort Hare’s research farm were sold for low prices.
• The farm’s former manager and one of his clients have since been charged with stock theft.
• There were also instances where sheep and cattle went missing.
• Disciplinary charges were also recommended against several staff members.

Forensic auditors were investigating fraud and mismanagement at the University of Fort Hare’s agricultural projects when they were called out one day to the university’s Honeydale Research Farm. There, they found a truck, loaded with Nguni cattle, which they were told had been intercepted on its way to Bizana.

It was 18 October 2023. The cattle, which belonged to Honeydale Farm, had been sold by the farm’s manager, Dirk Potgieter, to a client in Bizana without following correct procedures or obtaining the necessary permission. The client had paid an agent R192,000 for 20 cows and five calves, but Potgieter instructed his subordinates to invoice the agent for only R142,600.

Fortunately, the university’s internal investigations team had caught wind of the transaction and the truck was stopped before reaching its destination and told to turn back.

The auditors, from Morar Incorporated, investigated further and found that Potgieter had a history of selling cattle below market value to clients who would sell them on at higher prices. Some sales were not properly recorded. There were also instances where cattle and sheep were removed from the farm and could not be accounted for.

Morar concluded that Potgieter and auctioneering agent Chris Lombard had a “modus operandi” to deprive the university of its cattle stock at below-market prices and sell them on for higher prices. They recommended that Potgieter and Lombard be reported to SAPS for criminal investigation.

Both Potgieter and Lombard have since been charged with stock theft in the Alice Magistrate’s Court.

Morar’s findings were detailed in a forensic audit report, sent by Morar to the university in April 2024. It was the second of two reports – the first, which GroundUp reported on Thursday, focused on broader problems with the governance and mismanagement of several agricultural projects hosted at Honeydale Research Farm.

Procedures not followed

Potgieter told investigators that the cattle had to be sold because the farm was overstocked. The university’s ethics committee had advised selling the cattle, he said.

He said that he had followed the usual procedure for selling the farm’s cattle. He had contacted agents at two auctioneers – Chris Lombard from Hobson and Co. and another auctioneer. These were the auctioneers he would usually approach when selling livestock. Two weeks later, Lombard told him he had a buyer.

As soon as Lombard confirmed the order, Potgieter instructed the staff to load the animals early on the morning of 18 October and to drive the animals to Lombard’s home in Bizana, Potgieter said.

Potgieter claimed he did not know who Lombard’s buyer was or how much the cattle would ultimately be sold for. But the investigators later found that Potgieter had, in fact, been directly in touch via WhatsApp with the actual buyer, Themba Diya, two months before the cattle were loaded on 18 October. It was only when Diya said he wanted to avoid paying VAT that Potgieter suggested the money go via Lombard.

Investigators found that Potgieter knew that Diya had paid Lombard R192,000 for the cattle, even though Lombard would only pay the University of Fort Hare R142,600.

The cattle were sent to Diya’s home in Bizana, not Lombard’s. Lombard’s home was in Adelaide, not Bizana.

Lombard confirmed to the investigators that he acted as an agent between Diya and UFH. He said it was because Diya was not registered for VAT and so Potgieter asked Lombard to handle the payments. He later conceded that he would receive a commission – first he said it was 8%, but later said it was 4%.

Several university officials told investigators that livestock sales must be approved by both the Farm Committee, via its livestock subcommittee, and the Ethics Committee.

Potgieter claimed he was never formally told about this process. Regardless, he said he had emailed the livestock committee about the sale two weeks in advance and received no objections. He did not think the ethics committee had to be contacted because they had already advised that excess cattle should be sold.

But three members of the livestock committee told investigators that the sale had not been approved. Neither was approval given for the cattle to be removed from the farm. Prof Graeme Bradley, dean of the agriculture faculty, also said he had not been asked to sign a gate release for the truck, which is a required procedure to take any university vehicle from the property.

Below-market prices

The investigators found inconsistencies in Potgieter’s accounts of the age and weight of the cattle loaded on the truck on 18 October. Potgieter said he had told the auctioneering companies that the cows to be sold weighed approximately 180kg. But they likely weighed much more, the investigators found. The sales were therefore based on the incorrect weights.

The investigators also found a previous sale to Lombard, in May 2023, of 17 weaner calves sold at R23.01/kg, below market value. And in October 2022, Lombard had bought 36 animals from the university for R196,374, for between R18 and R23.50/kg when the average auction price at the time was between R36.90 and R43/kg. An auctioneer confirmed to the investigators that the prices paid by Lombard were too low.

Thirteen of the animals sold in October 2022 were later removed from Lombard’s farm by the university’s investigators. Lombard has since taken legal action against the university to have the calves returned to him. The High Court in Makhanda ruled in March that the animals should be returned, but Lombard may not do anything with the animals until the criminal case against him is resolved.

Other cattle sales by Potgieter also raised questions.

• Two bulls were sold to two different companies in August 2023. But the one bull was still reflected on the inventory list as stock. The other bull wasn’t on the inventory list or on the list of cattle removed. Potgieter told investigators that the bulls were old and needed to be replaced with younger animals, but this was disputed by two farm employees who said the bulls were not old and were of better quality than the younger bulls purchased to replace them.
• Sixteen six-month weaner bull calves were sold to another auctioneer in July 2023 at R22.31/kg, far below average market prices of R34.03/kg at the time.
• Seventeen weaner calves were sold at R23.01/kg, according to Potgieter’s diary. But the tag numbers and weights were the same as those of the calves sold on 3 July. Potgieter couldn’t explain this, but suggested that perhaps the calves were never sold.

Abongile Nodayizana, who works on the farm, told investigators that there were once sheep on the farm, but they had been removed by Potgieter one December, supposedly so that they would not be stolen during the holidays. The sheep never returned. This was confirmed by crops foreman Luthando Msi.

Once, when there was a drought, Nodayizana was told to take cattle to a nearby farm in Adelaide, but he did not know whether the cattle ever came back.

Msi also said there were instances when, if they took livestock to Adelaide for grazing, the herd would return with an animal missing. Potgieter would tell him that some of the cattle died, but Msi felt something was wrong.

Criminal charges

The investigators recommended disciplinary charges against Msi, Nodayizana, Potgieter and Richard Scott, the farm’s clerk responsible for issuing transport permits and invoices when cattle are sold.

They also recommended that the university report the suspicion of corruption between Potgieter and Lombard to SAPS and open a criminal case of theft against Potgieter.

SAPS spokesperson Warrant Officer Majola Nkohli confirmed that Potgieter and Lombard had been charged with stock theft. They pleaded not guilty in the Alice Magistrates’ Court.

NPA spokesperson Luxolo Tyali told GroundUp that the matter is on trial and has been postponed to 8 January. An expert needs to be consulted about the legitimacy of a signature, which one of the accused disputes, Tyali said.

Potgieter did not respond to questions sent to him via SMS.

Lombard did not respond to questions sent via WhatsApp.

Responding to GroundUp, Fort Hare spokesperson JP Roodt said the forensic investigations were commissioned by the university’s management executive committee “as part of the University’s drive to root out corruption”.

“In several cases, disciplinary action was instituted against implicated employees, resulting in their dismissal,” he said. “It should also be noted that some staff members resigned once disciplinary proceedings were initiated.”

He said some disciplinary matters were still in process.

“The university is [also] actively working with SAPS on matters of stock theft relating to cattle.”

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