Part Two - Secret Nguni Cattle Scandal Exposed at Fort Hare

Forensic Investigation Unveils Mismanagement at University Research Farm

A forensic investigation into the University of Fort Hare's research farm has revealed serious allegations of mismanagement, fraud, and stock theft involving Nguni cattle. The findings, detailed in a report by Morar Incorporated, have led to criminal charges against the former farm manager and an auctioneering agent.

The Leak of the Report

The leaked investigation report highlighted how Nguni cattle from the Honeydale Research Farm were sold for below-market prices. The farm’s former manager, Dirk Potgieter, and one of his clients were charged with stock theft. Additionally, there were reports of missing sheep and cattle, raising concerns about the integrity of the farm’s operations.

A Critical Incident on 18 October 2023

On 18 October 2023, a truck loaded with Nguni cattle was intercepted on its way to Bizana. The cattle, which belonged to the university, had been sold by Potgieter without following proper procedures or obtaining necessary permissions. A client paid R192,000 for 20 cows and five calves, but the invoice issued by the farm was only for R142,600. Fortunately, the university’s internal investigations team intervened, stopping the truck before it reached its destination.

Patterns of Fraudulent Activity

Further investigation by Morar Incorporated uncovered that Potgieter had a history of selling cattle below market value to clients who would then resell them at higher prices. Some sales were not properly recorded, and there were instances where livestock went missing. The auditors found that Potgieter and auctioneering agent Chris Lombard had a "modus operandi" to deprive the university of its cattle stock and sell them for profit.

Legal Consequences

Both Potgieter and Lombard were charged with stock theft in the Alice Magistrate's Court. Morar's findings were detailed in a forensic audit report sent to the university in April 2024. This was the second of two reports; the first focused on broader governance and mismanagement issues at the farm.

Procedures Not Followed

Potgieter claimed he followed standard procedures for selling the cattle. He contacted two auctioneers, including Lombard, and received a buyer. However, investigators discovered that Potgieter had communicated directly with the actual buyer, Themba Diya, via WhatsApp. Diya wanted to avoid paying VAT, so Potgieter suggested the transaction go through Lombard.

Lombard confirmed he acted as an intermediary between Diya and the university. He later admitted to receiving a commission, initially stating it was 8% and later reducing it to 4%. Several university officials noted that livestock sales must be approved by both the Farm Committee and the Ethics Committee. Potgieter claimed he was never formally informed of this process.

Below-Market Prices and Inconsistencies

Investigations found inconsistencies in Potgieter’s accounts of the cattle’s age and weight. He claimed the cows weighed approximately 180kg, but they likely weighed more, leading to incorrect pricing. Previous sales also raised questions, with some transactions occurring at significantly lower prices than the market average.

Missing Livestock and Discrepancies

There were reports of missing sheep and cattle, with some animals never returning after being taken to other farms. Employees reported discrepancies in inventory records, with some animals still listed as stock while others were unaccounted for. These irregularities raised further suspicions about the management of the farm.

Criminal Charges and Ongoing Investigations

Disciplinary charges were recommended against several staff members, including Msi, Nodayizana, Potgieter, and Richard Scott. The university also reported the suspected corruption between Potgieter and Lombard to SAPS, leading to criminal charges of theft. SAPS confirmed that both individuals were charged and pleaded not guilty in court.

Ongoing Legal Proceedings

The matter is currently on trial, with the next hearing scheduled for 8 January. An expert needs to be consulted regarding the legitimacy of a disputed signature. Both Potgieter and Lombard have not responded to inquiries.

University Response

In response to GroundUp, Fort Hare spokesperson JP Roodt stated that the forensic investigations were commissioned as part of the university's efforts to combat corruption. Disciplinary action was taken against implicated employees, resulting in their dismissal. Some staff members resigned once disciplinary proceedings began, and the university continues to work with SAPS on matters related to stock theft.