The Minister of Economic Development, in a written reply to my question, has stated that the defunct Kenaf factory in Winterton may be used to process hemp for the production clothing, shoes, diapers, rope, canvas, cellophane, paints and other products.
We trust that this is not a hemp SMOKE screen. According to the Minister the defunct plant is costing the taxpayer approximately R 2,5 million per year.
This includes R 70 000 per month paid to two employees who “look after” the maintenance of the mothballed operations.
In addition a separate security company is contracted to look after the physical security. The Minister claims that the land on which the plant was built was valued (we assume purchased) at R 1.7 million but now with the buildings on it is valued at a massive R 40,2 million.
We trust that the IDC has and is paying the full municipal property rates on this property. It is astounding that the IDC now continues to pour taxpayers money down the drain at the rate of R 2,5 million every year.
No attempt has been made to sell the plant despite an approach to the IDC by a potential buyer.
Alf Lees MP
Democratic Alliance
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