Editor – The Minister of Economic Development has indicated that the defunct Kenaf plant in Winterton may be used to process hemp for the production of clothing, shoes, diapers, rope, canvas, cellophane, paints and other products.
According to the minister, the defunct plant is costing the taxpayer approximately R2.5 million per year. This includes R70,000 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 R1.7 million, but now, with the buildings, it is valued at a massive R40.2 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 R2.5 million every year. No attempt has been made to sell the plant, despite an approach to the IDC by a potential buyer.
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