Lesufi stops R36m container-stores project, orders probe

Initial payment of R36m of taxpayers' money

Gauteng premier Panyaza Lesufi says the provincial executive council wants steps to be taken against those who flout processes and bring the government into disrepute.

He was reacting to the Farm Yard container-stores project, which he said cost taxpayers R36m.

Sunday Times reported that the provincial government spent millions on 16 converted shipping containers, to be used as fruit and vegetable stalls, at R1.75m each — as part of an empowerment project that is now being scrapped.

The contract was awarded by the provincial department of agriculture and rural development (GDARD) to a company called Farm Yard in 2023 to run a market outlet programme in townships across the province.

“We have collectively agreed as the executive council that matters of this nature are completely unacceptable, unwarranted and we should take the necessary steps to deal with those that continue to disregard the rules and regulations on procurement matters and also to bring this provincial government into disrepute,” Lesufi said.

Lesufi said when GDARD MEC Vuyiswa Ramokgopa brought the matter to his attention, he advised her to stop the project and initiate disciplinary processes.

“This issue was a serious embarrassment that we can't tolerate. We will leave no stone unturned to track those who have put us in this unfortunate and unwanted situation,” he said.

The premier said the department was being investigated and the government would ensure those involved were held to account.

He said Ramokgopa had already met with the beneficiaries and told them about the project’s intentions.

On Sunday, Ramokgopa’s spokesperson Danisile Sathekge said the Farm Yard project, intended to establish 16 container-style fresh produce stores in townships, was supposed to support small-scale entrepreneurs and provide vital market access.

“However, barely six months after launching, the project has not delivered according to its stated deliverables,” she said.

“An initial payment of R36m was allocated to establish the 16 containers — at R1.75m per container. These figures, which are seemingly not in line with market rates for similar structures, has prompted a reassessment of the costing model.”

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