John Steenhuisen’s missing R500 million

Agriculture Minister John Steenhuisen has launched a forensic audit into the R500 million Onderstepoort Biological Products (OBP) project.

Onderstepoort Biological Products, founded in 2000, is a state-owned animal vaccine manufacturing entity whose primary mandate is to manufacture animal vaccines.

It plays a key role in South Africa in preventing and controlling animal diseases that impact food security, human health, and livelihoods.

The mandate is delivered through the continued development of innovative products and efficient manufacturing.

The facility must ensure vaccine affordability and accessibility through varied distribution channels.

Many agricultural community members have raised concerns about the Onderstepoort Biological Products not fulfilling its mandate.

The OBP project’s failure has left South Africa’s agricultural sector with a huge shortage of much-needed vaccines.

During a July meeting of the Portfolio Committee on Agriculture, OBP tried to portray a picture of everything being in order.

However, the Auditor General (AG) revealed that a large portion of a grant given to OBP in 2013 was unspent and unaccounted for.

The Auditor General further highlighted that Onderstepoort Biological Products is not following basic auditing standards.

Steenhuisen said he remains very concerned about the OBP project, which has been given R500 million to revamp the facility.

“A large part of the R500 million went missing and is unaccounted for,” he said in an interview with City Press.

He said the imminent forensic audit would help reveal where the money went and how it was spent.

Former Agriculture Minister Thoko Didiza hits back

Former Agriculture Minister Thoko Didiza

Former Agriculture Minister Thoko Didiza, who currently serves as the Speaker of the National Assembly, responded aggressively to Steenhuisen’s comments.

Didiza served as Minister of Agriculture, Land Reform and Rural Development between May 2019 and June 2024.

In a letter to Steenhuisen on Monday, 26 August 2024, Didiza said that during her tenure, the OBP board and management dealt with this matter.

She added that the Portfolio Committee on Agriculture, Land Reform and Rural Development also addressed the issue.

“Details of this matter will be found in the annual reports of OBP, including the audit report,” Didiza said.

“A forensic report on the utilisation of some of the funds was done, and it enabled the OBP to take some of the concerns of sub-contracting to the Special Investigative Unit (SIU).”

Didiza urged Steenhuisen to be cautious about what he communicates on the media, as this could have unintended and disastrous consequences for the department and its entities.

“It is clear that despite Didiza’s efforts to help Steenhuisen understand the intricacies of the department and its entities during the handover process, this remains inadequate,” her office said.

“To this end, Didiza remains available to assist Steenhuisen about this and other matters,” her office added.

Didiza believes that it’s inappropriate to make definitive statements where investigations are ongoing by law enforcement agencies.

She said it creates an impression that the previous administration did not address these challenges.