The Agricultural Research Council — responsible for scientific research underpinning South Africa's agricultural sector — became another example of institutional decay through financial mismanagement and corruption.
**R256.4 Million in Irregular Expenditure**
The Auditor-General gave the ARC a qualified audit opinion for the 2023/24 financial year — the second consecutive year of qualification. Irregular expenditure surged from R105.3 million in the prior year to R256.4 million, a 143% increase.
An additional R13 million in fruitless and wasteful expenditure was recorded. The ARC has a long-standing inability to account for property, plant, and equipment — a recurring finding that indicates either incompetence or deliberate concealment of asset-stripping.
**CEO Suspended, Cases to SAPS**
CEO Dr Thula Mkhabela was suspended under ARC internal procedures. Consequence management led to some dismissals, and cases were referred to the South African Police Service for criminal investigation, including cases involving companies involved in collusion.
**NAMC Board Payment Scandal**
At the related National Agricultural Marketing Council, the AG performance audit found board members were paying themselves meeting fees for meetings where no minutes, attendance registers, or claim forms were submitted. Board members were paid for "preparation" at a rate not approved by the Minister.
When Chairperson Professor Phineas Khazamula Chauke started asking questions about a bonus paid to CEO Zama Xalisa, he was fired. The whistleblower was punished; the alleged misconduct continued.
**Pattern of Agricultural Sector Governance Failure**
The ARC and NAMC cases fit a broader pattern: agricultural sector entities tasked with supporting land reform and food security are themselves captured by corruption and mismanagement, ensuring the broader programmes they support cannot succeed.