Public Works and Infrastructure Minister Dean Macpherson revealed that whistleblowers have provided information about an alleged scheme to subdivide and sell state-owned land at Knoflokskraal in the Western Cape for approximately R1,500 per plot. The scheme allegedly involves suspected fraud and extortion, with evidence handed to law enforcement authorities. According to Macpherson, the department received a database containing details of around 820 people who allegedly purchased or received land allocations through the system.
The allegations concern Knoflokskraal, a 2,000-hectare tract of state-owned land comprising six farms in the Elgin Valley near Grabouw. In June, whistleblowers provided information alleging the existence of an organised system through which state-owned land was being subdivided and sold. The information received includes details of payments and identifies individuals, including community leaders, who were allegedly involved in the transactions.
The government also received allegations that illegal levies were being collected from residents to fund unauthorised activities or serve as protection fees linked to the unlawful allocation and subdivision of land. Macpherson described these actions as extortion, which is a criminal and illegal activity. The department submitted a formal criminal complaint affidavit to the South African Police Service (SAPS) in July, handing over whistleblower disclosures, supporting documents, and security reports.
The department is seeking the involvement of additional specialised investigative policing branches to investigate the allegations. Macpherson also mentioned that the government received information about an unauthorised parallel policing structure allegedly operating at the site, exercising policing functions reserved for the SAPS. This structure allegedly has organised ranks, enforcement activities, and paramilitary-type training facilities.
There were reports of shootings, violence, intimidation, assaults, and obstruction of government officials, contractors, and security personnel at Knoflokskraal. Emergency personnel have allegedly been threatened while performing their duties. Macpherson stated that when firefighters cannot safely respond to a fire, contractors cannot access government property, and officials cannot perform their duties, the state has a responsibility to act.
The department attempted to establish communication channels with residents in May, but these attempts were met with resistance and obstruction. A contractor attempting to deploy repurposed containers at access points encountered a hostile crowd, resulting in damage to property and an alleged assault on a security officer. Despite these incidents, residents have begun providing information directly to the government about alleged criminal syndicates and unlawful land sales.
The department incurred more than R58 million in private tactical security costs associated with Knoflokskraal between April 2021 and June 2026. An additional R5,47m was spent on sheriff’s fees associated with serving and enforcing court orders. Macpherson emphasised that these enormous amounts of public money demonstrate the consequences of allowing a situation to continue without a sustainable resolution.
Key points
- The alleged land sales and extortion scheme at Knoflokskraal involves approximately 820 people and R1,500 per plot.
- The government has submitted a formal criminal complaint affidavit to the South African Police Service (SAPS) and is seeking additional specialised investigative policing branches to investigate the allegations.
- The department has spent more than R58 million in private tactical security costs associated with Knoflokskraal between April 2021 and June 2026.
