Financial probe underway at cheese factory

Financial mismanagement investigated at cheese factory

The Chris Hani District Municipality in the Eastern Cape is investigating financial mismanagement allegations following the closure of a Dordrecht cheese factory. The seven and a half million rand investment, hailed as a job creation model by government, has closed down after only a year due to operational problems.

The Cheese factory was a partnership between the commercial farmers and emerging farmers of the Dordrecht district. It offered jobs to 19 people and also served as a market for milk producers. All 19 employees have been laid off.

It is alleged that more than R2 million has disappeared from the factory's coffers. The municipality says it will not bail out the factory for a second time. It says the results of the investigation into the financial mismanagement allegations will determine its future involvement with the cheese factory.