Gag orders and ‘disinformation’ — contractor accuses Dorper Wind Farm of paying lip service to beneficiaries

Dorper Wind Farm and its CEO, Mamoso May, were a “source of disinformation” and “had greater interest in achieving targeted spend per year and earning BEE and compliance points — than meaningful human development.”

So said Pat Pillai, founder of LifeCo, in response to the first part of Our Burning Planet’s investigation into the travails of two small Eastern Cape towns and the wind farm in between them.

Our Burning Planet previously reported that R56-million meant to uplift the rural Eastern Cape communities of Molteno and Sterkstroom near the Dorper Wind Farm (DWF) has been “wasted on unsuccessful projects” according to May.

Read more in Daily Maverick: “R56m destined for Eastern Cape wind farm beneficiaries ‘wasted’ on failed projects”

DWF, a beneficiary of the Independent Power Producer Procurement Programme (IPPPP) is mandated to spend a certain portion of its revenue on economic development and socioeconomic development projects. The programme is one way in which the South African government, as a signatory of the Paris climate agreement, is attempting to transition to a low-carbon economy in line with climate imperatives.

The IPP office in the Department of Mineral Resources and Energy (DMRE) explained that “[Independent power producers] are required to contribute towards Enterprise Development and Socioeconomic Development initiatives in their respective communities. These contributions are spent in areas such as education, health, social welfare and enterprise development,” adding that “the threshold commitment for socioeconomic development spend is 1% of revenue”.

‘Broken promises’

But community members alleged that DWF and its contracted partners failed to make significant inroads and left a trail of broken promises and financial devastation.

In the DWF minutes of a meeting that took place on 21 May 2021, it is noted that, “Due to the effects of Covid-19 in 2020, the CEO started to visit the communities more often and engage with individuals on the ground.

“During these engagements, it was realised that there was a mismatch between what was happening on the ground versus what was reported to Dorper. The reports indicated that all projects were working well and that there were no issues within the community. Large gaps were however identified during these engagements and that money has been wasted. As a result, Dorper decided to appoint another service provider…”

It continued that, in response to community complaints about the historical waste of money, “This waste was only realised once Dorper became more involved on the ground level, and it was extremely important for Dorper to act quickly.”

One of the "Made possible by Dorper Wind Farm" signs scattered around Molteno and Strekstroom. (Photo: Mark Andrews)

Dispute

But Pillai, founder of LifeCo, disputes this, saying the company’s contract with Dorper “prohibited us from speaking publicly” which is no longer necessary since the first Our Burning Planet article.

Pillai said a company decision was taken to resign from the contract with Dorper because “the client excessively dictated and distorted our human development strategy. It was obvious that the client had greater interest in achieving targeted spend per year and earning BEE and compliance points — than meaningful human development.”

He said: “There was little separation of powers/duties between Dorper and the many development organisations who worked on the ground — not just LifeCo.”

“We have worked with 155,000 children and youth in South Africa over 25 years. As an NGO, it was demeaning having our children subjected to a client who cared more about the scorecard and the revenue,” Pillai said.

In a letter to the chairperson and director of Dorper Wind Farm, which Our Burning Planet has seen, Pillai said that, in trying to set the record straight about LifeCo’s role in the waste and failed projects in Molteno and Sterkstroom, he was directed to speak to May.

This “we cannot do”, wrote Pillai.

‘Disinformation”

In disputing May’s accounting for the failed projects as noted in the minutes, he continued that “the CEO is the source of the disinformation — as indicated in the Dorper minutes previously shared. I wrote to seek a constructive way forward with you and having to deal with the CEO is not constructive — it’s fundamentally conflicted.”

He continued, “Up until now, we have been bound by the confidentiality clause in our contract. Now that Daily Maverick and Cape Talk radio have published articles on this matter, this clause ceases to be applicable to any information or knowledge that has been made public.”

Our Burning Planet has seen the management agreement entered into between DWF and LifeCo. Clause 8 in the Development Managers Agreement states that “each party shall at all times keep confidential … any information which it has acquired or may acquire in relation to the other party or to any other matter arising from or in connection with this Agreement and shall not use or disclose such information…”

It specifies that “this clause shall cease to be applicable to any information or knowledge that becomes public knowledge other than by the doing of the Manager [LifeCo].”

“As a 25-year-old, respected NGO with an impeccable reputation, consistent clean audits, and good governance, we request that Dorper and Mamoso cease and desist from bringing LifeCo’s name into disrepute,” said Pillai.

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Pillai listed at least 21 reasons why the explanation proffered by May ought to be disregarded as factually incorrect.

The small Eastern Cape town of Molteno. (Photo: Mark Andrews)

Despite her contention that she noticed a discrepancy between what was reported to her and what was happening on the ground only when she made a visit to the towns, Pillai alleged that:

• It was required that Dorper/the CEO actively directed and controlled the budget, spend and community activity;


• Dorper/the CEO pre-approved the development plans (projects) and the activity budget — and only upon approval would Dorper transfer the necessary funds;


• Monthly, quarterly and annual reports had to be submitted by LifeCo to Dorper/the CEO — along with all supporting documentation.


• All supporting documents (financial) were physically dropped off at Dorper offices monthly, for review.


• Upon review and verification of planned community activities and projects — and confirmation of bank balances — only then the next approved amount would be transferred by Dorper/the CEO.


• Any payment exceeding R50,000 was approved by Dorper/the CEO before payment was made.

Pillai said that LifeCo had resigned and was not let go as May had made it seem.

In an email to the Chairperson of DWF and the shareholders dated 23 July 2019, which Our Burning Planet has seen, Pillai writes that “While LifeCo Development Managers continues to offer its services to the market at large, we have decided to withdraw as a service provider to DWF Management…I met with Mamoso last week to personally inform her.”

When asked to respond to some of these allegations, May said “Undoubtedly you have been informed that Dorper Wind Farm is currently involved in arbitration proceedings with KD Strategies. It will be inappropriate and may cause prejudice to Dorper Wind Farm if matters relating to KD Strategies and, to an extent, LifeCo as its predecessor, are discussed with you, at this point in time.”

She said that “Dorper Wind Farm has been focusing on implementing projects that would support our Theory of Change and each project or programme has measurable outcomes. It is also important to emphasise that the purpose of the projects embarked upon by Dorper Wind Farm, is to empower and upskill community members, thereby securing their future as opposed to only granting interim relief through the payment of, for instance, allowances or stipends.”

Pillai, in his final message to Dorper management, addressed what the community members have long sought: transparency and accountability.

“LifeCo will provide to the community full disclosure regarding the process in spending the funds; on which beneficiary groups the funds were spent; and what benefit was derived. This will give the community the clarity and information they have been asking for, which LifeCo was prevented/‘gagged’ from doing. Dorper/the CEO will be invited to this meeting, a courtesy that was denied to LifeCo when Dorper met with the community. The media will be invited to this meeting,” he wrote. OBP/DM