Knoflokskraal land sales: Macpherson alleges extortion scheme

Whistleblowers have reportedly uncovered an alleged scheme involving the sale of state-owned land for as little as R1,500 a plot at Knoflokskraal in the Western Cape, according to Public Works and Infrastructure Minister Dean Macpherson.

The minister says information about suspected illegal land allocations, fraud and extortion has been handed to law enforcement authorities, as concerns grow over alleged violence and intimidation at the site.

Briefing the media on Monday, Macpherson said the department had received a database containing details of approximately 820 people who had allegedly bought or received land allocations through the disputed system.

The allegations centre on Knoflokskraal, a 2,000-hectare area made up of six state-owned farms in the Elgin Valley near Grabouw.

Whistleblowers report alleged R1,500 land sales

Macpherson said whistleblowers first provided information to the department in June, alleging that an organised system had been established to subdivide and sell government-owned land.

The information reportedly included payment details and the names of individuals allegedly involved in the transactions, including community leaders.

The department also received allegations that residents were being charged unauthorised levies to fund activities or pay for protection connected to the disputed land allocations.

Macpherson described the alleged collection of these payments as extortion, which is a criminal offence.

The department submitted a formal criminal complaint affidavit to the South African Police Service (SAPS) in July. Supporting material included whistleblower disclosures, documents and security reports relating to suspected illegal land sales, fraud, assault and arson.

Macpherson said the department was seeking assistance from additional specialised police units to investigate the allegations.

The claims have not, on the information provided, been established as proven criminal conduct. The investigation will need to determine who was involved and whether offences were committed.

Government raises concerns over alleged parallel policing structure

The minister also described information suggesting that an unauthorised policing structure was allegedly operating at Knoflokskraal.

According to Macpherson, the structure was accused of carrying out functions reserved for SAPS. The reports included allegations of organised ranks, enforcement activities and facilities used for paramilitary-style training.

The department had also received reports of shootings, assaults, intimidation, violence and obstruction involving government officials, contractors and security personnel.

Emergency workers were allegedly threatened while trying to carry out their duties.

Macpherson said the government had a responsibility to intervene when officials and service providers could not safely access state property or respond to emergencies.

He also outlined two incidents in May, when the department attempted to establish communication channels with residents.

On 15 May, a contractor trying to place repurposed containers at access points reportedly encountered a hostile crowd. One container was set alight, a security guardhouse was damaged and a security officer was allegedly attacked with a crowbar.

Macpherson alleged that the person responsible for the assault was a community leader occupying the site. A second attempt later that month was also reportedly met with resistance and obstruction.

Despite these incidents, the minister said some residents had started sharing information directly with the government about alleged criminal networks and unlawful land transactions.

Knoflokskraal security costs exceed R58 million

The situation has also placed a significant financial burden on the Department of Public Works and Infrastructure.

Macpherson said more than R58 million was spent on private tactical security linked to Knoflokskraal between April 2021 and June 2026.

A further R5.47 million was spent on sheriff’s fees associated with serving and enforcing court orders.

According to the minister, the security costs were paid from the department’s baseline budget and funds intended for other service delivery programmes.

He described the expenditure as a substantial use of public money and said the current situation could not continue as a permanent model of governance at the site.

The figures highlight the financial implications of maintaining security around the property while the disputes and alleged criminal activity are addressed.

What happens next at Knoflokskraal?

The department has handed its complaint and supporting information to SAPS and is seeking further specialised investigative assistance.

The allegations involve several distinct issues, including the suspected sale and subdivision of state land, the collection of unauthorised payments, alleged assaults and the reported obstruction of officials.

Investigators will need to establish the facts, assess the evidence and determine whether criminal charges are warranted.

For residents, the case also raises questions about how land allocations were made, who received payments and whether people who believed they were obtaining land legitimately may have been drawn into an unlawful system.

Macpherson has made clear that the government wants a sustainable resolution that restores lawful access to state property and prevents further public money from being spent indefinitely on security.

For now, the allegations remain subject to investigation.

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Source: IOL