By Lehlohonolo Lehana.
A United Nations internal watchdog unit has advised its biggest development aid agency to scrap an agreement backing the development of a R165-billion heavy industry zone in Limpopo.
Citing the risk of significant reputational harm to the United Nations Development Programme (UNDP), the agency’s New York-based Social and Environmental Compliance Unit (SECU) has recommended the immediate cancellation of an agreement signed two years ago to support the controversial Musina-Makhado Special Economic Zone (MMSEZ).
The agreement was signed by the UNDP’s South Africa representative Dr Ayodele Odusola, who was re-deployed to the agency’s Harare office four months ago.
Now, following a formal objection lodged more than a year ago by social and environmental groups Living Limpopo and Earthlife Africa, the UNDP’s endorsement is set to be cancelled.
In a 29-page final draft investigation report, which came to light at the weekend, the SECU formally recommended that UNDP pull the plug on supporting such a “high risk” project as no due diligence was conducted, as required by UNDP policy.
“The fact that the signing of the MOU resulted in UNDP being publicly identified as a partner means that the mere existence of the signed MOU had significance for (the Limpopo Economic Development Agency). This in turn exposed UNDP to whatever reputational risks may arise from being associated with a company, whose project (pursuant to the applicable policies) the UNDP considers to be high risk.”
A spokesperson for the UNDP’s Pretoria office confirmed that the SECU report was received on February 21, stating: “We are reviewing the interim findings; we look forward to the final report and recommendations.
“UNDP’s Social and Environmental Standards (SES) are a mandatory requirement for all parts of the organisation – in all programmes and projects – as part of UNDP’s quality assurance and risk management process. The Social and Environmental Compliance Unit (SECU) was established to ensure accountability to individuals and communities we work with. It is important that their voices are heard, and gives UNDP the opportunity to respond to the issues that they raised.”
According to experts, South Africa is approaching physical water scarcity in 2025, where it is expected to experience a water deficit of 17% by 2030, and climate change will worsen the situation.
Earthlife Africa’s Thabo Sibeko said they welcomed the recommendation as they viewed the project as a major eco threat.
“We feel that the report sets the precedence about the importance of due diligence, transparency and consultation, and we also hope that the report means a lot for the community of the Vhembe District.”
“We trust that they will use the report as an additional tool to continue defending the pristine vegetation, culture, heritage, water reservoirs and animals in the area.”