COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORTS 2012/2013 AND 2013/2014 PRESENTATION TO THE PORTFOLIO...

COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORTS 2012/2013 AND 2013/2014

PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND

LAND REFORM

12 NOVEMBER 2014

OUTLINE OF PRESENTATION

1. INTRODUCTION;

2. DISTRIBUTION OF CPAs;

3. CAUSES OF NON-COMPLIANCE;

4. LAND TRANSACTIONS;

5. NUMBER OF CPAs UNDER ADMINISTRATION;

6. JUDICIAL ADMINISTRATION;

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OUTLINE OF PRESENTATION cont ….

7. CPA TURN AROUND STRATEGY;

8. REGULARIZATION; AND

9. FUTURE PLANS.

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1. INTRODUCTION

The Department of Rural Development and Land Reform is required in terms of Section 17 of the Communal Property Associations Act, 1996 (Act no. 28 of 1996) to annually table a Report in Parliament concerning the Communal Property Associations (CPAs) and Provisional Associations and the extent to which the objects of the Act are being achieved.

This report covers two financial years:2012/13 and 2013/14

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2. DISTRIBUTION OF CPAs

13

81

16

80

63

70

14

5

15

2

44

45

147

32

221

12

38

141

Western Cape

North West

Northern Cape

Mpumalanga

Limpopo

KwazuluNatal

Gauteng

Free State

Eastern Cape

OWNERSHIP ACCORDING TO PROGRAM

Redistribution Restitution

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Eastern Cape

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156 CPAs registered 141 Redistribution CPAs registered 15 Restitution CPAs registered 18 821 Beneficiaries 501 163 Ha transferred to CPAs Information on some CPAs could not be

confirmed

Free State


confirmed

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Gauteng

26 CPAs registered 12 Redistribution CPAs registered 14 Restitution CPAs registered 7 345 Beneficiaries 67963 Ha transferred to CPAs Information on some CPAs could not be

confirmed

8

291 CPAs registered 221 Redistribution CPAs registered 70 Restitution CPAs registered 27 728 Beneficiaries 267023 Ha transferred to CPAs Information on some CPAs could not be

confirmed

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1. 95 CPAs registered

2. 32 Redistribution CPAs registered

3. 63 Restitution CPAs registered

4. 77 219 Beneficiaries

5. 214 845 Ha transferred to CPAs

6. Information on some CPAs could not be confirmed

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Mpumalanga


confirmed

11

Northern Cape


confirmed

12

North West

125 CPAs registered 44 Redistribution CPAs registered 81 Restitution CPAs registered 83 971 Beneficiaries 1 409 729 Ha transferred to CPAs Information on some CPAs could not be

confirmed

13

Western Cape

15 CPAs registered 2 Redistribution CPAs registered 13 Restitution CPAs registered 948 Beneficiaries 81 1433 Ha transferred to CPAs Information on some CPAs could not be

confirmed

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3. CAUSES FOR NON COMPLIANCE

CPA internal governance challenges:

•Lack of accountability;

•Corruption;

•Conflicts within communities; and

•Ineffective land utilisation.

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4. LAND TRANSACTIONS

The following CPA were found to have lost land either through sale or execution:Dirisanang in Northern Cape;Impala in Free State;Thuthukani in Mpumalanga; andSekgwaelane Balemi Itsoseng in North West.

Other CPAs reported normal voluntary land transactions like the lease of land and registration of servitudes on their land.

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5. JUDICIAL ADMINISTRATION

The following CPAs are under administration:Khomani San in Northern Cape

The administration will cease in 2017;

Khomanani in Northern Cape

The administration will cease in 2017 (Estimation);

Loeriesfontein in Northern Cape


Pniel in Northern Cape


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JUDICIAL ADMINISTRATION – Cont…2

The following CPAs are under administration:Klein Tswaing in North West


Elandskloof in Western Cape


Serala in Limpopo


Letswalo in Limpopo

The administration will cease in 2017 (Estimation); and

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JUDICIAL ADMINISTRATION- Cont…3

The following CPAs are under administration:

Sisonke in Mpumalanga

The administration will cease in 2016 (Estimation).

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JUDICIAL ADMINISTRATION- Cont…4

• Two applications in the North West High Court to place Barolong Boo Seithiro CPA and Barolong Boo Modiboa CPA under judicial administration.

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Stabilise

Strategy

Fund Fix

Organis-

ation

Operations

Stabilise

Strategy

Fund Fix

Organis-

ation

Operations

6. CPA TURN AROUND STRATEGY

Turnaround Leadership Management Manage Stakeholder Turnaround Project Management

OBJECTIVE

6.1 Objective: To regularize non-compliant CPAs

• Underperforming/non-compliant →normality

• Reverse non-compliant→overcome constrains

• Acceptable levels of functionality

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6. CPA TURN AROUND STRAGEGY

•This process is divided into the following phases: Fact-finding, Intervention (regularization) and close-out.

Phase 1: Regularizing (assisted by LRMF):

• Fact finding; and

• Governance issues→compliance.

6.2. REGULARIZATION

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6. CPA TURN AROUND STRAGEGY

Phase 2: Recap and Development:

• Funding and recapitalizing the business; and

• Operational issues →Sustainability.

•Fact-finding entails compilation of a diagnostic report that establishes the extent of dysfunctionality.

6.3. REGULARIZATION cont……

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REGULARIZATION – Cont…2

•Intervention (regularization) phase deals with mediation and other corrective measures to fix the identified deficiencies.

•In the close-out phase all the things that are necessary to ensure the sustainability of the CPA are put in place after the intervention phase.

•147 Requests for regularization were handled by the Land Rights Management Facility (LRMF) since 2011.

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During the 2012/2013 reporting period, the following CPAs were regularized:

Sabaan in Mpumalanga;

Manala-Mgibe in Mpumalanga;

Mashoboto in Mpumalanga;

Mawewe in Mpumalanga;

Dikgomo Society in Free State;

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Richterveld in Northern Cape;

Droogfontein in Northern Cape;

Skeiffontein in Northern Cape;

Masincedane in Western Cape;

Brandwacht in Western Cape;

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Mandiwana in Limpopo;

Tshathogwe in Limpopo;

Manavhela in Limpopo;

Mulelu Tshilata in Limpopo;

Selwane in Limpopo;

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Kranspoort in Limpopo;

Moletele in Limpopo; and

Baphalane in North West;

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During the 2013/2014 reporting period, the following CPAs were regularized:

Bakone Ba Phetla in Limpopo

Morwalemong in Limpopo

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6.4 REGULARIZATION: ACHIEVEMENTS AND EXPENDITURE

The regularization process has provided substantial assistance to dysfunctional CPAs, assisted to regularize where feasible and advising on the appropriate steps where regularization is not feasible. •20 CPAs regularized to date;•23 CPAs near completion;•11 CPAs recommended for Judicial Administration;•16 CPAs recommended for deregistration; •24 appear not feasible for regularization;•53 CPAs at early phases due to some challenges;•Expenditure since December 2012 = R 14 429 692

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5.4 REGULARIZATION: LESSONS LEARNT

• The regularization process is multi-faceted, involving a range of interventions to address the different issues confronting individual CPAs.

Mediation• Most of the long standing and complex disputes are difficult to resolve and

require a thorough and patient mediation efforts. In many instances, formal regularization and compliance can only be achieved by addressing the underlying capacity and development issues faced by the communities.

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REGULARIZATION: LESSONS LEARNT – Cont….

Third Party Intervention

• Long standing disputes could not be resolved within the confines and resources of the CPA. This requires intervention of third parties such as mediators and municipalities or allocation of additional resources such as land and/or finances.

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7. NATIONAL COMPLIANT CPAs

Province 2009-10 2011-12 2012-13 2013-14

Eastern Cape 16 21 22 1

Free State 11 12 22 1

Gauteng 8 10 11 11

Kwazulu-Natal 27 30 30 30

Limpopo 10 24 34 35

Mpumalanga 8 16 26 27

Northern Cape 4 11 12 13

North West 10 21 39 40

Western Cape 6 13 13 13

National Summary 100 158 209 171

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8. FUTURE PLANS

Dedicated personnel within provinces will be appointed to provide adequate support to CPAs.

•The Department has split the Land Reform branch into two branches namely; Land Redistribution development and Land Tenure and Administration. The Branch Land Tenure and Administration is responsible for monitoring, supporting and registering CPAs.

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FUTURE PLANS –Cont…2

The Department intends to amend the Communal Property Associations Act.

•The CPA Amendment Bill will amongst others lead to the establishment of a stand alone CPA Office and the appointment of a Registrar of CPA Nationally and Deputy Registrars in Provinces.

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FUTURE PLANS– Cont…3

A policy has being developed to guide the approach to dealing with CPAs.

•The Communal Property Amendment Policy on CPAs will guide the operations of CPAs through a model best illustrated by the Wagon Wheel.

•This model allocates roles and responsibilities to different role-players which should LEAD to better support and administration of CPAs.

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FUTURE PLANS– Cont..3

• Training

• 379 CPA committee members were trained on corporate governance.

• The trainees represented 95 CPAs

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FUTURE PLANS : CPA POLICY

A Policy on Communal Property Associations was developed which aims to address the following:

• Inequitable access to land;• Democratic governance deficits;• CPI relations with surrounding communities and state structures;• Contested substantive land rights and tenure issues;• Obstacles to land utilization and development in CPI; and• State support to CPIs.

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FUTURE PLANS: CPA AMENDMENT BILL

• The Communal Property Associations Amendment Bill seeks to create dedicated capacity within the Department to support CPAs.

• This will be done through the establishment of the CPA Office and the appointment of the Registrar nationally and Deputy Registrars in provinces.

• By requiring a 60% quorum of members the Bill will ensure that the decision making process is inclusive and that all decisions represent the view of the majority of members.

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THANK YOU

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COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORTS 2012/2013 AND 2013/2014 PRESENTATION TO THE PORTFOLIO...

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