INGONYAMA TRUST BOARD

INGONYAMA TRUST BOARD

A Schedule 3A Public EntityIn terms of the Public Finance Management Act

Strategic Plan 2007/2008and

Budget 2007/2008

FACTS AND FIGURES• Land owned by the Board - 2,700,000

hectares.• Number of titles: 1491.• Land held in almost all 61 municipal

areas.• Population living on Trust land

estimated at 4,558,698.• 241 Traditional Councils/Authorities

have jurisdiction on Trust land.• Trust set up by Ingonyama Trust Act

No 3 of 1994 as amended.

STRATEGIC PLAN AND BUDGET 2007/2008

• The strategic plan has been prepared in conjunction with the Budget in order to achieve the Board’s vision and mission.

• The strategic plan focuses on the issues that need to be resolved over the next five years and has regard to Government priorities such as poverty alleviation, provision of housing and infrastructure and Black Empowerment.

• In particular the implementation of the Communal Land Rights Act and challenges faced by the Board because of changes in other legislation such as the Mineral and Petroleum Resources Development Act have informed the content of this Strategic Plan.

• The strategic issues raised in the Strategic Plan will facilitate achieving the objective of optimal land usage for the material benefit and social well being of the communities living on Ingonyama Trust land.

• The Ingonyama Trust legislation has created a unique instrument of land management providing both support to the communities on communal land and an executive agency available to the Minister in the context of “real estate” management.

• Commercial activities must benefit the local communities and the contracts entered into with the commercial sector (and indeed the official sector) contain provisions which require that benefits flow to the affected local communities. The main efforts of the Ingonyama Trust Board are geared to that end.

• The emphasis for the strategic plan is therefore “land management” and the direct and indirect benefits flowing to communities therefrom.

OVERVIEW OF BUDGET AND TRUST FUNDING The budget has been aligned to the Strategic Plan for the year 2007/2008. The Ingonyama Trust Boards’ income is obtained from two sources.

1 2

Ingonyama Trust Board

Ingonyama Trust Board Own Fund Income – (Trading activities)

Transfer Payment received from the Department of Land Affairs (Grant in Aid) –VOTED FUNDS.

The total budget requirement for the year 2007/2008 is R18,219,210 which Includes voted funds of R2,351,000.

The following slides highlight the major targets.

TARGET PERSPECTIVE

OUTCOME OUTPUT/ACTIVITY INDICATORS 2007/2008

2008/2009

2009/2010

2010/2011

2011/2012

This strategic objective will result in the optimum usage of land for the benefit of communities and other parties including the State and municipalities and will also prepare for the implementation of the Communal Land Rights Act (CLRA).

1. Updated Land Tenure Information system.

Number of transactions to be recorded.

3000 500 500 500 500

BUDGET R100,000 R50,000 R50,000 R50,000 R50,000

OUTPUT/ACTIVITY INDICATORS 2007/2008

2008/2009

2009/2010

2010/2011

2011/2012

4. Facilitate the transfer of state domestic properties.

Number of state domestic properties to be identified.

500 500 500 500 500

BUDGET NO COST TO ITB

NO COST TO ITB

NO COST TO ITB

NO COST TO ITB

NO COST TO ITB


2008/2009

3. Facilitate the transfer of KwaZulu towns to local authorities

To facilitate the number of towns to be transferred.

6 5

BUDGET NO COST TO ITB NO COST TO ITB

REM OF RESERVE NO. 22in extent 110,000 hectares



LEASES


LEASES

PERMISSIONS TO OCCUPY


LEASES


STATE DOMESTIC


LEASES


STATE DOMESTIC

SERVITUDES


LEASES


STATE DOMESTIC

SERVITUDES

LAND AVAILABILITY AGREEMENTS


LEASES


STATE DOMESTIC

SERVITUDES


INDIGENOUSTITLES


LEASES


STATE DOMESTIC

SERVITUDES


INDIGENOUSTITLES

MINING RIGHTS


2008/2009

2009/2010

2010/2011

2011/2012

Allocation of land for housing infrastructure.

The percentage of applications received to be concluded.

80% 80% 80% 80% 80%

BUDGET R50, 000 R52, 500 R55,1525 R57,881 R60,775

• In order to support the provincial Department of Housing’s rural Housing Policy the Board has developed a standard Development Rights Agreement which is entered into with various Local Municipalities.

• This enables housing projects on Trust land to be fast-tracked subject to the consent of relevant Traditional or Community Councils.

• So far consent in principle has been given in respect of 70 such schemes on Trust land and 20 Development Rights Agreements have been signed, which provide some 40,000 upgraded housing units.

TARGET PERSPECTIVE


2008/2009

2009/2010

2010/2011

2011/2012

Land identification on the outskirts of townships.

Service providers to be appointed and land to be identified.

4 Towns 3Towns - - -

BUDGET R300, 000 R315, 500 R330,750 R347,288 R364, 652

• Some of the former R293 townships have informally expanded onto surrounding Trust land. This has resulted in this land being vulnerable to squatting on the one hand but having potential development value on the other hand.

• The Board proposes to appoint a service provider to identify this land and advise on development potential.

• The towns identified for 2007/2008 are:• Umlazi.• KwaMashu• Ezakheni.• Osizweni.

• The budget figures for post 2008/2009 are for the implementation process and are also to include additional towns yet to be prioritised.


2008/2009

2009/2010

2010/2011

2011/2012

Monitoring of legislation impacting on land owned by ITB.

Legislation studied and guidelines

developed.

Ongoing as new legislation comes into effect.






• Some 30 pieces of legislation impact on the workings and management of Trust land. These include Communal Land Rights Act, Traditional Leaders Framework Act, Municipal Property Rates Act and the Mineral and Petroleum Resources Act.

• This legislation is continuously monitored and guidelines prepared.


2008/2009

2009/2010

2010/2011

2011/2012

Ongoing co-operation with DLA in preparation for CLRA.

Development guidelines for CLRA implementation.

Ongoing Ongoing - - -


• The Act, once a commencement date has been announced, will re-constitute the Board as the Ingonyama Land Rights Board for KwaZulu Natal.

• The Board will continue to liaise with the Department of Land Affairs in connection with implementation and awaits publication of the draft regulations.

• This will enable the “mapping exercise “ previously commissioned by the Board to be completed and to identify the future role and functions of the Board and the various processes and work-flow which will be necessary to successfully implement CLRA in the Province.

TARGET PERSPECTIVE

OUTCOME OUTPUT/ACTIVITY INDICATORS 2007/2008

2008/2009

2009/2010

2010/2011

2011/2012

Extension of security of tenure, registered leases, can be used as security for funding of development and unlock employment and equity opportunities.

To maximise the mining potential on Trust Land for the benefit of communities including BEE/Joint ventures.

Granting of leases (for non mining purposes including conversion of PTO’s into leases).

Percentage of the number of leases to be processed.

75% 75% 75% 75% 75%

BUDGET LEASE INCOME TO BE GENERATED (INCLUDING EXISTING LEASES).

R997,825 R1,047,716 R1,100,102 R1,155,107 R1,212,863


2008/2009

2009/010

2010/2011

2011/2012

Granting of leases for mining purposes.

Percentage of the number of mining leases to be processed.

75% 75% 75% 75% 75%

BUDGET MINING/ROYALTY INCOME TO BE GENERATED INCLUDING EXISTING LEASES

R7,360,165 R7,728,173 R8,114,581 R8,520,311 R8,946,326

• The royalty income from 2010 is subject to the Minister of Mineral and Energy Affairs granting permission that royalties will still accrue to the Trust in terms of Schedule2, Section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002.

TARGET PERSPECTIVEOUTCOME OUTPUT/ACTIVITY INDICATORS 2007/

2008

2008/

2009

2009/

2010

2010/

2011

2011/2012

Maximising the financial benefit to communities from income of the Trust and unlocking related benefits and opportunities.

Project-related payments which are for he material and social well being of the relevant communities and which meet appropriate accountability standards.

The percentage of applications received by the Board.

(This is a continuous process, approval may depend on the number of Traditional communities submitting project proposals).

80% 80% 80% 80% 80%

BUDGET PORTION OF INCOME DERIVED BY THE TRUST TO BE DISTRIBUTED TO TRADITIONAL COMMUNITIES AT A 5% GROWTH PER ANNUM

R14,272,147 R14,985,755 R15,735,043 R16,521,795 R17,347,885

Budget Summary -2007/2008

Total Trust Income 15,857,941.78

Less : 90% Portion to Traditional Authorities 14,272,147.60

Portion for Trust budget 1,585,794.18

Add : Transfer payment from the Department of Land Affairs 2,351,000.00

Budget for Board’s use R 3,936,794.18

THE BUDGET

Proposed

INCOME 2007/2008

ITB Own Fund Income 15,857,941.78

PTO - General 277,770.15

PTO - Commercial 12,768.00

Leases 997,825.00

Royalties and Prospecting Income 7,360,165.05

Investment Income 7,138,246.68

Other Income / Servitude 71,166.90

Department of Land Affairs Funding 2,361,269.00

Transfer Payments - Current 2,351,000.00

Investment Income 10,269.00

TOTAL INCOME 18,219,210.78

2007/2008

EXPENSES

C ITB Own Fund Expenditure 15,857,941.78

Advertisement and promotions 20,000.00

Legal fees 200,000.00

Bank charges 17,404.80

General expenses 6,197.38

Privatisation of State forests 30,000.00

Provision for doubtful debts 30,000.00

Payment to Traditional Authorities 14,272,147.60

Firebreaks, alien vegetation 100,000.00

Housing admin expenses 50,000.00

Capital expenditure 350,000.00

Staff Training 15,000.00

Salaries 75,000.00

Land reform projects -excluding "CLARA“

300,000.00

Land Tenure Information system 100,000.00

Audit fees - external 182,192.00

Audit Fees - internal 110,000.00

D Departmental Funding Expenditure 2,361,269.00

Board Members remuneration 252,000.00

Bank Charges 6,600.00

Travel ,accommodation, meetings 315,000.00

Salaries 1,446,069.00

Internal audit committee members rem 12,000.00

Insurance 52,600.00

Stationery 24,000.00

Advertising 24,000.00

Crockery & cutlery 1,000.00

Motor vehicle expenses 15,000.00

Personnel agency fees 15,000.00

Computer software 6,000.00

Maintenance of the Asset register 10,000.00

Electricity and water 24,000.00

Rates - office accommodation 10,000.00

Security expenses 30,000.00

Telephone 48,000.00

Cleaning ,repairs and maintenance 70,000.00

TOTAL EXPENDITURE 18,219,210.78

SUMMARY AND CONCLUSIONS

• The Ingonyama Trust Board sees its role increasingly as real estate and land management orientated.

• To this extent the Ingonyama Trust seeks to strive as a model in real estate management in the country.

• The strategic plan and budget for 2007/2008 have been prepared in order to achieve the optimum usage of land for the benefit of communities and other parties including the state and municipalities and other parties.

• The benefits flowing to persons living on trust land will include: Income from rents for commercial development. Joint ventures/community participation in developments. Employment opportunities. Skills transfer. Quality of life improved through:

Provision of Housing. Provision of infrastructure and basic services.

The Budget for 2007/2008 totals R18,219,210.78 and is made up of:

ITB own fund income : R15,857,941.78. Voted funds : R2,361,269.00.

Documents

INGONYAMA TRUST BOARD