Presentation of the 2009/10 Annual Report to Portfolio Committee on Rural Development and

Land Reform

Presented by Acting Chief Land Claims Commissioner:

Mr S S Gamede

14 October 2010

1

OUTLINE INTRODUCTION OVERVIEW BY THE A:CHIEF LAND CLAIMS COMMISSIONER SETTLEMENT OF CLAIMS RESEARCH ON CLAIMS CHALLENGES TURN AROUND STRATEGY FINANCIAL PERFORMANCE OUTSTANDING CLAIMS CASES BEFORE COURT SETTLED RESTITUTION CLAIMS CUMALATIVE STATISTICS RURAL AND URBAN CLAIMS SUMMARY APPROVALS BUDGET EXPENDITURE AUDIT ISSUES CONCLUSION

2

INTRODUCTIONThe purpose of this presentation is to brief the

PortfolioCommittee on: The Programme Performance of the

Department of Rural Development & Land Reform (DRDLR) based on the Interim Strategic Plan 2009/10;

The Financial Performance for 2009/10 financial year

3

OVERVIEW BY THE ACTING CHIEF LAND CLAIMS COMMISSIONER

The establishment of the new Department of Rural Development and Land Reform has ushered in a new approach with regard to the implementation of the government’s land reform programme.

The Commission has reviewed it’s strategic focus with regard to the approach for dealing with outstanding claims

The Commission’s focus is on the following:(1) Research

(2) Alternative settlement models Aligned with CRDP

(3) Innovative approaches to acquire land for restitution beneficiaries viz: State land; Land owned by municipalities 4

• Our statistics reveal a decline in the pace of settling the outstanding claims.

• This is mainly attributed to the severe budgetary constraints that the Commission had to grapple with during the year under review.

• Treasury had been approached in this regard. A request for R3,5billion.

• The situation required the Commission to prioritize a few claims that could be handled with the limited funding.

• The Commission only managed to finalize 33 claims with the allocated budget.

Regular meetings are also held with the DAF concerning the finalization of claims on SAFCOL land, including the Komatipoort Forest. Task Team consisting of Commission and DAFF to finalize claims on SAFCOL land

Together with the Department of Public Enterprises we have developed a model for the settlement of claims of forestry land .

SETTLEMENT OF CLAIMS

5

RESEARCH ON CLAIMS A large number of outstanding claims have

been researched towards identifying ‘prima facie’ valid claims, but have not yet been researched to a stage where negotiations with the land owners can be initiated because of budget constraints.

During the period under review , the Commission experienced an increase in the number of cases referred to the Land Claims Court.

6

CHALLENGES Large number of outstanding claims not researched. Information Management Systems on areas of research and

validation of outstanding claims viz-a-vie gazetting and de-gazettingExorbitant land pricesComplexities of the remaining claims viz-a-vie the availability of

Human CapacityCommunity Border DisputesUnavailability of LandPeople opting for the Restoration of LandBudgeting constraints Increase in court casesBetterment claimsCommunication with StakeholdersGroup claim: different options, eg. Financial and or Restoration of

land

7

TURN AROUND STRATEGYA turn around strategy has been developed which

focuses on the following areas: Litigation management Research Verification Settlement models Finance Communication plan. Information ManagementIt is envisaged that the new turn around strategy will

be rolled outimmediately.

8

FINANCIAL PERFORMANCE The total expenditure for 2009/2010 amounted

to R2.3 billion.

As a result of the high cost of land per hectare, the Commission continued to spend more money in return for lesser hectares of land for restitution purposes.

Approximately 9 294 households benefitted from the restoration of 145 492 hectares of the land during the financial year under review.

9

OUTSTANDING CLAIMS OUTSTANDING RURAL CLAIMS AS AT 31 MARCH 2010

Province Number of outstanding claims

Eastern Cape 515

Free State 21

Northern Cape 156

Gauteng 3

North West 193

KwaZulu-Natal 1329

Limpopo * 419

Mpumalanga 645

Western Cape 571

TOTAL 3852

10

* 313 claims consolidated into 1

CASES BEFORE COURT AS AT 31 MARCH 2010

RLCC No of Cases in Court

Referral Review Direct access

Appeal Other(declarator/ compel

Total

Eastern Cape3 2 5 1 0 11

Free State/NC12 0 3 0 0 15

Gauteng/NW9 23 4 0 2 38

KZN14 62 1 2 15 94

Limpopo16 9 9 0 15 49

Mpumalanga28 5 18 3 9 63

Western Cape0 0 0 0 1 1

TOTAL82 101 40 6 42 271

11

SETTLED RESTITUTION CLAIMS:01 APRIL 2009 – 31MARCH 2010

PROVINCE RURALDIS-

MISSED HHs

BEN FHHs Ha LAND COST FIN COMP

GRANTS

TOTAL AWARDDevelopment RSG

E CAPE 7 0 1816 7404 559 1289 4,053,923.00 84,610,560.64 2,387,644.92 7,617,205.00 98,669,333.56

F STATE 3 4 125 269 79 252 0.00 3,998,000.00 143,411.26 211,040.00 4,352,451.26

GAUTENG 0 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00

KZN 10 0 3950 23845 1668 30469 316,893,236.04 81,725,313.00 54,914,630.08 14,086,920.00 467,620,099.12

LIMPOPO 1 2 1099 4291 669 25089 163,716,853.00 17,757,143.50 48,541,713.25 5,144,100.00 235,159,809.75

MPLANGA 5 62 300 2353 119 10481 141,701,674.00 346,000.00 43,672,082.75 1,833,410.00 187,553,166.75

N CAPE 3 30 89 3075 46 67724 70,039,121.00 2,271,520.00 17,603,851.50 580,360.00 90,494,852.50

N WEST 2 0 796 3498 409 9551 113,855,400.00 10,998,000.00 28,721,350.00 3,871,265.00 157,446,015.00

W CAPE 2 0 1119 3498 628 637 88,621.50 39,949,538.40 12,392,475.00 0.00 52,430,634.90

TOTAL 33 98 9294 48233 4177 145492 810,348,828.54 241,656,075.54 208,377,158.76 33,344,300.00 1,293,726,362.84

12

CUMULATIVE STATISTICS: FROM 1995 - 31MARCH 2010

PROVINCE CLAIMS HHs BEN Ha LAND COST FIN COMP

E CAPE 16201 62548 215468 94889 217,735,504.13 1,303,231,053.84

F STATE 2661 5938 40893 47615 9,428,300.00 131,492,315.96

GAUTENG 13159 15153 70179 9476 117,283,195.57 635,320,713.73

KZN 15065 72860 433168 642447 3,783,495,709.49 1,343,066,819.18

LIMPOPO 3070 41223 220227 513024 2,523,249,735.37 152,193,039.77

MPLANGA 2755 48666 225877 400050 3,794,808,868.58 362,212,107.94

N CAPE 3696 18305 100554 539620 410,480,454.81 660,744,511.86

N WEST 3709 35914 173321 373751 1,243,488,766.81 255,068,518.35

W CAPE 15528 24105 119795 3769 22,673,168.50 824,058,057.93

TOTAL 75844 324712 1599482 2624641 12,122,643,703.26 5,667,387,138.56

13

CUMULATIVE STATISTICS: 1995 - 31 MARCH 2010 (CONT)

PROVINCE

GRANTS  

TOTAL AWARDDevelopment RDG SPG RSG

E CAPE 94,357,552.76 93,420,000.00 44,841,600.00 44,463,470.00 1,798,049,180.73

F STATE 26,670,502.74 9,192,000.00 4,099,680.00 2,466,530.00 183,349,328.70

GAUTENG 62,827,001.38 8,617,000.00 2,926,440.00 1,813,625.00 828,787,975.68

KZN 1,103,899,765.45 107,313,000.00 48,345,840.00 49,514,965.00 6,442,003,099.12

LIMPOPO 600,168,678.19 90,843,000.00 41,427,360.00 21,394,180.00 3,429,275,993.33

MPLANGA 215,795,912.84 102,986,640.00 49,614,510.00 22,858,270.00 4,548,276,309.36

N CAPE 96,567,906.99 15,599,890.00 12,071,495.48 13,124,050.00 1,208,588,309.14

N WEST 382,162,481.47 81,587,000.00 39,089,472.00 34,699,325.00 2,036,095,563.63

W CAPE 308,299,975.00 15,765,540.00 3,427,452.00 2,163,160.00 1,176,434,353.43

           

TOTAL 2,890,749,776.82 525,324,070.00 245,843,849.48 192,497,575.00 21,650,860,113.12

14

RURAL AND URBAN:1995 - 31 MARCH 2010

 LAND

RESTORATIONFINANCIAL

COMPENSATIONALTERNATIVE

REMEDYDISMISSED

CLAIMS

TOTAL NO OF CLAIMS

SETTLED

BENEFICIARIES

INVOLVED

URBAN CLAIMS SETTLED

15439 48038 2477 0 1083055 1083055

RURAL CLAIMS

4668 4580 436 206 9890 1083055

TOTAL 20107 52618 2913 206 75844 1599482

15

SUMMARY APPROVALS FOR THE FINANCIAL YEAR 1 APRIL 2009 TO 31 MARCH 2010

Total submissions approved 139

Rural claims 33

Dismissed claims 98

Households 9 294

Total beneficiaries 48 233

Hectares 145 492

Section 42D R1,052,004,904.08

Section 42C R208,377,158.76

Grants R33,344,300.00

Total award R1,293,726,362.84

16

BUDGET EXPENDITURE

Standard Item Original Allocation AdjustmentAdjusted

Allocation Expenditure

Transfer Payment R 1,488,595,000 R 480,766,000 R 1,969,361,000 R 1,967,602,096

Compensation of employees R 225,666,000 -R 7,510,000 R 218,156,000 R 218,064,394

Goods & Services R 175,023,000 -R 26,625,000 R 148,398,000 R 144,371,998

Payments Capital Assets R 0 R 2,478,000 R 2,478,000 R 1,595,105

Total R 1,889,284,000 R 449,109,000 R 2,338,393,000 R 2,331,633,593

17

AUDIT ISSUES 2009/10

No Qualifications

Matter of emphasis on the following: Commitment of R7,3billion Recovery of interest from conveyancer Suspense account

18

CONCLUSIONHow we reportImplementation CommunicationTime lines – business processLegal RiskRisk management

19

Thank you

Sibusiso GamedeChief Land Claims Commissioner

(Acting)Tel: (012) 312 9146

Email:SSGamede@ruraldevelopment.gov.za

20