Department of Rural Development and Land Reform’s Annual Report Presentation to the Select Committee on Land and Mineral Resources 17 May 2016

Presentation Outline: Non-Financial Performance 2014/15 FY Introduction and Mandate The role of the department in assisting the Ingonyama Trust Board Organisational concerns and options Performance of the department – Departmental performance in years 2009/10 – 2014/15 – Programme 1 : Administration – Programme 2 : Geospatial and Cadastral Services – Programme 3 : Rural Development – Programme 4 : Restitution – Programme 5 : Land Reform – Findings by Auditor-General Employment equity Capital projects implemented in 2014/15 and costs

INTRODUCTION NDPManifesto 2014MTSF Spatial inequality and fragmented patterns of land ownership Improved land administrationPriority 1: Improved land administration and spatial planning for integrated development in rural areas Agricultural development should introduce a land- reform and job creation strategy that ensures rural communities have jobs to improve their livelihoods Further intensify the development aspect of land reform Priority 2: Sustainable land reform contributing to agrarian transformation Ensure quality access to basic services, health care, education and food security Finalise and implement the Agricultural Policy Action Plan, to strengthen agricultural production and agro-industries, and promote food security Priority 3: Improved food security

INTRODUCTION NDPManifesto 2014MTSF Improve and extend skills development in the agricultural sector, including entrepreneurship training Further intensify the development aspect of land reform Priority 4: Smallholder producers' development and support Ensure quality access to basic services, health care, education and food security Access to quality basic servicesPriority 5: Increase access to quality basic infrastructure and services, particularly in education, health care and public transport in rural areas In areas with some economic potential, non - agricultural activities (such as agro- industry, small enterprises and fisheries) will boost development Grow sustainable rural enterprises and industries Priority 6: Growth of sustainable rural enterprises and industries - resulting in rural job creation

 Rural Development:-  Improving both economic and social infrastructure in rural South Africa.  Land Reform:-  Restitution of land rights  Recapitalisation and development  Land redistribution and tenure reform.  Agrarian Change:-  Driving social transformation and increasing agricultural production in rural areas. MANDATE OF THE DEPARTMENT

LEGISLATIONS The department has thus far developed/amended 14 Acts and other key pieces of legislation.  Spatial Planning and Land Use Management, Act No 16 Of 2013  Property Valuation Bill, 2013  Restitution of Land Rights Amendment Bill, 2013  Extension of Security of Tenure Amendment Bill, 2013  Deeds Registries Amendment Act, 2013 POLICIES Various policies were developed and approved internally by Minister:  Rural Development Framework Policy, 2013  Land Tenure Security Policy for Commercial Farming Areas, 2013  Recapitalization and Development Programme Policy, 2013  State Land Lease and Disposal Policy, 2013  Agricultural Landholding Policy Framework, 2013  The Green Paper on Land Reform, 2012 INSTITUTIONS Land Commission, Ingonyama Trust Board, Land Rights Management Board and Office of the Valuer General. LEGISLATION, POLICIES AND INSTITUTIONS

The relationship with the ITB is governed through legislation and this is complimented by assisting the Trust in the following areas:  Policy development.  The development and compilation of Strategic Plans, Annual Performance Plans, Operational Plans and Annual Reports.  Funding to augment it’s budget to assist it to achieve its strategic objectives, with an emphasis on land administration. Entity reporting to the Minister : Ingonyama Trust Board [ITB]

Non-Financial Performance of the Department Vibrant, equitable, sustainable rural communities

Programme 01 : Administration Provides strategic and logistical support in the form of;  Executive support services;  Corporate support services;  Financial services; and  Corporate governance;

Programme 1: Administration (All provincial office performance incorporated here) Strategic Objective : Ensure 100% compliance with government regulations and legal prescripts by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) % of allocated budget spent 99.9%100%99.9% The variance is due to; -vacant positions not filled timeously; -some projects which did not progress as envisaged; % of valid invoices paid within 30 days upon receipt by supply chain management 91%100%92%The variance is due to; -invoice discrepancies; -Tax Clearance Certificates that have expired; -ex-post facto invoices;

Programme 1: Administration (All provincial office performance incorporated here) Strategic objective : Obtain an unqualified regularity opinion on financial and non-financial performance by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Unqualified financial statements New Indicator Unqualified audit without findings on financial statements Partially Achieved. The Department achieved an unqualified audit opinion with findings. The variance is due to some of the systems, controls and policies taking longer to finalise due to development processes and consultations. % of external audit findings resolved 92%100%92% The process to approve policies in some branches took longer than anticipated. There were also delays in the process of sourcing service providers.

Programme 1: Administration (All provincial office performance incorporated here) Strategic Objective : Improve employees’ and prospective employees skills to enhance service delivery by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) DRDLR Human Resource Development Strategy approved New Indicator DRDLR Human Resource Development Strategy developed Partially Achieved. Draft strategy was finalised pending approval Consultation process took longer than anticipated. Number of people trained in Geomatics The project has been a significant contributor in addressing the shortage of skilled black professionals in this field.

Programme 02 :Geospatial and Cadastral Services The purpose of Geospatial and Cadastral Services programme is to provide geospatial information, cadastral surveys, deeds registration, spatial planning and information as well as technical services in support of sustainable land development.

Programme 2 : Geospatial and Cadastral Services Strategic Objective :Facilitate integrated spatial planning and land use management in all provinces through the application of relevant legislation by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) National Spatial Development Framework (NSDF) developed and Implemented New Indicator Approved research report and consultation on NSDF Partially Achieved. Draft Research report available and consultation on NSDF Research Report conducted in various provinces The partial achievement was due to the consultation process which took longer than anticipated Number of provinces supported to develop Provincial SDFs New Indicator4 4 provinces (NC, FS, NW, LIM) None

Programme 2 : Geospatial and Cadastral Services Strategic Objective: Strategic Objective :Facilitate integrated spatial planning and land use management in all provinces through the application of relevant legislation by 2019 Performance indicator Annual target LP FSNWNCGPMPWCKZNECTotal National Spatial Development Framework (NSDF) developed and Implemented Approved research report and consultation on NSDF Draft Research report available and consultation on NSDF Research Report conducted Research in the above mentioned provinces to be completed as follows: MP & GP (2015/16) and WC, KZN & EC (2016/17) 4 Number of provinces supported to develop Provincial SDFs 4 provinces i.e LP, FS, NW and NC All these four provinces were completed. The remaining will be done in the 2015/16 and 2016/17 Financial Year The above mentioned provinces will be completed in the upcoming Financial Years. MP & GP (2015/16) and WC, KZN & EC (2016/17)

Programme 2 : Geospatial and Cadastral Services Strategic Objective: Strategic Objective :Facilitate integrated spatial planning and land use management in all provinces through the application of relevant legislation by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) % of municipalities supported to implement the Spatial Planning and Land Use Management Act (SPLUMA) New Indicator 60%: SDFs 61% (170 municipalities supported) The over-achievement was due to Municipalities that were eager to have compliant SDFs as it’s a requirement in terms of the Integrated Development Plan (IDP) and the SPLUMA, which came into effect on 01 July New Indicator 20% Land Use Schemes 31% (86 Municipalities supported) The over-achievement was due to Municipalities that were eager to be compliant with the requirements in terms of SPLUMA, which came into effect on 01 July New Indicator 80%: Functional Land Use Regulator 0% (0 municipalities supported). The achievement was dependent on the finalisation of the land use regulations. The regulations were published on 23 March 2015 and Provincial Offices are now facilitating the establishment of Land Use Regulators in all municipalities.

Programme 2 : Geospatial and Cadastral Services Strategic Objective :Facilitate integrated spatial planning and land use management in all provinces through the application of relevant legislation by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal % of municipalities supported to implement SPLUMA 60%SDF (170) % LUS (80) % functional land use

Programme 2 : Geospatial and Cadastral Services Strategic Objective : Ensure an integrated and comprehensive land administration system Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of State Domestic Facilities (SDFs) surveyed New Indicator The over-achievement was due to the implementation of a turn-around strategy to catch up with the backlog in the surveying of SDF’s. Number of deeds and documents registered New indicator The over-achievement was due a higher number of documents received than anticipated. Number of maps of the national map series produced New Indicator The achievement of the indicator is dependent the amount of detail in the area being mapped. The lesser the detail, e.g. the Karoo, the quicker the production and thus more maps can be produced in a short space of time.

Programme 2 : Geospatial and Cadastral Services Strategic Objective : Ensure an integrated and comprehensive land administration system Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of State Domestics Facilities surveyed Number of Deeds and document registered Number of maps of the national map series produced

Programme 03: Rural Development Purpose of this Programme is to initiate, facilitate, coordinate and act as a catalyst for the implementation of the Comprehensive Rural Development Programme(CRDP) that leads to sustainable and vibrant communities. The programme covers rural infrastructure and enterprise development, skills and youth development

Programme 3: Rural Development Strategic Objective : Provide support to rural communities in all districts to improve their livelihoods Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Rural Livelihoods Strategy approved New Indicator Rural Livelihoods Strategy approved Partially achieved.A draft concept document and draft strategy was done The draft Enterprise and Industrial Development policy was adopted by Senior Manangement with the proviso that it be further consulted with DAFF after which a final draft be presented by both departments for consideration in order to avoid duplication and overlapping. Norms and standards for access to rural services developed New Indicator Norms and standards for access to rural services developed Partially achieved. Draft norms and standards have been finalised. The partial-achievement was due to the consultation process which took longer than anticipated Rural Development Strategy and Systems developed and implemented New Indicator Rural Development Strategy and systems developed and approved Not achieved The target was not achieved due to the consultation process taking longer than anticipated

Programme 3: Rural Development Strategic Objective : Provide support to rural communities in all districts to improve their livelihoods Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Rural enterprises and industrial development Strategy implemented New Indicator Rural enterprises and industrial development Strategy developed Not achieved The non-achievement was due to prolonged consultation process and collaboration with other stakeholders Mega cooperative established to facilitate support to NARYSEC Youth New Indicator Mega cooperative established to facilitate support Not achieved The Mega cooperative was not achieved due to the requirements of the amended Cooperatives Act(Act 6 of 2013). The new requirement stipulates a minimum of two operational secondary cooperatives before a tertiary cooperative can be considered.

Programme 3: Rural Development Strategic Objective : Improve access to services in rural areas by coordinating and providing integrated infrastructure by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of socio- economic infrastructure Projects coordinated and facilitated The achievement was slightly higher due to some ICT projects that were scheduled for completion in 2015/16 being finalised in 2014/15. Number of Households supported with basic services infrastructure In collaboration with the Independent Development Trust more projects could be completed. Number of projects implemented in support of the River Valley Catalytic Programme New Indicator1431 The over-achievement was due tomore irrigation schems being commisioned in KZN and EC. A number of goverments 27 Priority Districts also fall within these two province.

Programme 3: Rural Development Strategic Objective :Improve access to services in rural areas by coordinating and providing integrated infrastructure by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of socio- economic infrastructure projects coordinated and facilitated Number of Households supported with basic services infrastructure Number of projects implemented in support of the River Valley Catalytic Programme

Programme 3: Rural Development Strategic Objective : Improve access to services in rural areas by coordinating and providing integrated infrastructure by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of Animal and Veld Management Programme projects implemented A few more projects than planned were commissioned in KZN. Strategic Objective : Facilitate the development of rural enterprises in areas with economic development potential and opportunities by 2019 Number of enterprises supported in rural development initiatives(agriculture and other sectors) by government stakeholders The over-achievement was due to: -The registration of more co-operatives than planned; -ASNAPP SLA projects delivered on large scale

Programme 3: Rural Development Strategic Objective : Increase job opportunities and ensure skills development through CRDP and land reform initiatives by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of Animal and Veld Management Programme projects implemented Strategic Objective : Facilitate the development of rural enterprises in areas with economic development potential and opportunities by 2019 Number of enterprises supported in rural development initiatives(agric ulture and other sectors) by government stakeholder

Programme 3: Rural Development Strategic Objective : Increase job opportunities and ensure skills development through CRDP and land reform initiatives by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of skills development opportunities provided to support rural initiatives The over-achievement was due to; -increased demand for more community members to be trained in Fire Fighting Skills; -training provided raising awareness and interest in communities; Number of youth skilled in rural development initiatives The target was under-achieved due to problems linked to the SETA registration and uploading process which resulted in 2000 certificates not being issued to confirm completion of the training by the youth during the year under review. Number of jobs created in rural development initiatives The target was over achieved due to more budget allocated to employment opportunities for community members

Programme: Rural Development Strategic Objective : Increase job opportunities and ensure skills development through CRDP and land reform initiatives by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of skills development opportunities provided to support rural initiatives Number of youth skilled in rural development initiatives Number of jobs created in rural development initiatives

Programme 04 : Restitution The Restitution Programme exists to facilitate the settlement of claims, and provide restitution or equitable forms of redress to victims of racially motivated land dispossession, in line with the provisions of the Restitution of Land Rights Act, 1994( Act No.22 of 1994), as amended.

Programme 4: Restitution Strategic Objective : Facilitate the restoration of land rights and alternative forms of equitable redress by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of land claims settled The target was exceeded because the focus was on settling financial compensation claims with a claim count which could contribute towards the settled claims target e.g. Kraaibosch (WC) settled 30 claims; District Six (WC) settled 15 claims; New Pietersburg (LP) settled 10 claims; Ramputas Individual Claimants (LP) settled 8 claims; St Francis Xavier Community (KZN) settled 6 claims. Number of claims finalised The target was exceeded because of the regional teams that were put in place to clean up the backlog on Commitments. Systems were also put in place to ensure alignment where claims are settled and finalised in the same financial year, e.g. 53 of the finalised claims were settled in the 2014/15 financial year.

Programme 4: Restitution Strategic Objective : Facilitate the restoration of land rights and alternative forms of equitable redress by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of land claims settled Number of claims finalised

Programme 4: Restitution Strategic Objective : Facilitate the restoration of land rights and alternative forms of equitable redress by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of phased projects approved New Indicator Additional funding was made available during the third and fourth quarter which allowed for ; -claims which were in the pipeline to be processed for the 2015/16 financial year to be moved forward for settlement and payment; An increasein the number of sittings of the Quality Control Committee. Number of claims lodged by 1998 to be researched New Indicator The achievement was due to: -An intervention plan implemented in February 2015 to make-up the shortfall of 639 researched claims in terms of the annual target; -The operational staff from the regional offices being tasked to prioritise the claims for research which assisted with the cleaning out of the annual backlog.

Programme 4: Restitution Strategic Objective : Facilitate the restoration of land rights and alternative forms of equitable redress by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of phased projects approved Number of claims lodged by 1998 to be researched

Programme 4: Restitution Strategic Objective : Facilitate the reopening and finalisation of the lodgement of restitution land claims people who did not meet the 1998 deadline Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of lodgement offices Functional New Indicator 14 Lodgement offices opened and functional 14 Lodgement offices opened and functional None

Programme 05: Land Reform The purpose of this programme is to promote equitable land redistribution and provide support to small holder farmers. It also ensures the establishment of institutional arrangements for tenure security and land administration

Programme 5: Land Reform Strategic Objective : Promote equitable land redistribution and agricultural development by acquiring hectares of strategically located land by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of hectares acquired and allocated ha ha ha The under-achievement was due to farms being withdrawn by the sellers and no longer being available for purchase. Office of the Valuer- General (OVG) established New indicator 50%87% The target was exceeded due to interventions put in place to expedite the process to establish the office.

Programme 5: Land Reform Strategic Objective : Promote equitable land redistribution and agricultural development by acquiring hectares of strategically located land by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of hectares acquired and allocated ha Office of the Valuer-General established National Office competence

Programme 5: Land Reform Strategic Objective : Provide comprehensive farm development support to smallholder farmers and land reform beneficiaries for agrarian transformation by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15)Actual (2014/15) Number of land reform farms recapitalised and developed Non-achievement of this target was due to the complexities and control mechansms put in place during the application approval process which resulted in these taking longer than planned. Number of jobs created in land reform projects (RADP) The over-achievement was due to seasonal work (specifically for harvesting) resulting in a number of employees being appointed to assist during this season. Number of farm personnel trained through the RADP programme Poor performance on this indicator was due to most of the employment opportunities experienced in the year which did not necessitate training since it was general work; planting, harvesting, etc.

Programme 5: Land Reform Strategic Objective : Provide comprehensive farm development support to smallholder farmers and land reform beneficiaries for agrarian transformation by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of land reform farms recapitalised and developed Number of jobs created in land reform projects (RADP) Number of farm personnel trained through the RADP programme

Programme 5: Land Reform Strategic Objective : Functional systems and institutional arrangements for tenure and land administration to enable agrarian reform in all provinces by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of Communal Property Associations compliant with legislation New indicator 1800 The non-achievement was due to; -lack of capacity dedicated specifically to CPAs both at National and Provincial level; -Some CPAs not owning land or having lost land; -New policy developments within the department; Number of labour tenants applications settled The non-achievement was due to; -new policy developments within the department viz:. Circular 1 of There being no dedicated budget to deal with Labour Tenants applications.

Programme 5: Land Reform Strategic Objective : Provide comprehensive farm development support to smallholder farmers and land reform beneficiaries for agrarian transformation by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of communal property association compliant with legislation Number of labour tenants application settled

Programme 5: Land Reform Strategic Objective : Functional systems and institutional arrangements for tenure and land administration to enable agrarian reform in all provinces by 2019 Performance indicator Baseline (Actual output) 2013/14 Actual performance against target Reasons for variance Target (2014/15) Actual (2014/15) Number of land parcels transferred under TRANCRAA (Transformation of Certain Rural Areas Act) New indicator 406 Non-achievement was due to the following reasons: -Community dynamics & disputes; -Complex verification of beneficiaries and land rights enquires; -Some communities demanding development before transfer. Number of State Land parcels confirmed as vested The under-achievement was due to technical uncertainty affecting a holiday resort, registered as Die Bron Vakansiedorp which was regarded as one parcel of land by the DEEDS office whilst the unit regarded it as more than one. % Complete Immovable Assets Register New Indicator 100 % None

Programme 5: Land Reform Strategic Objective :: Functional systems and institutional arrangements for tenure and land administration to enable agrarian reform in all provinces by 2019 Performance indicator Annual target LP GPWCMPNWFSNCKZNECTotal Number of land parcels transferred under TRANCRAA Number of land parcels confirmed as vested % Complete Immovable Assets Register 100%

Adjustment of material misstatements: “I identified material misstatements in the annual performance report submitted for auditing on the reported performance information for Rural Development and Land Reform”. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information”. Unqualified conclusion  All the necessary support documents has been provided on all the reporting areas (indicators & targets).  There are no misstatements or the misstatements identified are not material and thus do not affect the credibility or reliability of the reported performance.  Actual reported performance is accurate, complete and valid. Findings by Auditor General

Employment Equity

RACE GENDER FMTotal%TargetVARIANCE African %+6% Coloured %-4% Indian %-1% White %-1% Total Workforce Profile (Persons with disabilities included) as at 2015/04/01

RACE GENDER FMTotal African Coloured459 Indian134 White Total Persons with disabilities as at 2015/04/01

RACETotalGrand Total%TargetVARIANCE African % Coloured738122%0 Indian412232%+1 White %+3 Total % THE MINIMUM TARGET OF 2% ACHIEVED Persons with disabilities as a percentage of total workforce as at 2015/04/01

EE Way forward A new five year EE plan ( ) has been developed and consulted with all relevant stakeholders with the aim of ensuring equitable representation of all race groups within the Department. Human Resources has been tasked to develop specific interventions to attract and retain PWD’s and Woman; Branches have been directed to comply with the 50/50 gender split in Senior Management.

Organizational concerns and options

CAPACITY CONSTRAINTS The ability to attract and retain employees with the requisite skills and competencies is negatively influenced by the push and pull effects of the labour market, as the country develops. As such the Department has embarked on a number of projects to mitigate this;  An analysis of the organisational structure to determine alignment to the Department’s strategic and service delivery mandates;  Improved diversity management project make employees voices heard and to ascertain how they are experiencing diversity issues;  Skills Audit in order to develop a talent pipeline to ensure the department has the right people, with the right skills executing its mandate;  Consistent efforts to reduce the vacancy rate. SOCIAL TRANSFORMATION CONCERNS  The implementation of a single system for spatial planning and land use management to replace the complex, disjointed and discriminatory spatial planning and land use management system. As a response various milestones set for spatial transformation including the 70% of municipalities supported to implement the SPLUMA Organizational concerns and future Plans

REVITALISATION OF THE RURAL ECONOMY In making land reform work – land reform is necessary to unlock the potential for a dynamic, growing and employment-creating-agricultural sector. Enable a more rapid transfer of agricultural land to black beneficiaries without distorting land markets or business confidence in the agri- business sector is required. To assist in this process a number of initiatives are being initiated and/or explored;  Establishment of the Office of the Valuer-General (OVG)  50/50  Strengthening the Relative Rights Policy Framework  AVMP  RVCP  District Land Reform Committees  Agri-Parks

Capital projects

ProvinceNumber of projects 2014/15 Total cost of projects Eastern Cape107R Free State28R Gauteng62R Kwa-Zulu Natal151R Limpopo83R Mpumalanga111R Northern Cape08R North West43R Western Cape86R Total679R The following is a list of capital projects implemented by the Department in the year 2014/15 with costs

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