DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS 2013 APPROPRIATION BILL 04 June 2013

INTRODUCTION PURPOSE: To brief the Standing Committee on Appropriations on the 2013/14 Appropriation Bill on the state of readiness and strategy to effectively spend the 2013/14 Budget Allocation

STRATEGIC THRUST OF THE DEPARTMENT The Department responds to Government Priority Number Three: Rural Development and Land Reform As such, all programmes of the Department are organized to give direct effect to this priority and provide support to other priorities such as job creation, education and health etc. This has a particular bias to the rural areas. The planned interventions of the department have considered the National Development Plan (NDP) particularly Chapter Six and the New Growth Path (NGP). In 2013, the year which marks the Centenary of the 1913 Natives Act, the department also focuses on implementing measures to reverse the legacy of this legislation. A number of projects have been planned and some have been implemented country-wide to mark the reversal of this Act.

VISION, MISSION & STRATEGY Vibrant, equitable and sustainable rural communities Mission To initiate, facilitate, coordinate, catalyse and implement an integrated rural development programme Strategy Agrarian transformation

STRATEGIC GOALS AND OBJECTIVES Strategic Outcome Oriented Goal Statement Strategic Objective Statement Strategic Goal 1: Corporate governance and service excellence through compliance with the legal framework achieved by 2014 1.1 Compliance with relevant legislation and policies governing the management of the public sector by 2014 Strategic Goal 2: Reformed policy, legislative and institutional environment by 2014 2.1 Rural development and land reform policies and legislation developed by 2014 Strategic Goal 3: Effective land planning and administration that is biased towards rural areas 3.1 An integrated land planning, spatial information and administration system to promote an equitable, sustainable land use and allocation by 2014 Strategic Goal 4: Integrated institutional arrangements for effective cooperative governance and stakeholder participation by 2014 4.1 Integrated service delivery facilitated through the coordination of government and development stakeholders by 2014 Strategic Goal 5: Increased access to and productive use of land by 2014 5.1 Strategically located land acquired and allocated by 2014 5.2 Land rights restituted or alternative forms of equitable redress awarded to claimants by 2014 5.3 Recapitalization and development support provided to land reform beneficiaries and rural communities by 2014 5.4 Tenure security for people living on commercial farms and communal areas provided (New) Strategic Goal 6: Improved access to affordable and diverse food by 2014 6.1 Profiled rural households enabled to improve their food security by 2014 Strategic Goal 7: Improved rural services to support sustainable livelihoods by 2014 7.1 Socio-economic infrastructure facilitated to improve access to services by 2014 Strategic Goal 8: Improved access to sustainable employment and skills development opportunities by 2014 8.1 Skills development and sustainable economic opportunities created by 2014

POLICY & LEGISLATION INITIATIVES FOR 2013/14 While the key legislative mandate of the Department remains the same, the Department will be working on the following policy and legislation initiatives: Policies Restitution Policy Framework Rural Development Policy Framework Rural Development Agency Policy Rural Cooperative Financing Facility Policy Framework on Communal Land Tenure Legislation Deeds Registries Amendment Bill Sectional Titles Amendment Bill Restitution of Land Rights Amendment Bill Land Valuation Bill Land Protection Bill Land Management Commission Bill Communal Property Associations Amendment Bill (Amendment) Extension of Security of Tenure Act

KEY PRIORITIES FOR 2013/14 Restitution Re-opening of the lodgment date for land claims to accommodate those communities or individual who missed the 31 December 1998 cut-off date and to also provide for the exceptions to the 1913 cut-off date to accommodate historical landmarks, heritage sites and descendants of the Khoi and San who lost their land long before 1913. Settling 230 land claims and finalising 208 backlog land claims Land Reform Recapitalisation of 730 land reform farms to improve productivity Acquisition and allocation of 311, 917 hectares of strategically located land Tenure reform policy Rural Development Continue with the CRDP roll-out in 23 prioritized poorest districts Increase job creation through infrastructural projects and rural enterprises Progress with Phases 2 & 3 of CRDP (enterprise and industrial development)

DEPARTMENTAL Programmes and sub-programmes

DEPARTMENTAL PROGRAMMES The department is organised in terms of five budget programmes providing the institutional framework to implement its priorities in line with Government Priority Number Three: Rural Development and Land Reform. The key focus areas of each programme are presented in the following slides

PROGRAMME 1: ADMINISTRATION Focus is promoting good corporate governance and administration The key results areas include: Responding to government’s target of ensuring that suppliers are paid within 30 days after having invoiced the department Promoting good financial governance by spending in line with the PFMA Institutionalizing mechanisms to improve management controls regarding financial management and non-financial performance information. This is in line with the national target of achieving a clean audit by 2014 Promoting good human resources practices , particularly reducing the department’s vacancy rate in line with DPSA standards. Central to this is to improve the capacity of department to deliver on its goals and objectives Developing relevant policies and legislation that align with the Rural Development and Land Reform mandate. Central to this is extensive policy consultations

PROGRAMME 2: GEOSPATIAL AND CADASTRAL SERVICES Focus is on the following: Provision of geo-spatial information in support of spatial equity and sustainable development Provision of technical support to Municipalities through the development of Spatial Development Frameworks Provision of training to augment the scarce skills in geomatics Investment in the development of the e-Cadastre system, which will enable a holistic view of land ownership, and to answer the question of who owns South Africa.

PROGRAMME 3: RURAL DEVELOPMENT Focus is on the following: Provision of infrastructure to support access to basic services in order to promote rural livelihoods Implementation of the Veld Management Programme Revitalisation of irrigation schemes to enhance food production Promotion of skills development and job creation with a bias to the youth Support rural enterprise development in the agricultural and non-agricultural value chain

PROGRAMME 4: RESTITUTION Focus is on: Planning and administration of the re-opening of restitution lodgment process Settlement of land claims and finalising backlog claims

PROGRAMME 5: LAND REFORM Focus is on: Provision of support to emerging farmers through the Recapitalisation and Development Programme Acquisition and allocation of strategically located land Provision of skills development and training support for emerging farmers and the creation of job opportunities in land reform projects

RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF

OVERVIEW OF THE 2013/14 BUDGET AND MTEF The department’s 2013/14 MTEF budget is the financial expression of its 2012/13 APP. The 2013/14 budget and APP processes ran concurrently to ensure consistency between the two plans – all budget amendments by NT were also incorporated

Overview of the 2013/14 Budget and MTEF Programme 2013/14 Budget (R’000) 1. Administration 940,652 2. Geo-spatial & Cadastral Services 508,504 3. Rural Development 1,227,423 4. Restitution 3,388,048 5. Land Reform 3,395,113 Total 9,459,740

Overview of the 2013/14 Budget and MTEF Economic Classification 2013/14 Budget R’000 Compensation of employees 1,676,908 Goods and services 1,375,183 Provincial and local governments 141 Dept agencies and accounts 2,481,290 Foreign governments and international organisations 1,400 Public corporations and private entities 133,639 Non-profit institutions 2,849 Households 3,772,055 Buildings and fixed structures - Machinery and equipment 14,827 Software and intangible assets 1,448 Total 9,459,740

Overview of the 2013/14 Budget and MTEF Program 1 Sub-programme 2013/14 BUDGET R’000 Ministry 19,760 Management 65,061 Internal Audit 34,501 Corporate services 258,575 Financial Services 174,615 Provincial Coordination 246,462 Office Accommodation 141,678 Total 940,652

Overview of the 2013/14 Budget and MTEF Administration Per Economic Classification 2013/14 ENE Budget Allocation R’000 Compensation of employees 592,602 Goods and services 324,289 Payments for financial assets -  Provincial and local governments 101 Dept agencies and accounts 1 Public corporations and private entities 15,099 Households Machinery and equipment 8,560 Total 940,652

Overview of the 2013/14 Budget and MTEF Program 2 Sub-programme 2013/14 Budget R’000 National Geomatics Management Services 394,806 Spatial Planning and Land Use Management 97,108 Registration of Deeds Trading Account 13,741 South African Council for Planners 2,849 Total 508,504

Overview of the 2013/14 Budget and MTEF Geo Spatial & Cadastral Services per Economic Classification 2013/14 Budget R’000 Compensation of employees 402,928 Goods and services 79,859 Interest on rent and land -  Payments for financial assets Provincial and local governments 12 Dept agencies and accounts 13,741 Foreign governments and international organisations 1,400 Non-profit institutions 2,849 Households Machinery and equipment 6,267 Software and intangible assets 1,448 Total 508,504

Overview of the 2013/14 Budget and MTEF Programme 3 Sub-programme 2013/14 BUDGET R’000 Rural Infrastructure Development 354,571 Social, Technical Rural Livelihood and Institutional Facilitation 363,935 National Rural Youth Services Corps 508,917 Total 1,227,423

Overview of the 2013/14 Budget and MTEF Rural Development per Economic Classification 2013/14 Budget R’000 Compensation of employees 231,277 Goods and services 635,846 Dept agencies and accounts 241,761 Public corporations and private entities 118,539 Machinery and equipment -  Total 1,227,423

Overview of the 2013/14 Budget and MTEF Programme 4 Sub-programme 2013/14 BUDGET R’000 Restitution National Office 44,229 Restitution Provincial Offices 317,413 Restitution Grants 3,026,406 Total 3,388,048

Overview of the 2013/14 Budget and MTEF Restitution per Economic Classification 2013/14 Budget R’000 Compensation of employees 222,265 Goods and services 139,126 Provincial and local governments 11 Households 3,026,646 Machinery and equipment -  Total 3,388,048

Overview of the 2013/14 Budget and MTEF Programme 5 Sub-programme 2013/14 Budget R’000 Land Reform National Office 123,820 Land Reform Provincial Offices 300,097 Land Reform Grants 745,409 Kwazulu-Natal Ingonyama Trust Board 7,500 Communal Land Rights Programme - Agricultural Land Holding Account 2,218,287 Total 3,359,113

Overview of the 2013/14 Budget and MTEF Land Reform per Economic Classification 2013/14 BUDGET R’000 Compensation of employees 227,836 Goods and services 196,063 Provincial and local governments 17 Dept agencies and accounts 2,225,787 Public corporations and private entities 1 Households 745,409 Buildings and fixed structures -  Machinery and equipment Total 3,395,113

STRATEGY FOR EFFECTIVE BUDGET SPENDING The department has identified the following measures to promote effective budget expenditure and improve service delivery: Improved Budget & Programme Planning: Extensive Consultation during Target Setting Focus on Improving Supply Chain Processes Internal Monthly Expenditure Monitoring as an Early Warning Mechanism Use of the Available Government Budget Monitoring Instruments Improving Internal Governance & Planning Structures for Improved Service Delivery Portfolio Prioritisation Framework Institutionalisation of a Project Management Framework

STRATEGY FOR EFFECTIVE BUDGET SPENDING a) Improved Budget & Programme Planning: Extensive Consultation during Target Setting During the planning stages leading to the finalisation of the commitments in the APP, extensive consultation with National Treasury to ensure that the budget is aligned to the targets was conducted. This has given confidence in the allocation of the budget for the deliverables committed to. b) Internal Monthly Expenditure Monitoring as an Early Warning Mechanism Monthly budget expenditure analysis in line with progress towards quarterly commitment targets per strategic objective Monthly monitoring reports on individual project performance in line with expected deliverables

STRATEGY FOR EFFECTIVE BUDGET SPENDING c) Use of the Available Government Budget Monitoring Instruments Participate in the In-year Monitoring Reporting and implement the corrective actions d) Improving Internal Governance & Planning Structures for Improved Service Delivery Institutionalisation of inter – branch service delivery planning to leverage on synergies, integration and collaboration in order to maximise effective budget utilisation and accountability

STRATEGY FOR EFFECTIVE BUDGET SPENDING e) Portfolio Prioritisation Framework Aligns planned projects to departmental strategic objectives as well as budget allocation Assist the determination of priority projects for the financial year in line with the strategic focus of the department Enables forging alignment of the departmental programmes to the APEX priorities of government and the NDP priorities

STRATEGY FOR EFFECTIVE BUDGET SPENDING f) Institutionalisation of a Project Management Framework Enables the standardisation of project implementation and management for improved financial governance and monitoring of service delivery Enables the tracking of project implementation against plans and expenditure patterns for early interventions where necessary Assist in the collection of the requisite portfolio of evidence to support the audit processes (AG regularity audit compliance & accountability)

Thank you