COMMUNAL PROPERTY ASSOCIATIONS AMENDMENT BILL 29 March 2017 Presentation to the Portfolio Committee on Rural Development and Land Reform

BACKGROUND Since the promulgation of the Communal Property Associations Act, 28 of 1996, 1502 CPAs were registered. The overwhelming majority of CPAs are facing operational challenges and compliance deficiencies. Despite intervention by the Department of Rural Development and Land Reform, little success was achieved in resolving the CPA challenges.

CHALLENGES The nature, structure and simplicity of the CPAs. Lack of democracy. Abuse of power and authority by persons elected to serve in the committee. Limited oversight and monitoring of CPAs.

OBJECTIVES OF THE BILL establish the CPAs Office; empower the Minister to appoint the Registrar of the CPAs; provide for the functions of the Registrar; provide further protection of rights and interests in respect of movable and immovable property held by CPAs; provide for the formation of CPAs in respect of land restituted to labour tenants; and further regulate on the management of CPAs placed under administration. 

PROPOSED AMENDMENTS Extends the application of the Act to: land restituted by order of any other competent court and not only the Land Claims Court; land restituted to labour tenants. (b) Inserts new sections 2A, 2B, 2C and 2D which provide for: the transfer of properties to CPAs; general plans for properties; establishment of the CPA Office; the appointment of a Registrar of CPA Office and the functions of the Registrar.

PROPOSED AMENDMENTS Cont. (2) (c) Constitution of a CPA to be adopted by 60 % of community members present at a meeting to adopt the constitution. Provides for changes of names of associations and the issuing of new certificates. An account can only be opened once the Registrar has issued a letter stating that a CPA has been registered.  

PROPOSED AMENDMENTS Cont. (3) Registrar is empowered to dissolve a CPA committee in some instances and appoint an interim committee. Certain people are disqualified from membership of committees. Immovable property may only be sold, donated or encumbered with the written consent of the Minister and only if at least 60% of the members of the community present at a meeting where such a resolution was adopted.

PROPOSED AMENDMENTS Cont. (4) An association must give notice to the Department of its intention to sell its immovable property and the Department shall have the first option to buy the property. CPA may sell, donate or encumber movable property with the consent of a majority of members present at a meeting of the CPA. In cases where such movable property was purchased with the financial assistance of the Department, the CPA must first obtain the Registrar’s consent before it can sell, donate or encumber the asset.

PROPOSED AMENDMENTS CONT. (5) New offences are inserted which include: breaching the provisions of CPA constitutions; destroying documents on the activities of CPAs; and interfering with the duties of a competent person appointed to manage the affairs of a CPA that has been put under administration. (m)Clause 17 requires the Registrar to prepare annual reports in respect of CPAs.

PROPOSED AMENDMENTS CONT. (6) Clause 18 provides for regulations and fees. It enables the Director-General to determine fees payable in terms of the Act. Clause 19 inserts new section 18A to provide for transitional arrangements. Clauses 20, 21 & 22 provide for consequential amendments.

FINANCIAL AND CONSTITUTIONAL IMPLICATIONS Existing experienced officers of the Department will be transferred to the CPA Office where possible and the CPA Office will make use of current office accommodation of the Department. Both the Department and the State Law Advisers are of the considered opinion that the provisions of the Bill are not in conflict with the Constitution.

PARLIAMENTARY PROCEDURE The Office of the Chief State Law Adviser and the Department are of the opinion that this Bill contains provisions that impact on traditional communities. (Section 76) The Office of the Chief State Law Advisers is also of the opinion that it is necessary to refer the Bill to the National House of Traditional Leaders.

THANK YOU