Department of Land Affairs Vote 29 Presentation to the Portfolio Committee 2005/06 Annual Report 11 October 2006 Presented by: Ms SNO Choane Chief Financial Officer

PURPOSE The purpose of this presentation is to: report on the Department’s performance in respect of 2005/06 financial year as well as present progress on current performance iro 2006/07

BASIS FOR PERFORMANCE REPORTING The performance reporting is premised on the following: 2005 – 2010 Strategic plan 2005/06 Annual Report 2006 – 2009 Strategic plan iro current performance

CONTENT OF THE PRESENTATION Strategic Framework adopted in 2006 2005/06 Operational performance per programme 2005/06 Financial performance 2006/07 Operational performance 2006/07 Financial performance Challenges Interventions

Strategic Framework adopted in 2006

VISION To be a global leader in the creation and maintenance of an equitable and sustainable land dispensation that results in social and economic development for all South Africans. MISSION To provide enhanced land rights to all South Africans, with particular emphasis on black people, that would result in increased income levels and job opportunities, productive land use and well-planned human settlements.

STRATEGIC CONTEXT Acceleration of the creation of a land system that comprehensively addresses the legacy of socio-economic deprivation and the improvement of the quality of life of black people Contribution to Poverty Alleviation and Economic Development through Land Reform and Administration Interventions and participation of the State in the land market to accelerate land redistribution Land-based integrated and decentralised land use and development planning and Implementation Enhanced access to and/or ownership of land by people living on commercial farms to improve their livelihoods and economic opportunities Development of capacity building models and Programmes for Land Reform Beneficiaries, DLA employees, other Government employees and the general public

STRATEGIC OBJECTIVES CORE OBJECTIVES (1): Redistribution of 30% of white-owned agricultural land by 2014 for sustainable agricultural development. Provision of tenure security that creates socio-economic opportunities for people living and working on farms and in communal areas. Settlement of all outstanding land claims by 2008 and implementation of awards Provision of land for sustainable human settlements, industrial and economic development.

CORE OBJECTIVES (2.) Provision of efficient land use and land administration services. Provision of efficient state land management that supports development. Provision of skills development framework for land and agrarian reform to all relevant stakeholders. Development of programmes for the empowerment of women, children, people with disabilities and those living with HIV/Aids and older persons within the context of the Department’s mandate.

2005/06 Operational Performance per programme

PROGRAMME 1: Administration (1)

PROGRAMME 1: Administration (2)

PROGRAMME 1: Administration (3)

PROGRAMME 1: Administration (4)

PROGRAMME 2: Surveys & Mapping (1)

PROGRAMME 2: Surveys & Mapping (2)

PROGRAMME 2: Surveys & Mapping (3)

PROGRAMME 2: Surveys & Mapping (4)

PROGRAMME 2: Surveys & Mapping (5)

PROGRAMME 3: Cadastral Surveys (1)

PROGRAMME 3: Cadastral Surveys (2)

PROGRAMME 3: Cadastral Surveys (3)

PROGRAMME 3: Cadastral Surveys (4)

PROGRAMME 4: Restitution(1)

PROGRAMME 4: Restitution (2)

PROGRAMME 5: Land Reform (1)

PROGRAMME 5: Land Reform (2)

PROGRAMME 5: Land Reform (3)

PROGRAMME 5: Land Reform (4)

PROGRAMME 5: Land Reform (5)

PROGRAMME 5: Land Reform (6)

PROGRAMME 5: Land Reform (7)

LAND DELIVERED SINCE 1994 Total: 3 373 246

PROGRAMME 6: Spatial Planning & Information (1)

PROGRAMME 6: Spatial Planning & Information (2)

PROGRAMME 6: Spatial Planning & Information (3)

PROGRAMME 6: Spatial Planning & Information (4)

PROGRAMME 7: Sub-Programme – Deeds Registration (1)

PROGRAMME 7: Sub-Programme – Deeds Registration (2)

PROGRAMME 7: Sub-Programme – Deeds Registration (3)

PROGRAMME 7: Sub-Programme – Deeds Registration (4)

PROGRAMME 7: Sub-Programme – Deeds Registration (5)

2005/06 Financial Performance per programme

2005/2006 FINANCIAL PERFORMANCE PROGRAMME NAME FINAL APPROP. ACTUAL EXPENDITURE VARIANCE VARIANCE AS A % OF FINAL APPROP. R’m 1 Administration 288 239 49 17.16% 2 Surveys and Mapping 84 73 11 13.45% 3 Cadastral Surveys 85 78 7 8.10% 4 Restitution 2,706 b 1,789 b 917 33.87% 5 Land Reform 705 645 60 8.49% 6 Spatial Planning and Information 19 17 2 11.50% 7 Auxiliary and Associated Services 10 6 4 40.97% TOTAL 3,897 b 2,847 b 1,050 b 26,96%

Although the under spending is a cause for concern, this bar chart depicts that in real terms year on year expenditure has actually increased 73,04% 97,98% 97,19% 98,66%

2006/07 Operational Performance

2006/2007 OPERATIONAL PERFORMANCE: AUGUST 2006 Output as per ENE TARGET ACHIEVED % Programme 4: RESTITUTION All lodged claims settled according to the Restitution of land Rights Urban Rural 8 651 claims 2 922 claims 5 729 claims 1 016 claims 571 claims 445 claims 12% 20% 8% Programme 5: LAND REFORM Land Redistribution through LRAD, Settlement, Commonages and URP & ISRDP 268 167 ha 38 558 ha 14%

2006/07 Financial Performance per programme

FINANCIAL PERFORMANCE FOR THE PERIOD APRIL – AUGUST 2006 PROGRAMME NAME ALLO-CATION EXPEN-DITURE EXP AS A % OF THE ALLOCATION VARIANCE ON BENCHMARK OF 42% R’m % 1 Administration 359 116 32.26% 35 2 Surveys and Mapping 81 22 27.61% 12 3 Cadastral Surveys 95 33 34.84% 7 4 Restitution 3,369 b 495 14.69% 920 5 Land Reform 908 194 21.34% 187 6 Spatial Planning and Information 28 6 21.29% 7 Auxiliary and Associated Services 8.22% 5 TOTAL 4,852 b 866 17.87% 1,171 b

MTEF ALLOCATIONS PER PROGRAMME 2006/07 LAND REFORM 19% RESTITUTION 69%

Challenges facing the Department

CHALLENGES FOR RESTITUTION High staff turnover Development taking longer than the settlement process High land cost based on market values in terms of the constitution Un-surveyed and unregistered land rights (no title on land), this requires detailed mapping and walking on the land with communities Protracted negotiations with landowners and claimants (Expropriation period of six months before finalization) Community disputes, Traditional authorities’ jurisdictional issues as well as disagreements with landowners (landowners disputing validity of claims) Incoherent land use practices and need for alignment of priorities – i.e. communal and commercial land use practices

CHALLENGES FOR LAND REFORM Escalating land prices on average between 14% and 19% in the past 10 years will have a big impact on the budget Lack of specialized skills required in the sector to drive massification programme Poor level of alignment in the agrarian reform sector (public and private) Willing buyer-willing seller – the state becomes the only buyer in the market and that affects its bargaining power.

Interventions

INTERVENTIONS Pro-active land acquisition strategy ASGI-SA: Bio-fuels strategy The approach of Area-based planning will contribute to the massification programme New land delivery models currently being developed e.g. special purpose vehicle, agency agreements and developer models Decentralization framework for fast tracking state land management and administration Completed Business re-engineering processes to re-position the department to fast track delivery

I THANK YOU