COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORTS 2012/2013 AND 2013/2014 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 12 NOVEMBER 2014

OUTLINE OF PRESENTATION INTRODUCTION; DISTRIBUTION OF CPAs; CAUSES OF NON-COMPLIANCE; LAND TRANSACTIONS; NUMBER OF CPAs UNDER ADMINISTRATION; JUDICIAL ADMINISTRATION;

OUTLINE OF PRESENTATION cont …. 7. CPA TURN AROUND STRATEGY; 8. REGULARIZATION; AND 9. FUTURE PLANS.

1. INTRODUCTION The Department of Rural Development and Land Reform is required in terms of Section 17 of the Communal Property Associations Act, 1996 (Act no. 28 of 1996) to annually table a Report in Parliament concerning the Communal Property Associations (CPAs) and Provisional Associations and the extent to which the objects of the Act are being achieved. This report covers two financial years:2012/13 and 2013/14

2. DISTRIBUTION OF CPAs

Eastern Cape 156 CPAs registered 141 Redistribution CPAs registered 15 Restitution CPAs registered 18 821 Beneficiaries 501 163 Ha transferred to CPAs Information on some CPAs could not be confirmed

Free State 43 CPAs registered 38 Redistribution CPAs registered 5 Restitution CPAs registered 1 268 Beneficiaries 23 834 Ha transferred to CPAs Information on some CPAs could not be confirmed

Gauteng 26 CPAs registered 12 Redistribution CPAs registered 14 Restitution CPAs registered 7 345 Beneficiaries 67963 Ha transferred to CPAs Information on some CPAs could not be confirmed

KwaZuluNatal 291 CPAs registered 221 Redistribution CPAs registered 70 Restitution CPAs registered 27 728 Beneficiaries 267023 Ha transferred to CPAs Information on some CPAs could not be confirmed

Limpopo 95 CPAs registered 32 Redistribution CPAs registered 63 Restitution CPAs registered 77 219 Beneficiaries 214 845 Ha transferred to CPAs Information on some CPAs could not be confirmed

Mpumalanga 227 CPAs registered 147 Redistribution CPAs registered 80 Restitution CPAs registered 37 870 Beneficiaries 253 030 Ha transferred to CPAs Information on some CPAs could not be confirmed

Northern Cape 61 CPAs registered 45 Redistribution CPAs registered 16 Restitution CPAs registered 9 438 Beneficiaries 10 644 Ha transferred to CPAs Information on some CPAs could not be confirmed

North West 125 CPAs registered 44 Redistribution CPAs registered 81 Restitution CPAs registered 83 971 Beneficiaries 1 409 729 Ha transferred to CPAs Information on some CPAs could not be confirmed

Western Cape 15 CPAs registered 2 Redistribution CPAs registered 13 Restitution CPAs registered 948 Beneficiaries 81 1433 Ha transferred to CPAs Information on some CPAs could not be confirmed

3. CAUSES FOR NON COMPLIANCE CPA internal governance challenges: Lack of accountability; Corruption; Conflicts within communities; and Ineffective land utilisation.

4. LAND TRANSACTIONS The following CPA were found to have lost land either through sale or execution: Dirisanang in Northern Cape; Impala in Free State; Thuthukani in Mpumalanga; and Sekgwaelane Balemi Itsoseng in North West. Other CPAs reported normal voluntary land transactions like the lease of land and registration of servitudes on their land.

5. JUDICIAL ADMINISTRATION The following CPAs are under administration: Khomani San in Northern Cape The administration will cease in 2017; Khomanani in Northern Cape The administration will cease in 2017 (Estimation); Loeriesfontein in Northern Cape The administration will cease in 2016 (Estimation); Pniel in Northern Cape

JUDICIAL ADMINISTRATION – Cont…2 The following CPAs are under administration: Klein Tswaing in North West The administration will cease in 2017 (Estimation); Elandskloof in Western Cape The administration will cease in 2016 (Estimation); Serala in Limpopo Letswalo in Limpopo The administration will cease in 2017 (Estimation); and

JUDICIAL ADMINISTRATION- Cont…3 The following CPAs are under administration: Sisonke in Mpumalanga The administration will cease in 2016 (Estimation).

JUDICIAL ADMINISTRATION- Cont…4 Two applications in the North West High Court to place Barolong Boo Seithiro CPA and Barolong Boo Modiboa CPA under judicial administration.

6. CPA TURN AROUND STRATEGY Stabilise Strategy Fund Fix Organis- ation Operations Turnaround Leadership Management Manage Stakeholder Turnaround Project Management

OBJECTIVE 6.1 Objective: To regularize non-compliant CPAs Underperforming/non-compliant →normality Reverse non-compliant→overcome constrains Acceptable levels of functionality

6. CPA TURN AROUND STRAGEGY 6.2. REGULARIZATION This process is divided into the following phases: Fact-finding, Intervention (regularization) and close-out. Phase 1: Regularizing (assisted by LRMF): Fact finding; and Governance issues→compliance.

6. CPA TURN AROUND STRAGEGY 6.3. REGULARIZATION cont…… Phase 2: Recap and Development: Funding and recapitalizing the business; and Operational issues →Sustainability. Fact-finding entails compilation of a diagnostic report that establishes the extent of dysfunctionality.

REGULARIZATION – Cont…2 Intervention (regularization) phase deals with mediation and other corrective measures to fix the identified deficiencies. In the close-out phase all the things that are necessary to ensure the sustainability of the CPA are put in place after the intervention phase. 147 Requests for regularization were handled by the Land Rights Management Facility (LRMF) since 2011.

REGULARIZATION – Cont…3 During the 2012/2013 reporting period, the following CPAs were regularized: Sabaan in Mpumalanga; Manala-Mgibe in Mpumalanga; Mashoboto in Mpumalanga; Mawewe in Mpumalanga; Dikgomo Society in Free State;

REGULARIZATION – Cont…4 Richterveld in Northern Cape; Droogfontein in Northern Cape; Skeiffontein in Northern Cape; Masincedane in Western Cape; Brandwacht in Western Cape;

REGULARIZATION – Cont…5 Mandiwana in Limpopo; Tshathogwe in Limpopo; Manavhela in Limpopo; Mulelu Tshilata in Limpopo; Selwane in Limpopo;

REGULARIZATION – Cont…6 Kranspoort in Limpopo; Moletele in Limpopo; and Baphalane in North West;

REGULARIZATION – Cont…7 During the 2013/2014 reporting period, the following CPAs were regularized: Bakone Ba Phetla in Limpopo Morwalemong in Limpopo

6.4 REGULARIZATION: ACHIEVEMENTS AND EXPENDITURE The regularization process has provided substantial assistance to dysfunctional CPAs, assisted to regularize where feasible and advising on the appropriate steps where regularization is not feasible. 20 CPAs regularized to date; 23 CPAs near completion; 11 CPAs recommended for Judicial Administration; 16 CPAs recommended for deregistration; 24 appear not feasible for regularization; 53 CPAs at early phases due to some challenges; Expenditure since December 2012 = R 14 429 692

5.4 REGULARIZATION: LESSONS LEARNT The regularization process is multi-faceted, involving a range of interventions to address the different issues confronting individual CPAs. Mediation Most of the long standing and complex disputes are difficult to resolve and require a thorough and patient mediation efforts. In many instances, formal regularization and compliance can only be achieved by addressing the underlying capacity and development issues faced by the communities.

REGULARIZATION: LESSONS LEARNT – Cont…. Third Party Intervention Long standing disputes could not be resolved within the confines and resources of the CPA. This requires intervention of third parties such as mediators and municipalities or allocation of additional resources such as land and/or finances.

7. NATIONAL COMPLIANT CPAs Province 2009-10 2011-12 2012-13 2013-14 Eastern Cape 16 21 22 1 Free State 11 12 Gauteng 8 10 Kwazulu-Natal 27 30 Limpopo 24 34 35 Mpumalanga 26 Northern Cape 4 13 North West 39 40 Western Cape 6 National Summary 100 158 209 171

8. FUTURE PLANS Dedicated personnel within provinces will be appointed to provide adequate support to CPAs. The Department has split the Land Reform branch into two branches namely; Land Redistribution development and Land Tenure and Administration. The Branch Land Tenure and Administration is responsible for monitoring, supporting and registering CPAs.

FUTURE PLANS –Cont…2 The Department intends to amend the Communal Property Associations Act. The CPA Amendment Bill will amongst others lead to the establishment of a stand alone CPA Office and the appointment of a Registrar of CPA Nationally and Deputy Registrars in Provinces.

FUTURE PLANS– Cont…3 A policy has being developed to guide the approach to dealing with CPAs. The Communal Property Amendment Policy on CPAs will guide the operations of CPAs through a model best illustrated by the Wagon Wheel. This model allocates roles and responsibilities to different role-players which should LEAD to better support and administration of CPAs.

FUTURE PLANS– Cont..3 Training 379 CPA committee members were trained on corporate governance. The trainees represented 95 CPAs

FUTURE PLANS : CPA POLICY A Policy on Communal Property Associations was developed which aims to address the following: Inequitable access to land; Democratic governance deficits; CPI relations with surrounding communities and state structures; Contested substantive land rights and tenure issues; Obstacles to land utilization and development in CPI; and State support to CPIs.

FUTURE PLANS: CPA AMENDMENT BILL The Communal Property Associations Amendment Bill seeks to create dedicated capacity within the Department to support CPAs. This will be done through the establishment of the CPA Office and the appointment of the Registrar nationally and Deputy Registrars in provinces. By requiring a 60% quorum of members the Bill will ensure that the decision making process is inclusive and that all decisions represent the view of the majority of members.

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