1 BACKGROUND ON NCERA FARMS (PTY) LTD 09 SEPT 2014

PRESENTATION OUTLINE Background Mandate Extent of Ncera Farms (Pty) Ltd –The Service Centre –The State Farms The Ex-farm Workers/Dwellers Other Stakeholders & Role Players Challenges at Ncera Issues from 4 th Parliament Department Responses Issues for Consideration 2

BACKGROUND Ncera Farms (Pty) Ltd is a Schedule 3B (PFMA) entity of DAFF; located in Kidds Beach area of East London in EC. DAFF is the sole shareholder. Originally Ncera Agricultural Development Corporation under EC Provincial Dept of Agric. Due to financial constraints, transferred to former national Department of Agric (DoA) in 2004/05. 3

THE MANDATE To provide extension, mechanical services, training & agricultural support services to the farmers settled on Ncera farmland as well as the neighbouring communities. Aims to contribute to an industry-focused farm management training, farmer support services & the design of franchise-type agricultural business models for farmers & beneficiaries of land reform in the immediate catchment area of Ncera. 4

THE EXTENT OF NCERA FARMS Ncera Farms (Pty) Ltd constitutes Welcome Home Farm, where the Service Centre Iocated, & 11 state farms. The entity covers a total area of approximately hectares (ha). 5

THE SERVICE CENTRE Welcome Home Farm hosts the entity’s Service Centre, office buildings, workshop & training rooms. It is approximately ha in size. It was approved in October 2004 & developed in 2005 to provide extension services, contract ploughing, training & technical advice to the 10 farmers & surrounding communities. Agricultural activities at the Farm include livestock and vegetable production. 6

THE STATE FARMS The 11 state farms covers an area that is approximately ha in extent. In 2005, former DoA issued an advert looking for interested individuals to apply for the occupation & leasing of the state farms. After selection process, 10 of the 11 farms were allocated to 10 successful applicants in 2007/08. The 11 th farm, Rocklands, was not allocated & was reportedly reserved for settling ex-farm workers/dwellers. The 10 successful applicants were given PTOs with intention to provide them with 3-year leases within a year, & option to buy at end of lease. 7

THE STATE FARMS Cont… Since occupation, no leases or any other official docs were signed by the farmers except the 12-month PTOs. The 10 th farmer reported that he pulled out of the process in 2008 after the DoA failed to provide them with leases. Farmers reported that they never received any support from the Dept and for the most part, they lived on the farms with expired PTOs. 8

STAKEHOLDERS & ROLE PLAYERS 9

THE EX-FARM WORKERS/DWELLERS DoA never held any consultations with the former farm workers who also lived on the farms before the farms were allocated to new occupants. The farmers (10 successful applicants) were also never informed that the farms were occupied by former workers, who were also making use of the farm resources. Created conflicts when the new farmers arrived to take occupation of the farms. 10

OTHER STAKEHOLDERS & ROLE PLAYERS Surrounding communities who fall under the two Traditional Authorities, the Imidushane (Jongilanga) Chieftaincy and the Phato Chieftaincy. Recently, other communities who are not necessarily under Traditional Authorities, who were also laying claims to some of the farm land. 11

CHALLENGES AT NCERA FARMS Conflicts among stakeholders – farmers and ex-farm workers. Farm invasions. Claims against Ncera from other stakeholders. Lack of records – establishment of entity. Poor governance capacity at the entity. Role of the Caretaker (DAFF) and lack of M & E. Entity not fulfilling mandate & disregard for state farms. Lack of response by DAFF to Parliamentary recommendations & resolutions. 12

ISSUES FROM 4 TH PARLIAMENT Forensic investigation Records of Ncera incl criteria used to allocate 10 farms and funds used since entity’s inception Re-submission of Strategic Plans according to NT Guidelines & Frameworks Turnaround Strategy Closure of entity – deregistration Plan expected in July 2013 – alternative proposals Progress report on deregistration of entity expected in January

DEPARTMENT RESPONSES Compliance matter re: entity’s Strategic or Annual Plans never rectified Reviewed Turnaround Strategy not submitted The Plan (& Progress Report) with alternative proposals on how to close or deregister Ncera never submitted Dept reported that it was having discussions with the ARC, national DRDLR, EC provincial Dept of Rural Dev & Agrarian Reform and Buffalo City Metro. No effort made to resolve conflict among stakeholders at Ncera No report back on actions taken against government officials implicated in Forensic Report. 14

ISSUES FOR CONSIDERATION Progress in addressing matters highlighted in Forensic Investigation Report Clarity & status of the 10 th farm Status of Rocklands Farm that was meant to settle ex- farm workers Clarity & status of the unofficial arrangement between entity and Jongilanga Chieftaincy Verification of claims against the entity Detailed report of operations, staff complement & responsibilities, latest asset register (incl livestock) Dept to clarify its role as sole shareholder & caretaker 15

THANK YOU 16