Financial Performance: Quarters 3 and 4; and Quarter 1: Presentation to the Portfolio Committee on Rural Development and Land Reform 10 September 2014

2 PRESENTATION OUTLINE 1.Executive Summary 2.DRDLR’s Performance per Programme and per Economic Classification 3.Agricultural Land Holding Account 4.Deeds Registration Trading Account 5.KwaZulu-Natal Ingonyama Trust Board

1.Total spending to the 3 rd Quarter of the financial year amounted to R7.5 billion, representing 79.8% of the Final Appropriation of R9.4 billion. 2.Spending for the 4 th Quarter of amounted to R1.9 billion, representing 20.1% of the Final Appropriation, resulting in a 99.9% overall spending for the year and leaving a balance available at the end of the financial year of R5.7 million. 3.It is important to note that the 4 th Quarter spending did not spike to abnormal levels, as the percentage spent of 20.1% was within the linear target of 25.0% per quarter. 4.The expenditure for the 1 st Quarter of the financial year amounted to R2.1 billion, representing 22.4% of the Appropriation of R9.4 billion, and reflected a 2.6% or R248.1 million under spending of the linear target of 25.0%. 5.With regard to the Agricultural Land Holding Account (ALHA), the entity’s expenditure to the 3 rd Quarter of the fiscal year amounted to R1.3 billion, representing 79.3% of their R1.6 billion allocation. During the 4 th Quarter the entity reflected expenditure of R348.3 million or 20.6%, which was within the linear target of 25.0% per quarter. Total spending for the 2013/2014 fiscal year amounted to R1.6 billion or 100.0%, leaving a balance of R198 thousand. 6.ALHA’s expenditure for the 1 st Quarter of amounted to R160.2 million, representing 37.3% of the 1 st Quarter transfer to the amount of R428.9 million from the department to the entity. The total allocation for transfer to the entity amounts to R1.9 billion and is transferred to the entity quarterly on their request. Executive summary 3

7.The Deeds Trading Account generates its own revenue. During the financial year it received transfer from the Department amounting to R214, 8 million to augment the budget E – Cadastre Project. 8.As far as the KwaZulu-Natal Ingonyama Trust Board is concerned, spending to the 3 rd Quarter of the 2013/2014 fiscal year amounted to R83.1 million, representing 107.5% of their 2013/2014 budget of R77.3 million. Expenditure during the 4 th Quarter amounted to R29.0 million, resulting in a R112.1 million total spending for the 2013/2014 financial year, and a R34.8 million over spending of their budget. The Board furthermore indicated that the full transfer from the department amounting to R14.5 million had been utilised. 9.The Board’s financial performance for the 1 st Quarter of the 2014/2015 fiscal year amounted to R8.7 million, representing 13.8% of their R62.7 million budget for the year. The Board is allocated a total transfer of R17.3 million from the department for the 2014/2015 financial year, which is to be transferred quarterly on request. No transfer of funds had been made by the end of the 1 st Quarter, but the amount of R 6.7 million (39.0%) has since been transferred in the 2 nd Quarter, leaving a balance available for transfer of R10.6 million for the rest of the financial year. Executive summary – cont. 4

5R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent 1. Administration % % % % 2. Geo-spatial & Cad Serv % % % % 3. Rural Development % % % % 4. Restitution % % % % 5. Land Reform % % % % Total % % % % Per Programme

6 Per Economic Classification R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land Payments fin assets Provincial & local gov % % % % Dept. agencies & acc % % % % Foreign gov & int. org % % Public corp. & priv. ent % % % % Non-profit institutions % % % Households % % % % Buildings & fixed struc % % % % Machinery & equip % % % % Biological assets % %--- Land & subsoil % % % Software (1 288) Total % % % %

7R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land Payments fin assets Provincial & local gov % 53.9% % % Dept. agencies & acc % % % Public corp. & private entities % % % --- Households % % % % Buildings & fixed structure % % % % Machinery & equip % % % % Software (45) Total % % % % 1. Administration

8R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land Payments fin assets Provincial & local government % 17.2% 321.6% 20-- Dept. agencies & acc % % % % Foreign governments & international org % % Non-profit institutions % % % Households % % % % Machinery & equip % % % % Software (1 242) Total % % % % 2. Geo-spatial and Cadastral Services

9R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land Payments fin assets Dept. agencies & acc % % % Public corp. & priv. ent % % % Households % (2 639) (1449.9)% % % Buildings & fixed struc % % % % Machinery & equip % (1 069)(8.4)% % % Biological assets % %--- Total % % % % 3. Rural Development

10R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land Payments fin assets Provincial & local gov % % % % Households % % % % Machinery & equip % % % % Land & subsoil % % % Total % % % % 4. Restitution

11R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land Payments fin assets Provincial & local gov % % % % Dept. agencies & acc % % % % Public corp. & priv. ent Households % % % % Buildings & fixed struc Machinery & equip % % % % Total % % % % 5. Land Reform

12 Agricultural Land Holding Account

Per Province 13R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Q1TransferSpending for Q1 % spent Eastern Cape % % % % Free State % % % % Gauteng % % % % KwaZulu-Natal % % % % Limpopo % % % % Mpumalanga % % % % Northern Cape % % % % North West % % % % Western Cape % % % % Total % % % % The total 2014/2015 ENE allocation for transfer to ALHA amounts to R1.9 billion and is transferred quarterly at the beginning of each quarter.

14 Deeds Registration Trading Account

15R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Total Revenue Total Revenue ( ) ( ) ( ) 114.5% (7.3)% ( ) ( )107.2% ( ) ( ) ( ) ( )20.7% Compensation % % % % Goods and services % (22 804)(11.1)% % % Total current spending % % % % Buildings & fixed structure % Machinery & equipment % % % Total assets % % % Total % % % (Surplus) / Deficit (306) ( ) ( ) ( ) ( ) (14 417) (14 417)- Per Economic Classification

16 KwaZulu-Natal Ingonyama Trust Board

17 Per Economic Classification R’ / /2015 Final budget Spending end Q3 % spent Spending for Q4 % spent Total spending % spent Current budget Spending end Q1 % spent Compensation % % % % Goods and services % % % % Interest & rent on land % % % % Buildings & fixed structure % % % % Machinery & equip % % % % Software % % % % Total % % % %

Thank You 18