1. ANNUAL REPORT YEAR ENDED 31 MARCH 2009 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 28 OCTOBER 2009 By Andrew Mphela Chief Land Claims Commissioner

2. 2 VISION AND MISSION Vision: To be leaders in the restitution of land rights to victims of racial land dispossession in a manner that ensures sustainable socio-economic development. Mission: To promote reconciliation by ensuring equity for victims of land dispossession by the state, through sustainable development initiatives and equitable redistribution of land.

3. 3 PURPOSE OF RESTITUTION Strategic objectives: To provide equitable redress to victims of racial land dispossession in terms of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994) To provide access to rights in land, including land ownership and sustainable development. To foster national reconciliation and stability. To improve household welfare, underpinning economic growth, contributing to poverty alleviation.

4. 4 OVERVIEW A successful restitution process is critical especially now as we face a global economic meltdown and escalating food prices. Key to achieving this is effective post settlement support within the context of rural development. Resources, Capacity building and Cooperative Governance.

5. 5 OVERVIEW contd. Complex nature of claims affected pace of settling claims. Price of land is a huge factor affecting the state’s ability to acquire more land for beneficiaries (average R12 949.00 per ha). More money was spent to buy less hectares of land.

6. 6 OVERVIEW contd. During the year under review, a total of 653 claims were settled affecting 30 112 households. Approximately 136 000 individuals from poor families in rural areas benefited from the restitution process during 2008/09, resulting in a total of 1.5 million individuals who have benefited since 1995. Almost 100% of R3.1 billion allocated was spent.

7. 7 OVERVIEW contd. The costs for restitution awards, including land purchase and financial compensation amounted to R2.8 billion. Approximately R338 million was spent on recurrent costs, including salaries and service providers.

8. 8 OVERVIEW contd. A total amount of R803m was committed as development grants. The total number of households that have benefited from settlement of a total of 75400 claims settled so far is 315 433. Total claims settled as at 31 March 2009 represents 95.5% of all claims lodged.

9. 9 OVERVIEW: COMPLEX CLAIMS Claims on forestry and mining land are complex cases subject to more risk. Careful Sector planning and transversal consideration is key to ensure that rural development objectives are met. Settlement of claims must be aligned to broader objectives of rural development to fight poverty and create work opportunities.

10. 10 BUSINESS PROCESS PERSPECTIVE STRATEGIC PARTNERSHIPS Challenges were experienced with some of the relationships established between beneficiaries and Strategic Partners, e.g. South African Farm Management (SAFM) company. Certain projects in Limpopo and Mpumalanga were affected by the liquidation of the company.

11. 11 BUSINESS PROCESS STRATEGIC PARTNERSHIPS contd Currently busy reviewing all partnerships to ensure value for money for beneficiaries. Several agreements were concluded with roleplayers including First National Bank (FNB); Development Bank of SA (DBSA); the Amahlathi Forestry Company and Anglo regarding the provision of strategic support to beneficiaries.

12. 12 BUSINESS PROCESS STRATEGIC PARTNERSHIPS contd. Agreement also concluded with AgriSETA towards provision of critical skills training for new land owners. Interacting with various commodity groups affected by the restitution process with a view to unblock bottlenecks and refine models aimed at ensuring tangible benefits for claimants as well as sustainability of projects.

13. 13 BUSINESS PROCESS SUPPORT FOR STRUGGLING PROJECTS Approximately 200 struggling projects were identified for recapitalization. Department of Agriculture will be assisting with funding for the identified projects.

14. 14 FINALIZATION OF OUTSTANDING CLAIMS Four regional offices preparing to finalize claims at end of 2009/2010 financial year (Gauteng; Free State; Northern Cape; and Western Cape). Remaining offices will complete their claims in the next five years e.g. Mpumalanga (2012); Limpopo (2013); KwaZulu-Natal (2014).

15. 15 FINALIZATION OF OUTSTANDING CLAIMS (Cont.) Memorandum outlining challenges regarding the issue of the 2008/09 deadline was submitted to Cabinet. Outstanding claims will be finalized in line with the budget cycles regarding disbursement of funds for government programmes (MTEF), subject to availability of resources and creation of capacity for post settlement support.

16. 16 CHALLENGES & STRATEGIES ChallengeProposed solution Community conflicts: Governance issues Conflict between CPA/Trusts and Traditional Authorities (CLARA) Review of the CPA Act Align modern organization form / legal entity with cultural practices and traditional forms of governance. Valuation of land (method of valuation) S25(3) of the Constitution, White Paper on South African Land Policy. Market led land reform. Review Policy Constitutional Reform Disposal of State land / Public landBring MFMA, PFMA into alignment with Restitution Act and related laws. Expropriation Act of 1975Finalize amendments to the Expropriation Act. Resources for RestitutionIncrease baseline allocation or reschedule finalization of claims. Exit strategy from projectsAgreements with lead agents / government departments.

17. 17 CHALLENGES and STRATEGIES contd. ChallengeProposed solution Recapitalization of failed projects (Treasury regulations) Land bank or other development agencies, IDT, NDA to play more prominent role. Fragmentation of the Development mandate, Grants funding regime (CASP, MAFISA, Land Reform Grants, Housing grants, MIG) Review and align the grant / funding regime. Tenure systems: flexible system of tenure (Communal, individual tenure, leasehold) Subdivision of land – more individualized forms of tenure

18. 18 OVERVIEW FINALIZATION OF OUTSTANDING CLAIMS Province No. of outstanding claims Eastern Cape522 Free State28 Northern Cape189 Gauteng3 North West195 KwaZulu-Natal1652 Limpopo422 Mpumalanga712 Western Cape573 Total4296

19. 19 SETTLED RESTITUTION CLAIMS 01 APRIL 2008-31 MARCH 2009 PROVINCERURALDISMISSEDHHs BENEFICIARIESFHHsHa E CAPE33059302104627616602 F STATE155492033364252745 GAUTENG10311135915345 KZN7212787344040275344308 LIMPOPO2351727897869133591816 MPLANGA13904841259192115105490 N CAPE181119669497110756617 N WEST200460120044259087126 W CAPE121488136455555.58 TOTAL5451083011213675513794394755

20. 20 SETTLED RESTITUTION CLAIMS 01 APRIL 2008-31 MARCH 2009 CONTD. LAND COSTFIN COMP GRANTS TOTAL AWARD DevelopmentRSG 10,345,453.00 202,376,541.67 5,173,760.97 17,562,485.00 235,458,240.64 1,685,000.00 47,175,963.00 2,350,587.13 2,215,920.00 53,427,470.13 4,800,000.002,160,000.00 1,830,000.00 1,813,625.00 10,603,625.00 1,379,940,250.24 163,545,423.09 327,086,145.06 31,273,195.00 1,901,845,013.39 621,204,396.45 39,746,516.85 223,621,836.79 10,778,670.00 895,351,420.09 1,133,173,574.14 54,168,931.90 84,002,076.50 16,889,795.00 1,288,234,377.54 120,059,935.04 20,227,371.19 39,177,106.29 9,661,675.00 189,126,087.52 248,313,789.48 13,637,838.32 115,020,097.22 29,812,575.00 406,784,300.02 286,260.00 26,551,371.854,980,000.00 2,163,160.00 33,980,791.85 3,519,808,658.35 569,589,957.87 803,241,609.96 122,171,100.00 5,014,811,326.18

21. 21 CUMULATIVE STATISTICS 1995 - 31 MARCH 2009 PROVINCECLAIMSHHsBENHaLAND COST E CAPE161946074720806493600213,681,581.13 F STATE2654581340624473639,428,300.00 GAUTENG1315915153701799476117,283,195.57 KZN14742689104093236109963,463,227,556.25 LIMPOPO3067401242159364879352,359,532,882.37 MPLANGA2688483662235243893953,650,382,194.58 N CAPE36631821697479471896340,441,333.81 N WEST3707351181698233647291,129,633,366.81 W CAPE15526229861162973132.0422,584,547.00 TOTAL7540031543315512492478522R 11,306,194,957.52

22. 22 CUMULATIVE STATISTICS: 1995 - 31 MARCH 2009 CONTD. FIN COMP GRANTS TOTAL AWARD DevelopmentRDGSPGRSG 1,218,620,493.2091,969,907.8493,420,000.0044,841,600.0036,846,265.001,699,379,847.17 127,494,315.9626,527,091.489,192,000.004,099,680.002,255,490.00178,996,877.44 635,320,713.7362,827,001.388,617,000.002,926,440.001,813,625.00828,787,975.68 1,261,621,490.181,047,442,735.37107,313,000.0048,345,840.0035,428,045.005,969,745,666.80 134,435,896.27551,626,964.9490,843,000.0041,427,360.0015,250,080.003,193,116,183.58 361,866,107.94174,236,027.35102,986,640.0049,614,510.0021,024,860.004,360,110,339.87 658,472,991.8684,070,305.4910,493,640.0012,071,495.4812,543,690.001,118,093,456.64 244,070,518.35353,441,131.4781,587,000.0039,089,472.0030,828,060.001,878,649,548.63 784,108,519.53295,907,500.0015,765,540.003,427,452.002,163,160.001,124,003,718.53 R 5,426,011,047.02R 2,688,048,665.32R 520,217,820.00 R 245,843,849.48 R 158,153,27 5.00 R 20,350,883,61 4.34

23. 23 CUMULATIVE STATISTICS ON SETTLED LAND CLAIMS: RURAL AND URBAN 1995 – 31 MARCH 2009 LAND RESTORATION FINANCIAL COMPENSATION ALTERNATIVE REMEDY URBAN CLAIMS SETTLED 15439477262477 RURAL CLAIMS SETTLED 4652522882913 TOTAL20091522882913

24. 24 CUMULATIVE STATISTICS ON SETTLED LAND CLAIMS: RURAL AND URBAN 1995 – 31 MARCH 2009 DISMISSED CLAIMSTOTAL NO. OF CLAIMS SETTLED BENEFICIARIES INVOLVED 065642513232 10897581038017 108754001551249

25. 25 Expenditure 2008/09 Standard ItemBudget AllocationExpenditureAvailable budget Compensation of employeesR 194,325,740R 188,051,277R 6,274,463 Goods & ServicesR 143,920,260R 132,098,691R 11,821,569 Payments Capital AssetsR 17,507,000R 15,477,322R 2,029,678 Transfer PaymentR 2,794,393,000R 2,789,456,575R 4,936,425 TotalR 3,150,146,000R 3,125,083,865R 25,062,135

26. 26 Expenditure till 15 July 2009 Budget Exp till date Commitment Budget Available% Comp of employees 225,666,000.00 62,164,401.82 - 163,501,598.1828% Good & Services 173,841,000.00 34,823,061.04 44,238,271.24 94,779,667.7220% Payments Cap Assets 1,180,000.00 702,391.94 1,316,803.60 -839,195.5460% Sub Total 400,689,000.00 97,967,391.80 45,555,074.84 257,166,533.3624% Households 1,488,595,000.00 1,441,563,016.76 47,031,983.2497% - Land Cost 1,358,000,000.00 1,357,260,293.89 739,706.11100% - Grants 102,595,000.00 63,970,721.86 38,624,278.1462% - Financial Compensation 25,000,000.00 17,993,838.58 7,006,161.4272% - Other 3,000,000.00 2,338,162.43 661,837.5778% TOTAL 1,889,284,000.00 1,539,530,408.56 45,555,074.84 304,198,516.6081%

27. 27 Expenditure until 15 July 2009 Balance b/forward 1995-2004 04/05 05/06 06/07 07/08 08/09 09/10 Total Capital Expenditure 1,465,977 1,016,790 1,582,334 2,123,918 2,877,637 2,797,6391,441,563 13,305,858

28. 28 Total projected cost for Restitution MTEF requirement:R10,4 billion Committed projects:R 21,5 billion Betterment claims:R10,0 billion Kruger National Park:R20,0 billion 2009/10 BudgetR 3,4 billion Total:R65,3 billion

29. 29 2009/10 and MTEF budget NOTE: *For the 2009/10 financial year, the budget would be exhausted by the end of July 2009. An additional R3.4 billion would required to see through the financial year. In view thereof the Commission will require a further R13.8 billion. PROVINCE 2009/10 (R'000) 2010/11 (R'000) 2011/12 (R'000) 2012/13 (R'000) Total for MTEF Total 2009- 2013 Required 1 2 3 Eastern Cape 300,000 600,029 639,426 650,000 1,889,455 2,189,455 Free State 400,000 300,030 310,000 350,000 960,030 1,360,030 Gauteng 372,000 300,000 520,749 550,000 1,370,749 1,742,749 KZN 1,634,361 1,895,742 2,372,763 1,500,000 5,768,505 7,402,866 Limpopo 917,000 896,000 448,984 500,000 1,844,984 2,761,984 Mpumalanga 783,000 882,600 875,956 890,000 2,648,556 3,431,556 Western Cape 505,000 200,400 167,823 178,228 546,451 1,051,451 TOTAL 4,911,361 5,074,801 5,335,701 4,618,228 15,028,730 19,940,091 BASELINE 1,488,595 1,172,974 1,660,947 1,763,926 4,597,847 6,086,442 OPTION ITO MTEF 3,422,766 3,901,827 3,674,754 2,854,302 10,430,883 13,853,649

30. 30 Budget breakdown MTEF 2010-2013 Total Office Land cost Grants Financial Compensation Total Eastern Cape 891,459,643 888,426,000 109,569,357 1,889,455,000 Free State & NC 726,470,573 129,887,639 103,671,788 960,030,000 Gauteng & NW 730,000,000 480,000,000 160,749,000 1,370,749,000 KZN 2,161,972,976 3,371,532,024 235,000,000 5,768,505,000 Limpopo 1,267,195,332 577,788,668 - 1,844,984,000 Mpumalanga 1,100,319,550 1,459,438,423 88,798,027 2,648,556,000 Western Cape 376,632,287 53,300,590 116,518,123 546,451,000 Total 7,254,050,361 6,960,373,344 814,306,295 15,028,730,000

31. 31 Budget breakdown 2010/11 2010/11 Office Land cost Grants Financial Compensation Total Eastern Cape 411,459,643 148,000,000 40,569,357 600,029,000 Free State & NC 145,477,095 89,374,715 65,178,190 300,030,000 Gauteng & NW 180,000,000 90,000,000 30,000,000 300,000,000 KZN 874,282,357 951,459,643 70,000,000 1,895,742,000 Limpopo 780,211,332 115,788,668 896,000,000 Mpumalanga 553,184,370 305,052,866 24,362,765 882,600,000 Western Cape 139,115,129 17,195,452 44,089,419 200,400,000 Total 3,083,729,925 1,716,871,344 274,199,731 5,074,801,000

32. 32 Budget breakdown 2011/12 2011/12 Office Land cost Grants Financial Compensation Total Eastern Cape 280,000,000 340,426,000 19,000,000 639,426,000 Free State & NC 236,506,402 35,000,000 38,493,598 310,000,000 Gauteng & NW 300,000,000 160,000,000 60,749,000 520,749,000 KZN 730,143,916 1,562,619,084 80,000,000 2,372,763,000 Limpopo 228,984,000 220,000,000 448,984,000 Mpumalanga 251,369,302 586,104,265 38,482,433 875,956,000 Western Cape 79,388,083 36,006,213 52,428,704 167,823,000 Total 2,106,391,703 2,940,155,562 289,153,735 5,335,701,000

33. 33 Budget breakdown 2012/13 2012/13 Office Land cost Grants Financial Compensation Total Eastern Cape 200,000,000 400,000,000 50,000,000 650,000,000 Free State & NC 344,487,076 5,512,924 350,000,000 Gauteng & NW 250,000,000 230,000,000 70,000,000 550,000,000 KZN 557,546,703 857,453,297 85,000,000 1,500,000,000 Limpopo 258,000,000 242,000,000 500,000,000 Mpumalanga 295,765,879 568,281,292 25,952,829 890,000,000 Western Cape 158,129,075 98,925 20,000,000 178,228,000 Total 2,063,928,733 2,303,346,438 250,952,829 4,618,228,000

34. 34 CONCLUSION Massive pressure placed on Commissioners as a result of financial constraints affecting the restitution programme. Huge demands: social, political, economic implications of not resolving claims. Commission: Act of Parliament (review of Commission’s existence or other). Reschedule delivery

35. 35 Thank you Andrew Mphela Chief Land Claims Commissioner Tel: (012) 312 8883 Fax: (012) 321 0428 email: MMPhela@dla.gov.zaMMPhela@dla.gov.za