1. Presentation to the Portfolio Committee on Rural Development and Land Reform Strategic Planning Workshop 2-3 February 2016 2016/03/171

2. Presentation outline For purposes of this discussion we have categorised the ITB activities into 3 categories Land administration Support to Traditional Communities Ensure Corporate Governance and Service Excellence 2016/03/172

3. Part 1: Strategic Plan 2010 – 2015 To administer Ingonyama Trust land Performance Indicator2010/112011/122012/132013/142014/15 Number of tenure rights concluded 23061885611571100 Land holdings register maintained on a quarterly basis New indicator 4444 Number of planned land management projects New indicator 1544 2016/03/173

4. Part 1: Strategic Plan 2010 – 2015 contd Other activities during the period under review Performance IndicatorProgress Transfer of former KwaZulu R293 towns 24 towns have been transferred, Mpumalanga is still outstanding due to the underlying land legal issues Land allocated for housing infrastructure projects Land was made available for housing infrastructure purposes to the Department of human settlements. Development rights agreements are entered into to facilitate this process. In 2014, 20 development rights agreements were concluded to build 43000 units. 2016/03/174

5. Part 1: Strategic Plan 2010 – 2015 contd Projects on Ingonyama Trust land Name of ProjectYearType of project Jozini Tiger Lodge2010 – 11Hotel development Jozini Town Centre2010 – 11Land Audit Hammarsdale Junction2011 – 12Retail property development Msinga and Mathonsi Malls2012 – 13Retail property development Manguzi Town Centre2012 – 13Land Audit Newcastle (Madadeni Township) 2013 – 14Land planning Jozini Shopping Centre2013 – 14Retail property development Mpophomeni Township2014 – 15Land audit RBM Zulti South2014 – 15Mining Tongaat HulletCurrentCollaboration agreement 2016/03/175

6. Part 1: Strategic Plan 2010 – 2015 contd Provision of support to Traditional Communities Performance Indicator2010/112011/122012/132013/142014/15 Number of TC workshops held on land management issues 51823 31 Educational awards Number366084120 ValueR 50,000R 311,592R 444,538R 637,000R 939,000 2016/03/176 Other Support to traditional Councils The Board disbursed funds to beneficiary communities for the following types of request.  Administration costs/salary of certain traditional councils  Cultural events  Uniforms  Expenditure for erection of communal gardens/fencing  Legal expenses  Capital assets  Creation of community Trusts

7. Part 1: Strategic Plan 2010 – 2015 contd Ensure Corporate Governance and Service Excellence Performance IndicatorProgress Timeous payment of expenditure The trust was able to make payments timoeusly in terms of the PFMA. Board CommitteesThe Board had the following committees in place: (1) Executive Committee (ExCo), (2) Audit Committee, (3) Tenure Committee, (4) Supply Chain Committee. These committees were established to ensure compliance with relevant legislation and for effective monitoring and control of operations and internal audit function. Staffing and organogram During this period the Board appointed additional staff members to cater for the ever increasing demand to service our communities. In 2009/10 Ingonyama Trust Board employed 11 staff, this was increased to 56 staff members in 2014/15. Infrastructure development (Office Accomodation) The decision to develop the ITB Head Office was to strategically facilitate for the increased staff to service the high demand from the communities. Further to this in 2013 a decision was taken to open a satellite office in Ulundi to cater for communities in the Zululand and Umkhanyakude District Municipalities. 2016/03/177

8. Limitations / Challenges Office Accommodation: Office accommodation was a limitation in that the Ingonyama Trust Board was accommodated by the Department of Rural Development having few offices. In 2011 the Board constructed its own office accommodation and moved to its accommodation. Loss of Revenue due to Royalties being paid to the state by mining operators In terms of the Royalty Act, mining operators on Ingonyama Trust and are now paying Royalties over to the State. Royalty income has decreased from R16 million in 2009/2010 to less than a million in 2014/2015. Royalty revenue was previously credited to the account of beneficiary communities. 2016/03/178

9. Limitations / Challenges Audit Qualifications Valuation of land The Ingonyama Trust has been qualified for numerous years for not valuing its land in terms of GRAP Accounting Standards. The Board is of the view that the valuation exercise is very costly. The Ingonyama Trust Board proposed to the Auditor General and the Office of the Accountant General a less expensive method of valuing the land. The office of the Accountant General was not satisfied with this approach. The Auditor General refused to comment as in their opinion it impacted on their “independence”. The Board has initiated the valuation process using valuers and candidate valuers. 2016/03/179

10. Part 2: Strategic Plan 2015 - 2020 Strategic ObjectivesMeasurable Performance Indicator 1.1. Provide effective monitoring and evaluation systems to the Ingonyama Trust Board Number of mid-term reviews held and reports to be submitted 1.2. Ensure effective stakeholder engagement and communication Customer Service Charter to be approved Stakeholder engagement strategy to be approved by the Board Number of Communication Reports to be submitted to the Board 1.3. Provide IT Support to improve efficiency Audited IT infrastructure of the ITB Bi annual check of software compliance to be conducted 1.4. To ensure that efficient internal resource management is aligned to legislative requirements Number of policies to be approved by the Board Percentage of all movable assets to be recorded in the asset register 1.5. To ensure reduction of vacanciesHR provisioning plan to be approved by the Board Percentage posts to be filled in relation to the HR provisioning plan 1.6. To ensure Performance Management in ITB Percentage of Performance agreements to be concluded timeously 1.7. Provisionof skills development to improve service delivery Number of Internal Skills Audit to be performed 1.8. To improve customer relationship Payment of undisputed invoices within 30 days of receipt in finance Number of MOAs with traditional councils to be approved by the board 2016/03/1710 PROGRAMME 1 : ADMINISTRATION

11. Strategic Plan 2015 – 2020 (contd) 2016/03/1711 PROGRAMME 2 : LAND MANAGEMENT Strategic ObjectivesMeasurable Performance Indicator 2.1. Provision of secured tenure rights to facilitate development on Ingonyama Trust land. Number of land tenure rights to be approved by the Board 2.2. To maintain an integrated and comprehensive land tenure administration system/ (database of land tenure rights) Number of updates to be done to the land holding register Number of land parcels for commercial use to be valued 2.3. Making Trust land available for infrastructure development at district municipality level Number of MOU’s to be approved by the board 2.4. Ensure legal occupation of Trust land Number of programmes to be conducted to prevent illegal occupation

12. 2015 - 2020 Strategic ObjectivesMeasurable Performance Indicator 3.1. Provide support to beneficiary communities to improve food security. Plan on agriculture production on trust land to be approved Number of potential project of high commercial value for partnership with private sector to be identified and implemented Number of agricultural projects to be approved by the Board 3.2. To facilitate economic development MOU with Agribusiness Development Agency to be approved by the Board 3.3.To identify strategically located land to be utilized for high impact commercial ventures A land audit to be conducted to identify prime land in line with the provincial spatial development framework for potential investment 2016/03/1712 PROGRAMME 3 : RURAL DEVELOPMENT

13. 2015 - 2020 2016/03/1713 PROGRAMME 4 : TRADITIONAL COUNCIL SUPPORT Strategic ObjectivesMeasurable Performance Indicator 4.1. Provide training to Traditional Councils. Skills Audit to be performed based on land related legislation Training plan to be approved by the Board Number of traditional councils to be trained 4.2.Facilitate skills development for young people living on communal land Number of educational awards to be granted

14. Mining on Trust land The Ingonyama Trust Board held workshops with amaKhosi, mining communities and mining service providers to monitor mining activities on Trust land 2016/03/1714

15. Part 3: Capacity to Implement the Plan Policy Development The policies are in the process of being reviewed Human Resources / Organogram The organogram is in the process of being established Financial Resources The Ingonyama Trust Board is currently funded from its trading activities and from the Transfer Payment received from the Department of Rural Development. The Ingonyama Trust Board utilizes funding from trading activities as the transfer payment is not sufficient to pay for the entire operational and capital budget. Capital expenditure is entirely paid from the trading activities of the Trust. (Not Transfer Payment Funding) The Ingonyama Trust Board has taken into account the required funding from 2016 to 2019 based on the existing staff structure. Additional funding will be required once the organogram is finalized and policies developed. 2016/03/1715

16. Thank You 2016/03/1716