1. COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT: 2014 – 2015 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 4 NOVEMBER 2015

2. TABLE OF CONTENTS 1.Introduction 2.Distribution of CPAs 3.Challenges faced by CPAs 4.Registrations, untraceable, lost land and administration 4.1 Untraceable CPAs and those that lost land 5. Definition of Compliance 6. LRMF Referrals 7. Distribution of referrals 8. Unsuccessful Regularisation 9. Expenditure 2014-2015 10. National compliance trends 10. Interventions 11. Legislation 13. Outcomes and Impact 2

3. 1. INTRODUCTION Communal Property Associations are formed in terms of the Communal Property Associations Act, 1996 (Act No. 28 of 1996) to hold, manage and own land on behalf of its members. In terms of Section 17 of the Act, the Department of Rural Development and Land Reform is required annually to submit a report to the Minister on Communal Property Associations and Provisional Associations and how the objects of the Act are being met, and the Minister shall table the report in Parliament. 3

4. 2.1. DISTRIBUTION OF CPAs 1428 CPAs were registered to date. 48 CPAs registered in the financial year 2014/15. The distribution of CPAs according to provinces reflects proportion of registered CPAs according to provinces. 4

5. 2.2. DISTRIBUTION OF CPAs … PER PROVINCE 5

6. 2.3. DISTRIBUTION OF CPAs … PER PROGRAMME 6

7. 3. CHALLENGES FACED BY CPAs Ongoing conflict amongst CPA members centred on governance issues: accountability, financial mismanagement, transparency and lack of adherence to the CPA constitution; Some CPAs are insolvent and need an injection of funds to put them on a sound business footing. Litigation proceedings are sometimes used to prevent members of CPAs from participating in the activities of the CPA. Alienation of immovable property in ownership of the CPA. Nine CPAs are under Judicial Administration for the abovementioned reasons for periods ranging from 6 months to 3 years 7

8. 4. REGISTRATIONS, UNTRACABLE, LOST LAND & ADMINISTRATION ProvinceRegistered in 2014- 15 Untraceable CPAs CPAs that lost Land CPAs under Administration Eastern Cape202 (420 ha)0 Free State1011 (2663 ha)0 Gauteng1000 Kwazulu-Natal7000 Limpopo14002 Mpumalanga12223 (2190 ha)1 Northern Cape914 (5395 ha)3 North West2602 Western Cape0001 National Summary482920 (10668 ha)9 8

9. 4.1. UNTRACEABLE CPAS AND THOSE THAT LOST LAND Untraceable CPAs means those CPAs that were registered and never owned land or whose members cannot be located Investigations are still ongoing. CPAs that lost land means those that either sold land or whose land was lost to creditors. Where the sale is irregular or illegal we assist communities to challenge the sales in court. Where the sale was regular we initiate the process of deregistration of those CPAs. 9

10. 5. DEFINITION OF COMPLIANCE Compliant CPAs: – updated membership list, – a valid constitution, – hold regular AGMs – hold elections – submit Annual Reports to the DG. Not all CPAs that are not regularised are non-compliant. Some CPAs have used their own resources to create internal capacity in order to establish an efficient administration which will ensure compliance with their reporting requirements. 10

11. 6. LRMF REFERRALS 147 CPAs were referred to the LRMF for Regularisation A total of 40 CPAs have been regularised to date and 12 CPAs in 2014/15. 65 cases are pending 42 cases cannot be regularised and were referred back to the Department 11

12. 7. DISTRIBUTION OF REFERRALS 12 ProvinceNo of CPAsTotal Area(ha)Total HouseholdsBeneficiaries Eastern Cape1317,340.21511611727 Free State1027,700.83345910 Gauteng95,453.6629278641 KwaZulu-Natal1319,264.8012206414 Limpopo1145,938.7322538731 Mpumalanga2863,864.92441222781 North West2383,943.26730226302 Northern Cape22137,549.11321111810 Western Cape1810,139.2333227267 Grand Total147411,194.7630,108104,583

13. 8. UNSUCCESSFUL REGULARISATION Regularisation is a process which mainly involves mediation and assisting a CPA to undertake processes that will make it compliant. Not all endeavours to regularise yield positive results. Some of the reasons that lead to failure of regularisation are: – Members who insist on litigation – Underlying problems like chieftainship contests – Interdicts obtained by one party to prevent the Department from intervening/regularising/assisting. In those instances the most feasible option becomes administration. 13

14. 9. EXPENDITURE 2014/15 Land Rights Management Facility: Disbursements for CPAs Panel Funds between April 2014 and March 2015 Date Amount Paid Quarter 1 R2 777 949.69 Quarter 2 R1 110 988.34 Quarter 3 R1 550 656.59 Quarter 4 R719 068.25 TOTAL R 6 158 555.86 14

15. 10. NATIONAL COMPLIANCE TRENDS Province2009-102011-122012-132013-142014-15 Eastern Cape1621222329 Free State1112222332 Gauteng81011 12 Kwazulu-Natal2730 33 Limpopo1024343553 Mpumalanga816262742 Northern Cape411121330 North West1021394033 Western Cape613 20 National Summary 100158209171284 15

16. 11. INTERVENTIONS / TURN AROUND STRATEGY…1  Mediation: During the reporting period, Department mediated in 87 CPA disputes.  Training: 56 CPAs were trained on the CPA Act and on governance matters. 147 officials have been trained on the CPA Act and dispute resolution  Regularisation: 12 CPAs were regularised through Land Rights Management Facility and are now legally compliant.  Judicial administration: 9 CPAs have been placed under judicial administration. 16

17. 11. INTERVENTIONS / TURN AROUND STRATEGY…2  Judicial administration: 9 CPAs have been placed under judicial administration. Northern Cape o Khomani San o Loeriesfontein o Pniel North West o Klein Tswaing o Barolong Bo Maiketso 17

18. 11. INTERVENTIONS / TURN AROUND STRATEGY…3  Judicial administration: 9 CPAs have been placed under judicial administration. Western Cape o Elandkloof Limpopo o Serala o Letswalo Mpumalanga o Sisonke 18

19. 11. INTERVENTIONS / TURN AROUND STRATEGY…4  Recapitalisation: 26 CPAs are being assisted through the Recapitalisation and Development Programme (RADP) ; and R166 468 012 is budgeted for this purpose CPAs Recapitalised in Free State o BethanyR9 700 000 o Itekeng Chicken AbattoirR4 994 430 o MokhachaneR3 052 025 TOTALR 17 746 455 CPAs Recapitalised in Limpopo o Seloane R1 080 000 o Mawela R22 306 580 o SeabiR8 013 730 o ShigaloIn progress. o TOTALR 31 400 310 19

20. 11. INTERVENTIONS / TURN AROUND STRATEGY…5  Recapitalisation: 26 CPAs are been assisted through recapitalisation; and R166 468 012 is been invested. CPAs Recapitalised in Mpumalanga o BunyebetfuR8 662 500 o Buyelani MajabulaR2 537 512 o ChampagneR19 603 540 o EndloviniR8 033 500 o EsandleniR8 381 231 o IngogoR2 985 500 o MathebulaR6 555 053 o MbuyaneR19 264 342 o MhlongamvulaR9 808 700 o SiboneloR3 077 400 TOTALR 88 909 278 20

21. 11. INTERVENTIONS / TURN AROUND STRATEGY…6  Recapitalisation: 26 CPAs are been assisted through recapitalisation; and R166 468 012.50 is been invested. CPAs Recapitalised in North West o BarokologadiR410 169 TOTALR 410 169 CPAs Recapitalised in Northern Cape o IphemelengR4 740 614 o Batsamaya MmogoR5 496 471 o KopanoR4 570 860 o Ditaung FarmersR3 681 798 o Laughing WatersR1 847 583 o Bonita ParkR5 236 986 o RichtersveldR2 368 848 o KoopmansfonteinR58 635.00 TOTALR 28 001 795 21

22. 12. LEGISLATION  The draft CPA Amendment proposes amendments to the Act to enhance the protection of members rights:  Land owned by a CPA will have to be surveyed and a diagram drawn up to facilitate the institutionalisation of the rights of members.  Disqualification of certain people from holding CPA office.  60% quorum required for land transactions  Capacity will be strengthened through the establishment of a dedicated CPA Office.  The Bill is currently being processed for approval. 22

23. 13. OUTCOMES AND IMPACT  Mediation  87 disputes have been resolved  Legislation  Bill not yet finalised. Impact will only be determined after promulgation and implementation.  Operational Capacity  Directors and operational personnel responsible for CPAs are being appointed in all provinces. More support is provided to CPAs. 23

24. 13. OUTCOMES AND IMPACT… 2  Training  56 CPAs and 140 officials were trained on the CPA Act and governance matters. Some CPAs are meeting their obligations without support from government. Others are using their own resources to build internal capacity.  Regularization  12 CPAs were regularized through Land Rights Management Facility and are now legally compliant.  Judicial administration  This action is putting CPAs on the back-foot which results in some CPAs requesting out of court settlement. 24

25. THANK YOU 25