1. Communal Property Associations Annual Report Presentation to the Portfolio Committee on Rural Development and Land Reform
2 November 2016

2. TABLE OF CONTENTS
1. Background
2. Challenges
3. Institutional
4. Interventions
5. Annual Targets
6. Land Rights Management Facility
7. Land Rights Management Facility Expenditure
8. CPAs without Land
Untraceble CPAs
Compliance Summary
10. Provincial Compliance trends
11. National Compliance Trends
CPA Amendment Bill

3. 1. BACKGROUND
Since the promulgation of the Communal Property Associations Act a total of 1483 CPAs were registered.
During the reporting period we registered 53 CPAs.
The majority of these CPAs encounter challenges with legal compliance, lack of management skills, operations and internal conflicts.
Various steps are taken by the Department to assist non-compliant CPAs and those that experience internal problems.

4. 2. CHALLENGES Incomplete Verification
The partial verification by the Commission on Restitution of Land Rights impacts negatively on the cohesion of CPA members
External Interference
Well-resourced and connected individuals sow discord amongst CPA members in order to exploit assets and resources of CPAs.
Poor Governance
Low literacy levels undermine efforts to create a good corporate culture.
Litigation
Members spend too much time litigating instead of working for the common good.

5. 3. INSTITUTIONAL SUPPORT
CPA District Fora
They were established to give CPAs a platform to share experiences and to solicit support
Tenure Forum
It was established to enable newly appointed officials to learn and discuss their operational challenges with experienced colleagues.
Advisory Committee On Judicial Administrations
Was established to screen all applications for judicial administration to ensure that alternative interventions are not feasible.
CPA Office
The need to support CPAs exists even prior to the passing of the CPA Amendment Bill.
Land Rights Management Facility
Manage a panel of specialist mediators, lawyers, accountants & auditors

6. 4. INTERVENTIONS Capacity Building
A total of 138 received capacity building support in the form of training, workshops and focused skills transfer
Litigation
There is ongoing litigation in some CPA which negatively affect their stability:
Rama
The auditors are finalising their report on the management of CPA funds
Ravele
The State attorney must set the matter down for a hearing.

7. 4. INTERVENTIONS …. 2 Bakgatla Ba Mocha
The cases will be consolidated into one matter and it is awaiting allocation of a judge
Richtersveld
The department is mediating and moving for the rationalisation of the various structures that have been established by the CPA members.
Bethany
There is ongoing mediation in the CPA. The CPA and the Department are at the stage of preparing for the AGM which is planned to take place before the end of the current calendar year.

8. 4. INTERVENTIONS….3 Judicial Administration
The Department is making progress in implementing the resuscitation plan of CPAs that are under administration.
Barolong Boo Seitshiro
The Administrator is busy with the verification of members which will ensure that the is a credible voters roll in place prior preparation for the AGM. The CPA will be out of Administration by June 2017.
Khomani San
The Administrator is facilitating the verification and updating membership list and drafting development plans for CPA. The contract with the Administrator will end in December 2017.

9. 4. INTERVENTIONS….4 Serala
Following the administration order the Department moved on to facilitate the elections of a new committee without appointing an Administrator for this CPA.
Letswalo
The provincial office requested the withdrawal of the Administration Order and the matter will be held on 13 December 2016.
Elandskloof
The investigation revealed that the allegations of fraud could not be proven. The Administrator has finalised the updating of membership and the housing development plan. AGM was held. The CPA will be out of Administration by the end of The Administrator is doing skills transfer and facilitating an application for Recap.

10. 4. INTERVENTIONS….5
Pniel
The Referee/Administrator is mediating the conflict between the warring factions.
Sisonke
This CPA is out of Administration. They elected a new committee whose term of office end in December The provincial office is assisting them with preparations for the AGM in December

11. 4. INTERVENTIONS….6 Klein Tswaing
Started in 2015, but the CPA is now out of Administration. AGM was held and a new committee elected. Financial reports and assets verification was concluded. A close out report was submitted and the administration ended.
In all CPAs listed above the mismanagement of CPA resources and the gross dysfunctionality.
Provisional CPAs
We had 18 Provisional CPAs on the records. 2 have been converted (Bakone ba Phetla & Bakgatla Ba Kgafela)
No new provisional CPA was registered during the reporting period

12. 5. ANNUAL TARGETS AND BUDGET
Number of CPAs supported towards compliance
The Department had a target of supporting 200 CPAs towards compliance.
A total of 203 CPAs were supported towards compliance.
Budget
There is no separate budget for CPA work in the Department.
Funds allocated to the LRMF are amongst other things supposed to pay panellists who do CPA work. The same funds are used to support other programmes like land rights and restitution.

13. 6. LAND RIGHTS MANAGEMENT FACILITY
The contract between the Department and the Service provider managing the LRMF comes to an end at the end of June 2016.
A new service provider will be taking over the administration of the LRMF starting in July.
There were 69 pending matters, 29 closed matters and 26 new matters.
Funds allocated to support CPA intervention are housed in the LRMF.
The LRMF funds were used to pay for the services of mediators, lawyers (litigations) and judicial administrator.

14. 7. LAND RIGHTS MANAGEMENT FACILITY EXPENDITURE
CPA Panel Funds between April 2015 and March 2016
Date
Amount Paid
April 2015 R
May 2015 R
June 2015 R
July 2015 R
August 2015 R
September 2015 R
October 2015 R
November 2015 R
December 2015 R
January 2016 R
February 2016 R
March 2016 R
TOTAL R

15. 8. CPAs WITHOUT LAND…1
The following CPAs sold land and the DRDLR is currently preparing a list of assets and drafting a Distribution Plan prior to Deregistration:
Eastern Cape
Alpha: Registered in 2003, with15 members, owning ha;
Fuzani: Registered in 2006, with 2 members, owning ha;
Iliso Lomzi: Registered in 2002, with 16 members, owning ha;
Isidingo: Registered in 2000, with 44 members, owning ha;
Lingelihle Poultry: Registered in 2001, with 20 members, owning ha;

16. 8. CPAs WITHOUT LAND…2
New Life: Registered in 2000, with 60 members, owning ha;
Nyathi: Registered in 2004, with 19 members, owning ha;
Sinethemba:Registered in 2001, with 12 members, owning ha;
Free State
Iketsetseng: Registered in 1999, with 98 members, owning 429ha;
Itireleng: Registered in 1998, with 29 members, owning 104ha;
Itshokolele: Registered in 1999, with 18 members, owning 7ha;
Kopano: Registered in 1997, with 97 members, owning 56ha;

17. 8. CPAs WITHOUT LAND…3
Mabaso: Registered in 1998, with 7 members, owning ha;
Marematlou: Registered in 1998, with 214 members, owning ha;
Moleme: Registered in 1998, with 48 members, owning ha;
Morakabi: Registered in 2002, with 11 members, owning ha;
Sekekete: Registered in 2002, with 6 members, owning ha;
Northern Cape
Boitshoko African Farmers: Registered 1998, with 920 members, owning ha;

18. 8. CPAs WITHOUT LAND…4
Dingleton Small Farmers: Registered in 2002, with 3 members, owning ha;
Langverwacht Boerevereeniging: Registered in 1998, with 46 members, owning ha;
Lawane Saamstaan: Registered in 2005, with 5 members, owning ha;

19. 8. CPAs WITHOUT LAND…5
In Nqancula: Registered in 2004, with 16 members, owning ha there is a Court case challenging the legality of the sale of land; Nangu Family: Registered in 2008, with 8 members, claiming ha will be deregistered because land was never transferred to the CPA; and In Dirisanang Small Farmers: Registered in 1998, with 400 members, owning ha some members are challenging the sale of land. A court case is pending.

20. 9. Untraceable CPAs Mpumalanga
Had 22 untraceable CPAs now they have 8.
Northern Cape
Had 1 untraceable CPA now the have 0.
North West
Had 6 untraceable CPAs now they have 2.

21. 10. COMPLIANCE SUMMARY Province 2009-10 2011-12 2012-13 2013-14
Eastern Cape 16 21 22 23 29 13
Free State 11 12 32
Gauteng 8 10
Kwazulu-Natal 27 30 33 19
Limpopo 24 34 35 53 31
Mpumalanga 26 42 75
Northern Cape 4
North West 39 40 14
Western Cape 6 20 05
National Summary
100
158
209
171
284
208

22. 11. PROVINCIAL COMPLIANCE TRENDS

23. 12. NATIONAL COMPLIANCE TRENDS

24. 13. CPA AMENDMENT BILL
Implications Experienced officers of the Department will be transferred to the CPA Office where possible. The CPA Office will make use of current office accommodation of DRDLR. Both the Department and the State Law Advisers are of the considered opinion that the provisions of the Bill are not in conflict with the Constitution. The Office of the Chief State Law Adviser and the DRDLR are of the opinion that this Bill contains provisions that impact on traditional communities. (Sec 76)

25. 13. CPA AMENDMENT BILL…. 2
Progress The Bill was published for Public comments on 29 April 2016 The closing day for the public to make comments was 31 May 2016 Cabinet approved the CPA Amendment Bill On 31 August The Bill has been submitted to the Office of the Chief State Law Advisor for a final certification and then tabling to Parliament.

26. THANK YOU