1. RESPONSE TO THE ISSUES RAISED DURING THE PUBLIC HEARINGS ON THE NATIONAL FORESTS AMENDMENT BILL ; XIV WORLD FORESTRY CONGRESS AND KABELO LAND RESTITUTION AND DEVELOPMENT TRUST DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES 28 NOVEMBER 2017

2. ACRONYMS
BBBEE Broad-Based Black Economic Empowerment DAFF Department of Agriculture, Forestry and Fisheries DRDLR Department of Rural Development and Land Reform DPE Department of Public Enterprises DWS Department of Water and Sanitation EC Eastern Cape FP&M Seta Fibre Processing & Manufacturing Sector Education and Training Authority HA Hectares KZN KwaZulu-Natal NFA National Forests Act NFAC National Forests Advisory Council PCIS Principles, Criteria, Indicators and Standards PFMA Public Finance Management Act PFM Participatory Forest Management PIC Public Investment Corporation SADC Southern African Development Community SDGs Sustainable Development Goals TR Treasury Regulations UNCCD United Nations Convention to Combat Desertification XIV Fourteen

3. PRESENTATION OUTLINE Purpose Introduction
Summary of issues and responses to issues raised at the Public Hearings
Realisation of the 2050 vision for forests and forestry adopted at the XIV World Forestry Congress
Kabelo Land Restitution and Development Trust

4. PURPOSE The purpose of the presentation is to:
Respond to the issues raised by stakeholders during the public hearings for the National Forests Amendment Bill.
Provide a report on the Kabelo Land and Restitution Trust
Provide a progress report on the implementation of the outcomes of the XIV World Forestry Congress held in Durban in September 2015.

5. INTRODUCTION
During the extended public hearings which were held on the 03rd October to 21st November 2017 at selected Provinces, various organisations and individuals submitted and made presentations on the National Forests Act (NFA) Bill and on other forestry related issues.
The Portfolio Committee further invited communities to raise any other issues outside the Bill and committed to submitting such issues to the relevant Committees in Parliament to give them the necessary attention.
The majority of the stakeholders did not refer to the National Forests Amendment Bill, however, they raised various issues outside the Bill although forestry related with some requiring the attention of other government Departments.

6. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Non-involvement of communities during the signing of lease agreements therefore the communities are disadvantaged e.g. by the long lease agreements.
The privatisation of State forests was driven by the Department of Pubic Enterprise (as a lead department on behalf of government) – DPW, DRDLR, DAFF and National Treasury were involved.
At the time of the signing of the leases ( ), although land was claimed, none of the claims were settled.
The leases allow for recognition of the claimants once claims are settled – where government would lease the land from the claimants
DRDLR is working with DAFF to finalise the settlement agreements that will deal with lease period, rentals and other commitments. These will also cover the role of government.
AMENDMEND 6

7. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Non-compliance to agreements relating to empowerment of communities e.g. to commitments of issuing bursaries to excellent performers, maintenance of road infrastructures; appointment of local people versus people from far or other provinces for labour and contract work.
A sustainable forest management lease agreement exists between DAFF and 4 forestry companies (AFC, SQF. Singisi and MTO)
DAFF monitors the requirement of the lease through reports, quarterly meetings and site visits.
Non-compliance is dealt with within the lease framework.
DAFF is addressing the villages within the leased areas through discussions with municipalities
In some cases, DRDLR is assisting
AMENDMEND

8. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Delayed issuance of title deeds and compensation funds to land claimants.
DAFF engages with DRDLR to assist with the challenges experienced e.g. an action plan is being implemented dealing with this and other land claimant related matters – e.g. for the Singisi communities a community profile has been finalised for EC and KZN.
Long turnaround time for issuing of Water Use Licences.
DAFF assists with the reduction of the turnaround time (initially it was open ended – it is now at 300 days) – through the National Afforestation Task Team.
DAFF assists with the application process and conducting Environmental Impact Assessments on behalf of communities to reduce the costs
AMENDMEND

9. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Dysfunctional forums and committees started by the Department e.g. Western Cape Forestry Forum and Participatory Forest Management Committees.
Regarding the Western Cape Forestry Sector Forum, DAFF has held two discussions – roadmap developed to address the issues raised at the hearings.
DAFF has established Forestry Development Forums in all forestry provinces – these are self sufficient and DAFF only provides limited funding to run them.
DAFF due to financial constraints has not been able to run the PFM Committees as envisaged; Funding through the SADC/JICA project is being sought to resuscitate these.
This is part of the SADC Protocol on Forestry that SA has ratified.
AMENDMEND

10. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Non-involvement in assisting communities residing close to State forests e.g. through employment opportunities of non-skilled labour.
DAFF when issuing tenders in State forests insists on labour to be sourced locally.
Companies are also encouraged to source labour within their areas of operation.
DAFF also works closely with the Working on Fire programme in ensuring that fire fighters within the programme are sourced locally.
Nationalisation of tenders in DAFF disadvantaged local communities;
Forestry is a national competency, DAFF complies with the National Treasury Regulations and legislation on procurement of goods and services and all tenders are advertised in the appropriate media and where possible in Local newspapers.
AMENDMEND

11. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
DAFF to raise awareness through programmes for the National Forests Act, 1998 and also to ensure there is a comprehensive plan to promote community participation.
Department has programmes and plans in place to raise awareness such as Arbor week, NFA foundation course, media advertisement of protected trees at an estimated cost of R4 million per annum.
The Department will continue to ensure that there is community participation in future. The intention of the Department with funding allowing is to make significant impact to all local communities.
AMENDMEND

12. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Lack of access to forest: for consumptive and con consumptive uses
The National Forests Act (Principal Act) makes provision for access to State forests for non consumptive and consumptive uses.
Companies who have leased land from DAFF also provide this access as they comply with the provisions of the Act.
Management of State forests by communities
DAFF encourages the management of State forests through the National Forest Act (S29) – CFA
26 000ha of State plantations are currently managed by three communities in KZN and 100ha managed by a community in Limpopo
Other requests are being addressed e.g. DAFF is busy doing a business plan for two communities in EC and KZN.
AMENDMEND 12

13. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Transformation in the forest sector - Communities are concerned that they are not participating in the forestry sector in terms of ownership, control , and management and capacity building (Skills development).
DAFF participates in the Forest Sector Charter Council that is responsible for compliance to the Charter.
Government has its commitments in the Charter and DAFF facilitates that government complies
To encourage compliance by industry – DAFF engages through the Commercial Liaison Forum where all sub-sector associations participate.
DAFF commitments:
Transfer of State plantations to communities
Skills development – collaboration with the FP&M Seta
Sawlog shortage – strategy developed and being implemented.
AMENDMEND 13

14. SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS
ISSUE RAISED
DAFF RESPONSE
Poor working conditions of forestry workers in the sector (wages, housing and sanitation, infrastructure and access roads)
DAFF is not the competent authority.
The DAFF has facilitated the Sector Determination for remuneration of forestry wages and salaries.
Collaboration with Department of Labour is underway
AMENDMEND

15. REALISATION OF THE 2050 VISION FOR FORESTS AND FORESTRY ADOPTED AT THE XIV WORLD FORESTRY CONGRESS

16. ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FOR FORESTS AND FORESTRY
The Department submitted the Durban Declaration to the Department of International Relations and Cooperation to incorporate into the South African position paper to the United Nations General Assembly Summit held in September 2015 as part of the country’s contribution to the adoption of the 2030 Agenda for Sustainable Development.
Through this declaration the country contributed to inculcate the role of forests in achieving the Sustainable Development Goals (SDGs) as stated in SDG 15 which clearly state the need to sustainably manage forests.
The Department continuously ensures that all its policies and strategies are in line with the XIV World Forestry Congress resolutions and its international policy negotiations such as the recent UNCCD COP13, United Nations Framework for Climate Change Convention COP23

17. ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FOR FORESTS AND FORESTRY…
Encouraging the participation of the youth and women - through participation in the National Forests Advisory Council (NFAC), that advises the Minister of Agriculture, Forestry and Fisheries on all forestry related matters, the next term starting in September 2018 to September 2021;
The NFAC as part of its work programme is investigating how youth and women can be encouraged to participate in the sector and how they can be best empowered. This is done in collaboration with the Department of Economic Development.
The DAFF in collaboration with the sector and the FP&M Seta supported the hosting of a global Forestry Students Symposium in South Africa held in July The Department continues to support the participation of students in this annual event.

18. ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FOR FORESTS AND FORESTRY…
In terms of food security and livelihoods, DAFF has recently approved the Agroforestry Strategy, pilots are being conducted in Limpopo and Mpumalanga. Roll out to follow in Eastern Cape (EC) and KwaZulu-Natal (KZN)
DAFF in partnership with Municipalities is implementing the National Greening Strategy where communities are provided with fruit trees which is also in line with one of the Congress legacy projects i.e. One Tree One Child that was started in the OR Tambo District Municipality (EC).
Furthermore, Rural Municipalities who are active in greening their areas of jurisdiction are recognized in the Arbor City Awards as part of their contribution to role of trees in mitigating Climate Change impacts.
DAFF through the LandCare Programme is contributing to improving practices to ensure integrated land use and minimise conflicts over land use. This is also enhanced by the Agroforestry projects that are also linked to the LandCare projects. .

19. ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FOR FORESTS AND FORESTRY…
In improving sustainable management of forests through the revised Principles, Criteria, Indicators and Standards (PCIS). These were revised in partnership with all stakeholders in the sector and recommended by the National Forests Advisory Council

20. KABELO LAND RESTITUTION AND DEVELOPMENT TRUST

21. PURPOSE OF THE TRUST
The Minister of Agriculture, Forestry and Fisheries established the Kabelo Land Restitution and Development Trust in terms of the National Forest Amendment Act of 1998 (Act No. 85 of 2005) to:
Receive rental payments from the companies who are leasing State Forestry land affected by land reform.
Invest such money on behalf of land claimant beneficiaries as part of the Trust Property.
Pay rentals collected and with interest earned to the beneficiaries approved by Department of Rural Development and Land Reform.
Pay the balance of all rentals received together with interest earned to the State or the Ingonyama Trust where applicable, when it is clear that there is no land claim approved for the particular State forest or part of it.
Pay rental money or part of that money periodically to successful claimants.

22. GOVERNANCE ISSUES
The Trust has 7 Trustees (DAFF, DRDLR, DPE and Forestry South Africa).
To effect the objectives of the trust, the Kabelo Trustees need to develop well documented policies, system procedures, laws and regulations that will govern the administration of the Trust;
The Trustees are also expected to ensure compliance with all statutory provisions and requirements that are relevant to the Trust, and these include:
Public Finance Management Act (PFMA)-section 76(1) (C);
Treasury Regulations (TR) - all relevant chapters;
Trust Property Control Act, No. 57 of 1988; and
National Forests Act, 1998.
Finances
(B)Disbursement of lease rentals to land reform beneficiaries

23. GOVERNANCE ISSUES… Status of the Trust account:
In January of every year, the forestry companies pay lease rental into the DAFF bank account. The lease rental money is then transferred and invested with the Public Investment Corporation (PIC) in an interest bearing account which is administered by DAFF.
The balance in the Trust account is R 656,681, (31 October 2017).
The first disbursement was done by the President in Following this disbursement, communities had numerous challenges of managing the funds which led to some of them taking each other to court.
The Trust, after consultation with the communities, approved a disbursement model which considered two scenarios:
Option 1: If a community is receiving lease rental money for the first time, the funds would be for personal use.
Option 2: Funds will be used for community development projects.
Finances
(B)Disbursement of lease rentals to land reform beneficiaries

24. PAYMENT OF RENTALS TO BENEFICIARIES
No.
Name Of Community
Amount Paid In 2011
Amount Paid From
Company Name 1.
Mkhwanazi (KZN)
R24,574,296.89 R0
SiyaQhubeka 2.
Ngunjini ( EC)
R 8,406,339.34 R
Singisi 3.
St. Paul ( KZN)
R9,592,453.89 R 4.
Qolombana (EC)
R1,925,975.00 R 5.
Gqogqorha ( EC)
R 10,122,245.00 6.
Western Shores (KZN)
R 24,574,296.89 7.
Ndzimankulu ( KZN)
R 3, 645,159.85 R 8.
Qelane ( EC)
R5,465,800.00 9.
Mbolompo (EC)
R 3 324 126.00 R R

25. PAYMENT OF RENTALS TO BENEFICIARIES
As at 31 October 2017, a total amount of R has been disbursed to 9 communities.
Out of the 9, 4 have not submitted any requests for community projects. Two of these (Phalane Trust and Western Shores Trust in KZN) have court cases pending and two (Qelane and Gqogqorha) are in a process of finalising their proposals.
Phalane (Mkhwanazi Community): another community group (Intuze community) accused the Phalane Community Trust of corruption and a case was opened against Phalane Trust. No payment has been made since the dispute. The DRDLR was tasked to resolve the matter.
Westernshores Trust: After the rentals were distributed, there were accusation that the Trustees have misappropriated the funds. A case was opened with the Master of High Court and all payments were seized pending the finalisation of the matter.

26. PROJECTS UNDERTAKEN BY CLAIMANT COMMUNITIES
NAME OF COMMUNITY
PROJECTS UNDERTAKEN
AMOUNT DISBURSED
Qolombane (uMthatha)
Upgrading of the existing water scheme and construction of the new water source.
R 1 462 772.67
Ndzimankulu (uMzimkhulu)
Vegetable garden project: Fencing of the site, hiring the tractor to plough the area, employed 30 casual workers and 24 hour security to guard the project area.
Poultry project: Building the chicken coop, labour cost, material, chicks, seedlings, fertilisers, chicken feed.
Brick making: procurement of the brick making machine.
Transport: purchase a 6 ton truck to deliver the produce.
Administrative costs for the projects.
R 2, 569,289.00

27. PROJECTS UNDERTAKEN BY CLAIMANT COMMUNITIES
NAME OF COMMUNITY
PROJECTs UNDERTAKEN
AMOUNT DISBURSED
St Paul (uMzimkhulu)
Education related:
Bursaries for 10 students.
Computer lab for the school, 35 computers, printer, overhead projector, installed internet connection.
built a pre-school building with two rooms and toilet.
Community upgrades:
built a Community Hall, bought 300 chairs,
built 2 offices, 4 toilets, fencing, paved parking, 2 generators, 3 pole community tents.
Renovated the community church, bought chairs and tiled the church.
Upgraded the existing mobile clinic.
R5,819,009.00

28. PROJECTS UNDERTAKEN BY CLAIMANT COMMUNITIES
NAME OF COMMUNITY
PROJECT UNDERTAKEN
AMOUNT DISBURSED
St Paul (uMzimkhulu)
Held a ceremony to officially open the hall and relevant government departments were invited to witness the event. Cater for the community members and guests,
upgraded existing water scheme,
fencing of 25 hectares (ha) of land for agricultural projects.
Administrative costs for the projects.
R5,819,009.00

29. THANK YOU