1. 1 INGONYAMA TRUST BOARD A Schedule 3A Public Entity in terms of the Public Finance Management Act, 1999 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 10 MARCH 2010 V475, OLD ASSEMBLY PARLIAMENT, CAPE TOWN STRATEGIC PLAN AND BUDGET 2010/2011

2. 2 FACTS AND FIGURES Land owned by Trust: 2 700 000 hectares. Number of titles: 1 491. Land held in almost all 61 municipal areas. Population living on Trust land estimated at 4 558 698. 241 Traditional councils/Authorities have jurisdiction on Trust land. Trust set up by Ingonyama Trust, 1994 (Act No 3 of 1994)

3. 3 STRATEGIC PLAN AND BUDGET 2010/2011 The strategic plan has been prepared in conjunction with the Budget in order to achieve the Board’s vision and mission. The strategic plan focuses on issues that need to be resolved over the next five years and has regard to Government priorities such as poverty alleviation, provision of housing and infrastructure and Black Economic Empowerment. In particular the implementation of the Communal Land Rights Act and challenges faced by the Board because of changes in other legislation such as the Mineral and Petroleum Resources Development Act have informed the content of this Strategic Plan. The strategic issues raised in the Strategic Plan will facilitate achieving the objective of optimal land usage for the material benefit and social well being of the communities living on Ingonyama Trust land.

4. STRATEGIC PLAN AND BUDGET 2010-2011 contd. The Ingonyama Trust legislation has created a unique instrument of land management providing both support to the communities on communal land and an executive agency available to the Minister in the context of “real estate” management. It is indeed very important to understand that the legal mandate of the Trust is not that of a developmental agency as such but that of a land management agency which must ensure that any commercial activity on communal land is developmental in nature. Commercial activities must benefit the local communities and the contracts entered into with the commercial sector (and indeed the official sector) contain provisions which require that benefits flow to the affected local communities. The main efforts of the Ingonyama Trust Board are geared to that end. The emphasis for the strategic plan is therefore “land management” and the direct and indirect benefits flowing to communities therefrom. 4

5. 5 The total budget requirement for the year 2010-2011 is R60,096,142 which includes voted funds of R 9156,580. The following slides highlight the major targets.

6. 6 TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 1.This strategic objective will result in the optimum usage of land for the benefit of communities and other parties including the State and municipalities and will also prepare for the implementation of the Communal Land Rights Act (CLaRA). Updated Land Tenure Information system. Number of transactions to be recorded. 500 BUDGETR150,000R100,000R80,000R65,000R60,000

7. 7 TARGET PERSPECTIVE OUTCOMEOUTPUT/ Activity INDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 2.This strategic objective will result in the optimum usage of land for the benefit of communities and other parties including the State and municipalities and will also prepare for the implementation of the Communal Land Rights Act (CLaRA), should it be implemented or any other tenure upgrade legislation that might come into being. Consolidation of 1500 titles. Minimum number of titles to be consolidated each year. 50 BUDGETR150,000 R20,000nil

8. 8 OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 3. Facilitate the transfer of former R 293 KwaZulu towns to local authorities. To facilitate the number of towns to be transferred. 63--- BUDGETR 10, 000R 10 500R 11 250R 11 576R12 155 OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 4. Facilitate the transfer of approx 2300 state domestic properties. Number of state domestic properties to be identified per year. 300500 BUDGETNO COST TO ITB

9. 9 OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 5.Allocation of land for housing and infrastructure purposes. The percentage of applications received per year to be concluded. 80% BUDGETR50, 000R52, 500R55,125R57,881R60,775 In order to support the provincial Department of Human Settlement’s Rural Housing Policy the Board has developed a standard Development Rights Agreement which is entered into with various Local Municipalities. This enables housing projects on Trust land to be fast-tracked subject to the consent of relevant Traditional or Community Councils.

10. 10 TARGET PERSPECTIVE OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 6.Tenure upgrades and/or formalisation of settlements. Service providers to be appointed and land to be identified. 3 Projects BUDGETR 937 341.00R 1 000, 000 Some of the former R293 townships have informally expanded onto surrounding Trust land. This has resulted in this land being vulnerable to squatting on the one hand but having potential development value on the other hand. The Board proposes to appoint a service provider to identify this land and advise on development potential. The towns identified for 2010/2011 are: Umlazi.Vulindlela KwaMashu.Esikhaweni Kwamakutha.Folweni Ezakheni..Magabheni Ngwelezane.Manguzi Madadeni.Mbazwana Jozini.Ingwavuma Mbumbulu The budget figures for post 2010/2011 are for the implementation process and are also to include additional towns yet to be prioritised.

11. 11 OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 7.Ongoing co- operation with DRDLR in preparation for CLaRA. Development of guidelines for CLaRA implementation. Ongoing BUDGETNO COST TO ITB The Act, if a commencement date has been announced, will reconstitute the Board as the Ingonyama Land Rights Board for KwaZulu-Natal. The Board will continue to liaise with the Department of Rural Development and Land Reform in connection with implementation and awaits publication of the draft regulations. This will enable the “mapping exercise “ previously commissioned by the Board to be completed and to identify the future role and functions of the Board and the various processes and work-flow which will be necessary to successfully implement CLaRA in the Province.

12. 12 OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 8.Monitoring of legislation impacting on land owned by ITB./ review of enabling legislation. Legislation studied and guidelines developed. preparation and drafting amendments Legislation studied and guidelines developed preparation and drafting amendments Legislation studied and guidelines developed. preparation and drafting amendments BUDGETNO COST TO ITB Some 30 pieces of legislation impact on the workings and management of Trust land. These include Communal Land Rights Act, Traditional Leaders Framework Act, Municipal Property Rates Act and the Mineral and Petroleum Resources Act. This legislation is continuously monitored and guidelines prepared.

13. 13 TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 9.Extension of security of tenure, registered leases can be used as security for funding of development and unlock employment and equity opportunities. To maximize the mining potential on Trust Land for the benefit of communities including BEE/Joint ventures. Granting of leases (for non mining purposes including conversion of PTO’s into leases). The minimum percentage of the number of applications received from prospective developers. 75% BUDGETLEASE INCOME TO BE GENERATED (INCLUDING EXISTING LEASES). R 5 616180R 5 896 989R 6 191 838R6 501 430R6 826 502

14. 14 OUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 10.Granting of leases for mining purposes. The minimum percentage of the number of mining leases received from prospective operators. 75% BUDGETMining/royalty income to be generated including existing leases R17, 254 285R18,116,999R19,022,849R19,973,992R20,972,691 The royalty income from 2010 is subject to the Minister of Mineral and Energy Affairs granting permission that royalties will still accrue to the Trust in terms of Schedule 2, section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002.

15. 15 TARGET PERSPECTIVE OUTCOMEOUTPUT/ ACTIVITY INDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 11.Maximising the financial benefit to communities from income of the Trust. Note : The Board will continue to seek fresh procedural and possibly legislative avenues for distributing trust funds in a manner which meets the accountability requirements of the PFMA Project-related payments which are for the material and social well being of the relevant communities and which meet prescribed accountability standards. The percentage of applications received from traditional communities to be approved by the Board. (This is a continuous process, approval may depend on the number of Traditional communities submitting project proposals). 80% BUDGET Portion of income derived by the trust to be distributed to traditional communities at a 5% growth per annum R 32,846,751R 34,489,089R 36,213,543R 38,024,220R 39,925,430

16. 16 TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 12.Subsistence and cash crop benefit to rural communities Establishment of communal gardens. Minimum number of sites identified, gardens established and production monitored 5 5 5 5 5 BUDGETR 250 000R 275 000R 300 000R 325 000R 350 000

17. 17 TARGET PERSPECTIVE OUTCOMEOUTPUT/ ACTIVITY INDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 13.Job creation and basic land manageme nt Establishment of project teams to assist with soil erosion, alien vegetation removal, cutting of firebreaks and waste removal. Priority areas identified, teams appointed and trained. Activities monitored. 310 BUDGETR 400 000R 550 000R 605 000R 665 500R 732 050

18. 18 TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 14.Identification and maintenance of immovable assets Team of site inspectors to be appointed to identify occupation on Trust Land and monitor development Inspectors appointed and trained. Inspection targets, assets identified. 10 TC areas BUDGETR 1 000 000R 1 100 000R 1 210 000R 1 331 000R 1 464 000

19. 19 TARGET PERSPECTIVE OUTCOMEOUTPUT/ACTIVITYINDICATORS2010/ 2011 2011/ 2012 2012/ 2013 2013/ 2014 2014/ 2015 15.Identification and maintenance of immovable assets Team of site inspectors to be appointed to identify oocupation on Land Land and monitor development Inspectors appointed and trained. Inspection targets, assets identified. 10 BUDGETR 1 000 000R 1 100 000R 1 210 000R 1 331 000R 1 464 000

20. 20 Proposed INCOME 2010/2011 ITB Own Fund Income 50,916,390.00 PTO - General 2,000.00 PTO - Commercial 9,648.00 Rental Income non- mining 5, 616,180.00 Royalties and Prospecting Income 17,254,285.00 Investment Income 13,551,293.00 Interest on overdue Debtors accounts From reserves for ITB office accommodation From reserves for rates provision on ITB land Other Income / Servitude 50,000.00 Department of Rural Development and Land Reform 9,179,752.00 Transfer Payments – Current 9,156,580.00 Investment Income 23,172.00 TOTAL INCOME 60,096,142.00 12,984.00 4, 420, 000.00 10,000,000.00

21. 21 20010/2011 EXPENSES ITB Own Fund Expenditure carried forward 39,063,390.00 Advertisement and public awareness campaigns 50,000.00 Legal fees 235,000.00 Bank charges 14,298.00 Repairs, grass cutting and cleaning 90,000.00 Provision for doubtful debts 50,000.00 Payment to beneficiary ( 90 % portion ) 32,846,751.00 Capital expenditure including ITB office accommodation 4,520,000.00 Staff Training 50,000.00 Tenure upgrade & formalisation of settlements Cultural events and meetings 120, 000.00 Land Tenure Information system - maintenance 150,000.00 937 341.00

22. 22 20010/2011 EXPENSES continued from previous slide ITB Own Fund Expenditure balance brought forward39,063,390.00 Rates provision 10 000 000.00 Relocation costs 50,000.00 Rates office ITB office accommodation 15,000.00 Electricity and water 40,000.00 Telephone 48, 000.00 Establishment of communal gardens 250,000.00 Identification and maintenance of immovable assets 1,000,000.00 Basic land management Housing admin expenses 50,000.00 400, 000.00 R50,916,390.00

23. 23 60,096,142.00TOTAL EXPENDITURE 70,000.00Cleaning,repairs and maintenance Telephone External audit Fees Internal audit fees 104, 580,00Security expenses 8,000.00Computer software 50,000.00Personnel agency fees 20,000.00Motor vehicle expenses 2,000.00Crockery & cutlery 24,000.00Advertising 71,400.00Stationery and other expenses 54,000.00Insurance 6,000.00Internal audit committee members rem 7,300,622.00Salaries 350,000.00Travel,accommodation, meetings 15,000.00Bank Charges 420,000.00Board Members remuneration 9,179,752Departmental Funding ExpenditureD 48,000.00 486,150.00 150 000.00

24. 24 SUMMARY AND CONCLUSIONS The Ingonyama Trust Board sees its role increasingly as real estate and land management orientated. To this extent the Ingonyama Trust seeks to strive as a model in real estate management in the country. The strategic plan and budget for 2010/2011 have been prepared in order to achieve the optimum usage of land for the benefit of communities and other parties including the state and municipalities and other parties. The benefits flowing to persons living on trust land will include:  Income from rents for commercial development.  Joint ventures/community participation in developments.  Employment opportunities.  Skills transfer.  Quality of life improved through:  Provision of Housing.  Provision of infrastructure and basic services.  The Budget for 20010/2011 totals R 60,096,142.00 and is made up of:  ITB own fund income : R 50,916,390.00  Voted funds : R 9,179,752.00  The End!