1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM On Wednesday, 10 th October 2012 THE 2011/2012 ANNUAL PERFORMANCE

2. CONTENTS 1. Executive Overview Of The 2011/2012 Annual Report Of The Ingonyama Trust Board 2. Challenges 3. Achievements 4. Recommendations 5. Financial Reports 6. Performance In Terms Of Strategic Plan 7. Summary On The Report Of The Auditor General And Response 2

3. OVERVIEW The Ingonyama Trust Board is pleased to release it’s 2011/2012 Annual Report. The year saw many positive growth nodes within the Ingonyama Trust, the Board and it’s Secretariat. The realisation of our new headquarters will lend much credence to our position on the rural development space and allow the Board and its Secretariat to function optimally in terms of its mandate. Additional staff recruitment allowed for the vision and critical programmes of the Board to unfold. The acquisition of shares in mining companies has begun to address new business potential to increasingly allow communities on ITB land to participate in wealth opportunities 3

4. OBJECTIVE optimal land management for the material benefit and social well being of the communities living on Ingonyama Trust land. VISION A Leader in sustainable communal land management. MISSION To contribute to the improvement of the quality of life of the members of the traditional communities living on Ingonyama Trust Land by ensuring that land management is to their benefit and in accordance with the laws of the land. To develop progressive business models for the social and economic upliftment and the empowerment of the members of traditional communities on land administered by the Trust. 4 OVERVIEW.....

5. THE BOARD  His Majesty is the sole trustee of the Ingonyama Trust, however the Board administers the day to day affairs of the Trust.  His Majesty is the Chairperson of the Board and the Board Members are appointed by the Minister of Rural Development and Land Reform.  The responsibility of the Board is to implement the objectives of the legislation, the core business being the management of land for benefit and social wellbeing of the individual members of the communities, thus the Board:-  formulates and implements policy  provides an effective land administration system  creates a climate which encourages development  Provides extension security of tenure in accordance with both customary and statutory law 4

6. 6 Justice S.J.Ngwenya Mr. B.L. Shabalala Advocate W.E.R Raubenheimer Inkosi K.W. Mathaba Ms. J Bhengu Dr. T. Mbatha Pastor N. Zitha THE INGONYAMA TRUST BOARD

7. BOARD / EXCO MEETING S ATTENDED 2011/12 7 MemberBoardExcoSpecial Leases Exco Judge S.J. Ngwenya6/68/109/10 Adv. W.E.R Raubenheimer 6/67/1010/10 Dr T. Mbatha5/68/103/10 Pastor N. Zitha6/69/10 Mr B. L. Shabalala5/65/103/10 Inkosi K.W Mathaba6/67/10 Ms J Bhengu5/68/102/10 Grand Total610

8. Audit committee MemberNo. of Meetings Prof. B. Stobie4/4 Ms N.E Memka4/4 Mr A. Jordan3 /4 Grand Total4 8

9. CHALLENGES Conflict Between Local Municipalities And Traditional Leaders Rating Of Land By Municipalities Leading To A Possible Financial Hardship Threats Of Land Invasion; Either As An Organized Invasion Or By Creeping Appropriation Illegal Activities Such As Mining Payment Of Mining Royalties To The State Improper Land Use Leading To Degradation Of The Natural Environment And Uncontrolled Urbanization Competing Land Uses Fragmented And Cumbersome Planning Legislation Operational Constraints In Resources, Staff And Service Providers And Technical Support & Training 9

10. FACTS AND FIGURES 2.79 Million Hectares of Land In KZN. Translates to just over 30% of land holdings in KwaZulu-Natal. Land held every district Municipal area. Almost half of the population of 10 million people of KwaZulu-Natal lives on Trust land. 241 Traditional Councils have jurisdiction on Trust land. 29 000 hectares of land under formal lease

11. SPECIAL PROJECTS Includes: ◦ Re-development Of Small Towns ◦ New Towns/Smart Villages ◦ Municipal SDFS ◦ Agricultural Projects ◦ Conservation Projects 11

12. 28 NEW TOWN CENTRE RE-DEVELOPMENT PROPOSAL WITH ETHEKWINI MUNICIPALITY

13. 13

14. PERFORMANCE REPORT 2011/12 14 2010/20112011/2012 Tenure rights applications received 1220953 Tenure rights applications approved by Traditional Councils and Ingonyama Trust Board 449618 Leases signed 211364 Revenue generated R460 3300R948 729 The underlying table reflects the year on year growth of the ITB in offering secure land tenure instruments

15. DISTRIBUTION PER DISTRICT 15

16. THE SECRETARIAT The current staff compliment assisting the Board in its portfolio is 36 Staff members. The Secretariat is headed by the Chief Executive Officer and his Senior Management Team who provide technical assistance to the Board and execute the resolutions of the Board. The Real Estate component comprised the majority of the staff and is ably supported by Finance and Administration Sections. 26 staff are on the approved establishment, all other staff are on contract. The staff structure requires review and strengthening to accommodate the Boards vision and mission 16

17. Employment Equity 17 DemographicsMaleFemaleTotal Black111324 Indian606 White415 Coloured011 Total211536

18. Financial Report 18 Fin Statement 31/03/12Notes2012 –R- Non Current Assets29 673 945 Current Assets233 705 626 Total Assets263 379 571 Total liabilities164 276 739 Net Assets99 102 832

19. Financial Report 19 Fin Statement 31/03/122012 –R- Rental Revenue23 091 318 Finance Income 9 623 048 Royalty Revenue and other5 387 409 Transfer Payment13 034 000 Total revenue51 135 775 Expenditure(48 849 636) Surplus for the year2 286 139

20. Financial Report 20 Cash flow statement 31/03/12 Notes2012 –R- Cash flows from operating activities 2 859 449 Net Cash Flows from inv. activities (13 340 361) Cash and cash equivalents at the end of the year 175 193 253

21. 21 PERFORMANCE MEASUREMENT AGAINST STRATEGIC PLAN

22. 22 PERFORMANCE MEASUREMENT AGAINST STRATEGIC PLAN

23. 23 PERFORMANCE MEASUREMENT AGAINST STRATEGIC PLAN

24. AUDITOR GENERAL’S REPORT AND MANAGEMENT RESPONSES 24  Non Valuation of Land  No tangible benefits to justify cost of valuation  Alternate methods are being explored  Royalty Revenue  Not practical to verify every ton of mineral removed.  Most Mining Operators are now paying directly to the State.

25.  Disbursement of Funds  Community having equity in company and able to receive dividends.  Emphasis of Matter Issue ( Rates)  The matter is in court with the eThekwini Municipality. 25

26. THANK YOU 26 CONTACT : INGONYAMA TRUST BOARD 65 TRELAWNEY ROAD, PIETERMARITZBURG 3201 P O BOX 601 PIETERMARTIZBURG 3200 TELEPHONE 033 846 9900 FACSIMILE 033 34386 2528 WEB www.ingonyamatrust.org.zawww.ingonyamatrust.org.za

27. NOTES __________________________________ _____ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ ______ 27