1. DRDLR 3 RD QUARTER FINANCIAL PERFORMANCE REPORT: 2014-2015 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 4 MARCH 2015

2. Presentation Outline 1.Executive Summary 2.DRDLR’s Performance per Program and per Economic Classification 3.Agricultural Land Holding Account 4.Deeds Registration Trading Account 5.Kwa Zulu Natal Ingonyama Trust Board 2

3. Executive summary R2, 115 billion R4, 459 billion R6, 719 billion R9, 5 billion 22.4%22.4% 47.2%47.2% 71.1%71.1% 3

4. Executive summary (ALHA) R428, 937 R160, 181 R963, 884 R312, 122 R1,613,529 R655, 172 32.4% 37.3%37.3% 40.6% 4

5. Executive summary (cont.)  The Deeds Trading Account generates its own revenue. During the financial year under review Department transferred R115.7 million to augment the budget for E – Cadastre Project.  As far as the KwaZulu-Natal Ingonyama Trust Board is concerned, spending on the 3rd Quarter of 2014-2015 fiscal year amounted to R10.9 million, representing 17.54% of their 2014-2015 budget of R62.7 million. 5

6. 6 Per Branch R’000 Current budgetCurrent budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3% spent Q3 Under / (over) Spending 1. Administration 1,348,752 1,348,752 263,687 263,68719.6% 604,033 604,03344.8% 926,340 926,34068.7% 422,412 422,412 Ministerial Services 36,257 7,89521.8% 18,02849.7% 29,85382.3% 6,404 Management 143,460 28,52519.9% 65,22945.5% 95,22766.4% 48,233 Internal Audit 48,246 7,20814.9% 16,11133.4% 26,76355.5% 21,483 Financial Services 381,508 59,98815.7% 149,23739.1% 268,89970.5% 112,609 Corporate Services 446,815 87,91219.7% 206,95646.3% 283,21463.4% 163,601 Provincial Co-ordination 292,466 72,15824.7% 148,47250.8% 222,38576.0% 70,081 2. Geo-spatial & Cad Serv 745,806 745,806 130,708 130,70817.5% 396,775 396,77553.2% 549,302 549,30273.7% 196,504 196,504 Nat Geomat Man Serv 573,703 101,02617.6% 324,28456.5% 429,20574.8% 144,498 Spat Plan & Land Use Man 172,103 29,68217.2% 72,49142.1% 120,09769.8% 52,006 3. Rural Development 2,011,619 2,011,619 349,989 349,98917.4% 787,253 787,25339.1% 1,209,743 1,209,74360.1% 801,876 801,876 NARYSEC/SOYD 678,205 197,69029.1% 347,53851.2% 500,25973.8% 177,946 RID 783,103 79,58010.2% 241,68330.9% 386,86149.4% 396,242 REID 550,311 72,71913.2% 198,03236.0% 322,62458.6% 227,687 4. Restitution 2,680,742 2,680,742 747,439 747,43927.9% 1,324,680 1,324,68049.4% 1,869,396 1,869,39669.7% 811,346 811,346 5. Land Reform 2,668,386 2,668,386 623,881 623,88123.4% 1,346,419 1,346,41950.5% 2,164,495 2,164,49581.1% 503,891 503,891 Land Redis and Dev 2,317,950 601,45225.9% 1,274,08155.0% 1,997,08386.2% 320,867 Land Tenure and Admin 350,436 22,4296.4% 72,33820.6% 167,41247.8% 183,024 Total 9,455,305 9,455,305 2,115,704 2,115,70422.4% 4,459,159 4,459,15947.2% 6,719,276 6,719,27671.1% 2,736,029 2,736,029

7. 7 Per Economic Classification R’000 Current budgetCurrent budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3% spent Q3 Under / (over) Spending Compensation of Employees 1,999,753 483,67224.2% 981,50449.1% 1,485,17974.3%514,574 Goods and services 1,626,309 407,55925.1% 834,86951.3% 1,229,98875.6%396,321 Interest and rent on land - 2,400 - 4,930- -(4,930) Payments for fin assets 4 41110264.3% 79119771.6% 81820451.4%(814) Provincial and local gov. 71,839 52,27872.8% 55,80777.7% 56,96779.3%14,872 Dept. agencies and acc. 1,852,767 436,43623.6% 1,097,87859.3% 1,748,56494.4%104,203 Foreign governments & int. org. 1,890 -0.0% - - 1,890 Public corp. and priv. entities 1 5,604560386.8% -0.0% - 1 Non-profit institutions 3,020 -0.0% 75525.0% 1,51050.0%1,510 Households 3,801,071 701,64418.5% 1,423,06237.4% 2,006,59352.8%1,794,478 Buildings & other fixed structures 21,920 10,40147.4% 4,89822.3% 5,71826.1%16,202 Machinery and equipment 72,173 10,65914.8% 21,63830.0% 34,86748.3%37,306 Land and subsoil assets - 4,642-! 32,748- 139,765-(139,765) Software 4,558 -0.0% 2796.1% 4,37696.0%182 Total 9,455,305.00 9,455,305.00 2,115,703.80 2,115,703.8022.4% 4,459,159.38 4,459,159.3847.2% 6,719,276.06 6,719,276.0671.1%2,736,029

8. Unfunded Expenditure 1.Interest and rent on land - R4, 9 million relates to court rulings in Restitution Claims i.e. shortfall in respect of interest for the late payment of the first and second 50% of the purchase price and legal cost taxed in the matter of Broadview properties PTY LTD (R2, 5 million). Other interests paid by other branches mostly relates to overdue accounts i.e. SOYD (R87 549), SPLUM (R62 031), Land Redistribution and Development (R48 550). 2.Payments for financial assets is losses that have been written off in terms of financial procedure. Due to the unforeseen nature of this expenditure it cannot be budgeted for. 3.Land and Subsoil assets – relates to land purchased by Lands Claim Commission but not yet transferred to claimants – once transferred to claimants the expenditure will be recognised as a Household transfer where the budget is also allocated. 8

9. 9 1. Administration R’000 Current budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3 Under / (over) Spending Compensation 682,413 150,55922.1% 315,32646.2% 477,51670.0% 204,897 Goods and services 585,374 96,08916.4% 261,09744.6% 408,43569.8% 176,939 Payments for fin assets - 389 - 449 - - (449) Provincial and local gov. 124 21.5% 97.0% 129.8% 112 Dept. agencies and acc. 3,522 -0.0% - 2,64375.1% 879 Households 34,453 10,14429.4% 17,73551.5% 21,63062.8% 12,823 Buildings & other fixed structures 21,900 1,2815.8% 2,48911.4% 5,71826.1% 16,182 Machinery and equipment 20,966 5,22324.9% 6,92833.0% 9,93747.4% 11,029 Total 1,348,752 1,348,752 263,687 263,68719.6% 604,033 604,03344.8% 926,340 926,34068.7% 422,412 422,412

10. 10 2. Geo-spatial and Cadastral Services R’000Current budgetCurrent budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3% spent Q3 Under / (over) Spending Compensation Of Employees 436,746 98,15022.5% 201,49746.1% 306,97770.3% 129,769 Goods And Services 178,753 29,77816.7% 77,33543.3% 117,89566.0% 60,858 Interest And Rent On Land - 62- 77 - - (77) Payments For Financial Assets - 5 - 31 - 32- (32) Departmental Agencies & Accounts 113,194 1,9031.7% 115,097101.7% 115,097101.7% (1,903) Foreign Gov&International Organ 1,890 -0.0% - - 1,890 Households (HH) 802 19023.7% 46558.0% 881109.9% (79) Non Profit Institutions (NPI) 3,020 -0.0% 75525.0% 1,51050.0% 1,510 Provincial And Local Governments 16 -2.9% 17.3% 1 15 Machinery And Equipment 6,827 6199.1% 1,23718.1% 2,45536.0% 4,372 Software & Intangible Assets 4,558 -0.0% 2796.1% 4,37696.0% 182 Total 745,806 745,806 130,708 130,70817.5% 396,775 396,77553.2% 549,302 549,30273.7% 196,504

11. 11 3. Rural Development Overspending for Compensation of Employees and Goods & Services is caused by reclassification of expenditure that relate to NARYSEC participants i.e. Monthly Stipends, Non Employee Travel and Training & Development expenditure. The following slide give a picture if the above-mentioned is factored into spending trends R’000 Current budgetCurrent budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3% spent Q3 Under / (over) Spending Compensation Of Employees 267,349 114,08942.7% 222,99483.4% 333,648124.8% (66,299) Goods And Services 407,018 182,54544.8% 300,26773.8% 421,787103.6% (14,769) Interest And Rent On Land - 88 - - (88) Payments For Financial Asset - - - 5 - 5 (5) Households (HH) 1,328,863 30,7592.3% 253,69219.1% 450,96933.9% 877,894 Machinery And Equipment 8,389 2,18826.1% 2,38228.4% 3,24738.7% 5,142 Total 2,011,619 2,011,619 349,989 349,98917.4% 787,253 787,25339.1% 1,209,743 1,209,74360.1% 801,876

12. 12 3. Rural Development (After Reclassification) Unfunded Interest on land expenditure was caused by overdue accounts paid at NARYSEC National Office and Kwa Zulu Natal Province. Losses amounting to R4 889 have been written off. Due to nature of interest and losses it is not budgeted for and will be offset by savings under other line items at year end. R’000Current budgetCurrent budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3 Under / (over) Spending Compensation Of Employees 267,349 61,935.7323.2% 125,01146.8% 194,41772.7% 72,932 Goods And Services 211,859 78,78537.2% 117,81155.6% 155,01873.2% 56,841 Interest And Rent On Land - 88 - - (88) Payments For Financial Asset - - - 5 5 - (5) Households (HH) 1,524,022 186,67212.2% 534,13035.0% 856,96956.2% 667,053 Machinery And Equipment 8,389 2,18826.1% 2,38228.4% 3,24738.7% 5,142 Total 2,011,619 2,011,619 349,989 349,98917.4% 787,253 787,25339.1% 1,209,743 1,209,74360.1% 801,876

13. 13 4. Restitution R’000 Current budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3 Under / (over) Spending Compensation Of Employees 313,259 61,11319.5% 123,04139.3% 187,77259.9% 125,487 Goods And Services 266,259 67,49025.3% 116,33643.7% 144,13054.1% 122,129 Interest And Rent On Land - 2,201- 4,717- - (4,717) Payments For Financial Asset - 10- 200- 226- (226) Households (HH) 2,051,439 609,80129.7% 1,035,64050.5% 1,372,70766.9% 678,732 Provincial And Local Governments 20,979 1,1435.4% 3,93418.8% 4,96623.7% 16,013 Land&Subsoil Assets - 4,642- 32,748- 139,765-(139,765) Machinery And Equipment 28,806 1,0393.6% 8,06428.0% 15,11352.5% 13,693 Total 2,680,742 2,680,742 747,439 747,43927.9% 1,324,680 1,324,68049.4% 1,869,396 1,869,39669.7% 811,346

14. 14 5. Land Reform R’000 Current budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3% spent Q3 Under / (over) Spending Compensation Of Employees 299,986 59,76119.9% 118,64739.6% 179,26659.8% 120,720 Goods And Services 188,905 31,65616.8% 79,83442.3% 137,74172.9% 51,164 Interest And Rent On Land - 49- - - (49) Payments For Financial Asset 4 6159.7% 1062644.1% 1062644.1% (102) Departmental Agencies & Accounts 1,736,051 428,93724.7% 977,36456.3% 1,630,82493.9% 105,227 Households (HH) 385,514 50,75013.2% 115,53030.0% 160,40641.6% 225,108 Provincial And Local Governments 50,720 51,132100.8% 51,864102.3% 51,988102.5% (1,268) Public Corporations&Priv Ent 1 -0.0% - - 1 Buildings & Other Fix Struct 20 -0.0% - - 20 Machinery And Equipment 7,185 1,5905,595 3,02642.1% 4,11557.3% 3,070 Total 2,668,386 2,668,386 623,881 623,8812,044,505 1,346,419 1,346,41950.5% 2,164,495 2,164,49581.1% 503,891 503,891

15. AGRICULTURAL LAND HOLDING ACCOUNT (ALHA) Financial Performance as at 31 December 2014

16. Executive summary 1.ALHA expenditure performance as at 31 December 2014 amounted to R655, 1 million or 38% of budget allocation amounting to R1, 718 billion. 2.This performance further reflected a R634 million or 36.9% under spending of the linear target of 75%. 3.Free State, Mpumalanga, Eastern Cape and Gauteng provinces are the biggest contributors to this level of under – spending. Northern Cape is the only province that exceeded the set quarter spending target at it registered 82% spending performance 4.The rest of the other provinces’ spending performance was between 41 and 61% which is still unacceptably low 5.The level of under – spending is a direct reflection of how slow the programme is progressing towards the achievement of its land reform targets. 16

17. Per Province – Consolidation 17 R’000 Quarter 1 Transfer Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Transfer Quarter 2 Spending % spent Q2 Quarter 3 Transfer Quarter 3 Spending % spent Q3 Eastern Cape 67,506 8,94413.2% 135,012 14,00310.4% 202,518 59,50529.4% Free State 113,471 5,6104.9% 216,992 11,2565.2% 288,559 34,97912.1% Gauteng 39,882 6,74116.9% 79,764 26,35933.0% 119,646 55,73546.6% KwaZulu-Natal 36,000 38,769107.7% 117,000 77,13465.9% 198,000 122,75462.0% Limpopo 11,764 2,01517.1% 37,627 7,48319.9% 127,876 51,68340.4% Mpumalanga 46,820 20,98444.8% 115,284 35,61230.9% 282,654 38,73313.7% Northern Cape 28,112 2,7729.9% 56,224 39,64670.5% 84,336 108,840129.1% North West 66,695 73,320109.9% 118,680 95,09880.1% 206,157 143,67169.7% Western Cape 18,687 1,0265.5% 87,301 5,5316.3% 103,783 39,27237.8% Total 428,937 160,18137.3% 963,884 312,12232.4% 1,613,529 655,17240.6%

18. DEEDS REGISTRATION TRANDING ACCOUNT Financial Performance as at 31 December 2014

19. Deeds Offices 1.Deeds Trading Account has generated R425 million, representing 68% of the revised projected revenue of R629 million. The revenue generated includes a transfer amount received from the Department amounting to R14,9 million for salaries inflation as per ENE. 2.Expenditure as at 31 December 2014 amounts to R369 million, representing 61% of the revised projected budget of R605 million excluding E-cadastre. 3.Compensation of Employees expenditure amount to R299 million representing 67% of revised projected budget of R 449 million and under spending is due to 151 vacant posts according to 2014/15 recruitment plan where only 119 posts were reprioritised to be filled in the current financial year. 6. The Bank balances as at 31 December 2014 is R293 million. Executive summary 19

20. E-Cadastre Project 1.The grant amount of R 98,3 million received from the department was as per the ENE. The amount of R122,8 million reflecting on the report is part of R164 million grant received in 2013/14 financial year that was transferred to deffered income account. 2. Expenditure under E-cadastre as at 31 December 2014 amounts to R37 million, representing 31% of the revised projected budget of R121,9 million. 3.Compensation of Employees E-cadastre expenditure amount to R6 million representing 40% of the projected budget of R15 million, the under spending is due to 120 contract workers who were expected to start working in April 2014 but only started in July 2014 and the structure is still under development. 4.The E-cadastre project was put on hold for few months and resulted in the under-spending of the budget. Executive summary (cont.) 20

21. E-Cadastre Project 6. Consultants, Financial and Management Advisory- Due to a delay in the re- scoping and realignment of the outsourcing of services will only be done in January/February 2015. These will be to acquire contracts for the seven(7) streams and the transformation manager at Chief Director level and back scanning due diligence service, all costs are based on DPSA rates. 7. Maintenance and Repairs- The amount of R2 million will be paid to Stortech contingencies and maintenance as per SLA for one year, however some of the budget allocated for both EA and Data for E-cadastre project will not be utilised in this financial year as services are still being defined and requirements being gathered by Project Management team and business. 8. The amount of R 110,8 million was paid to Vulindlela infrastructure and has not been cleared to GL account because assets has not been commissioned. Executive summary (cont.) 21

22. 22 Per Economic Classification R’000 Current budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3% spent Q3 Under / (over) Spending Total Revenue Total Revenue (726,994) (127,222)17.00% (382,600)52.63% (651,589)89.63% (75,405) Compensation 463,970 97,75721.0% 201,97143.5% 305,31565.8% 158,655 Goods and services 262,700 15,0486.0% 71,24427.1% 100,81638.4% 161,884 Total current spending 726,670 726,670 112,805 112,80516.0% 273,215 273,21537.6% 406,131 406,13155.9% 320,539 320,539 Buildings & fixed structure 9,276 -0.0% - 1031.1% 9,173 Machinery & equipment 126,718 3800.3% 5,1944.1% 6,3505.0% 120,368 Total assets 135,994 135,994 380 3800.3% 5,194 5,1943.8% 6,453 6,4534.7% 129,541 129,541 Total 862,664 862,664 113,185 113,18513.0% 278,409 278,40932.3% 412,584 412,58447.8% 450,080 450,080 (Surplus) / Deficit(Surplus) / Deficit 135,670 (14,037)-10.3% (104,191)-76.8% (239,005)-176.2% 374,675

23. KWAZULU-NATAL INGONYAMA TRUST BOARD (ITB) Financial Performance as at 31 December 2014

24. 24 Per Economic Classification R’000 Current budget Quarter 1 Spending % spent Q1% spent Q1 Quarter 2 Spending % spent Q2% spent Q2 Quarter 3 Spending % spent Q3 Under / (over) Spending Compensation 17,889 3 90321.82%4187 23.41%4 501 25.16% 13 388 Goods and services 39,613 2 6606.71%5010 12.65%5 478 13.83% 34 135 Interest & rent on land 200 4924.50%16 8.00%83 41.50% 117 Buildings & fixed structure 3,000 629 20.97%111 3.70%50 1.67% 2 950 Machinery & equip 1,500 170 11.33%156 10.40%418 27.87% 1 082 Software 500 --- 0.00%468 93.60% 32 Total 62,702 62,702 7 411 7 41111.82%9 480%9 480%15.12%10 99810 99817.54% 51 704

25. Thank You 25