Commission on Restitution of Land Rights. Presentation to the Portfolio Committee 8 July Mr A M Mphela Chief Land Claims Commissioner

Transcription

1 Commission on estitution of Land ights Presentation to the Portfolio Committee 8 July 2009 Mr A M Mphela Chief Land Claims Commissioner 1

2 About the Commission on estitution of Land ights: Vision: To be leaders in the restitution of land rights to victims of racial land dispossession in a manner that ensures sustainable socio-economic development. Mission: To promote reconciliation by ensuring equity for victims of land dispossession by the state, through sustainable development initiatives and equitable redistribution of land. 2

3 Purpose of estitution Strategic objectives: To provide equitable redress to victims of racial land dispossession in terms of the estitution Act No. 22 of 1994 as amended. To provide access to rights in land, including land ownership and sustainable development. To foster national reconciliation and stability. To improve household welfare, underpinning economic growth, contributing to poverty alleviation. 3

4 Strategic Priorities esearch and settlement of all outstanding land claims. Facilitate sustainable implementation of all land claims to realise rural development goals for the achievement of food production, economic viability and sustainable livelihoods. Develop and implement effective and efficient communication strategy with specific emphasis to land claimants and beneficiaries. ies. Build and maintain sound stakeholder relationships for provision of comprehensive relevant support to beneficiaries and surrounding communities. Effectively and efficiently manage litigation. Develop and implement an effective and efficient monitoring and evaluation system. Liaise with all relevant role players in government and the private sector towards sustainable, supporting models and settlement of claims. 4

5 Constitutional and Legislative Framework CONSTITUTION OF THE EPUBLIC OF SOUTH AFICA: Section 25 (7): A person or community dispossessed of property after 19 June 1913 as a result of racially discriminatory laws of practices, is entitled, to the extent provided by an Act of Parliament, either to restitution of that property or to equitable redress. ESTITUTION OF LAND IGHTS ACT (ACT NO. 22 OF 1994ENDED): The estitution of Land ights Act provides for the restitution of land or equitable redress to persons or communities dispossessed of land as a result of past discriminatory legislations or practices. 5

6 Policy Framework WHITE PAPE ON LAND EFOM: : Lodgement of claims : Investigation and finalization : Implementation of orders of the Land Claims Court. FOMS OF COMPENSATION: Financial compensation. estoration of land. Alternative land. Any other development. Or combination of any of the above. 6

7 Activities of the Commission on estitution of Land ights: First years ( ): Dedicated to policy formulation, staffing, institutional framework for the implementation of estitution. Main delivery mechanisms: Judicial: Land Claims Court Advisory Commission on Land Allocation (ACCLA) (Only 42 claims settled) 1999: Amendments to the Act: S42D - Administrative approach resulted in large number of claims settled, especially Urban claims. 7

8 estitution Business Process: Pre-settlement Post settlement PHASE ONE Lodgement and egistration (closed 31/12/98) PHASE TWO Screening and Categorisation Initial and advanced screening, preliminary option, feasibility and field research batching and prioritisation. PHASE THEE Determination of Qualification in terms of Section 2 of the estitution Act Notification and gazetting of prima facie valid claims. PHASE FOU Negotiations Project plan & representation for claimants, valuations, monetary value, verification, preliminary planning for land use and development, preliminary case report and negotiation position. PHASE FIVE Settlement Agreements signed in terms of Section 42D Ministerial Approval or a decision made by Land Claims Court in the form of a Court order. PHASE SIX Implementation of Settlement Detailed land planning, transfer of land, development funds, grants, post-award support & handover. financial compensation or other redress. G E N E I C E S T I T U T I O N P O C E S S MONITOING AND EVALUATION S E T T L E M E N T P L A N N I N G P O C E S S PHASE 1 Interim-Management Caretakership, Safety & Security, ole of community PHASE 2 Project Feasibility Claim profile & needs analysis, land use feasibility, estitution Discretionary Grant (DG) & Settlement Planning Grant (SPG) release PHASE 3 Project Planning Environmental Impact Assessment (EIA) report (if change land use), Business Plan, Interim management plan (for going concerns) PHASE 4 Business Modeling Templates/samples for example: sugarcane, forestry, dairy farming, game, cattle ranching citrus etc. PHASE 5 esource Mobilisation Financing models: Loans, grants, donations, equity shares. Accessing funding. Financing policies. PHASE 6 Stakeholder elations/ Strategic Partnership Service Level Agreements PHASE 7 Capacity Development Needs analysis, funding strategy, roleplayer/stakeholder engagement, training programme. PHASE 8 Project Implementation Municipal IDP integration, MOU/Agreement, implementation, Business plan implementation programme, Hand-over Agreement, File transfer/commission exit strategy 8

9 estitution Business Process cont. If in doubt about the merits of a claim (S2 qualification), court referrals. Difference on price: Expropriation. Expropriation: legalistic, long-winded and still costly until amendments to the Expropriation Act of 1975 have been concluded in order to bring them in line with the Constitution. Public purpose vs public interest. Process started but never completed. 9

10 Strategic Plan (Option 1) STATEGIC OBJECTIVE Output (Key Performance Area) Measure (Indicator) Target 2009/2010 Target 2010/2011 Target 2011/2012 Target 2012/2013 Settlement of all outstanding land claims by 2014 * 1. All lodged restitution claims settled All the remaining 4296 land claims validated, gazetted, verified and settled by 2011 in terms of the estitution of Land ights Act, No. 22 of 1994 as amended

11 Strategic Plan (Option 2) STATEGIC OBJECTIVE Output (KPA) Measure (Indicator) Target 2009/ 2010 Target 2010/2011 Target 2011/2012 Target 2012/2013 Target 2013/2014 Target 2014/2015 Settlement of all outstanding land claims by 2014 * 1. All lodged restitution claims settled All the remaining 4296 land claims validated, gazetted, verified and settled by 2011 in terms of the estitution of Land ights Act No. 22 of 1994 as amended

12 Categories of claims outstanding per Province CATEGOY Current estimated total claims Claims with a mining aspect 83 Forestry claims 609 Conservation claims 78 Untraceable claimant claims 112 Family and community disputes 99 Claims with Traditional leadership issues and boundary disputes Claims where there are disputes with land owners (validity and price) Claims in the Land Claims Court 167 Notices of possible expropriation served 6 Section 6(2)(b) of the estitution of Land ights Act 392 Other: include sugar cane, Transformation of Certain ural Areas Act, 1998 (TANCAA) claims, lifestyle claims, game farms, commercial agriculture, subsistence farms and financial compensation

13 PE-SETTLEMENT: CHALLENGES PE BUSINESS PHASE Phase 1: Lodgement - completed Phase 2: Screening and categorisation - mostly completed Phase 3: esearch: Determination of qualification in terms of section 2 Phase 4: Negotiations Phase 5: Settlement Phase 6: Implementation (also linked to post settlement business process) 13

14 Verification Incomplete verification: Untraceable or passive claimants. Land rights in terms of Land estitution Act vs broader community rights. Contribution to Suspense Account challenges. 14

15 Phase 3: Outstanding esearch Previously the Department had a esearch Directorate at National office which was decentralized to regions, but without focused researchers ers in place then. Validation campaign, outsourced research but challenges with management and quality of reports received. Claims that were validated were prioritized for negotiations; and d no follow up process to research others. Attempted to establish a focused team again nationally beginning of this year, and a rapid assessment scoping exercise was done which reveals eals huge number of claims not researched and some are quite complex and involves huge number of properties as well as overlapping claims.. This unit cannot finalize this outstanding research to scale. Unsurveyed land. Competing, overlapping & conflicting rights. Intervention proposed: : e-prioritize focus of human resources in offices to focus on finalizing the outstanding research because claims cannot c be settled if research is not finalized, and budgetary constraints prevent outsourcing and even further settlement at scale. Categorization of claims, e.g. forestry, citrus, conservation. Block (regional) investigation of claims as opposed to focus on individual claims. Move away from the Hlaneki judgement (gazetting of claims before they are investigated). 15

16 esearch: State land Streamline processes (state land, expropriation, Department and the Department of Public Works) Valuation of State land need to include public land under Municipalities as part of State land in order to standardize and regularize, normalize (establishing the norms). Preference for developments and investments and profits at the expense of people. (False dichotomy between people development and investment). Tax base of Municipalities. (Economics versus social implications). 16

17 Phase 4 and 5: Negotiations and settlement The Commission is facing huge challenges in finalizing the outstanding claims which relate to internal as well as external issues. Protracted negotiations especially around the issue of price. Court judgements not in the public interest (e.g. Tenbosch). Impasse breaking mechanisms long-winded (mediation, court referrals) Unco-operative operative negotiating partners. Speculative negotiation processes. Lack of full disclosure (e.g. where there are trees on land without licenses, bonds against properties, insolvency). Assessment of current farm infrastructure. Collusion on price (abnormal, excessive prices). Dubious ethics (non-registered valuers, desktop valuations). All strategies to address challenges in this regard have taken time t to come to fruition and along the way further problems emerged, for example changing of Commissioners, high staff turnover, administrative processes and others, to such an extent that we need to acknowledge that in many instances we are rebuilding as we strive to fast-track. track. 17

18 INTENAL CHALLENGES AND STATEGIES CHALLENGES AND IMPLICATIONS Pre and post settlement fragmentation: In some instances claims are finalized in terms of verbal commitments or a wish list of role players without the post settlement issues having been given consideration. To ensure that there are no delays when it comes to implementation with the result that implementation takes long, projects collapse while waiting for transfer and implementation. INTEVENTIONS Integrated process of pre and post settlement to deal with development facilitation and sustainability. Building capacity for post settlement. Allowing time to negotiate restoration settlements with all role players which will ensure that issues of rural development are adequately addressed, has an implication for finalizing the claims quickly. Dual roles of the Commission in the pre and post settlement is responsible for the slow progress. Silo approach within the Department in the past has led to areas of interface with Land and Tenure eform (PLO and Commission) with regard to labour tenants, section 6(2)(b) claims for dismissal, s3 claims for tenure upgrading, state land issues such as vesting and disposal, unsurveyed state land not being adequately addressed and what could be quick-wins did not materialize. Joint business plans must now be implemented so that these issues can enjoy priority and be addressed; and there will be integration between various legislation e.g. CLaA, Land Titles Adjustment Act 111, and Distribution and Transfer of Certain Land Act 119, State land issues (with one authority responsible, vesting and disposal can be prioritized). Joint business plans have been developed but divergent priorities have militated against expeditious implementation. Integrated delivery on ural Development and Land eform at national, provincial and local levels. 18

19 INTENAL CHALLENGES AND STATEGIES CHALLENGES AND IMPLICATIONS isk management: The type of risks that the Commission faces in fast-tracking settlement is of a serious nature. INTEVENTIONS Q/As and risk management plans in place, however there is a need to improve on quality control systems and training. Quality Control and isk management plans are in place but is time-consuming and must be done to ensure mistakes are identified in time. Financial management skills: Some crucial processes in terms of good financial management could be compromised due to lack of specific skills in all the various areas that the Commission has to deal with. Budget: Lack of sufficient budget affects performance, delivery, finalization of the programmes. Proper training by Treasury in terms of systems and processes. Ensure compliance with legislation to attain level 3 auditable organization. etraining of staff. Ministerial intervention to Cabinet and Treasury. 19

20 EXTENAL CHALLENGES AND STATEGIES CHALLENGES AND IMPLICATIONS Claimants verification: Due to the enormity of the verification process, in some community claims this process is not always finalized before the claim is settled which delays final implementation. In some instances a 42D was awarded for an area however, the finalizing process with individuals results in payouts that cannot be made and an increasing suspense account. This is also a huge risk area in terms of fraud and duplication. Issues of conflict are seriously hampering negotiations and finalization of claims. These include conflicts within communities and amongst Traditional leaders; and amongst Traditional leaders in respect of boundary disputes and jurisdiction. Deadlocks/ issues with land owners on validity stall negotiations and lead to settlement of claims in phases which again results in claims not being finalized. Deadlocks/ issues with Land prices on price: Prices are high and land owners are entitled to market value which might not be easily achieved in terms of financial constraints. INTEVENTIONS estructuring has to pay attention to amendment of the Act so that there is no challenge by any party. Verification cannot be an open-ended process and policy needs to be revised. egional Land Claims Commissions (LCCs) commit to quarterly engagement. Could require legislative alignment: Communal Property Association Act, Traditional Authorities Act, CLaA and estitution Act which is a long process and the Commission would need to propose a Court referral strategy in this regard. More effective use of the dispute resolution system. Strategy has to be finalized and implemented in terms of implementation of expropriation and court referrals. Judicial intervention might be required. Implement a Price-norm per district principle. efer to Court sooner. 20

21 EXTENAL CHALLENGES AND STATEGIES CONT. CHALLENGES AND IMPLICATIONS INTEVENTIONS High costs of land and disputes on valuations protract negotiations. In some instances land owners could be using a tactical strategy in this regard. Engagement with Agricultural unions, land owners. Use of regional norms on prices. eview of Willing Buyer, Willing seller Principle Claims with a mining aspect: model signed with Anglo Plat, others not on board yet. Although a model is being implemented these claims remain challenging due to the inherent disputes in terms of various interests of the parties. Forestry claims: These claims are complex and could be expensive in terms of buying land and trees. A model has been finalized but implementation is crucial. SAFCOL issues are not finally resolved, for example there is no model yet for privatization of Komatiland Forest which impacts on settlement of the claims. Enforcement of Mining Charter and relevant legislation. Effective co-ordination with the Department of Minerals and Energy. Implementation of the model which proposes for bigger commercial land in terms of lease back and inter alia ties the company to rural development commitment. Finalize the model that regularize restructuring of state forests with the Department of Agriculture, Forestry and Fisheries (DAFF). 21

22 EXTENAL CHALLENGES AND STATEGIES CONT. CHALLENGES AND IMPLICATIONS Development Facilitation Act: Approval for changing land use without consulting the Commission results in escalated high prices, e.g. game farms. Life style development affects restoration and restitution can be seen to be a stumbling block to development. Conservation: Non-implementation of conservation settlements. Kruger National Park (KNP) Cabinet decision of non-restoration: implications: affects adherence to previous Cabinet memorandum and MOU for settlement on Provincial Parks and there is generally resistance and appears to some as a second dispossession. INTEVENTIONS Consultation should be compulsory prior to approval of land use change. Communication strategy has to be embarked upon. eview policy in terms of our approach to these claims. Enforce Implementation of co-management agreement through Minister to Minister engagement as well as Provincial political buyin. KNP: review Cabinet decision because of implication on provincial settlements. Sustainability of implementation of decision. The decision is in direct conflict with people and the Park s concept which leads to dual messages to claimants from government. 22

23 EXTENAL CHALLENGES AND STATEGIES CONT. CHALLENGES AND IMPLICATIONS INTEVENTIONS High value crops, e.g. citrus, sugar cane: Expensive land per hectare, capitalized commercial land, strategic partnership model has unintended consequences and by implication, claimants are restored to an asset where they are not ready to implement ongoing successful farming. Insufficient pool of valuers result in valuations taking long to finalize, and in some instances even going stale and then reviews are called for, or even new valuations. -Explore just and equitable redress: -Explore affordable alternative settlement options; - consistency in terms of choices available to claimants; and -review strategic partner model. Train internal valuers. Public works intervention Minister to Minister. Non-coordination of national, provincial and local spheres. Shift from co-operative governance to mandatory corresponding framework of provincial rural development structures. 23

24 EXTENAL CHALLENGES AND STATEGIES CONT. CHALLENGES AND IMPLICATIONS INTEVENTIONS Betterment claims not being finalized poses a real challenge for rural development. The Department has to consider this in the White Paper review process. Housing Policy alignment not in place which inter alia results in a delay in for example the release of land by Municipalities for restitution purposes. Land in urban areas are expensive which results in claimants being forced to accept financial compensation. Long Court processes. Ineffective precedent in terms of judgements due to a lack of a proper litigation approach. Draft policy for a Minister to Minister engagement. Judicial intervention. Minister to appoint assessors and address salary demands of judges and assessors. Pre 1994 leases signed affects restoration Transkei, Bophuthatswana, Venda and Ciskei (TBVC) States. Water rights are not always addressed for new owners. eview litigation strategy. Judicial and Ministerial intervention. Draft policy for a Minister to Minister engagement. 24

25 Phase 6: Implementation Challenges in terms of implementation are linked to the ones outlined in Phases 4 and 5 as well as to the challenges in terms of the Post settlement business process which will be indicated in the next few slides. Financial compensation payment processes are high risk areas and tight control processes take time. In state land claims, disposal processes are not always finalised d before settlement which then causes delays in transfer. Unavailability of budget affects finalisation of private claims and due process needs to be finalised before transfer can be finalised, for example site visits to control assets and these take time. Where verification has not been finalised it can also delay implementation. Planning for implementation is not always finalised in the pre settlement s phase and this leads to delays when the grants money is required for implementation planning including issues like business planning. These challenges and interventions will be unpacked in the following slides: 25

26 POST SETTLEMENT BUSINESS POCESS Phase 1: Interim management Phase 2: Project feasibility Phase 3: Project planning Phase 4: Business modelling Phase 5: esource mobilisation Phase 6: Stakeholder relations/ strategic partnerships Phase 7: Capacity development Phase 8: Project implementation 26

27 POST SETTLEMENT CHALLENGES AND INTEVENTION STATEGIES CONT. CHALLENGES AND IMPLICATIONS Lack of integration and co-ordination of programme areas. Lack of ongoing commitment from a range of other organizations that are also involved in land reform result in projects being settled leaving a vacuum before proper implementation is in place which could result in struggling or even failed projects. INTEVENTIONS Cooperative governance planning processes must be done early on in the business process. Production value of the land reduced in relation to the valuation claimants inherit a liability as opposed to a productive farm by the time of transfer which has the implication that more resources need to be forthcoming. State land settled but not disposed and transferred result in some instances that user departments continue leasing the land to other parties and claims are not being implemented against expectations of the claimants and post-settlement support cannot be effectively done. Initial 50% payment procedure properly implemented. In loco inspections on time and penalty clauses must be implemented to the benefit of the new owners. Service Level Agreement with State land to take beneficial occupation ownership. 27

28 POST SETTLEMENT CHALLENGES AND INTEVENTION STATEGIES CONT. CHALLENGES AND IMPLICATIONS Ad hoc Institutional arrangements at provincial level: - Hand over of settled projects to relevant implementing departments not effective role of facilitation becomes implementation and there is no mandate and no budget for that. - Projects not included in IDPs or where included there are other constraints such as the availability of budgets. INTEVENTION Political intervention to implement a provincial arrangement of entry point being the Premier s office and estitution as part of the Department being represented on a Provincial Intergovernmental Forum, and to ensure Municipalities provide resources. Land as an asset is given to people who might not have the skills to ensure sustainability of the enterprise. Lack of proper pre settlement planning, e.g. phased claims, verification outstanding, boundary issues, disposal processes not done, transfers not finalised, consolidation of claims results in claims being settled but actions for implementation cannot be taken. Community profiles must be done to identify business skill and interest in the relevant enterprises. Establish a business entity. Skills audits in all claims and relevant training in Business Management versus functions of the CPA and legal training. Alignment of pre and post settlement process. Planning grants released earlier (e.g. when indication of restoration). State land interventions. 28

29 POST SETTLEMENT CHALLENGES AND INTEVENTION STATEGIES CONT. Unrealistic expectations in terms of land to be restored viz a viz land use feasibility results in community conflict, unclear plans and lack of ownership. Proper Feasibility and/ or options workshop. Clearly defined processes and steps towards implementation. Lack of capacity in LCC offices to successfully facilitate implementation with all the various stakeholders. Implement the recommended revised structure. Land use plans and Business planning inadequate. The plans are not always linked to beneficiation, does not address the reality on the ground and the risks associated with the enterprises and breakeven cash flow projections. Project implementation plans for each project in place. Implement a planning period for the new land owners which include appointment of a mentor and allow training. Proper resources to support the drafting and implementation of the Business Plans, including co-perative governance e.g. extension services and mentors. 29

30 POST SETTLEMENT CHALLENGES AND INTEVENTION STATEGIES CONT. CHALLENGES AND IMPLICATIONS Current grants structure does not address sustainability of restitution projec t adequately, which results in skewed allocation to agricultural projects as opposed to other beneficiation projects identified by the community as a whole. evised policy with regard to the grants structure and ensure participation by crucial departments such as DAFF (at least 50% of projects have an agricultural aspect). Co-operative planning with line departments are not in place which results in lack of funds beyond the restitution grants. If proper institutional alignments are in place, this could be addressed in terms of joint planning and an area-based approach where resources can be pooled. Community conflicts before and after settlement, especially between the CPA members, Traditional Leaders and different interest groups within community. Identify cases to be referred for conflict resolution process and where required referral to Court. 30

31 STATISTICS ON SETTLED ESTITUTION CLAIMS CUMULATIVE STATISTICS: MACH 2009 POV CLAIMS HHs BEN Ha LAND COST FIN COMP GANTS Development DG SPG SG TOTAL AWAD EC ,681, ,218,620, ,969, ,420, ,841, ,846, ,699,379, FS ,428, ,494, ,527, ,192, ,099, ,255, ,996, GP ,283, ,320, ,827, ,617, ,926, ,813, ,787, KZN ,463,227, ,261,621, ,047,442, ,313, ,345, ,428, ,969,745, LP ,359,532, ,435, ,626, ,843, ,427, ,250, ,193,116, MP ,650,382, ,866, ,236, ,986, ,614, ,024, ,360,110, NC ,441, ,472, ,070, ,493, ,071, ,543, ,118,093, NW ,129,633, ,070, ,441, ,587, ,089, ,828, ,878,650, WC ,584, ,108, ,907, ,765, ,427, ,163, ,124,003, TOTAL ,306,194, ,426,011, ,688,048, ,217, ,843, ,154, ,350,884, These statistics have been compiled based on the information reflected in the Database of Settled estitution Claims. 2. In order to improve the accuracy of our statistics, the Database of Settled estitution Claims is on an ongoing basis subjected to internal auditing. 3. Please note that the number of hectares restored is currently under review, both with regard to existing data, as well as outstanding data on state land. 4. The total restitution award also include the cost of solatium that was paid out, i.e. KwaZulu-Natal (6,367,00.00) and Western Cape (47,000.00). 5. The total for settled claims now also the dismissed claims. The totals for dismissed claims are based on the official inputs received from the regions at the time of compiling the management statistics. 31

32 SETTLED ESTITUTION CLAIMS FO THE PEIOD: 01 APIL MACH 2009 POV UAL DISMISSED HHs BENEFICIAIE S FHHs Ha LAND COST FIN COMP Development GANTS SG TOTAL AWAD EC ,345, ,376, ,173, ,562, ,458, FS ,685, ,175, ,350, ,215, ,427, GP ,800, ,160, ,830, ,813, ,603, KZN ,379,940, ,545, ,086, ,273, ,901,845, LP ,204, ,746, ,621, ,778, ,351, MP ,133,173, ,168, ,002, ,889, ,288,234, NC ,059, ,227, ,177, ,661, ,126, NW ,313, ,637, ,020, ,812, ,784, WC , ,551, ,980, ,163, ,980, TOTAL ,519,808, ,589, ,241, ,171, ,014,811,

33 SETTLED ESTITUTION CLAIMS FO THE PEIOD: 01 APIL APIL 2009 POVINCE UAL DISMISSED HHs BENEFICIAIES FHHs Ha LAND COST FIN COMP Development GANTS SG TOTAL AWAD E CAPE ,625, ,625, F STATE ,680, ,680, GAUTENG KZN ,845, ,326, ,314, ,231, ,718, LIMPOPO ,892, ,334, ,190, ,417, MPLANGA ,100, ,668, ,768, N CAPE ,000, ,250, ,250, N WEST ,175, ,175, W CAPE , ,834, ,392, ,316, TOTAL ,927, ,975, ,148, ,899, ,950, These statistics have been compiled based on the information reflected in the Database of Settled estitution Claims. 2. In order to improve the accuracy of our statistics, the Database of Settled estitution Claims is on an ongoing basis subjected to internal auditing. 33

34 Expenditure as at 2 June 2009 TOTAL Budget Exp till date Budget Available % Comp of employees 225,666,000 33,164, ,502,000 Good & Services 174,051,000 23,515, ,536,000 Theft and losses 2, , ,000 Provinces & Municipalities 0 3,000-3,000 Payments Cap Assets 970, , ,000 Total Operational Budget 400,689,000 57,360, ,329,000 14% Households 1,488,595,000 1,194,864, ,731,000 80% Land & Subsoil Assets TOTAL 1,889,284,000 1,252,224, ,060,000 66% 34

35 Expenditure per item TOTAL April ( 000) May ( 000) Total ( 000) Comp of employees 16,468 16,696 33,164 Good & Services 13,066 9,881 22,947 Theft and losses Provinces & Municipalities Payments Cap Assets Households 589, ,539 1,193,550 Land & Subsoil Assets - - TOTAL 618, ,410 1,250,105 35

36 Expenditure per office April ( 000) May ( 000) Total ( 000) National Office 2,152 2,611 4,763 Eastern Cape 11,486 12,477 23,963 Free State & NC 13,267 29,675 42,942 Gauteng & NW 16,657 50,059 66,716 Kwa-Zulu Natal 389, , ,392 Limpopo 102,998 49, ,641 Mpumalanga 64,864 57, ,646 Western Cape 17,739 10,303 28,042 Total 618, ,410 1,250,105 36

37 Capital Transfer Expenditure 02/06/ /10 TOTAL Budget Exp till date Budget Available % Households 1,488,595,000 1,194,864, ,731,000 80% After two months into the new financial year, the Commission has spent 80% of the capital budget. The implication is that by the end of June the budget will be depleted. A department may only request funds in the first quarter of the year that is equal or less than 45% of the previous financial year ar s budget. As the previous budget was 3.1billion, the CL may only request funds for 1,3billion until July The expenditure for April was 589m and the cash flow projection for May is 711m. This adds to 1.3b and means that the Commission may not spend any funds in June as the threshold prescribed by the PFMA was reached. The amount available for July is 187m after which the Commission s s budget will be depleted. 37

38 ANALYSIS OF LAND VALUE: 01 APIL MACH 2009 POVINCE HECTAES STATE PIVATE TOTAL LAND COST I.T.O PIVATE LAND ESTIMATED LAND COST PE HA ON PIVATE LAND E CAPE ,345, , F STATE ,685, , GAUTENG KZN ,101,823, , LIMPOPO ,404, , MPLANGA ,112,755, , N CAPE ,059, , N WEST ,313, , W CAPE TOTAL ,204,387, ,

39 Analysis of Average Land ates per Province POVINCE Grazing Drylands Irrigation Game Land Citrus Sugar Cane Timber Land Mining DFA Improve ments rates/m Privincial Average Standing Timber Eastern Cape Free State Gauteng KwaZulu-Natal 10, , , , , , , , , Limpopo 3, , , , , , , , , Mpumalanga 3, , , , , , , , , , Northern Cape 2, , , North West 3, , , , , , , Western Cape National Average per ha 4, , , , , , , , , , , National Average per ha submitted to CD 3, , , , , , , , , ,

40 Analysis of Average Land ates per Province cont. Comments: Analysis indicates averages excluding standing timber that is not inclusive in the land cost. The costing of the Development Facilitation Act is inflating prices enormously in KZN. It is evident that negotiations downward in other Provinces are far more amenable than in KZN. National Average per ha submitted to the Chief Director: estitution Management Support is the current trend for Commission Negotiations. The overall National Average is extremely difficult to determine in view of the different types of land usage, however for discussion purposes the vertical Provincial Average of (i.e. Province Average divide by 5 provinces) could be used. 40

41 OUTSTANDING UAL CLAIMS AS AT 30 April 2009 Province Number of outstanding claims at 31 March 2009 Number of claims settled: 01 April -30 June 2009 Dismissed claims : 01 April March 2010 Grand total of Settled and Dismissed claims Number of outstanding claims Projections for settlement of rural claims 09/10 ural Eastern Cape Free State Northern Cape Gauteng North West KwaZulu-Natal Limpopo Mpumalanga Western Cape Total

42 Comment on number of outstanding claims The outstanding rural claims are complex and there are many dynamics and various role players that the Commission has to manage. The Commission has embarked upon an audit with regard to the outstanding claims which reveals that due to previous consolidation processes and other o administrative challenges, the total number of outstanding claims, as well as the t extent of work outstanding, is more than has been reported over the past years. In addition, the Commission put extra effort into a process in to finalize all urban claims and no further reporting was done in terms of outstanding urban claims as there was a general acceptance that the impetus would continue and those claims would be finalized within a limited period which did not happen. We are still s therefore attending to settlement of outstanding urban claims. The Commission has projected to settle 1695 outstanding claims in the next financial year, however, this might not be feasible given budgetary constraints, capacity constraints and the nature of the outstanding claims in terms of business process which simply does not provide for quick solutions. A review team has been set up to verify statistics per province on the number of outstanding claims. 42

43 Thank you Blessing Mphela Chief Land Claims Commissioner Tel: (012) / 8883 AMMphela@dla.gov.za 43