Ingonyama Trust Board A Schedule 3 A Public Entity

1. Ingonyama Trust Board A Schedule 3 A Public Entity In terms of the Public Finance Management Act (Act 1 of 1999) STRATEGIC PLAN AND BUDGET 2008/2009 Presentation to the Portfolio Committee on Agriculture and Land Affairs 14 May 2008

2. PRESENTATION TEAM BOARD MEMBERS S J Ngwenya (Acting Chairperson) J Bhengu F R Brooks W E R Raubenheimer B L Shabalala SECRETARIAT C J Aitken (Real Estate) A Mia (Finance)

3. BACKGROUND In terms of the Ingonyama Trust Act 3 of 1994 as amended in 1997; • His Majesty the King is the sole Trustee; and • The Board was established on 2 October 1997. CORE BUSINESS • To manage the Ingonyama Trust land for the “material benefit and social well being of the individual members of the tribes”. • No encumbrance of the land without the written permission of the relevant traditional or community authority. VISION • To improve the quality of life of the people living on Ingonyama Trust land by ensuring that land usage is to their benefit and in accordance with the laws of the land. OBJECTIVES • To provide an effective land administration system; • To create a climate which encourages development; and • To extend security of tenure in accordance with both customary and statutory law.

4. INGONYAMA TRUST LAND 2, 705, 509 hectares held under some 1600 individual titles in all of the 11 District and eThekwini Metro Municipal areas as at 31 March 2008

5. Overview of Budget and Trust funding The budget has been aligned to the Strategic Plan for the year 2008/2009. The Ingonyama Trust Boards’ income is obtained from two sources. Ingonyama Trust Board Ingonyama Trust Board Own Fund Income – (Trading activities) Transfer Payment received from theDepartment of Land Affairs (Grant in aid) • The Ingonyama Trust Board’s own fund income comprises of Income earned from Leases, Royalties and Investment. The Budgeted amount for 2008/2009 is R24 426 611 which makes up 81.88% of the Total income budget. • In addition R5 405 177 is to be received from the Department of Land Affairs as a transfer payment which makes up the remaining 18.12% of the total income budget. • In terms of the Board’s disbursement policy 90% of the income earned from trading activities is to be utilized for the benefit of the communities and 10% of the income earned is to be retained for Board expenses. • The total budget amounts to R 29 831 788.30 which is a 63.73% increase on the budget prepared for 2007/2008. • The expenditure budgeted is to be funded from the above sources. • The internal administration costs of the Board are met from a grant-in-aid received from the National Department of Land Affairs. Certain operational costs are met from the 10% of funds accruing to the Trust. These arrangements are in terms of the Ingonyama Trust Act 1994 and the Regulations made under the Act.

6. BACKGROUND TO THE STRATEGIC PLAN • 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 the 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, black empowerment and security of tenure. • In particular the implementation of the Communal Land Rights Act (CLaRA) and challenges faced by the Board with changes in other legislation such as the Mineral and Petroleum Resources Development Act have informed the content of this Strategic Plan. • As the full implications of these two Acts unfold, the Plan may have to be revised. Similarly the coming into operation of National and Provincial laws on traditional leadership will have to be taken into account. • The strategic issues raised in the Strategic Plan will facilitate the achievement of the objective of optimal land usage for the material benefit and social well being of the communities living on Ingonyama Trust land. • Furthermore, it will assist in extending security of tenure in accordance with both customary and statutory law.

7. STRATEGIC OBJECTIVES: 2008-2009 The Board’s primary strategic objective is that of Land Management. The following outputs and activities have therefore been identified for the optimum usage of land for the benefit of communities and other parties including the state and municipalities which will also prepare the way for the implementation of CLaRA:- • update and maintain the Land Tenure Information System; • consolidation of titles; • transfer KwaZulu Towns to local authorities; • transfer state domestic properties; • allocate land for housing and infrastructure purposes; • identify land in township areas; • on-going co-operation with DLA in preparation for CLaRA; • monitor legislation impacting on ITB land; • granting of leases and other tenure rights; • disbursements to beneficiary communities.

13. SUMMARY AND CONCLUSIONS Priority issues: • Completion of transfer of former R293 towns to municipalities, • Transfer of State Domestic facilities to relevant organs of state, • Completion of transfer of properties from Department of Land Affairs, • Upgrading of Land tenure • Disbursement of funds to beneficiary communities, • Facilitating new development and promoting BEE, • Resolving land claims, • Implementation of CLaRA, • Filling vacant posts, Income and Expenditure • Budgeted Income : R29,831,788 (64% increase on previous year) • Budgeted Expenditure: R29,831,788 (64% increase on previous year) Rental Income R2,001,614 (100,01% increase on previous year) Royalty Income R9,698,168 (32% increase on previous year) Disbursements to beneficiaries R20,183,950 (41% increase on previous year)

14. Thank YouThe End