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ANNUAL REPORT YEAR ENDED 31 MARCH 2009 PRESENTATION TO THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 11 AUG

2. . VISION AND MISSION. 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 s

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ANNUAL REPORT YEAR ENDED 31 MARCH 2009 PRESENTATION TO THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 11 AUG

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    1. ANNUAL REPORT YEAR ENDED 31 MARCH 2009 PRESENTATION TO THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 11 AUGUST 2009 By Andrew Mphela Chief Land Claims Commissioner

    2. 2 VISION AND MISSION 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.

    3. 3 PURPOSE OF RESTITUTION Strategic objectives: To provide equitable redress to victims of racial land dispossession in terms of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994) 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.

    4. 4 OVERVIEW A successful restitution process is critical especially now as we face a global economic meltdown and escalating food prices. Key to achieving this is effective post settlement support within the context of rural development. Resources, Capacity building and Cooperative Governance.

    5. 5 OVERVIEW contd. Complex nature of claims affected pace of settling claims. Price of land is a huge factor affecting the state’s ability to acquire more land for beneficiaries (average R12 949.00 per ha). More money was spent to buy less hectares of land.

    6. 6 OVERVIEW contd. During the year under review, a total of 653 claims were settled affecting 30 112 households. Approximately 136 000 individuals from poor families in rural areas benefited from the restitution process during 2008/09, resulting in a total of 1.5 million individuals who have benefited since 1995. Almost 100% of R3.1 billion allocated was spent.

    7. 7 OVERVIEW contd. The costs for restitution awards, including land purchase and financial compensation amounted to R2.8 billion. Approximately R338 million was spent on recurrent costs, including salaries and service providers.

    8. 8 OVERVIEW contd. A total amount of R803m was committed as development grants. The total number of households that have benefited from settlement of a total of 75400 claims settled so far is 315 433. Total claims settled as at 31 March 2009 represents 95.5% of all claims lodged.

    9. 9 OVERVIEW: COMPLEX CLAIMS Claims on forestry and mining land are complex cases subject to more risk. Careful Sector planning and transversal consideration is key to ensure that rural development objectives are met. Settlement of claims must be aligned to broader objectives of rural development to fight poverty and create work opportunities.

    10. 10 BUSINESS PROCESS PERSPECTIVE STRATEGIC PARTNERSHIPS Challenges were experienced with some of the relationships established between beneficiaries and Strategic Partners, e.g. South African Farm Management (SAFM) company. Certain projects in Limpopo and Mpumalanga were affected by the liquidation of the company.

    11. 11 BUSINESS PROCESS STRATEGIC PARTNERSHIPS contd Currently busy reviewing all partnerships to ensure value for money for beneficiaries. Several agreements were concluded with roleplayers including First National Bank (FNB); Development Bank of SA (DBSA); the Amahlathi Forestry Company and Anglo regarding the provision of strategic support to beneficiaries.

    12. 12 BUSINESS PROCESS STRATEGIC PARTNERSHIPS contd. Agreement also concluded with AgriSETA towards provision of critical skills training for new land owners. Interacting with various commodity groups affected by the restitution process with a view to unblock bottlenecks and refine models aimed at ensuring tangible benefits for claimants as well as sustainability of projects.

    13. 13 BUSINESS PROCESS SUPPORT FOR STRUGGLING PROJECTS Approximately 200 struggling projects were identified for recapitalization. Department of Agriculture will be assisting with funding for the identified projects.

    14. 14 FINALIZATION OF OUTSTANDING CLAIMS Four regional offices preparing to finalize claims at end of 2009/2010 financial year (Gauteng; Free State; Northern Cape; and Western Cape). Remaining offices will complete their claims in the next five years e.g. Mpumalanga (2012); Limpopo (2013); KwaZulu-Natal (2014).

    15. 15 FINALIZATION OF OUTSTANDING CLAIMS (Cont.) Memorandum outlining challenges regarding the issue of the 2008/09 deadline was submitted to Cabinet. Outstanding claims will be finalized in line with the budget cycles regarding disbursement of funds for government programmes (MTEF), subject to availability of resources and creation of capacity for post settlement support.

    16. 16 CHALLENGES & STRATEGIES

    17. 17 CHALLENGES and STRATEGIES contd.

    18. 18 OVERVIEW FINALIZATION OF OUTSTANDING CLAIMS

    19. 19 SETTLED RESTITUTION CLAIMS 01 APRIL 2008-31 MARCH 2009

    20. 20 SETTLED RESTITUTION CLAIMS 01 APRIL 2008-31 MARCH 2009 CONTD.

    21. 21 CUMULATIVE STATISTICS 1995 - 31 MARCH 2009

    22. 22 CUMULATIVE STATISTICS: 1995 - 31 MARCH 2009 CONTD.

    23. 23 CUMULATIVE STATISTICS ON SETTLED LAND CLAIMS: RURAL AND URBAN 1995 – 31 MARCH 2009

    24. 24 CUMULATIVE STATISTICS ON SETTLED LAND CLAIMS: RURAL AND URBAN 1995 – 31 MARCH 2009

    25. 25 Expenditure 2008/09

    26. 26 Expenditure till 15 July 2009

    27. 27 Expenditure until 15 July 2009

    28. 28 Total projected cost for Restitution MTEF requirement: R10,4 billion Committed projects: R 21,5 billion Betterment claims: R10,0 billion Kruger National Park: R20,0 billion 2009/10 Budget R 3,4 billion Total: R65,3 billion

    29. 29 2009/10 and MTEF budget

    30. 30 Budget breakdown MTEF 2010-2013

    31. 31 Budget breakdown 2010/11

    32. 32 Budget breakdown 2011/12

    33. 33 Budget breakdown 2012/13

    34. 34 CONCLUSION Massive pressure placed on Commissioners as a result of financial constraints affecting the restitution programme. Huge demands: social, political, economic implications of not resolving claims. Commission: Act of Parliament (review of Commission’s existence or other). Reschedule delivery

    35. 35 Thank you Andrew Mphela Chief Land Claims Commissioner Tel: (012) 312 8883 Fax: (012) 321 0428 email: MMPhela@dla.gov.za

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