PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM ANNUAL REPORT: 2009-2010 DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM 13 OCTOBER 2010 Mr. MduduziShabane Acting Director-General

2. OUTLINE • INTRODUCTION • CONTEXT • PERFORMANCE OVERVIEW • FINANCIAL PERFORMANCE • PROGRAMMES PERFORMANCE • CRDP PROGRESS • REPORT OF THE AG • PROGRESS FROM 2008/09 AUDIT FINDINGS • INVESTIGATIONS COMPLETED • CONCLUSION

3. INTRODUCTION The Purpose of this presentation is to brief the Portfolio Committee on: • The Programme Performance of the Department of Rural Development & Land Reform (DRDLR) based on the Interim Strategic Plan 2009/10; • The Financial Performance for 2009/10 financial year; and • Progress made in 2009/10 financial year against 2008/09 financial year as per the AG’s Reports.

4. CONTEXT • At the beginning of the period under review the voted funds of the department were aligned to the strategic plan of the former department of Land Affairs. • After the new Administration took office in May 2009, a new department of Rural Development & Land Reform was established. • The Department had to come up with a new Vision, Mission, Strategy, Programmes and Budgets to give effect to the new mandate. • Effectively 6 months of the period under review were spent in re-organising whilst implementing at the same time.

5. CONTEXT (Continued) • The following new programmes were established: • Branch: Geo-spatial Services, Technology Development and Disaster Management (GTD). • Branch: Social, Technical, Rural Livelihoods and Institutional Facilitation (STRIF). • Branch: Rural Infrastructure Development.

6. CONTEXT (Continued) • Despite these fundamental changes, the department launched its flagship programme – the Comprehensive Rural Development Programme (CRDP) three months after the inception of DRDLR. • The trend of improving governance and the control environment continued resulting in the elimination of audit qualifications – only one now remaining which will be eliminated in the next MTEF period • Even though the AG has correctly identified inadequacies in our risk management strategy, the department has continued to detect & deal with fraud & corruption decisively, e.g. forensic investigations in KZN

7. PERFORMANCE OVERVIEW • The Department had a final allocation of R6.391 billion out of which R5.854 billion was spent in the year under review. • The spending during 2009/10 translated into 92% of the final allocation, compared to the 99% spent during the preceding year. • The 8% under-spending is largely attributable to the changes in the mandate of the Department and the conceptualisation of the new programmes. • The Department’s activities were organised into seven (7) Programmes, and the following discussion will be based on these programmes.

8. FINANCIAL PERFORMANCE

9. Programme PerformanceProgramme 1: Administration • This programme was at the forefront of the transformation of the old department into the new and, while some of their targets may have been ambitious, their performance was also affected by the changes that took place at the time. • HR Plan completed & Implementation underway. • Vacancy rate significantly reduced from 16,7% to 10,24%. • 21 prioritised posts (incl 17 Senior Management) filled. • ICT Strategy for 1 year initiated.

10. Programme PerformanceProgramme 2: Surveys & Mapping • The environment in which this programme operates is highly specialised and well regulated. • The performance of this programme has been consistent over a period of time and some of the set targets have been exceeded.

11. Programme PerformanceProgramme 3: Cadastral Surveys Mgmt • The Cadastral surveys environment is also highly specialised and well regulated. • It is also an area of scarce skills. • The performance of this programme has been relatively consistent and is still improving.

12. Programme PerformanceProgramme 4: Restitution • This is an area where the Department faces its biggest challenge, at least in the medium term, from a budget point of view. • The Ministry has directed the department to develop a Turn Around Strategy for Land Restitution. • The Turn Around Strategy will be informed by the CRDP principles.

13. Programme PerformanceProgramme 5: Land & Tenure Reform • During this period the focus of this component has shifted from emphasis on hectares transferred to sustainability of land reform projects, hence the introduction of the Recapitalisation & Development Programme. • Despite the reported non-achievement of the set targets, the programme delivered 240 000 hectares. • The programme also requires improvement in the area of monitoring and evaluation and controls, especially in the light of the fraud and corruption that has been uncovered in some provinces.

14. Programme PerformanceProgramme 6: Spatial Planning & Information • The work of this programme has significantly increased since the inception of CRDP. • The performance of this programme has been consistent over a period of time. • Like Surveys & Mapping and Cadastral Survey Management, this programme has implemented scarce skill retention programmes.

15. Programme PerformanceProgramme 7: Deeds Registration • The Deeds environment has also performed consistently well over a period of time in relation to the targets set. • However, there is clear evidence that integrity and security of information and the systems require urgent overhaul. This has become even more urgent given some of the fraudulent and corrupt activities that have been uncovered.

16. CRDP PROGRESS

17. REPORT OF THE AG GENERAL ASSESSMENT • The Department made significant progress in resolving matters previously reported by the Auditor General. • Qualification on Lease Receivable was cleared and controls are being put in place to prevent the recurrence. • The Deeds and the Land Agricultural Holding Trading Accounts received unqualified audit reports. • Management is continually putting in place management action plans to address weaknesses identified by audit reports and such plans are monitored closely by senior management.

18. PROGRESS ON 2008/09 AG’s REPORT AGAINST 2009/10 AG’s REPORT

19. PROGRESS ON 2008/09 AG’s REPORT AGAINST 2009/10 AG’s REPORT

20. PROGRESS ON 2008/09 AG’s REPORT AGAINST 2009/10 AG’s REPORT

21. INVESTIGATIONS COMPLETED BY THE DEPARTMENT • 29 investigations were completed during 2009/10. • Allegations of corruption and irregularities related to land reform projects in KZN were investigated by DRDLR. • Forensic Investigations uncovered R53 million of fraudulent activities (reported as material losses) in KZN land redistribution. • Special Investigating Unit (SIU) has been brought on board to evaluate the severity of the fraud issues. • The criminal matters have been referred to the SAPS and Hawks to investigate and prosecute. • The AFU has been requested to assist on the recovery of losses identified. • The officials implicated have been suspended and disciplinary action underway.

22. CONCLUSION While acknowledging the legacy of the former department that DRDLR has inherited: • The fundamental changes in the organisation of the government has resulted in a Ministry dedicated to Rural Development and Land Reform; and • The Ministry has provided the department with clear strategic direction and leadership which has resulted in a focused department that is now able to confront the challenges it faces. --END--