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Presentation of the 2009/10 Annual Report

This presentation provides an overview of the Department of Rural Development and Land Reform's program performance and financial performance for the 2009/10 fiscal year. It covers settlement of claims, research on claims, challenges, turnaround strategy, financial performance, outstanding claims, cases before court, settled restitution claims, cumulative statistics, rural and urban claims, budget expenditure, and audit issues.

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Presentation of the 2009/10 Annual Report

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  1. Presentation of the 2009/10 Annual Report to Portfolio Committee on Rural Development and Land Reform Presented by Acting Chief Land Claims Commissioner: Mr S SGamede 14 October 2010

  2. OUTLINE • INTRODUCTION • OVERVIEW BY THE A:CHIEF LAND CLAIMS COMMISSIONER • SETTLEMENT OF CLAIMS • RESEARCH ON CLAIMS • CHALLENGES • TURN AROUND STRATEGY • FINANCIAL PERFORMANCE • OUTSTANDING CLAIMS • CASES BEFORE COURT • SETTLED RESTITUTION CLAIMS • CUMALATIVE STATISTICS • RURAL AND URBAN CLAIMS • SUMMARY APPROVALS • BUDGET EXPENDITURE • AUDIT ISSUES • 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

  4. OVERVIEW BY THE ACTING CHIEF LAND CLAIMS COMMISSIONER The establishment of the new Department of Rural Development and Land Reform has ushered in a new approach with regard to the implementation of the government’s land reform programme. The Commission has reviewed it’s strategic focus with regard to the approach for dealing with outstanding claims The Commission’s focus is on the following: (1) Research (2) Alternative settlement models Aligned with CRDP (3) Innovative approaches to acquire land for restitution beneficiaries viz: State land; Land owned by municipalities

  5. Our statistics reveal a decline in the pace of settling the outstanding claims. This is mainly attributed to the severe budgetary constraints that the Commission had to grapple with during the year under review. Treasury had been approached in this regard. A request for R3,5billion. The situation required the Commission to prioritize a few claims that could be handled with the limited funding. The Commission only managed to finalize 33 claims with the allocated budget. Regular meetings are also held with the DAF concerning the finalization of claims on SAFCOL land, including the Komatipoort Forest. Task Team consisting of Commission and DAFF to finalize claims on SAFCOL land Together with the Department of Public Enterprises we have developed a model for the settlement of claims of forestry land . SETTLEMENT OF CLAIMS

  6. RESEARCH ON CLAIMS A large number of outstanding claims have been researched towards identifying ‘prima facie’ valid claims, but have not yet been researched to a stage where negotiations with the land owners can be initiated because of budget constraints. During the period under review , the Commission experienced an increase in the number of cases referred to the Land Claims Court.

  7. CHALLENGES • Large number of outstanding claims not researched. • Information Management Systems on areas of research and validation of outstanding claims viz-a-vie gazetting and de-gazetting • Exorbitant land prices • Complexities of the remaining claims viz-a-vie the availability of Human Capacity • Community Border Disputes • Unavailability of Land • People opting for the Restoration of Land • Budgeting constraints • Increase in court cases • Betterment claims • Communication with Stakeholders • Group claim: different options, eg. Financial and or Restoration of land

  8. TURN AROUND STRATEGY • A turn around strategy has been developed which focuses on the following areas: • Litigation management • Research • Verification • Settlement models • Finance • Communication plan. • Information Management It is envisaged that the new turn around strategy will be rolled out immediately.

  9. FINANCIAL PERFORMANCE • The total expenditure for 2009/2010 amounted to R2.3 billion. • As a result of the high cost of land per hectare, the Commission continued to spend more money in return for lesser hectares of land for restitution purposes. • Approximately 9 294 households benefitted from the restoration of 145 492 hectares of the land during the financial year under review.

  10. OUTSTANDINGCLAIMS * 313 claims consolidated into 1

  11. CASES BEFORE COURT AS AT 31 MARCH 2010

  12. SETTLED RESTITUTION CLAIMS:01 APRIL 2009 – 31MARCH 2010

  13. CUMULATIVE STATISTICS: FROM 1995 - 31MARCH 2010

  14. CUMULATIVE STATISTICS: 1995 - 31 MARCH 2010 (CONT)

  15. RURAL AND URBAN:1995 - 31 MARCH 2010

  16. SUMMARY APPROVALS FOR THE FINANCIAL YEAR 1 APRIL 2009 TO 31 MARCH 2010

  17. BUDGET EXPENDITURE

  18. AUDIT ISSUES 2009/10 • No Qualifications • Matter of emphasis on the following: • Commitment of R7,3billion • Recovery of interest from conveyancer • Suspense account

  19. CONCLUSION • How we report • Implementation • Communication • Time lines – business process • Legal Risk • Risk management

  20. Thank you Sibusiso Gamede Chief Land Claims Commissioner (Acting) Tel: (012) 312 9146 Email:SSGamede@ruraldevelopment.gov.za

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