INGONYAMA TRUST BOARD

1. INGONYAMA TRUST BOARD A Schedule 3A Public Entity in terms of the Public Finance Management Act, 1999 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 10 MARCH 2010 V475, OLD ASSEMBLY PARLIAMENT, CAPE TOWN STRATEGIC PLAN AND BUDGET 2010/2011

2. FACTS AND FIGURES • Land owned by Trust: 2 700 000 hectares. • Number of titles: 1 491. • Land held in almost all 61 municipal areas. • Population living on Trust land estimated at 4 558 698. • 241 Traditional councils/Authorities have jurisdiction on Trust land. • Trust set up by Ingonyama Trust, 1994 (Act No 3 of 1994)

3. STRATEGIC PLAN AND BUDGET 2010/2011 • 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 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 and Black Economic Empowerment. • In particular the implementation of the Communal Land Rights Act and challenges faced by the Board because of changes in other legislation such as the Mineral and Petroleum Resources Development Act have informed the content of this Strategic Plan. • The strategic issues raised in the Strategic Plan will facilitate achieving the objective of optimal land usage for the material benefit and social well being of the communities living on Ingonyama Trust land.

4. STRATEGIC PLAN AND BUDGET 2010-2011 contd. • The Ingonyama Trust legislation has created a unique instrument of land management providing both support to the communities on communal land and an executive agency available to the Minister in the context of “real estate” management. It is indeed very important to understand that the legal mandate of the Trust is not that of a developmental agency as such but that of a land management agency which must ensure that any commercial activity on communal land is developmental in nature. Commercial activities must benefit the local communities and the contracts entered into with the commercial sector (and indeed the official sector) contain provisions which require that benefits flow to the affected local communities. The main efforts of the Ingonyama Trust Board are geared to that end. • The emphasis for the strategic plan is therefore “land management” and the direct and indirect benefits flowing to communities therefrom.

5. The total budget requirement for the year 2010-2011 is R60,096,142 which includes voted funds of R 9156,580. The following slides highlight the major targets.

9. In order to support the provincial Department of Human Settlement’s Rural Housing Policy the Board has developed a standard Development Rights Agreement which is entered into with various Local Municipalities. • This enables housing projects on Trust land to be fast-tracked subject to the consent of relevant Traditional or Community Councils.

10. Some of the former R293 townships have informally expanded onto surrounding Trust land. This has resulted in this land being vulnerable to squatting on the one hand but having potential development value on the other hand. • The Board proposes to appoint a service provider to identify this land and advise on development potential. • The towns identified for 2010/2011 are: • Umlazi .Vulindlela • KwaMashu .Esikhaweni • Kwamakutha .Folweni • Ezakheni. .Magabheni • Ngwelezane .Manguzi • Madadeni .Mbazwana • Jozini .Ingwavuma • Mbumbulu • The budget figures for post 2010/2011 are for the implementation process and are also to include additional towns yet to be prioritised.

11. The Act, if a commencement date has been announced, will reconstitute the Board as the Ingonyama Land Rights Board for KwaZulu-Natal. • The Board will continue to liaise with the Department of Rural Development and Land Reform in connection with implementation and awaits publication of the draft regulations. • This will enable the “mapping exercise “ previously commissioned by the Board to be completed and to identify the future role and functions of the Board and the various processes and work-flow which will be necessary to successfully implement CLaRA in the Province.

12. Some 30 pieces of legislation impact on the workings and management of Trust land. These include Communal Land Rights Act, Traditional Leaders Framework Act, Municipal Property Rates Act and the Mineral and Petroleum Resources Act. • This legislation is continuously monitored and guidelines prepared.

14. The royalty income from 2010 is subject to the Minister of Mineral and Energy Affairs granting permission that royalties will still accrue to the Trust in terms of Schedule 2, section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002.

20. 12,984.00 4, 420, 000.00 10,000,000.00

21. 937 341.00

22. 400, 000.00 R50,916,390.00

23. D Departmental Funding Expenditure 9,179,752 Board Members remuneration 420,000.00 Bank Charges 15,000.00 Travel ,accommodation, meetings 350,000.00 Salaries 7,300,622.00 Internal audit committee members rem 6,000.00 Insurance 54,000.00 Stationery and other expenses 71,400.00 Advertising 24,000.00 Crockery & cutlery 2,000.00 Motor vehicle expenses 20,000.00 Personnel agency fees 50,000.00 Computer software 8,000.00 Security expenses 104, 580,00 Telephone External audit Fees Internal audit fees 48,000.00 486,150.00 150 000.00 Cleaning ,repairs and maintenance 70,000.00 TOTAL EXPENDITURE 60,096,142.00

24. SUMMARY AND CONCLUSIONS • The Ingonyama Trust Board sees its role increasingly as real estate and land management orientated. • To this extent the Ingonyama Trust seeks to strive as a model in real estate management in the country. • The strategic plan and budget for 2010/2011 have been prepared in order to achieve the optimum usage of land for the benefit of communities and other parties including the state and municipalities and other parties. • The benefits flowing to persons living on trust land will include: • Income from rents for commercial development. • Joint ventures/community participation in developments. • Employment opportunities. • Skills transfer. • Quality of life improved through: • Provision of Housing. • Provision of infrastructure and basic services. • The Budget for 20010/2011 totals R 60,096,142.00 and is made up of: • ITB own fund income : R 50,916,390.00 • Voted funds : R 9,179,752.00 • The End!