BRIEFING TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM

Transcription

1 BRIEFING TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 3 March 2010 PARLIAMENT, CAPE TOWN THE STATE OF COMMUNAL PROPERTY ASSOCIATIONS AND OTHER LEGAL ENTITIES FOR LAND REFORM PROJECTS DEPARTMENT OF RURAL (DRDLR)

2 LEGAL FRAMEWORK 1. Communal Property Association Act No 28 of Trust Property Act No 57 of Section 21 Companies Act No 61 of Close Corporations Act No 69 of

3 PROCESS FOLLOWED TO ESTABLISH LEGAL ENTITIES Consensus by beneficiaries that land be held communally Workshop beneficiaries on all legal entities that hold and manage land, and choose the entity that will function best for their circumstances (encouraged to choose a CPA) Officer appointed/nominated to assist beneficiaries in drafting a constitution (CPA)/Trust Deed (Trust)-various meetings held with Committee elected by beneficiaries for this purpose Constitution/Trust Deed workshopped and presented to beneficiaries for adoption Beneficiaries elect office bearers / trustees Office bearers/trustees workshopped on their duties and functions Constitution/trust deed sent for registration (Master/CPA 3 Registration Officer)

4 NUMBER OF REGISTERED LEGAL ENTITIES (RESTITUTION & LAND REFORM PROGRAMMES) PROVINCE CPAs TRUSTS TOTAL EASTERN CAPE FREE STATE GAUTENG KWAZULU-NATAL LIMPOPO MPUMALANGA NORTHERN CAPE NORTH WEST WESTERN CAPE NATIONAL

5 KEY CHALLENGES FOR CPA S Allocation of rights to members not sufficiently clarified (few individuals amass power and rights for themselves) Lack of monitoring of CPAs impacts on the accountability of CPA Committees to their members Nature & size of land reform grants compelled individual households into communal ownership of land. Failure to use (to the fullest extent) remedies provided in the CPA Act to intervene. Membership of CPAs based on families and not individuals. giving powers to heads of households, mainly males Legal entities do not operate properly when co-existing with traditional leadership 5

6 KEY CHALLENGES FOR TRUSTS Abuse of power trustees do not always act in the best interest of beneficiaries, or in a democratic way. Conflicts between traditional authorities and trustees over management of communal land. Lack of capacity in the Master s Office to hold trustees accountable in terms of Section 16 of the Trust Act. Failure of Trusts to hold Annual General Meetings and failure to provide financial and operations reports. (Poor Governance) Failure to hold elective meetings where the term of Trustees has expired. 6

7 KEY ACTIONS : REMEDIES Education Campaign to educate land reform beneficiaries about the functioning of CPAs/TRUSTS and their rights and obligations Governance Training for legal entities with specific focus on the CPA/TRUST Committees. Review the CPA policy and legislation to address gaps Develop and implement dispute resolution mechanisms to deal with related challenges such as abuse of power, finance and poor management. 7

8 KEY ACTIONS : REMEDIES contd. Link the review and strengthening of the community land holding legal entities to re-capitalization and development programme for all distressed land reform projects. Adopt a business approach to land redistribution distinction between land holding entity and business entity to run the business affairs of the community. 8

9 CONCLUSION The establishment of legal entities is necessary for the registration of land rights and security of land tenure. The legal entities also serve as instruments for the democratization of land use even though they may also be the basis for disputes, especially between traditional leaders, trustees and communities. Governance training, accountability as well as empowerment of land reform beneficiaries are all critical for the success of these legal entities. The DRDLR must take the lead and develop the necessary capacity in creating an enabling environment for the success of these legal entities. 9

10 Thank you! Baie dankie! Ndiyabulela! Ke a Leboga! Mr Thozi Gwanya DG: Rural Development and Land Reform TTGwanya@ruraldevelopment.gov.za Website: Tel: Working together we can do more by improving the quality of 10 life for all our people living in rural areas