COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT: 2014 2015 PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 4 NOVEMBER 2015
2. Distribution of CPAs 3. Challenges faced by CPAs 4. Registrations, untraceable, lost land and administration 4.1 Untraceable CPAs and those that lost land 5. Definition of Compliance 6. LRMF Referrals 7. Distribution of referrals 8. Unsuccessful Regularisation 9. Expenditure 2014-2015 10. National compliance trends 10. Interventions 11. Legislation 13. Outcomes and Impact 2
1. INTRODUCTION Communal Property Associations are formed in terms of the Communal Property Associations Act, 1996 (Act No. 28 of 1996) to hold, manage and own land on behalf of its members. In terms of Section 17 of the Act, the Department of Rural Development and Land Reform is required annually to submit a report to the Minister on Communal Property Associations and Provisional Associations and how the objects of the Act are being met, and the Minister shall table the report in Parliament. 3
2.1. DISTRIBUTION OF CPAs 1428 CPAs were registered to date. 48 CPAs registered in the financial year 2014/15. The distribution of CPAs according to provinces reflects proportion of registered CPAs according to provinces. 4
2.2. DISTRIBUTION OF CPAs PER PROVINCE 5
2.3. DISTRIBUTION OF CPAs PER PROGRAMME 6
3. CHALLENGES FACED BY CPAs Ongoing conflict amongst CPA members centred on governance issues: accountability, financial mismanagement, transparency and lack of adherence to the CPA constitution; Some CPAs are insolvent and need an injection of funds to put them on a sound business footing. Litigation proceedings are sometimes used to prevent members of CPAs from participating in the activities of the CPA. Alienation of immovable property in ownership of the CPA. Nine CPAs are under Judicial Administration for the abovementioned reasons for periods ranging from 6 months to 3 years 7
4. REGISTRATIONS, UNTRACABLE, LOST LAND & ADMINISTRATION Province Registered in 2014-15 Untraceable CPAs CPAs that lost Land Eastern Cape 2 0 2 (420 ha) 0 Free State 1 0 11 (2663 ha) 0 Gauteng 1 0 0 0 Kwazulu-Natal 7 0 0 0 Limpopo 14 0 0 2 Mpumalanga 12 22 3 (2190 ha) 1 Northern Cape 9 1 4 (5395 ha) 3 North West 2 6 0 2 Western Cape 0 0 0 1 National Summary 48 29 20 (10668 ha) 9 CPAs under Administration 8
4.1. UNTRACEABLE CPAS AND THOSE THAT LOST LAND Untraceable CPAs means those CPAs that were registered and never owned land or whose members cannot be located Investigations are still ongoing. CPAs that lost land means those that either sold land or whose land was lost to creditors. Where the sale is irregular or illegal we assist communities to challenge the sales in court. Where the sale was regular we initiate the process of deregistration of those CPAs. 9
5. DEFINITION OF COMPLIANCE Compliant CPAs: updated membership list, a valid constitution, hold regular AGMs hold elections submit Annual Reports to the DG. Not all CPAs that are not regularised are non-compliant. Some CPAs have used their own resources to create internal capacity in order to establish an efficient administration which will ensure compliance with their reporting requirements. 10
6. LRMF REFERRALS 147 CPAs were referred to the LRMF for Regularisation A total of 40 CPAs have been regularised to date and 12 CPAs in 2014/15. 65 cases are pending 42 cases cannot be regularised and were referred back to the Department PHASE 1 PHASE 2 11 10 10 8 6 5 3 1 1 1 1 2 3 3 Figure 1: CPA provincial distribution Figure 1: CPA Pending Matters - Phase 1 and 2 11
7. DISTRIBUTION OF REFERRALS Province No of CPAs Total Area(ha) Total Households Beneficiaries Eastern Cape 13 17,340.21 5116 11727 Free State 10 27,700.83 345 910 Gauteng 9 5,453.66 2927 8641 KwaZulu-Natal 13 19,264.80 1220 6414 Limpopo 11 45,938.73 2253 8731 Mpumalanga 28 63,864.92 4412 22781 North West 23 83,943.26 7302 26302 Northern Cape 22 137,549.11 3211 11810 Western Cape 18 10,139.23 3322 7267 Grand Total 147 411,194.76 30,108 104,583 12
8. UNSUCCESSFUL REGULARISATION Regularisation is a process which mainly involves mediation and assisting a CPA to undertake processes that will make it compliant. Not all endeavours to regularise yield positive results. Some of the reasons that lead to failure of regularisation are: Members who insist on litigation Underlying problems like chieftainship contests Interdicts obtained by one party to prevent the Department from intervening/regularising/assisting. In those instances the most feasible option becomes administration. 13
9. EXPENDITURE 2014/15 Land Rights Management Facility: Disbursements for CPAs Panel Funds between April 2014 and March 2015 Date Quarter 1 Quarter 2 Amount Paid R2 777 949.69 R1 110 988.34 Quarter 3 R1 550 656.59 Quarter 4 R719 068.25 TOTAL R 6 158 555.86 14
10. NATIONAL COMPLIANCE TRENDS Province 2009-10 2011-12 2012-13 2013-14 2014-15 Eastern Cape 16 21 22 23 29 Free State 11 12 22 23 32 Gauteng 8 10 11 11 12 Kwazulu-Natal 27 30 30 30 33 Limpopo 10 24 34 35 53 Mpumalanga 8 16 26 27 42 Northern Cape 4 11 12 13 30 North West 10 21 39 40 33 Western Cape 6 13 13 13 20 National Summary 100 158 209 171 284 15
11. INTERVENTIONS / TURN AROUND STRATEGY 1 Mediation: During the reporting period, Department mediated in 87 CPA disputes. Training: 56 CPAs were trained on the CPA Act and on governance matters. 147 officials have been trained on the CPA Act and dispute resolution Regularisation: 12 CPAs were regularised through Land Rights Management Facility and are now legally compliant. Judicial administration: 9 CPAs have been placed under judicial administration. 16
11. INTERVENTIONS / TURN AROUND STRATEGY 2 Judicial administration: 9 CPAs have been placed under judicial administration. Northern Cape o Khomani San o Loeriesfontein o Pniel North West o Klein Tswaing o Barolong Bo Maiketso 17
11. INTERVENTIONS / TURN AROUND STRATEGY 3 Judicial administration: 9 CPAs have been placed under judicial administration. Western Cape o Elandkloof Limpopo o Serala o Letswalo Mpumalanga o Sisonke 18
11. INTERVENTIONS / TURN AROUND STRATEGY 4 Recapitalisation: 26 CPAs are being assisted through the Recapitalisation and Development Programme (RADP) ; and R166 468 012 is budgeted for this purpose CPAs Recapitalised in Free State o Bethany R9 700 000 o Itekeng Chicken Abattoir R4 994 430 o Mokhachane R3 052 025 TOTAL R 17 746 455 CPAs Recapitalised in Limpopo o Seloane R1 080 000 o Mawela R22 306 580 o Seabi R8 013 730 o Shigalo In progress. o TOTAL R 31 400 310 19
11. INTERVENTIONS / TURN AROUND STRATEGY 5 Recapitalisation: 26 CPAs are been assisted through recapitalisation; and R166 468 012 is been invested. CPAs Recapitalised in Mpumalanga o Bunyebetfu R8 662 500 o Buyelani Majabula R2 537 512 o Champagne R19 603 540 o Endlovini R8 033 500 o Esandleni R8 381 231 o Ingogo R2 985 500 o Mathebula R6 555 053 o Mbuyane R19 264 342 o Mhlongamvula R9 808 700 o Sibonelo R3 077 400 TOTAL R 88 909 278 20
11. INTERVENTIONS / TURN AROUND STRATEGY 6 Recapitalisation: 26 CPAs are been assisted through recapitalisation; and R166 468 012.50 is been invested. CPAs Recapitalised in North West o Barokologadi R410 169 TOTAL R 410 169 CPAs Recapitalised in Northern Cape o Iphemeleng R4 740 614 o Batsamaya Mmogo R5 496 471 o Kopano R4 570 860 o Ditaung Farmers R3 681 798 o Laughing Waters R1 847 583 o Bonita Park R5 236 986 o Richtersveld R2 368 848 o Koopmansfontein R58 635.00 TOTAL R 28 001 795 21
12. LEGISLATION The draft CPA Amendment proposes amendments to the Act to enhance the protection of members rights: Land owned by a CPA will have to be surveyed and a diagram drawn up to facilitate the institutionalisation of the rights of members. Disqualification of certain people from holding CPA office. 60% quorum required for land transactions Capacity will be strengthened through the establishment of a dedicated CPA Office. The Bill is currently being processed for approval. 22
13. OUTCOMES AND IMPACT Mediation 87 disputes have been resolved Legislation Bill not yet finalised. Impact will only be determined after promulgation and implementation. Operational Capacity Directors and operational personnel responsible for CPAs are being appointed in all provinces. More support is provided to CPAs. 23
13. OUTCOMES AND IMPACT 2 Training 56 CPAs and 140 officials were trained on the CPA Act and governance matters. Some CPAs are meeting their obligations without support from government. Others are using their own resources to build internal capacity. Regularization 12 CPAs were regularized through Land Rights Management Facility and are now legally compliant. Judicial administration This action is putting CPAs on the back-foot which results in some CPAs requesting out of court settlement. 24
THANK YOU 25