Communal Property Associations Annual Report to Parliament 2016/17
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COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT TO PARLIAMENT 2016/17 1 TABLE OF CONTENTS Page 1. PART A: General Information 1.1. Introduction…………….. .………………………………………..…………………………...…………………………………….. 02 1.2. List of Abbreviations/Acronyms…………………………………………………………………………………………….......... 03 1.3. Foreword by the DRDLR Minister………………………………………………………….………………………………………. 04 1.4. Overview……………………………………………………………………………………………………………………………… 05 1.5. CPA Strategy 2017...………………………………………………………………………...…………………………………… 06 1.6. Legislative and Other Mandates…………………………………………………………..……………………………………….. 08 2. PART B: Performance Information 2.1. Institutional Arrangements, Challenges & Interventions………………………………………………………………………… 09 2.2. Judicial Administration…………………………………………………………………….……………………………………….. 10 2.3. CPAs that lost land……………………………………………………………………….…………………………………………. 11 2.4. Recapitalized CPAs’….……………………………………………………………………………………………………………… 12 2.5. Conflict dynamics……………………………………………………………………………………………………………………. 12 2.6. Performance by Province……………………………………………………………………..……………………………………. 14 2.7. National Compliance Trends…………………………………………………………………….……………………………… 102 3. PART C: Human Resource Management 3.1. Introduction………………………………………………………………………………………………..………………………….. 103 3.2. TSI Human Resource Statistics……………….……………………………………………………...…………………………… 103 4. PART D: Land Right Management Facility 4.1. LRMF expenditure…………………………………………………………………………………………………………………… 105 4.2. Matters referred for regularization/litigation/mediation………………………………………………………………………….. 106 4.3. Conclusion…………………….………………………………………………………….…………………………………………... 109 2 1 PART A: GENERAL INFORMATION 1.1 Introduction In terms of Section 17 of the Communal Property Association Act, Act No. 28 of 1996 the Director-General is required to compile a report on the extent to which the objectives of the Communal Property Association Act are being achieved and the Minister is required to table such report in Parliament in every calendar year. The economic benefits of functional Communal Property Associations, which are able to put the land they own into productive use, can result in the alleviation of the high levels of unemployment and poverty within the country. The Department of Rural Development and Land Reform has registered a total of 1526 Communal Property Associations since the inception of the Act. In the majority of cases these entities do not comply with their reporting obligations. There is a high incidence of dysfunctionality and non-compliance within CPAs which warranted intervention by the Department and other stakeholders. 3 1.2 List of Abbreviations/Acronyms AFS…………………........................................................................................... Annual Financial Statement AGM …………………......................................................................................... Annual General Meeting CD …………………............................................................................................ Chief Director CPA ………………….......................................................................................... Communal Property Association CPI …………………........................................................................................... Communal Property Institution CTH ………………….......................................................................................... Cheadle Thompson and Haysom Inc. DRDLR …………………..................................................................................... Department of Rural Development and Land Reform ESTA………………………………………………………………………………... Extension of Security of Tenure Act LRMF………………………………………………………………………………………..Land Rights Management Facility LTA…………………………………………………………………………………………..Land Tenure Act MA…………………………………………………………………………………… Maenetja Attorneys Inc PSSC …………………....................................................................................... Provincial Shared Services Centre RLCC …………………....................................................................................... Regional Land Claims Commission RECAP……………………………………………………………………………… Recapitalization and Development SEIA…………………………………………….................................................... Socio-Economic Impact Assessment TSI………………………………………………………………………………….. Tenure Systems Implementation 4 1.3 Foreword by the DRDLR Minister Land Reform is one of the key areas that have been prioritised by our government. Access to land gives families an opportunity to provide for their basic nutritional needs. The importance role of the CPAs is that they play as facilitators of economic development in their respective areas and that can never be overemphasised. The agents of change need to be capacitated with both appropriate business management skills and agricultural skills to put them on a sound production footing. We are engaging in efforts to turn the fortunes of our CPAs around. In the past year I reported on the establishment of structures in each district to support and facilitate provision of support to CPAs. We have been building capacity within these structures and clarifying their roles to enhance their effectiveness. Efficiency and co-ordination of efforts are key to addressing the lack of support to our legal entities. The amendment we seek to introduce to the legislation will solve most of the challenges currently experienced with CPAs. Dedicated capacity as envisaged in the establishment of the Communal Property Associations will bring the Departmental support closer to CPAs. The gap between the Department and CPAs has led to lack of monitoring and early detection of problems before they entrench themselves. More creative ways are needed in order to solve the challenges facing CPAs. It is in that light that the Department is required to continuously evaluate its intervention mechanisms to look into the existing gaps and plug them. We believe that through our collaboration with all the role players and stakeholders and a conducive legislative environment we will find success in addressing the well-known challenges facing our legal entities. 5 1.4 Overview The past financial year has seen the Department strengthen the partnerships it has established with civil society. This was done through the establishment and strengthening of various forums that will support projects as well as facilitate access to various services within a reasonable distance. At the core of these partnerships is the provision of support for land reform projects and to put them on a trajectory of success. Amongst others we have the CPI District Forums taken through a capacity building workshop. Land Reform is not only about giving access to the landless masses but also about the improvement of their economic position and food security. In this respect the department is striving to make Communal Property Associations fully functional so that they can contribute to the broader development agenda. The value of the investment that we made in acquiring land for communities in the acquisition of land makes it necessary for us to develop mechanisms, plans and strategies to solve a myriad of challenges plaguing CPAs. Our multi-pronged approach as contained in the Communal Property Associations Strategy entails amending the legislation, strengthening the institutional capacity and extending the scope of support given to CPAs. Fully functional and economically active CPAs will not only contribute to the economic empowerment of their members but will also contribute to economic growth and alleviate reliance on the social security system of the country. 6 1.5 Communal Property Association Strategy 2017 The property portfolio of CPAs runs into billions of Rands and therefore the Department cannot afford not to realise the return on its investment in Land Reform and Restitution. This necessitates the proper diagnosis of what the challenges are and the remedies or interventions required for those challenges. A number of meetings were held both internally with officials and externally with other role-players. A CPA Indaba was held with implementers in September 2016, another CPA Indaba was held in June 2017 following a task team was established. The Task Team met in July 2017 to take the recommendations of the CPA Indaba and develop them into actionable plans. In order to address the immediate, medium-term and long-term challenges the following interventions are being considered for implementation: 1.5.1 Establish a credible CPA Database o Update the hardcopy and electronic CPA Register o Include additional fields in the Register. e.g. Hectars, Enterprise, Geographic location o Capture compliance status o Create an email address and assign a phone number to each CPA o Finalize all verification processes for CPA projects to finalise membership lists o The Commission on Restitution of Land Rights must update the records of Hectars transferred to CPAs 1.5.2 Develop an Information Management System (IMS) o Compliance status o Upload and download reports 1.5.3 Build and strengthen stakeholders networks o Enter into MoAs and MoU with stakeholders. e.g. IEC 7 1.5.4 Capacitate the CPA component both Nationally and Provincially o Review the CPA Delegations o Assign personnel to CPA work (minimum of 2 per provinces) o Provide training to all personnel working CPAs o Assign Recap officials to work on agricultural development in CPAs 1.5.5 Capacitate the CPAs with regular training and support o Conduct a skills audit on all CPAs o Provide training to all CPAs and their committees o Provide resources to CPAs. e.g. laptops & stipends