Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

2 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Table of Contents

1. PART A: GENERAL INFORMATION ------5

Department’s General Information ------6 List of Abbreviations /Acronyms ------7 Foreword by MEC of the Department ------10 Report of the Accounting Officer ------12 Overview of the Accounting Officer ------12 Accounting Officer’s Statement of Responsibility for Performance Information ------19 Strategic Overview ------20 Vision ------20 Mission ------20 Values ------20 Legislative and Other Mandates ------21 Organisational Structure ------22 Entities Reporting to the MEC ------22

PART B: PERFORMANCE INFORMATION ------23

Auditor General’s Report: Predetermined Objectives ------24 Overview of Departmental Performance ------24 Service Delivery Environment ------24 Service Delivery Improvement Plan ------25 Organisational Environment ------27 Key Policy Developments and Legislative Changes ------28 Strategic outcome oriented Goal ------28 Performance Information by Programme ------38 Programme 1: Administration ------38 Programme 2: Sustainable Resource Management ------45 Programme 3: Farmer Support and Development ------61 Programme 4: Veterinary Services ------76 Programme 5: Research and Technology Development Services ------96 Programme 6: Agricultural Economics Services ------120 Programme 7: Rural Development Coordination ------130 Transfer payments (to Public Entities) ------136 Conditional Grants ------136 Capital Investments ------142

PART C: GOVERNANCE ------143

Introduction ------144 Risk Management ------144 Fraud and Corruption ------144 Minimising Conflict of Interest ------144 Code of Conduct ------144 Health Safety and Environmental Issues ------145 Portfolio Committees ------145 SCOPA Resolutions ------146 Prior modifications to audit reports ------146 Internal Control Unit ------147 Internal Audit and Audit Committees ------147 Audit Committee Report ------149

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Part D: HUMAN RESOURCE MANAGEMENT ------153

Introduction ------154 Overview of Human Resources ------154 Personnel Related Expenditure ------154 Employment and Vacancies ------156 Job Evaluation ------159 Employment Changes ------161 Employment Equity ------164 Performance Rewards ------167 Foreign Workers ------169 Leave Utilisation ------169 HIV/AIDS & Health Promotion Programmes------171 Labour Relations ------172 Skills Development ------173 Injury on Duty ------174 Utilisation of Consultants ------175

PART E: FINANCIAL INFORMATION ------177

Accounting Officer’s Statement of Responsibility for Annual Financial Statements ------178

Report of the Auditor General ------179

Annual Financial Statements ------185

4 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

5 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: 162 George Street

Kimberley

8301

POSTAL ADDRESS: Private bag X5018

Kimberley

8301

TELEPHONE NUMBER/S: +27 538389100

FAX NUMBER: +27 538389138

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : www.agrinc.gov.za

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2. LIST OF ABBREVIATIONS/ACRONYMS ABET Adult Basic Education & Training

AC Audit Committee

ACDS African Centre for Disaster Studies

AFASA African Farmers Association of South Africa

AFS Annual Financial Statements

AGSA Auditor General of South Africa

AgriNK Agri – Noord Kaap

AO Accounting Officer

APR Agricultural Potential Reports

ARC Agricultural Research Council

BBBEE Broad Based Black Economic Empowerment

BMF Broad Management Forum

CAADP Comprehensive African Agricultural Development

CASP Comprehensive Agricultural Support Programme

CFO Chief Financial Officer

COGSTA Department of Cooperative Governance, Human Settlements & Traditional Affairs

CPA Communal Property Association

CRDP Comprehensive Rural Development Programme

CWP Community Work programme

DAFF Department of Forestry and Fisheries

DALRRD Department of Agriculture, Land Reform and Rural

Development

DRR Disaster Risk Reduction

DSA Descriptive Sensory Analysis

ECDC Early Childhood Development Centres

EDEC Extended Departmental Executive Committee

EPWP Expanded Public Works Programme

EIA Environmental Impact Assessment

EU European Union

FAO Food & Agriculture Organization

FMD Foot and Mouth Disease

GADI Grootfontein Agricultural Development Institute

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GI Geographic Indication

HOD Head of Department

IDP Integrated Development Programme

IDDR International Day for Disaster Reduction

IFSNP Integrated Food Security & Nutrition Programme

IEC Independent Electoral Commission

IFSS Integrated Food Security Strategy of South Africa

JTG John Taolo Gaetsewe

KDF Trust Karoo Development Foundation Trust

LSU Large Stock Unit

MEC Member of Executive Council

MOU Memorandum of Understanding

MIG Municipal Infrastructure Grant

MISS Management Information Security Systems

MPAT Management Performance Assessment Tool

MPL Member of the Provincial Legislature

MTSF Medium Term Strategic Framework

MTEF Medium Term Expenditure Framework

NAFU National African Farmers Union

NAMC National Agriculture Marketing Council

NCOP National Council of Provinces

NDMC National Disaster Management Centre

NDP National Development Plan

NGO Non-Governmental Organization

NICD National Institute of Communicable Diseases

OIE Office International des Epizooties

OCFO Office of the Chief Financial Officer

PA Pyrrolizidine alkaloid

PAIA Promotion of Access to Information

PAJA Promotion of Administrative Justice

PSC Public Service Commission

PDMC Provincial Disaster Management Centre

PFMA Public Finance Management Act

PPME Planning Performance Monitoring & Evaluation

PPP Public Private Partnerships

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QLFS Quarterly Labour Force Survey

RADP Recapitalization and Development Programme

RMC Risk Management Committee

SASSA South African Social Security Agency

SASAE South African Society for Agricultural Extension

SCOPA Standing Committee on Public Accounts

SIP Strategic Integrated Projects

SKA Square Kilometre Array

SMME Small Medium and Micro Enterprises

SCM Supply Chain Management

SAQA South African Qualifications Authority

SDVI Standardized Difference Vegetation Index

SITA State Information Technology Agency

SDIP Service Delivery Improvement Plan

SPLUMA Spatial Planning and Land Use Management Act

SSA State Security Agency

TR Treasury Regulations

VCI Vegetation Condition Index

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3. FOREWORD BY THE MEC drought in the hard hit areas of Namakwa, the department reprioritized its resource to fund assistance to 257 farmers. In addition, the demand for extension services surged as farmers in the areas affected by drought sought assistance from the department. While the department has no control over the prices of food, it will continue to monitor them and devise

Mr G.N.J Shushu means to assist households that might find Member of the Executive Council themselves food insecure. During the year under review conditional grants The 2015/16 annual report entails a review of were used to support smallholder farmers to performance of the department against the increase production and support food security planned objectives of government as outlined in initiatives. Accordingly, there has been the Annual Performance Plan (APP). It reflects encouraging signs such as the Statistics South progress made in contributing to the National Africa First Quarter 2016 Labour Force Survey Development Plan (NDP) 2030 which forms the which found that although employment levels basis of the Medium Term Strategic Framework declined quarter-to-quarter in all industries, in 2015-2019 and the Strategic Plan of the Agriculture it grew by 16 000. Furthermore, the department for the same period. As a contribution high temperatures and dry conditions leading up to these policy priorities the department pursues to March 2016 did not adversely affect the table a transformed, vibrant agricultural sector for food grape industry. Accordingly, the province security and sustainable rural development. It is experienced a very good season and a record this vision and that outlined on the NDP that high of 18.5 million cartons of grapes were informs programmes, projects and interventions exported; this is an increase of 900 000 cartons that were implemented during the year under compared to the previous marketing season. review. In all the achievements reported in this report, Subdued economic growth; expressed impact of officials of the department worked diligently with drought on production; increases in food prices; the support of our partners in the sector to ensure and the high levels of unemployment particularly that the priorities of government are pursued. My amongst the youth, were the main constraint to gratitude goes to each one of them with the service delivery. The severe drought experienced commitment that in the new financial even more across the country and in parts of the province effort will be placed in the work of the remains the main constraint to the sector. The department. lowest rainfall was recorded leading the South African Weather Services to declare 2015 the driest year since 1904. In addition, the province experienced heat waves towards the end of 2015 ______and the beginning of 2016. Mr GNJ Shushu, MPL These service delivery challenges did not deter MEC of the Department of Agriculture, Land the department in implementing its planned Reform and Rural Development programmes. In order to deal with the impact of 31 May 2016

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4. REPORT OF THE ACCOUNTING OFFICER food security initiatives and the number of clients serviced for animal and animal products export control. In both instances the department did not meet set targets because the planting season and export of animals were constrained by the drought situation.

Furthermore, the conditional grants CASP and Ilima/Letsema were used to create a favourable

and supportive agricultural services environment Mr W.V.D Mothibi for the farming community, in particular Head of Department subsistence, smallholder and black commercial Overview of the operations of the department: farmers; and to reduce poverty through increased This report presents service delivery achievements food production initiatives. The department of the department for the 2015/16 financial year. It supported 24 projects with CASP and 17 projects is characterized by constrained fiscal position as a with Ilima/Letsema. Support provided range from result of the subdued economic growth. In addition, development of infrastructure; supply of the severe drought experienced around the implements and inputs; training and technical country and in the Namakwa region of the province advice. A total of 2622 smallholder producers placed more pressure on the resource available for benefitted from these programmes. service delivery. Rapid increases in food prices has left some of the households in a food insecure One of the key challenges facing the country is position which is exacerbated by unemployment. unemployment. The department contributes to the These service delivery challenges required the MTSF’s Outcome 4: Decent Employment through department to be innovative to ensure that planned Inclusive Growth. In this regard a Job Creation programmes are implemented and emerging Strategy was developed and implemented to challenges are addressed. streamline departmental efforts aimed at creating jobs. During the year under review a total of 1032 In particular, the department had to respond to the temporary jobs (EPWP) were created through the drought situation in the Namakwa region of the implementation of CASP and Ilima/ Letsema province. An agreement with the Department of programme. In addition, a total of 244 Green Jobs Agriculture, Forestry and Fisheries (DAFF) were created through the Land Care programme. enabled the department to redirect 20 percent of The significance of these opportunities reflects in the Comprehensive Agricultural Support the labour force survey of the first quarter of 2016 Programme (CASP) and Ilima/Letsema towards which shows that the agriculture sector created providing drought relief to affected farmers. At 16 000 jobs. least 13.4 percent of CASP which translates into R14.6 million was reprioritized to provide relief to Key to the departmental quest to transform the 1862 emerging farmers. sector is the creation of opportunities for female and youth farmers. The current socio-economic Similarly, the services of the department were put challenges facing the country, particularly high under pressure by an increased demand for levels of unemployment, has elevated the support from farmers due to the impact of drought. importance of small and medium enterprise A total of 2685 smallholder producers were development. This include establishment and supported with agricultural advice while 2622 support to agribusinesses. In this respect, 163 smallholder producers received tangible support. youth and 142 female farmers were supported In both these performance areas the department while 5 agri-businesses were supported with exceeded planned targets. However, in other economic services to access markets. areas planned targets could not be met because of the adverse effect of the drought. These include number of households benefiting from agricultural

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Overview of the financial results of the department: Departmental receipts 2015/2016 2014/2015 Estimate Actual (Over)/Under Estimate Actual (Over)/Under Departmental receipts Amount Collection Amount Collected Collection Collected R’000 R’000 R’000 R’000 R’000 R’000 Tax Receipts Casino taxes Horse racing taxes Liquor licences Motor vehicle licences Sale of goods and services 1,974 2,820 (846) 1,868 2,722 (854) other than capital assets Transfers received Fines, penalties and forfeits Interest, dividends and rent 9 9 - 1 11 (10) on land Sale of capital assets Financial transactions in 72 139 (67) 80 80 - assets and liabilities Total 2,055 2,968 (913) 1,949 2,813 (864)

The department collected R2.968 million of off during the period under review however own revenue for the 2015/16 financial year there was one instance of a dishonoured which represents an increase of 5.5 percent Cheque that was treated as a loss but the compared to the previous financial year. The amount was immaterial. The list below Veterinary related services were the main represents those free services rendered by contributor to this increase. The department the department that if a fee/tariff were has over collected revenue over the past few charged, could have yielded a significant years, due to the difficulties in setting amount of revenue. accurate own revenue projections particularly the incidental sale of biological  Veterinary Services assets which are used for breeding and  Primary Animal Health Care (e.g. spay campaigns) research purposes on our research stations.  Awareness Campaigns (radio talks, farmer’s days The tariffs related to veterinary services are & workshops) reviewed annually and increased when  Vaccination Campaigns necessary with the approval of the Provincial  Agricultural Business Development Treasury. During the 2015/16 financial year  Business Plan Development there were no significant changes to the  Feasibility Studies tariff listings as approved by Provincial  Training and Capacity Building of farmer’s Treasury. There were no bad debts written  Extension and Advisory Services

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Programme Expenditure 2015/2016 2014/2015 Programme Final Actual (Over)/ Under Final Actual (Over)/Under Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Pr1: 106 491 106 424 67 97 390 97 274 116 Administration Pr2: 97 500 97 496 4 342 031 334 959 7 072 Sustainable Resource Management Pr3: Farmer 245 596 243 345 2 251 230 667 230 602 65 Support & Development Pr4: Veterinary 43 017 42 682 335 40 634 40 633 1 Services Pr5: Research 43 308 43 065 243 43 899 43 893 6 & Technology Development Services Pr6: 9 119 8 138 981 9 739 9 735 4 Agricultural Economics Pr7: Rural 12 916 12 900 16 12 278 12 277 1 Development Coordination 557 947 554 050 3 897 776 638 769 374 7 264 Total

The final adjusted budget allocation of the The total budget available from four conditional grants department, including conditional grants, for amounted to R214.530 million of which the 2015/16 financial year was R557. R212.670 million or 99 percent was spent. A 947 million of which R554.050 million or significant unspent amount of 1.860 million has been 99.3 percent was spent. The unspent portion requested to be rolled over to the 2016/17 financial related to both the equitable share and year. conditional grants. However these funds were committed and the rollover was requested from the Provincial Treasury.

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The graph below shows the overall budget and expenditure trend of the Department for the past three financial years

Virement/Roll Overs The department has effected Virement between the main divisions and fund shifts within main division in terms of section 43 of the PFMA and Treasury Regulation 6.3 to defray excess expenditure in some programmes with savings from other programmes. The details of the Virement are summarised in the table below. The Virement were approved by the Accounting Officer and both the Executive Authority and the Provincial Treasury were informed.

Virement from Virement to R R Programme / Economic classification Programme / Economic classification thousand thousand Programme 1: (1 156) Programme 1: 4 585 Current payments (1 116) Current payments 3 690 Compensation of employees (1 116) Compensation of employees Goods and services Goods and services 3 690 Transfers and Subsidies Transfers and Subsidies 893 Payment for capital assets (39) Payment for capital assets 2

Programme 2: (18 153) Programme 2: 18 807 Current payments (18 153) Current payments 615 Compensation of employees (850) Compensation of employees Goods and services (17 303) Goods and services 615 Transfers and Subsidies Transfers and Subsidies Payment for capital assets Payment for capital assets 18 192

Programme 3: (42 267) Programme 3: 41 298 Current payments (30 651) Current payments - Compensation of employees (940) Compensation of employees Goods and services (29 702) Goods and services Transfers and Subsidies (11 616) Transfers and Subsidies Payment for capital assets Payment for capital assets 41 298

Programme 4: (812) Programme 4: 1 384 Current payments (812) Current payments 572 Compensation of employees Compensation of employees 134 Goods and services (812) Goods and services 438

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Transfers and Subsidies Transfers and Subsidies 93 Payment for capital assets Payment for capital assets 719

Programme 5: (4 511) Programme 5: 1 616 Current payments (4 511) Current payments - Compensation of employees (984) Compensation of employees Goods and services (3 527) Goods and services Transfers and Subsidies Transfers and Subsidies 550 Payment for capital assets Payment for capital assets 1 066

Programme 6: (1 085) Programme 6: 293 Current payments (1 085) Current payments - Compensation of employees (783) Compensation of employees Goods and services (302) Goods and services Transfers and Subsidies Transfers and Subsidies 23 Payment for capital assets Payment for capital assets 270

Programme 7: (650) Programme 7: 650 Current payments (650) Current payments 621 Compensation of employees (650) Compensation of employees Goods and services Goods and services 621 Transfers and Subsidies Transfers and Subsidies Payment for capital assets Payment for capital assets 29

The department did not have any roll-overs of (NDP). funds from the 2014/15 financial year to the 2015/16 financial year. There were unspent funds of the 2015/16 financial year that have been Discontinued activities / activities to be requested for roll over to the 2016/17 financial discontinued year. The department did not discontinue any activities and has no plans to discontinue activities. Unauthorised, fruitless and wasteful expenditure New or proposed activities For the period under review the Department did All the activities undertaken as outlined in the not incur any Unauthorised Expenditure. operations were in pursuance of the goals and Unauthorised expenditure of previous financial objectives of the approved annual performance years that is awaiting approval amounts to plan and no new activities were proposed or R0.097 million. implemented for the year under review with the exception of the interventions for the drought Fruitless expenditure amounts to R2.680 million relief. The interventions for the drought relief was as at 31 March 2016. No further action or funded through the reprioritisation of an amount condonement of fruitless expenditure was of R14.6 million from the CASP conditional grant. instituted during the 2015/2016 financial year. An amount of R0.062 million of this fruitless Supply Chain Management expenditure has been incurred in the current The Department did not receive or conclude any financial year, normal processes of investigation unsolicited bids for the year under review. and recovery are underway. Although Supply Chain Management (SCM) processes and systems are in place to prevent Future plans of the department fruitless and irregular expenditure, deficiencies in The future plans of the department are contained the internal control systems have been identified and informed by its strategic and operational that will require a change in strategy to monitor plans. These plans are aligned with the the effective and efficient implementation of the government’s Medium Term Strategic Framework internal control environment. (MTSF) and the National Development Plan The SCM unit conducted Supply Chain

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Management processes and procedures enhancing transparency and creating an enabling workshops including the implementation on the environment which promotes equity, fairness, Central Supply Database (CSD). The aim of the competitive and cost effectiveness in advertising workshop was to enable the departmental bids and publishing winning bidders in all officials to understand procurement procedures, required avenues. different thresholds, and the applicable goods and services procurement strategy. The training of SCM officials is an ongoing exercise that addresses technical as well as The SCM unit also conducted Construction soft/people skills. Officials from the SCM unit Industry Development Board (CIDB) workshop attended a course with the National School of together with an official from CIDB office in all Governance on Supply Chain Management. The districts. Its purpose was to create an aim of the course is to enable the officials to keep understanding and application of CIDB abreast of new developments of procurement in processes. This was particularly important the public sector. because a significant portion of the departmental procurement for projects involves construction. Appreciation The Department continued with the process of I would like to thank all the officials of the registering service providers on its supplier department who worked diligently and tirelessly database. The database will enable the with the support of our partners and the relevant department to access a large pool of suppliers to stakeholders in the sector to ensure that our submit quotations for the procurement of goods priorities are pursued unrelentingly and our goals and services to the Department. The registration and objectives achieved. of suppliers is slow despite the numerous advertisements placed with print and electronic Conclusion media for the registration of service providers on Approval and sign off the Departmental supplier’s database. National The Annual Financial Statements set out on Treasury has announced the introduction of pages 161 to 248 have been approved by the national Central Supplier Database (CSD) which Accounting Officer will eventually replace all the supplier’s databases of all organs of state. At the end of the financial year the statistics of local suppliers on the CSD was negligible and hence a more vigorous strategy is required to assist suppliers in registering on the database.

The departmental contract management unit has ______put in place a reliable database of historical and current departmental contracts. The Mr WVD Mothibi administration of service level agreements (SLAs) Accounting Officer has also improved. The Department is Department of Agriculture, Land Reform and Rural implementing contract management principles Development which aims to reduce litigation between the Date: 31 May 2016 Department and its service providers.

The acquisition management unit is implementing all practice and instruction notes issued by the National and Provincial Treasuries (in addition to acts, regulations and policies) aimed at

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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2016.

Yours faithfully

______

Accounting Officer Mr WVD Mothibi Department of Agriculture, Land Reform and Rural Development 31 May 2016

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6. STRATEGIC OVERVIEW

6.1. Vision

A transformed, vibrant agricultural sector for food security and sustainable rural development.

6.2. Mission

The Department as a lead agent in the sector, will champion land and agrarian transformation, promote and facilitate increased production and provide expertise for improved livelihoods, sustainable rural development and food security for all.

6.3. Values The Department will aspire to the following values:  Responsiveness  Sacrifice  Professionalism  Accountability  Respect  Innovation

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7. LEGISLATIVE AND OTHER MANDATES The Department of Agriculture, Land Reform and Rural Development is an integral part of the South African Public Service established in terms of section 197 of the Constitution and read with section 7 (1) and 7 (2) of the Public Services Act of 1994. In particular the following sections are relevant to the Department. Chapter 2, Sections 23, 25 and 27 Schedule 4 and 5 of the Constitution. The Department functions under several legislative mandates, which include among others the following:

 Agricultural Development Fund Act, 1993 (Act No 175 of 1993)  Agricultural Product Standards Act, 1990 (Act No 119 of 1990)  Animal Diseases Act, 1984 (Act 35 of 1984)  Agricultural Research Act, 1990 (Act No 86 of 1990)  Animal Identification Act, 2002 (Act No 6 of 2002  Animal Improvement Act, 1998 (Act 62 of 1998)  Broad Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003)  Codex Alimentarius of the World Health Organization (WHO) and Food and Agricultural Organization (FAO) (International Code on Food Safety)  Communal Land Rights Act, 2004  Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983)  Constitution of the Republic of South Africa, 1996 (Act 108 of 1996)  Disaster Management Act, 2002 (Act No 57 of 2002)  Fencing Act, 1963 (Act No 31 of 1963)  Fertilizers, Farm feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act 36 of 1947)  Genetically Modified Organisms Act, 1997 (Act 15 of 1997)  Land Redistribution for Agricultural Development (LRAD)  Land Reform Act, 1997 (Act 3 of 1997)  Marketing of Agricultural Produce Act, 1996 (Act 47 of 1996)  Meat Safety Act, 2000 (Act 40 of 2000)  Northern Cape Land Administration Act, 2003  Perishable Product Export Control Act, 1983 (Act 9 of 1983)  Plant Improvement Act, 1976 (Act 53 of 1976)  Public Finance Management Act, 1999 (PFMA), Act 1 of 1999 as amended by Act 29 of 1999  Preferential Procurement Policy Framework Act, 2000 (Act No 5 of 2000)  Preferential Procurement Regulations of August 2001  Provincial Supply Chain Management Policy (April 2006)  South African Abattoir Corporation Act, 2005 Repeal (Act no 17 of 2005)  Subdivision of Agricultural Land Act, 1970 (Act 70 of 1970) (pending repeal)  The International Animal Health Code of the World Organization for Animal Health (OIE – Office International des Epizooties)  The international Code for Laboratory Diagnostic Procedure for Animal Diseases of the World Organization for Animal Health  The Sanitary and Phyto-sanitary Agreement of the World Trade Organization (WTO)  Treasury Regulations for Departments, constitutional institutions and public entities issued in March 2005 in terms of the PFMA  Veterinary and Para-Veterinary Professions Act, 1982 (Act 19 of 1982)  Water Act, 1998

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8. ORGANISATIONAL STRUCTURE

9. ENTITIES REPORTING TO THE MEC

The table below indicates the entities that report to the MEC

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AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Refer to page 156 to 160 of the Report of the Auditor General, published as Part E: Financial Information.

1. OVERVIEW OF DEPARTMENTAL PERFORMANCE

1.1 Service Delivery Environment

During the year under review the service province towards the end of 2015 and the delivery environment was characterised by a beginning of 2016. subdued economic growth; expressed impact The impact on livestock production (mostly of drought on production; increases in food red meat production of natural grazing for prices; and the high levels of unemployment Northern Cape) was also negative. Apart particularly amongst the youth. The pace of from losses in production (lower reproduction economic growth has slowed in many and lower carcass mass) and increased countries leading to downward revision of production cost due to increased fodder economic growth projections, with purchases, producers had to decrease animal consequences for all developing economies. numbers to offset the negative factors as This scenario shows that the world has not described. This led to a short to medium term recovered from the economic meltdown of increase in supply of live animals which in turn 2008. In 2015, the South African economy has led to lower prices during this period. grew by 1.3 percent and is projected to record 0.9 percent in 2016. This is a reflection of both Furthermore the drought resulted in an depressed global conditions and the severe increase of prices of almost all commodities drought experienced across the country. including grain, hay, livestock and livestock products which account for approximately 75 The low levels of economic growth has percent of Northern Cape agricultural constrained the national fiscus leading to production. This has in turn led to increases in mandatory budget cuts. In particular, there food prices. For instance, the Consumer Price has been significant cuts to the conditional Index (CPI) for bread and cereals was higher grant allocations to provinces and government by 10 percent in February 2016 compared to has committed explicit limits on aggregate February 2015. It is expected that food prices expenditure over the next two years. This may continue to surge during the 2016/17 makes the expansion of public services financial year which may result in an difficult across all departments. However, the increased number of households being food department had to institute innovative insecure. measures to ensure that its clients continue to benefit from quality services and some of the In terms of services that the department project are unaffected. provide to farmers and rural communities, there was a surge in demand for support due The severe drought experienced across the to the impact of drought. In particular more country and in parts of the province was the smallholder producers received support, main constraint to the sector. The province agricultural advice, and training. These experienced a major drought in the 2013/14 services were provided mainly in the areas financial year. During the reporting year the affected by drought were farmers relied on the drought extended to new parts of the department to assist in mitigating its impact. Namakwa district with Loeriesfontein and However, in other areas services of the Hantam areas being the hardest hit. The department were adversely affected. In severity of the drought was felt across the particular, the food security interventions were country leading the South African Weather constrained with smaller hectares planned Services to declare 2015 the driest year since through Fetsa Tlala Food Production 1904. The situation in the province was Programme. compounded by the heat wave that hit the

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1.2 . Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.

Main services and standards Main services Beneficiaries Current/actual Desired standard of Actual achievement standard of service service Extension and advisory Farmers 4258 famers and 5244 farmers and 2685 Farmers supported Services beneficiaries beneficiaries through information days, demonstrations, site visits and meeting. Land reform beneficiaries 1372 farmers were trained

Communities

Primary Animal Resource poor communities At least 7 primary animal 9 In John Taolo Gaetsewe HealthCare interventions in the most remote and rural health outreach the Compulsory using the mobile areas of the province with interventions to the rural Community Services veterinary truck special emphasis on poor communities in the (CCS) veterinarians will 1. Indigent persons province targeting between conduct weekly clinics, to 2. Pensioners 20 and 40 animals date 3020 dogs and 173 3. Child headed sterilization at each session. cats had been vaccinated households by officials 4. Persons with disability

Batho Pele arrangements with beneficiaries (Consultation access etc.) Current/actual arrangements Desired arrangements Actual achievements

 Information is disseminated to the Community to be informed of visit 4 weeks in  Notice of visit was communicated to the community by Animal Health Technician advance. Itinerary to be placed on notice board community 4 weeks in advance and Community development workers at Tribal offices, municipal offices.  9 Food safety Awareness campaigns  Local radio and newspapers is also used conducted in 72 schools reaching 1316 to reach the people in a particular area. Conduct food safety campaigns learners, 7 farmers days and 54 public  Sharing of information also takes place institutions during tribal ,community meetings and Agricultural forum meetings

Support all the farming communities and Support all the farming communities and beneficiaries through various engagement beneficiaries  2685 Farmers supported through Meetings, workshops, information sessions, information days, demonstrations, site individual contact sessions, Agricultural visits and meeting. demonstrations and farmers’ days.  435 farmers were trained

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Service delivery information tool

Current/actual information tools Desired information tools Actual achievements

 Information is disseminated to the  Departmental website should be updated  The website is accessible to clients for community by Animal Health Technician and be accessible to clients. information. and Community development workers.

 Departmental Annual Report should be made accessible to client.  The Departmental Annual report is  Local radio and newspapers is also used published on the Departmental website to reach the people in a particular area.  Conduct Food Safety awareness

campaigns  In John Taolo Gaetsewe the Compulsory  Sharing of information also takes place Community Services (CCS) veterinarians during tribal ,community meetings and has conducted weekly clinics. 3020 dogs Agricultural forum meetings and 173 cats had been vaccinated by officials

 9 Food safety Awareness campaigns conducted in 72 schools reaching 1316 learners, 7 farmers days and 54 public institutions

Meetings, workshops, information sessions,  Conduct Agricultural demonstrations ,  A 2685total ofFarmers 2118 Rabies supported Pamphlets through we re individual contact sessions, telephones courses and farmers days distributedinformation within days, the demonstrations, ZF Macqwau site visits and meeting.  Explore the use of Electronic media  435 farmers were trained.  Use of departmental website for information sharing

Complaints mechanism Current/actual complaints mechanism Desired complaints mechanism Actual achievements  All complaints are directed to the Deputy Departmental grievance procedure should be No formal complaints received by the Deputy Director: Animal Health who may refer the explained to clients Director: animal Health due to high level of service complaint to the Director. delivery satisfaction from most of our farmers.  Code of conduct exits for public servants and professionals e.g. PSC code and SAVC code.

Response given to the grievances by the  Shorten the turn -around time of responses Due to high level of transparency and the Senior manager, HOD office, and the MEC to and act on the grievances. improved reporting system introduced by the the farmers department grievances and feedback to farmers  Put in the corrective measures on are immediately attended to. grievances lodged.

Reports to Director, HOD or Ministry  Reports to Director, HOD or Ministry Most of the complaints are attended and resolved during the information days and Agricultural demonstrations.

24 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

1.3 Organisational environment

In order for the department to respond and Through this programme eleven (11) employees contribute effectively to the development graduated with qualifications in Agricultural challenges facing South Africa, it requires Management; Monitoring and Evaluation; Project appropriate technical skills some of which Management; Development Communication and Public may be classified as scarce skills. The Management. A total of eleven (11) external bursary recruitment of these skills remains one of the holders also graduated in Soil Science; Horticulture; factors that negatively affected the Agricultural Economics; Labour Relations and Human department especially with many of the Resource Management. These graduates assist in skilled personnel due for retirement. In order improving capacity in both support services and line to address this challenge the department functions leading to better service delivery for our implements a bursary scheme that is aimed clients. at encouraging both internal staff members and external individuals to undertake studies The economic conditions in the country have not only in fields that are in short supply. affected the external service delivery environment but have also had an adverse effect on the operations of the department. In particular, the mandatory budget cuts means that some of the programmes had to be scaled down. In addition, the province has placed a moratorium on the filling of vacant posts in attempt to redirect on all available resources towards service delivery. Despite this scenario the department strives to find innovative ways to ensure that service delivery is not adversely affected.

25 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

1.4 Key policy developments and legislative changes

There were no key policy and legislative changes.

2. STRATEGIC OUTCOME ORIENTED GOALS

3.1 The Department has the following goals that are linked to the MTSF 2015-2019 outcomes.

Strategic outcome oriented EFFECTIVE AND EFFICIENT GOVERNANCE goal 1

Goal statement To ensure effective and efficient governance

Strategic outcome oriented SUSTAINABLE USE AND MANAGEMENT OF NATURAL RESOURCES goal 2 Goal statement To ensure sustainable use and management of natural resources

Strategic outcome oriented SUSTAINABLE AGRICULTURAL PRODUCTION goal 3 Optimal and sustainable agricultural production to ensure food security Goal statement

Strategic outcome oriented BIO-SAFETY AND BIO-SECURITY FOR THE WELLNESS OF THE PUBLIC goal 4 Goal statement To ensure bio-safety and bio-security for the wellness of the public

Strategic outcome oriented EXPERT AND NEEDS BASED RESEARCH AND TECHNOLOGY goal 5 Goal statement To render expert and needs based research and technology transfer services to clients

Strategic outcome oriented INCLUSIVE AGRICULTURAL ECONOMIC GROWTH goal 6

Goal statement Inclusive Agricultural Economic Growth

Strategic outcome oriented COMPREHENSIVE RURAL DEVELOPMENT goal 7 To ensure the effective implementation of the Comprehensive Rural Development Goal statement Programme.

26 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Outcomes Reports

OUTCOME 7: COMPREHENSIVE RURAL DEVELOPMENT

Overview:

Overall annual performance for the 2015/16 financial year

Figure1; Represents the overall performance of outcome7 for the financial year 2015/16

Figure2: Illustrates achievements per quarter

Sub-Outcome 1: Improved land administration and spatial planning for integrated development in rural areas

Provincial Implementation of the SPLUMA as of 1st July 2015 in the Province is in progress. The Provincial implementation is currently on-going and challenges are still experienced with the level of readiness at municipal level. This may have an impact on development in the Province that may influence economic growth of the province.

27 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

The above table illustrates 7 milestones used to track municipality progress

The graph above illustrates the progress of the province as per the milestones

28 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Support to municipalities in relation to SPLUMA Spatial Development Frameworks (SDF)

The Northern Cape SPLUMA review their respective SDFs as soon as Implementation Plan makes provision for possible and municipalities without SDFs medium to long term implementation should develop one as a matter of urgency. activities for municipalities. One such The DRDLR (Spatial Planning and Land activity is the review of existing municipal Use Management) has provided each SDFs since they are not compliant to municipality with a SPLUMA assessment SPLUMA. The Province has challenges as report indicating the different challenges some municipalities have outdated SDFs with the SDFs in terms of the SPLUMA and and others do not have SDFs. Municipal what actions these municipalities should planning tribunals in these particular take to address these challenges. It is municipalities will find it very difficult to therefore proposed that municipalities adjudicate on development applications endeavor to implement. Accordingly, a since they need to use the SDFs of number of municipalities have indicated a municipalities as the basis for their need to review their SDFs to ensure that decisions. It is therefore recommended that they are fully compliant with SPLUMA. municipalities with outdated SDFs should

Support to municipalities in relation to SPLUMA Land use schemes:

Only 8 of the 27 local municipalities have whether municipalities have made land use schemes. Other municipalities budgetary provisions for the development of either do not have a land use scheme or still their land use schemes. make use of Ordinance 15 of 1985. The SPLUMA requires municipalities to develop It is recommended that municipalities wall to wall land use schemes within 5 years endeavor to develop new land use schemes after 1 July 2015 to be compliant to the that are aligned to the SPLUMA. They SPLUMA. Ordinance 15 of 1985 is not should make the necessary budgetary aligned to SPLUMA and municipalities will provisions since land use schemes are have to rectify this. Land use schemes are expensive to develop. This should be done expensive to develop and it is not clear as soon as possible.

Support to municipalities in relation to SPLUMA: Functional Land use regulators SPLUMA NC completed the compliance Cape form part. Only 3 land use regulators, assessment of all the functional land use namely Khara Hais Sol Plaatjie and ZF regulators in the Northern Cape in Mcgawu are fully functional in terms of the November 2015. The Northern Cape have 7 SPLUMA. The other 4 regulators (Frances different types of municipal planning Baard, John Taolo Gaetsewe, Namakwa, tribunals (functional land use regulators) of Pixley ka Seme) have not commenced with which all 32 municipalities in the Northern the operations of its municipal planning Cape form part. tribunals. This is a major challenge since the affected districts would not be able to SPLUMA NC has completed all the required adjudicate on Category 1 development activities to achieve this target for the 32 applications (these are major municipalities in the Northern Cape. developments). These municipalities are However, the following challenges need to also facing huge litigation risks because be highlighted: The Northern Cape have 7 they are not ready administratively to deal different types of municipal planning with the mentioned development tribunals (functional land use regulators) of applications. which all 32 municipalities in the Northern It is then recommended that the 4 is commencing with its operations, as a outstanding municipal planning tribunals matter of urgency. The pending withdrawal commence with tribunal operations urgently. of one municipality from the Namakwa These municipalities need to place the final district municipal planning tribunal also gazette notice, announcing that the tribunal needs urgent attention since this could

29 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape negatively impact on the ability of other Ilima/Letsema as well as drought relief. For municipalities in the district tribunal to purposes of research a total of 13 projects finalise their development applications. were implemented to improve agricultural production and 2 scientific papers were In response to the Coordinating and published with 7 research infrastructure mobilising of the internal and external managed. stakeholders to contribute to the implementation of the rural development The veterinary services issued 404 Clients plan, a total of five implementation plans with certificates for animal and animal has been developed. A total of three products export. An increase in demand for Council of Stakeholders have been these certificates is influenced by large established namely Riemvasmaak, quantities of feed that are still being Eksteenskuil and Colesburg. exported in the Southern African region.

Sub-Outcome 2: Sustainable Land Sub-Outcome 5: Increased access to Reform contributing to agrarian quality infrastructure and functional transformation services, particularly in education, healthcare and public transport in rural A total of 6916ha of land was acquired and areas. allocated with at least 3 3746ha allocated to smallholder farmers for purpose of Agri- A total of 143 libraries are providing free parks. In relation to 16 land reform farms public internet access. This achievement have been recapitalized and developed was boosted by donor funding with 3 while a total of 7 land claims settled. libraries constructed and issued with final completion certificates. Sub-Outcome 3: Improved Food Security The Department of Health completed the A total of 1 387 households benefited from Kuruman Forensic Mortuary. Agricultural food initiatives throughout the year. At least 772 homestead gardens were The Department of Public works upgraded a established and 33 community food gardens total of 26.2 km of gravel roads to surfaced were supported throughout the year. The roads. Furthermore a total of 40 700km of Department of Social Development provided surfaced roads were rehabilitated while a total of 149 316 vulnerable households 1 575 536 square meters of surfaced roads with nutritious and affordable foods. At least were sealed and 382.59 square meters of 4 489 beneficiaries benefited from social gravel roads was regravelled. At least 530 relief programmes. These ranged from food 080.32 square meters of blacktop patching parcels, blankets and vouchers. Through including potholes were repaired and 70 the Fetsa Tlala Programme 1 497ha of land 455.89 km of roads was bladed. was cultivated for the year. Sub-Outcome 6: Growth of sustainable Sub-Outcome 4: Smallholder producers’ rural enterprises and industries – development and support (Technical, resulting in rural job creation financial, infrastructure) for agrarian transformation Rural enterprises

During the year under review 7 170ha were A total of 5 cooperatives were established. protected/rehabilitated. A total of 1 965 A total of 873 clients benefitted from farmers received infrastructure and agricultural economic advice provided. production inputs through CASP,

30 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

DISTRICT TOWN COMMODITY Frances Baard Warrenton Agri-Hub – poultry Warrenton Super Chicken ZF Mgcawu Melkstroom Agri-Hub - table grapes Lemoendraai Farmer Production Support Unit

Namakwa Bergsig Agri-Hub – dates Henkries, Coboop, Pella Farmer Production Support Unit Goodhouse John Taolo Gaetsewe Kuruman Agri-Hub - red meat Heuningvlei, Tom Brown Farmer Production Support Unit Pixley Ka Seme Petrusville Agri-Hub - red meat

All District and Local municipalities were extensively consulted. Resolutions by the Local and District Municipalities passed in support of the choice of site and commodities.  In John Taolo Gaetsewe Gasegonyana Council resolved and allocated 5ha and the JTG municipality submitted its support.  Namakwa District Municipality proposed that the sites will be Henkries for primary production and processing, Bersig Agri-park site, while Onseepkans, Coboop, Pella and Goodhouse will be farmer production support units.  The District and Local Municipalities in Pixley Ka Seme allocated the site and the letter of support was received from the council.  In Frances Baard, Warrenton is the site. Magareng Council has passed a resolution in support of the choice of site, supported by the District Council.

The Agri-park master plans were developed for all 5 Districts and the focus of the plans are: - Agri-park analysis and strategy - Agri-park program plan - Implementation plan - Economic advantages per district per commodity - Elements of value chain for dominant products - Laying of the foundation for rural industrialisation.

The District Land Reform Committees and Skills Development District Agri-park Advisory Committees were A total of 104 farm personnel were trained launched in December 2015. Department of through the Recapitalisation and Rural Development and Land Reform Development Programme (RADP) hosted District Agri-parks Management programme. Councils Workshop at Birchwood Hotel and Conference Centre on 30 January 2016. The workshop focused on the roles and responsibilities of the District Agri-parks Management Councils (DAMCS). CAMISSA submitted 5 draft Mega Agri-Park reports. The Provincial workshop was held on the 20th of January 2016 where the master plans were discussed.

31 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Outcome 4 Rural enterprises Departmental Contribution to Outcome The Department of Agriculture has #4: Decent Employment through established 5 cooperatives. A total of 873 Inclusive Growth clients benefitted from agricultural economic advice provided. In response to achieving the objective of Outcome 10 outcome #4 which seeks to address the issue of labour absorbing economic growth, Departmental Contribution to Outcome considerable strides were made in the #10: Protect and enhance environmental following developmental areas: assets and natural resources

Jobs created Land Care Support Work opportunities created through EPWP A total of 6 500 hectares of rangeland was (CASP and Ilima/Letsema) has shown rehabilitated through the chemical control of steady performance throughout the year and acacia mellifera (Mongana/Swarthaak/black achieved 1 197 as targeted for the year. A thorn). The rehabilitation works are aimed at total of 244 Green Jobs were created improving the condition of degraded through land care in the following areas. rangelands and carrying capacity to enable (Bothitong Harpuis control project - 60 work a sustainable and productive livestock opportunities, JTG Wetland rehabilitation production. The bigger goal is to return project - 40 work opportunities, Magonate these degraded rangelands back to their bush control project - 50 work opportunities, pristine condition by embarking on a Niekerkshoop Prosopis control 53 work vigorous LandCare awareness campaigns opportunities and Frances Baard Bush and veld management capacity building. Control - 41 work opportunities)

32 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

33 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

1. Performance Information by Programme

Programme 1: Administration

Purpose: The purpose of this programme is to manage and formulate policy directives and priorities and, to ensure there is appropriate support service to all other programmes with regard to finance, personnel, information, communication and procurement.

Sub- Programmes:  Office of the MEC  Senior Management  Corporate Services  Financial Management  Communication Services

Strategic Objectives:  To determine policy and set priorities for the department  To provide strategic leadership and support throughout the organization  To ensure effective human resource management 602 employees  To provide sound financial and risk management services to the department  To provide communication services and Information Technology support

34 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Strategic objectives, performance indicators planned targets and actual outputs

Strategic Objectives: Programme: 1 Administration

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target 2014/2015 2015/2016 2015/2016 to Actual Achievement for 2015/12016 To provide strategic 8 7 6 -1 Plans to conduct an evaluation leadership and support had to be postponed as the throughout the DPME had instructed organization departments to develop Departmental Evaluation Plans prior to conducting evaluations To ensure effective 1150 624 607 -17 Due to transfers and human resource resignations of officials management 624 employees To provide sound financial 47 49 8 -41 The target was incorrectly and risk management based on previous years services to the summation of all targets. The department correct target is 8. To provide communication 689 329 739 410 There was a higher demand services and Information especially for IT support Technology support services than planned for.

Performance Indicators Sub-programme: 1.2. Senior Management

Performance Indicators Actual Planned Target Actual Deviation from Comment on deviations Achievement 2015/2016 Achievement planned target to 2014/2015 2015/2016 Actual Achievement for 2015/12016

Number of 5 5 5 0 1.2.1 performance reports that accurately reflects the performance of the department Approved Strategic 2 1 2 1 There was a request that 1.2.2 Plans a Operational Plan be developed for the department. An evaluation report 1 1 0 -1 Plans to conduct an 1.2.2 on departmental evaluation had to be programme, project or postponed as the DPME intervention had instructed departments to develop Departmental Evaluation Plans prior to conducting evaluations

35 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-programme : 1.3 Corporate Services

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of reports on - 5 5 0 1.3.1 performance management Produce a workplace - 11 1 0 1.3.2 skills plan linked to the Organisational structure Number of reports on - 4 4 0 1.3.3 vacancies that are filled within 90 days Number of reports on - 4 4 0 1.3.4 disciplinary cases resolved in 60 days Number of performance 12 11 11 0 1.3.5 agreements signed by HOD and senior managers Number of cadre 7 10 10 0 1.3.6 developed in agriculture specific skills

A number of new 58 62 62 0 1.3.7 employees screened. Coordinate the vetting employees PAIA reports produced - 4 3 -1 1.3.8

PAJA reports produced - 4 3 -1 1.3.9

Number of reports on - 4 3 -1 Responsible Official 1.3.10 policies/ strategies resigned revised on management practices that support diversity

1 The APP erroneously shows unplanned on the annual target table. However the quarterly target table 4.2.4 correctly shows that the target was planned for in the first quarter.

36 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-programme : 1.4 Financial Management

Performance Indicators Actual Planned Target Actual Deviation from Comment on deviations Achievement 2015/2016 Achievement planned target 2014/2015 2015/2016 to Actual Achievement for 2015/12016 1.4.1 An approved 2 2 2 0 budget 1.4.2 An approved 1 1 1 0 risk register 1.4.3 Complete and 5 5 4 -1 accurate financial statement 1.4.4 An approved - 1 1 0 procurement plan

Sub-programme : 1.5 Communication Services

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 1.5.1 Number of computers/laptops 59 52 23 -29 Due to Microsoft with new Microsoft software activation problems target could not be achieved 1.5.2 Number of officials provided 566 220 661 441 Reported problems with technical support were higher than expected 1.5.3 Communication plan 1 1 1 0 developed 1.5.4 Number of publications 46 44 25 -19 Due to the vacant post produced of the Graphic designer, publication could not be produced. Will be working on the produce according to a weekly basis. 1.5.5 Number of media campaigns 17 12 29 17 Relevant departmental activities were done including others that didn’t form part of the annual program

37 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Strategy to overcome areas of under performance

In order to address reported underperformance the programme will implement the following:

 The department has identified subjects of evaluation and these will be evaluated in the 2016/17 financial year.

 In relation to publication in the Communications sub-programme a Graphic Designer has been appointed who will ensure that the planned publications are produced.

 The department has also appointed an official responsible for Special Programmes who will ensure that Job Access Card Reports are produced.

Changes to planned target

There were no changes to planned targets

Linking performance with budget

Sub programme expenditure

2015/2016 2014/2015 (Over)/Und Final Actual (Over)/Under Final Actual er Pr1: Administration Expenditur Appropriation Expenditure Expenditure Appropriation Expenditure e R’000 R’000 R’000 R’000 R’000 R’000 Office of the MEC 11 018 10 951 67 10 016 9 956 60 Senior Management 20 356 20 356 - 14 665 14 654 11 Corporate Services 41 600 41 600 - 41 846 41 822 24 Financial Management 24 185 24 184 1 21 476 21 458 18 Communication Services 9 332 9 333 -1 9 387 9 384 3 Total 106 491 106 424 67 97 390 97 274 116

4.1 Service Delivery Highlights members and the process was captured on Human Resource PERSAL. For the year under review, 416 The Human Resources Unit embarked on an employees qualified for EPMDS cycle. Of establishment clean up, particularly unfunded these, 132 received notches and 206 received vacancies which created an impression of a bonuses. bloated structure. Unfunded posts have been Investment in human capital is one of the abolished. cornerstones of the department’s human Thirty eight (38) officials qualified for long resource development strategy to promote service recognition in line with Resolution 1 of excellent service delivery and good 2012 and of these, ten (10) received governance in the spirit of Batho Pele. Key to certificates for 10 year service, fourteen (14) this is the appointment of people with the received certificates and cash bonuses of R 8 necessary skills, knowledge and 882.00 each for 20 year service while four (4) competencies. While it remains a challenge to received certificates and cash bonuses of R17 recruit the scarce skills internal staff has been 764.50 for thirty year service. The total cash encouraged to empower themselves by bonuses amounted to R195 406.00. applying for internal bursaries in order to overcome skill shortages. As reflected earlier The department complied with the signing of this intervention has yielded results with a Performance Agreements (PA) for 11 SMS number of officials graduating.

38 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Corporate Services records occupied 16 square meters of storage The process of realigning all departmental space in the archival room at Elliot Street business processes was started in this office. All the Destruction Certificates for financial year to comply with all PAJA these records were approved by the requirements. This alignment will be done in Provincial Archivist and place on file for all our decision making process. evidence of transaction and evidential information. General Disposal Authorities issue for records to be terminated at the end of the retention The department has a fleet of 94 vehicles period was received. This was done in terms allocated for its use. About 90 percent of the of the National Archives and Records fleet are due for replacement in terms of the Services of South Africa Act. (Act No 43 of number of kilometres accumulated. The 1996). In the 2015/16 financial all applications department has identified a need to ensure for vacant positions with attached curriculum that the use of the vehicles is strictly vitaes and financial order books from 2000- according to the policy framework. 2010 were destroyed according to legislative Accordingly an inspection of the vehicles procedures. The volumes of the disposed across all districts has been instituted.

39 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

40 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Programme 2: Sustainable Resource Management

Purpose: The purpose of the programme is to provide agricultural engineering support service to farmers in order to ensure sustainable development and management of agricultural resources.

Sub- Programmes:  Engineering Services;  LandCare;  Land Use Management; and  Disaster Risk Management.

Strategic Objectives:  To provide 250 projects with engineering services to support infrastructure development and on farm mechanization for increased agricultural production and product value adding;  To plan and coordinate the implementation of 25 LandCare projects;  To Promote sustainable use of natural resources through the implementation of regulated land use Act (Act 43 of 1983, Act 70 of 1970, and related legislation); and  To provide agricultural disaster risk management support services to clients/farmers by implementing programmes on disaster plans for droughts, veld fires and floods.

41 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Strategic objectives, performance indicators planned targets and actual outputs Strategic Objectives: Programme: 2 Sustainable Resource Management

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 To provide 250 - 54 54 0 projects with engineering services to support infrastructure development and on farm mechanization for increased agricultural production and product value adding To plan and - 6804 7436 632 Infestation of acacia mellifera coordinate the was found to be less dense than implementation of 25 expected therefore a larger area LandCare projects than planned for could be eradicated. To Promote - 20 1591 1571 The target was meant for sustainable use of number of hectares natural resources recommended for agricultural through the rezoning not the number of implementation of applications received as initially regulated land use planned. Act (Act 43 of 1983, Act 70 of 1970, and related legislation) To provide agricultural 13 15 14 -1 The target was erroneously set. disaster risk It is supposed to be 13 management support services to clients/farmers by implementing programmes on disaster plans for droughts, veld fires and floods

42 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Performance indicators: Sub-programme: 2.1 Engineering Services

Sub-programme: 2.2 LandCare

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target 2014/2015 2015/2016 2015/2016 to Actual Achievement for 2015/12016 2.2.1 Number of hectares - 6500 7363 863 Infestation of acacia protected/rehabilitated mellifera was found to to improve agricultural be less dense than production expected therefore a larger area than planned for could be eradicated. 2.2.2 Number of green jobs 188 200 243 43 The application of created bush control herbicide had to be fast tracked before the start of the rain season, due the fact that this herbicide requires rain in order to be effective. The number of employees was increased. 2.2.3 Number of awareness 2 2 2 0 campaigns conducted on Land Care 2.2.4 Number of capacity 1 2 2 0 building exercises conducted within approved Land Care projects 2.2.5 Number of 100 100 100 0 beneficiaries adopting/practicing sustainable production technologies & practices

Sub-programme: 2.3 Land Use Management

43 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Performance Indicators Actual Planned Actual Deviation from Comment on Achievement Target Achievement planned target to deviations 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of hectares of 20 1591 1571 Applications are 2.3.1 - agricultural land demand driven (target protected through of 20 is for number of guiding applications and not subdivision/rezoning/c ha) hange of agricultural land use

Sub-programme: 2.4 Disaster Risk Management

Performance Indicators Actual Planned Actual Deviation from Comment on Achievement Target Achievement planned target to deviations 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of disaster - 13 12 -1 The target of 13 was 2.4.1 risks reduction set incorrectly in the programme managed APP. This indicator refers to monthly early warning reports and there can only be 12 in a year. Number of disaster 2 1 1 0 2.4.2 relief schemes managed

Strategy to overcome areas of under performance None Changes to planned targets

None

Linking performance with budgets

Sub programme expenditure

2015/2016 2014/2015 Final Actual (Over)/Under Final Actual (Over)/Under Sub- Programme Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Engineering Services 4 944 4 941 3 3 303 3 290 13 Land Care 7 440 7 439 1 7 462 7 451 11 Land Use Management 16 789 16 789 - 17 683 17 674 9 Disaster Risk Management 68 327 68 327 - 313 583 306 545 7 038 Total 97 500 97 496 4 342 031 334 959 7 072

44 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Service Delivery Highlights

Engineering Support for Infrastructure Development

Namakwa District Niewoudtville Red Bush Tea Project - The installation of small teabag packaging lines that started in the last quarter of 2014/2015 was completed.

A solar plant capable of generating 10 megawatts of energy annually was constructed and is supplying electricity to the factory. Electricity savings do not only benefit the factory but electricity is also fed, during weekends and other times when the factory is not in operation, into the network of the Municipality benefitting the community by reducing the Municipal ESKOM account.

Onseepkans irrigation - A total of 40 ha of land was de-bushed, ripped and prepared for establishment of vineyards in August/ September 2016. Beauvallon - Three centre pivots covering an area of 80Ha have been delivered and installation was completed.

ZF Mgcawu District Construction of 4.8 ha irrigation system for vineyards was completed for Blocuso and construction of 40 ha irrigation system at Vaaldrift is in process.

Pixley Ka Seme District The Chikaina Piggery project at Phillipstown was supported with construction of housing facilities and the supply of a tractor and slurry tanker to dispose of the waste.

Cattle handling facilities wereconstructed at Schmidtsdrift and Vaalplaas to support the farmers with marketing and handling of the animals.

Frances Baard District Animal handling facilities were constructed at Lynplaas, Waterfall, Majeng and Kalkputs. The projects for supply, delivery and installation of centre pivots - 20ha at Paardenkamp, 22ha at Fairfield and 17.25ha at Plot 7H14 has been completed.

Support with mechanization planning for the procurement of a combine harvester and grain transport equipment for assisting emerging grain producing farmers at Vaalharts.

Agri Mega Park development - Designs for the establishment of a feed mill plant at Warrenton Super Chicks were completed.

John Taolo Gaetsewe District Manyeding Hydroponics Project was supported with the installation of an 80 kilo-Watt solar plant to augment the ESKOM supply line that cannot supply adequate electricity. This will also contribute towards reducing electricity cost.

45 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

The following projects were implemented during the financial year:  Rangeland protected/rehabilitated to improve agricultural production  A total of 7 703 hectares of rangeland was rehabilitated through mechanical, manual and biological control of Black Thorn (acacia mellifera), Cactus and Prosopis glandulosa infestation. The rehabilitation works are aimed at rehabilitating degraded rangelands and increasing carrying capacity to enable sustainable and productive livestock production.

 Veld Care projects were implemented at the following sites:

o Frances Baard Bush control: (Majeng and Thembu farms) 1524ha of rangeland was rehabilitated by chemically controlling Black Thorn. o In the John Taolo Gaetsewe district 5 386ha of rangeland was rehabilitated by chemically controlling Black Thorn on the farms Eildon, Vredebron, Broughton, Garapoane, Magonate, Ncwaneng and Maphiniki and mechanical control Gnidia Burchelli. o Niekerkshoop Prosopis control: (Fetogang & Koopmans Boerdery) 250ha of rangeland was rehabilitated by mechanically controlling Prosopis Glandulosa. o At Heuningvlei a total of 500ha of various cactus species consisting of amongst others ambricate, boxing glove, queen of the night, prickly pear (Opuntia) were biologically controlled, utilising cochineal insects. o 43ha rehabilitated through the installation of sub-surface drainage as means of soil conservation efforts to enhance agricultural production.

Creation of green jobs A total of 244 job opportunities were created through the following:

 In John Taolo Gaetsewe the Bothitong Harpuis/Gnidia Burchelli control project, JTG Wetland Rehabilitation and Magonate bush control projects created 150 job opportunities and 7 831 days worked.  Niekerkshoop Prosopis control in Pixley Ka Seme created 53 job opportunities and 2 515 days were worked.  Frances Baard Bush Control created 40 job opportunities.

Promotion of LandCare Awareness A provincial Junior Care awareness week, attended by 174 youth from across the province, was held from the 5th-8th of October 2015 at Riverton Pleasure resort under the theme “LandCare my life, my future Nomakanjani”. The aim of this awareness week was to build capacity and raise awareness among the young people about the importance of LandCare and sustainable Natural Resource Management in addressing poverty, youth unemployment and youth entrepreneurship and skill development.Topics focused on:

 Enhancing youth (in-school and out of school) participation for real stewardship and custodianship of natural agricultural resources.  LandCare best practices in exposing young green entrepreneurs.  Climate-smart agriculture in improving resilience through adaptation and enhancing food security.

A LandCare awareness campaign was conducted for smallholder farmers in the Bothitong area of John Taolo Gaetsewe District focusing on the sustainable utilization of agricultural natural resources with an aspect of conservation and veld management. The event was attended by 94 farmers and traditional leaders.

LandCare Coordinator advising farmers to take care of their land

46 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Support for Sustainable Land Use Management Engineering inputs were delivered to ensure sustainable utilisation of agricultural resources as provided for in the Conservation of Agricultural Resources Act; Act 43 of 1983.

Subdivision/rezoning/change of agricultural land use Soil investigations were conducted at Bucklands for the development of new irrigation on 9 plots. A total of 1140 hectares were investigated and recommendations made for issuing of plough certificates. Applications for rezoning of 451hectares of agricultural land were investigated and recommendations made.

Assistance with Farm Planning In John Taolo Gaetsewe District the farms Broughton, Magonate, Eildon, Vredebron, Danoon and Cahar with a total area of 21 022 hectares were surveyed and farm plans compiled for the purpose of implementing bush control projects:

Stock Water Supply Availability of adequate stock water and the distribution there-of on rural and land reform farms is one of the limiting factors to ensure effective utilisation of rangeland by emerging stock farmers. Stock water systems were designed, service providers appointed and construction of stock water systems completed:

Stock Area Boreholes Pumps Water Serviced District Project Windmills drilled Installed Systems with Stock Installed Water (ha)

Burford Bunley 1 1 13 836 Koopmansfontein 1 3 211 Olifantshoek 1 1 1 2044 Ga Mothibi 1 845 Gaetsewe John Taolo Maphiniki 2 1 147 Kilo Kiloe 1 1 257 Schmidtsdrift 2 2 4 200 Petrusville 11 5400 Commonage Kalkplaas 2 2 1050 Bonteheuwel 2 2 1600 Membysvlakte 2 2 900 Pixley Ka Seme Vaalplaas 1 2 2000 Maselsfontein 2 2 1750 De Riet 1 6 4208 Kuilenburg 1 5 6419 Kamiesberg Farms 8 5000 (8)

Namaqua Nama-Khoi Farms 18 12600 (18)

Middelplaas 1 4 811 Baard Frances Frances TOTAL 1 43 14 26 68 278

47 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-Surface Drainage and Lining of Irrigation Dams To solve the problem of water logging and salinization of irrigation land a programme was implemented to support farmers to install sub-surface drainage systems and to line old leaking irrigation dams.

ZF Mgcawu The Lemoendraai emerging farmers were Sub-Programme Disaster Management supported by surveying, designing and Disaster Risk Reduction supervision for installation of 12 subsurface The department implemented programmes drainage systems with a total length of 2192 aimed to minimize the agricultural meters to service 14.3 ha of irrigation. vulnerabilities and disaster risks. It includes prevention, mitigation, adaptation, prediction Vaalharts Revitalisation and early warning systems. The following This is a long term programme to rebuild the activities were undertaken during the financial water supply and main drainage infrastructure year: and for installation of on-farm drainage and rebuilding of old dams to minimize water Early warning system logging. During the financial year the following An Early Warning Committee was established projects for the installation of on-farm sub which analyses data collected through surface drainage, construction of communal remote-sensing techniques, seasonal climatic main water lines to service the drainage of data and grazing capacity data to inform the individual plots and constructing of overnight department and farmers of developing reservoirs were implemented: disaster drought situations. Twelfth (12) early Drainage mainline crossing of national road warning reports have been generated for the N18 and railway line (AY road crossing) was whole province and disseminated to farmers completed by means of pipe jacking to service through extension services and 360ha of irrigated soils in the Jan Kempdorp communication as an integral component of area. an effective Early Warning System. A drone  Construction of the main outfall water equipped with camera and other specialized line for the subsurface drainage system equipment was procured to assist with on plot 7H14 was completed and will assessment and monitoring of drought serve 25ha of irrigable soil. conditions.  On plot 25C6 installation of sub-surface drainage system completed for drainage Awareness campaigns of 25ha. The objective of the campaigns is to promote a culture of risk avoidance among  Construction of sub-surface drainage stakeholders by capacitating them through line on farm 7I6 and will drain 10ha of integrated education, training and public irrigable soils awareness programmes informed by scientific  A total of 37 plots were surveyed and research. The following campaigns were sub- surface systems designed that will conducted on veld fires and disaster drain 2497ha. management processes:  Six communal main outfall water lines A total of 150 learners were targeted at were designed to service 850ha of sub- Campbell on the 13 May 2015 for awareness surface systems on irrigation plots. on domestic and veld fires.  Construction of a concrete lined A total of 30 farmers from the Frances Baard reservoir on Doornkloof completed. District attended the Disaster Management and LandCare information session at Bantu Hall in Kimberley on the 25th May 2015.

48 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Disaster Relief Schemes Implemented 12 Month Rainfall Drought Relief Schemes Disaster drought areas identified The province experienced a major drought in Municipalities that fall within the priority areas the 2013/14 financial year. During 2015 this as indicated on the map above were notified drought extended to new parts of the and requested to declare a local state of Namakwa district. Loeriesfontein and Hantam disaster. All the municipalities completed their areas were hard hit. The department, using its disaster declarations before mid-December own resources, assisted 257 farmers to the 2015. Given these declarations from value of R7.7m with fodder in the latter part of municipalities, the Provincial Disaster 2015. Management Centre (PDMC) recommended Emerging and Commercial farmers receiving drought to the Hon. Premier to declare a provincial assistance – Loeriesfontein state of disaster and this was successfully done on the 18th of December 2015.

The newly established Early Warning The department compiled an Implementation Plan which was approved by the Hon. MEC Committee of the department also identified rd other areas in the latter part of 2015 on the 23 November 2015. developing into a disaster drought situation. Given the severity of the drought country-wide and wide reports that 2015 was the driest year since the official rainfall recordings of 1904, The Agricultural MINMEC resolved that 20% of the Comprehensive Agricultural Support Programme (CASP) and Ilima/Letsema should be redirected to drought interventions. Emerging farmers were requested to apply for drought relief.

The Department could only re-prioritise 13.4% of CASP or R14.6m and 1 862 emerging farmers eventually registered to receive drought relief.

The department, with the assistance from districts, successfully implement the drought relief scheme for the emerging farmers.

49 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Drought Relief Allocations:

DISTRICTS ALLOCATED AMOUNTS FARMERS AFFECTED

Frances Baard R 5 403 076,80 879

Pixley ka Seme R 2 618 126,40 382 Namakwa R 932 414,40 144 ZF Mgcawu R 2 969 433,60 334 John Taolo Gaetsewe R 641 932,80 123 TOTALS R12 564 984 1 862

An additional R2.0 million was allocated for farmers in ZF Mgcawu and John Taolo Gaetsewe Districts who were not included in the original application lists.

In terms of the commercial sector, various engagements were held with representatives of AgriNK and just over 800 applications were received in February 2016.

Disaster Drought Verifications The National Disaster Management Centre (NDMC) along with the provincial disaster management center, Department of Agriculture, Land Reform and Rural Development conducted Disaster Drought Verifications during the week of the 14 until the 18th of March 2016. The NDMC classified the province as a provincial state of disaster.

Drought Verifications photos

Dead animals in Eksteenfontein- Namakwa Poor animal condition

Poor veld condition: no vegetation

50 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

National Ministerial Roadshow on Agricultural Drought The minister visited Frances Baard; Dikgatlong local municipality on the 11th of March 2016 to interact with drought affected agricultural communities with the following objectives:

 To oversee national relief operations and provide support.  To identify areas requiring further intervention for enhanced drought risk reduction, response and recovery operations.  To engage with farmers, local role players, to provide support and guidance in enhancing drought recovery and rehabilitation measures.  To draw lessons from local adaptation measures on how these can contribute to policy improvement.

Ministerial roadshow

Drought Relief Scheme Independent Evaluation  A final report has been submitted by African Center for Disaster Studies (ACDS) to the department on the 26th of October 2015.  Copies of reports have been handed over to Organised Agriculture, Provincial Disaster Management Centre (PDMC) and the Department of Agriculture, Forestry and Fisheries (DAFF).

International Day for Disaster Reduction On 26 and 27 October 2015 the department celebrated the International Day for Disaster Risk Reduction in Upington. The International Day for Disaster Reduction (IDDR) is a day to celebrate how people and communities are reducing their risk to disasters and raising awareness about the importance of Disaster Risk Reduction (DRR).

51 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

MEC giving key note address Members involved in Disaster Management

Handover of the Drought Independent Evaluation

Flood Assistance Scheme An amount of R131.860 million, suspended in the 2011/2012 financial year, was made available for 2015/2016 to continue with the repair of outstanding damaged infrastructure along the lower Orange River. The following work was completed:

 The repair of the irrigation weir at Witbank and re-construction of 700 m of canal was completed. A total of 180 ha are serviced with water.  Repair of critical flood protection walls on 25 farms, including Eksteenskuil and Coboob. A total length of 16 059 meters of walls were repaired at a cost of R 46.270 million.

In November 2015 an amount of R64 million was suspended to be made available in the 2016/2017 financial year to complete the following work that could not be completed by 31 March 2016:

 Onseepkans bulk water supply infrastructure where major construction can only start after the approval of the EIA – ROD by Environmental Affairs; expected by July 2016.  Repair of 38 small bridges and access roads for Blocuso islands. Construction started in November 2015 and will only be completed by the end of May 2016.  Installation of sub-surface drainage on Eksteenskuil farms. Construction started in November 2015 and will only be completed end May 2016.

52 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

53 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

6. Programme 3: Farmer Support and Development

Purpose: The purpose of the programme is to provide support to farmers and rural communities through agricultural development programmes.

Sub- Programmes:  Farmer settlement and development;  Extension and advisory services; and  Food security.

Strategic Objectives:  To provide agricultural support to 4 000 land reform farmers;  To provide extension and advisory services to 25 000 farmers; and  To provide support to 10 000 food insecure households by 2020.

Strategic objectives, performance indicators planned targets and actual outputs

Strategic Objectives: Programme: 3 Farmer Support and Development

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 To provide - 24000 2622 -1378 The strategic objective agricultural support target was not broken to 4000 land reform down into 5 years farmers therefore the correct target is 1500. This however has been corrected in the 2016/17 APP To provide extension - 325 000 4390 -20 610 The strategic objective and advisory target was not broken services to 25 000 down into 5 years farmers therefore the correct target is 5000. This however has been corrected in the 2016/17 APP

2 The strategic objective target was not broken down into 5 years therefore the correct target is 1 500. This is however has been corrected in the 2016/17 APP 3 The strategic objective target was not broken down into 5 years therefore the correct target is 5 000. This is however has been corrected in the 2016/17 APP

54 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

To provide support to 1065 410 000 1895 -8105 The strategic objective 10 000 food insecure target was not broken households by 2020 down into 5 years therefore the correct target is 2000. This however has been corrected in the 2016/17 APP

Performance indicators: Sub-programme: 3.1 Farmer Settlement and Development

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 3.1.1 Number of 222 1500 2622 1122 Target exceeded, due to smallholder increased support to producers drought stricken farmers. receiving support 3.1.2 Number of farm 50 50 39 -11 Target not met, due to fewer assessment requests received from completed DRDLR than anticipated. 3.1.3 Number of 12 27 27 0 municipalities supported to manage commonages 3.1.4 Number of 16 20 20 0 landholding institutions provided with administrative support

4 The strategic objective target was not broken down into 5 years therefore the correct target is 2 000. This is however has been corrected in the 2016/17 APP

55 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-programme: 3.2 Extension and Advisory Services

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 3.2.1 Number of 3627 2500 2685 185 Target exceeded; due to the smallholder increase in the number of producers smallholders supported due to more information sessions supported with on how to manage the agricultural advice drought situation. 3.2.2 Number of 80 6 6 0 commodity groups supported 3.2.3 Number of - 1000 1372 372 Target exceeded, due to farmers trained more training needs identified and addressed by districts. More training sessions were offered by other stakeholders. 3.2.4 Number of Projects 22 25 25 0 Supported with CASP 3.2.5 Number of 19 17 17 0 Projects Supported with Ilima/Letsema 3.2.6 Number of youth 151 160 163 3 Target exceeded, due to farmers supported more focus on youth as a result of ageing farmers 3.2.7 Number of female 122 100 142 42 Target exceeded, due to farmers supported more focus being placed on women when funding projects; Also due to more Women Agricultural Forum activities, where more women were reached.

3.2.8 Number of work 1046 1000 1032 32 Target exceeded, due to opportunities more people being employed created through for a shorter period of time, therefore the higher EPWP (CASP & employment rate. Ilima/ Letsema)

56 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-programme: 3.3 Food Security

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of 693 2100 1157 -943 Target not met, due to 3.3.1 households drought and heat wave benefiting from experienced in the agricultural food Province therefore less security initiatives number of households benefited. Number of hectares - 1277 1308.44 31.44 Target exceeded, due 3.3.2 cultivated for food to some farmers who production in managed to procure communal areas their own production and land reform inputs, therefore more projects hectares of wheat and oats (winter crops) were planted. Number of 3 10 10 0 3.3.3 sustainable community gardens established Number of 353 650 698 48 Target exceeded due to 3.3.4 household gardens increased focus established towards improved nutrition of households Number of 12 20 20 0 3.3.5 institutional gardens established

Strategy to Overcome Areas of Underperformance Most of the targets that were not achieved were due to the drought. In order to mitigate this, the department has established an Early Warning Committee to assist with prior assessment of weather predictions and proper planning for crop production in the province.

Changes to planned targets

None

57 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Linking performance with budgets Sub programme expenditure 2015/2016 2014/2015 Final Actual (Over)/Under Final Actual (Over)/Under Sub- Programme Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Farmer-Settlement and Development 4 108 4 108 - 4 168 4 167 1 Extension and Advisory Services 236 073 233 822 2 251 221 364 221 301 63 Food Security 5 415 5 415 - 5 135 5 135 0 Total 245 596 243 345 2 251 230 667 230 602 65

6.1 Service Delivery Highlights

Smallholder Producers Receiving Support A total of 2 622 small holder producers received support through infrastructure development and production inputs through CASP & Ilima/ Letsema funds as well as drought relief feed. The support included:  Supply and delivery of chicken feed at various poultry projects  40 breeding ewes and rams  74 Namakwa Afrikaner ewes and rams to farmers ,  Drought pellets to 1 851 farmers

Commodity Groups Supported The Department dedicated a considerable amount of time and effort in strengthening the commodity approach to farmer support and development in the province. Accordingly, a total of 6 primary commodity groups (Poultry, Red meat, Wine Raisins, Grain and Deciduous Fruit) were supported during the financial year in the various districts through technical support and supplying of production inputs. Technical support was provided to Warrenton Super Chicken, Wine Namakwa-Afrikaner sheep handed out to farmers in JTG district development at Blucuso and dried fruit at Silvermoon. Training was given on Dates production at Henkries Deciduous Fruit Project. 60 jobs were created at Smallholder Producers Supported with Richtersveld CPA under the Grain Agricultural Advice commodity. Supply of production inputs In total 2 685 farmers were supported with (poultry and vegetables) through the Fetsa specific technical advice through information Tlala Food Production Programme. A days, farmers’ days, demonstrations, site livestock project at Nabiep received 40 visits, meetings and contact sessions. boergoat ewes. Advice included the following: Grazing management, Departmental Funding Programmes, Drought Relief Programme, Vaccination Programme, Livestock Management, Record keeping, Animal Health, Land Care, Broiler production, Vegetable production.

58 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Training was provided to 1 372 smallholder farmers. Officials from the department, Grain SA, SAPA, Grootfontein Agricultural College (GADI), Dorper Sheep Breeders Association and GWK conducted various training sessions on the following topics: Vegetable production, Cattle production, Small stock production (Boergoat, Dorper, Karakoel), Irrigation scheduling, Maintenance of Centre pivots, Construction of fences, Branding of cattle, Financial recordkeeping, Co- operative governance, Health and safety, Correct handling of Namakwa-Afrikaner

Warrenton Super chicken supported with feed sheep and Poultry Production. Over and above the planned annual target for training, 372 more farmers were reached due to training sessions received from the stakeholders like GWK, SAPA and Grain Farmers Trained SA.

Management of Centre pivot training & Irrigation scheduling training at Vaalharts

Poultry Training at Warrenton Super Chicken offered by South African Poultry Association

Youth farmers supported As part of youth development in agriculture, inputs through the drought relief scheme 163 young farmers were supported in the and the Fetsa Tlala Programme for the Province during 2015/16. Young farmers planting of wheat at Pniel and Winsorton. attended the Provincial Youth Event in 13 Youth from Bonnita Park were taken on Upington whereby technical advice was an Agricultural tour to the Hydroponics shared. Youth farmers received production Project in Windsorton.

59 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Young farmers at Pniel receiving production inputs (fertilizer)

Female Farmers Supported Improvement Programme, CASP- and Ilima The Department has dedicated support programmes. towards female farmers. To this end, 142 During the Provincial Female Entrepreneur female farmers were supported. Support Awards, 38 female farmers participated in included technical advice on irrigation various categories and, 8 farmers at the methods, the establishment of food gardens, National Event where Ms. Kelebogile animal health, soil preparation and planting. Mampe from Karsten Boerdery was the Best Farmers received production inputs, Female Worker in the Sector. Prizes livestock and infrastructure support through included R150 000, subscription of the drought relief scheme, Livestock Extension Suite On Line and a tablet.

An established Women Forum in Vaalharts Ms Khantwan assisted with breeding animals

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Job Creation through CASP & Ilima Letsema 1032 temporary jobs were created through the implementation of CASP and Ilima/ Letsema programme in the Province. Jobs were created during the project implementation activities: Activity Number of jobs District

Vineyard Development 304 ZF Mgqawu, Namakwa

Crop Production 322 Frances Baard & Namakwa, Pixley ka seme

Irrigation Infrastructure 23 Frances Baard & Pixley Ka Seme

Fencing Construction 309 JTG, Pixley Ka Seme, Frances Baard

Water reticulation 105 JTG & Pixley ka seme and Namakwa,

Vaalharts Revitilization 30 Frances Baard

Construction of stock handling facilities at Kalkput & Fence at Waterfall

Fetsa Tlala Food Production Programme The programme is an integrated framework that seeks to promote food and nutrition security and to address structural causes of food security. The initiative is aimed at implementing the food production pillar of the National Policy to maximize cultivation of food by putting 1 million hectares of fallow land under production. District Product Ha Yield per Ha Price per ton Total tonnage

Frances Baard White Maize 315 11ton/ha R 4 500 2 700

Wheat 212 10ton/ha R 4100 1 800

Pixley Ka Seme Wheat 24 10ton/ha R 3 600 2 974

White Maize 76 11ton/ha R4 500 1 900

Namakwa Yellow Maize 12 10ton/ha R 3 100 1 900

Dry Beans 53 2ton/ha R 12 000 68

61 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Wheat at Killarney Commonage/ Riverton

White maize is anticipated to be harvested end of May 2016 at the expected yields of 12 ton/ha, yellow maize ,12 tons per ha, dry beans 2 ton/ha.

Maize at Moso Irrigation Farm in Frances Baard Wheat at Iphemeleng Farm, Hartswater at a drying stage

Vineyard Development Programme A considerable amount of money and time preparation and Eksteenskuil received was dedicated towards the development of crates. vineyard in the province, mainly along the Orange River. The Vineyard Development Scheme is one of the anchor projects that contribute towards the achievement of the Strategic Integrated Projects (SIP 11) targets. The grape projects; Blocuso Trust, Eksteenskuil, Eiland, Pella, Riemvasmaak and Lemoendraai were assisted under the programme. A total of 33 ha have been planted under wine and raisin grapes (25ha wine, 8ha raisin) with 54 ha trellises constructed. The Eiland wine project received a tractor to assist with soil

62 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Soil Preparations and Pruning at Blucoso Newly bought tractor at Eiland Wine project busy with soil preparation

Mechanization Programme Livestock Infrastructure Mechanization was procured and delivered In total 6 Stock handling facilities were to the following projects through CASP & constructed; 22 boreholes were drilled; ILLIMA Funds: Eksteenskuil grape project fencing material were given to farmers and 5 (tractor and implements), Silver Moon grape Livestock water reticulation systems through project (tractor and implements), Chikaina CASP Funding for optimal use of natural Piggery (tractor and slurry tanker), Frances resources were allocated to farmers Baard combine harvester trailers, Kamiesberg Grain two 6 ton trailers. Other projects that received mechanization were Rooibos project (1 John Deere 55KW Tractor, 1 Tiller, 1 Rotary slasher); Kamiesberg (2 Landini Solis 65KW 4X4 Tractors) and Henkries (one YTO 55kw 4x4, a Mower, a Forklift (tractor mounted), one 8 ton Trailer and a Rake).

Completed handling facilities at Kalkput & Majeng

Inspections of handling facility at Lynplaas, Sol Plaatjie

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Small Holder Farmers Graduated to Hydroponics at the Central Commercial University of Technology (CUT). Four farmers from the following farms in Pixley were transferred from commonage A farm planning course was attended by 9 farms to PLAS Farms: Spes Bona, De Rust, officials from the Pixley ka Seme district. and Ridgewater. The aim was to transfer the skills of farm planning to the officials, who are relatively Extension Recovery Plan (ERP) new within the department. One Smart pen ERP was implemented under the following workshop and training session was held in pillars: ZF Mgcawu.  Recruitment of extension officials  ICT equipment procured o Five Extension Officers were permanently appointed The following ICT equipment was in the following districts: procured under the Pillar Provision of ICT Two in Namakwa; one in and other resources: 9 Laptops; 15 single Pixley ka Seme, ZF & two multi-function Printers; 30 Mgcawu and John Taolo Cameras for new and existing officials; 7 Gaetsewe. The officials External Hard drivers and a contract on comprised of two males and 3G cards renewed for all 59 officials. Five three females. new officials received cellular phones and 3G card modems.  Reskilling & reorientation Food Security Seven officials completed their studies: World Food Day Commemoration The successful commemoration of the world  Two officials obtained Master’s food day with the theme, “Social protection degree in Sustainable Agriculture and Agriculture: Breaking the cycle of rural at the University of the Free State poverty”, was held on 16 October 2015, in (UFS); Petrusville, Pixley Ka Seme District. In total  Three officials obtained a B.Tech 2500 people attended. 32 food hampers degree in Project management at were distributed to 30 households. As part CUT; of a build-up campaign, 207 household  One official obtained a B.Sc in gardens were established. Construction Management at UFS; A total of 698 household gardens were  One official obtained an Advanced established and supported across the Diploma in Agricultural Extension province to facilitate production of own food. and 56 households received vegetable starter  One official completed the second packs and had backyard gardens year of a Master’s degree in established and 63 households received layer starter packs.

64 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

65 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

7. Programme 4: Veterinary Services

Purpose: The purpose of the programme is to provide veterinary services to clients in order to ensure healthy animals, safe animal products and welfare of people of South Africa

Sub- Programmes:  Animal Health  Export Control  Veterinary Public Health  Veterinary Laboratory Services

Strategic Objectives:  To prevent, control and eradicate animal diseases for 6,5 million animals through surveillance programmes, vaccination, inspections and training;  To provide 1000 health certifications for import and export of animals and animal products;  To promote the safety of meat and meat products at harvesting level through the registration and monitoring of abattoirs; and  To provide diagnostic services (150 000 tests) to veterinary personnel, farmers, food processing plants and private veterinarians.

Strategic objectives, performance indicators planned targets and actual outputs Strategic Objectives: Programme: 4 Veterinary Services

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 To prevent, control 92894 8000 3215 -4785 There was misunderstanding and eradicate animal regarding the interpretation of the diseases for 6,5 performance indicator. Target is million animals based on number of the visits through surveillance whereas the indicator talks about programmes, epidemiological unit. The targets vaccination, and the whole system of reporting inspections and (UBALO) will be reviewed next training year in order to get accurate reporting.

To provide 1000 149 360 304 -56 There is a drastic decline in the health certifications number of health certificates for import and export seen in 2015/16 due to the of animals and severe drought that the country animal products is still recovering from. Instead, there were more imports of animals and animal products from neighbouring countries than exports.

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To promote the 292 60% 76% 16% Our abattoirs continue to be safety of meat and operated at a higher standard meat products at than what is Nationally harvesting level expected. through the registration and monitoring of abattoirs To provide diagnostic 49387 30000 23195 -6805 Fewer samples were received services (150 000 as a result of drought. Animals tests) to veterinary died of drought and not because personnel, farmers, of diseases. food processing plants and private veterinarians

Performance indicators Sub-programme: 4.1 Animal Health

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of - 8000 2083 -5917 Target is based on number of 4.1.1 epidemiological units the visits whereas the visited for veterinary indicator talks about interventions epidemiological unit.

Sub-programme: 4.2 Export Control

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 - 360 304 -56 The severe drought from which 4.2.1 Number of the province is still recovering clients serviced from, has resulted in more for animal and imports of animals and animal animal products products from neighbouring export control country than exports

67 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-programme: 4.3 Veterinary Public Health

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 % level of abattoir - 60% 76% 16% Our abattoirs continue to be 4.3.1 compliance to meat operated at a higher safety legislation standard than what is Nationally expected. Number of Food 12 12 12 0 4.3.2 Safety Campaigns conducted

Sub-programme: 4.4 Veterinary Lab Services

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 25108 30000 23195 -6805 Fewer samples were received 4.4.1 Number of tests as a result of the drought. performed the quality of which meets the ISO 17025 standard and OIE requirements

Strategy to overcome areas of under an intervention and not the number of performance veterinary interventions. The target for performance indicator 4.1.1 was adjusted so that it refers to the number Epidemiological unit refers to a farm, village, of epidemiological units visited and not the town, abattoir etc. while the intervention number of interventions done on the farm. refers to an activity on the farm such as Ubalo will be reviewed in the next financial vaccination, tagging, post mortem, year to give accurate information on the surveillance, treatment etc. An official can number of visits undertaken. There was visit a farm and perform more than one misunderstanding regarding the activity on a farm but the visit is reported as interpretation of the performance indicator one because all the activities happened on 4.1.1 which refers to the number of the same epidemiological unit. The epidemiological units visited. The target was emphasis is on the epidemiological units based on the number of veterinary visited and not the number of activities. interventions. The indicator refers to the number of epidemiological units visited for Changes to planned targets None

68 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Linking performance with budgets Sub programme expenditure 2015/2016 2014/2015 Sub- Programme Final Actual (Over)/Under Final Actual (Over)/Under Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Animal Health 29 999 29 665 334 28 690 28 689 1 Export Control 1 564 1 562 2 870 870 - Veterinary Public Health 5 227 5 228 -1 4 201 4 201 - Veterinary Laboratory Services 6 227 6 227 - 6 873 6 873 - Total 43 017 42 682 335 40 634 40 633 1

7.1 Service Delivery Highlights sampling genetic material from the feral The Compulsory Community Service (CCS) goats. The SPCA in Kimberley is also programme was finally rolled out in 2016 making use of the CCS vets. after all outstanding issues such as the regulations were resolved. Through this As previously mentioned, South Africa is still programme the department seeks to provide regarded as free from Pestes des Petit accessible and affordable primary animal Ruminant (PPR). To maintain this status, health care services to rural communities in South Africa has embarked on a drive to the province. These newly qualified increase awareness and improve the veterinarians are the first group to kick starts capability to detect a PPR introduction as the community services programme early as possible. Regular samples are introduced by government to make being collected from high risk areas veterinary services accessible to rural (Upington and Kuruman) due to their communities. The CCS programme runs for proximity to the international borders for a year and we expect the same number of testing. DAFF has also provided provincial CCS veterinarians next year. departments with awareness materials which our officials are distributing to farmers The department applied for 5 CCS vets but during farmer’s days and meetings. unfortunately the fifth (CCS) veterinarian who was earmarked for Prieska experienced Plans are underway to develop an problems with her work permit and could not aquaculture project at the Vanderkloof dam. join the other 4 CCS veterinarians. The four The proposed aquaculture species at the veterinarians will help to bring the much dam is finfish (trout). It is estimated that the needed veterinary service to far-flung areas potential production capacity is about 11518 in the province. The areas that will benefit tons. This is expected to significantly from the clinical services rendered by the contribute to job creation for the local CCS veterinarians are John Taolo communities. Significant progress has been Gaetsewe and Francis Baard District made and a feasibility study was completed. Municipality, who will each have 2 CCS vets. There is still a need to obtain environmental In John Taolo Gaetsewe the Compulsory authorisation. It has been proposed to zone Community Services (CCS) veterinarians the area as an Aquaculture Development will conduct weekly clinics in Glenred and Zone. Madibeng as well as surrounding farms and villages. A 2 day workshop was held in Pretoria to discuss several issues on aquaculture and They have already participated in 4 spay aquatic animal health in South Africa. The campaigns in the province where a total of workshop focused on the following issues: 82 spays and castrations where performed.  The evaluation of aquatic animal health Their next assignment was Tankwa in the services using the OIE PVS Namakwa District, where they assisted with

69 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

(Performance of Veterinary Services) biosecurity, notifiable diseases for aquatic Tool. animals, drug usage in aquatic animals in  National strategic framework for aquatic South Africa, Aquaculture Bill and the animal health in South Africa. investigation of the Epizootic ulcerative  The drafting of the national aquatic syndrome (EUS) and Koi herpesvirus (KHV) animal health program. diseases outbreaks.  Guidelines for the translocation of live aquatic animals in South Africa. A very informative aquaculture conference  Finalizing the draft Implementation Plan was held in Polokwane, Limpopo from 27 for aquaculture. September to 2 October 2015. The theme of the conference was “Aquaculture: Shaping During the second quarter of 2015, a the Future”. Several academic and research meeting was held to discuss the national papers were presented at the conference on aquatic animal health and welfare plan issues affecting and promoting aquaculture (NAAHWP), the terms of reference for in Africa and the world at large. There was national aquatic animal health working group an opportunity to learn from some of the (NAAHWG), import and export control of leading countries in aquaculture, particularly aquatic animals and products, veterinary Norway, China and Egypt Procedural Notice (VPN) for aquaculture, .

The internet-based activity recording system (UBALO) which the department is using has started to yield results. Despite the small glitches that were are currently addressing, we have been able to generate disease outbreak maps with the information sourced from the service books. The maps have been useful in identifying areas where we are not visible due to manpower shortages. Using this information, we are able to put contingency measures in place to address such weaknesses.

Vanderkloof Trout Aquaculture Development Zone

70 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Disease Control Controlled and Notifiable Diseases

Disease Outbreak Map generated from UBALO report.

2.1.1 Bovine Tuberculosis from Mkuze Game reserve in the KwaZulu- During the year under review there was an Natal Province. increase in buffaloes reacting positively to the comparative intradermal tuberculin test. Follow up bovine tuberculosis tests at all Of the 64 registered farms in the SV positive and suspect farms are being carried Kimberley area, there has been suspect out. Positive farms must undergo 5 negative herd breakdown of 9.4% with 3.1% tests over 18 months to be cleared. confirmed positive farms. A dairy farm was placed under quarantine One buffalo (Syncerus caffer) bull died following positive reactions to the single during bovine tuberculosis re-testing at one intradermal tuberculin test in twelve dairy of the farms. The bull had previously reacted heifers. The test was done by a private vet, positively on both the comparative who reported the case to us. The intradermal tuberculin test and gamma investigation revealed that the farmer buys interferon test. Tuberculous lesions were dairy heifers from various sources, raises noted in the lungs, liver, kidneys and lymph them, carries out artificial insemination then nodes during the post-mortem. Samples sells calf heifers to other farmers. A follow were collected in triplicate and up test was carried out and there were Mycobacterium bovis was cultured and reactions on both the comparative variable number of tandem repeats (VNTR) intradermal tuberculin test and interferon typing done. The genetic profile 11 4 3 4 2 4 gamma release assay in two animals. Due 5 2 3 6 4 5 3 was obtained. This strain is to the fact that the animals were heavily similar to the Madikwe. pregnant and some of them already calving, the interference of pre and post-partum In South Africa, this genotype has been effects on the comparative intradermal detected in buffaloes in the North West and Free State Provinces, as well as in a baboon

71 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape tuberculin test were noted with the need for and 173 cats had been vaccinated by a re-test. officials during the campaign.

Rabies During rabies week, emphasis was placed Department of Agriculture, Land Reform and on rabies awareness and six schools in Rural Development’s Veterinary Services in surrounding towns were visited and talks the province hosted the 5th biennial Rabies held. All the Calvinia schools were invited to Scientific event in Calvinia. End Rabies an education day of which 2 schools Together was the theme for World Rabies attended in the end. This included talks and Day 2015. It builds on previous themes to a working dog exhibit. highlight the ongoing importance of global The rabies week was concluded with a commitment across sectors to effectively scientific evening that was attended by over end the spread of rabies and save both 50 health professionals. Prof Lucille human and canine lives. Blumberg from the National Institute for The programme for the 2015 season kicked Communicable Diseases (NICD) and Dr off with a spay campaign in the Augrabies Claude Sabeta from Agricultural Research and Marchand communities followed by the Council (ARC) gave presentations on the awareness campaign at the annual Meat new developments in the testing and Festival and the Namaqua Quest mountain treatment of the disease. bike race events. The race is an annual national event, visited by racers and spectators from across the country and Namibia. Here the team used the opportunity to educate the public at both events about rabies, interacted with farmers that had problems or questions on diseases and the services rendered by the directorate. Three more spay campaign were held in the area. Three final year veterinary students from Onderstepoort also had the opportunity to get hands-on experience during the campaign and were allowed to castrate dogs Prof Blumberg during the Rabies Scientific under supervision. Up to date 3020 dogs Evening

Anthrax An outbreak of anthrax was noted in Waterkolk farm belonging to De Beers. In this case, five sable bulls were found dead in the field in various stages of decomposition and skeletonisation. The samples collected came back positive for Bacillus anthracis through culture and polymerase chain reaction (PCR). This outbreak occurred in the region bordering the Ghaap plateau which is endemic for anthrax. Annual vaccinations for anthrax are carried out in this area bordering the game farms (Schmidtsdrift, Mosesburg and Campbell).

Dipping and vaccination of dogs

72 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

These cases showed the need for control of anthrax through vaccination in livestock at the wildlife-livestock interface since control of anthrax in wildlife is costly and currently not feasible. The game farmers are only vaccinating a small proportion of high value game species such as buffaloes and sables.

Newcastle Disease (NCD) exclude H5, H6 and H7 and not to find the Backyard chickens with no history of type of virus. One of the backyard flocks are vaccination had positive titres for NCD in close to a major ostrich farm. The manager Campbell area. There is limited introduction of the ostrich compartment has been from outside and the owners sell chickens advised to increase biosecurity measures. It among themselves. Some of the residents of is advisable to find the type of influenza this area also work in the neighbouring virus causing these reactions. Influenza Ostrich farm. This raises the need for viruses are not known to be genetically adequate biosecurity at the ostrich farm. The stable especially when they jump species. outbreak of NCD at the ostrich farm was controlled through rigorous vaccination with Cases of Malignant Herd Catarrhal Fever La Sota vaccine in young chicks and (MHCF) Struvac vaccination in ostriches above four Cases of Malignant Herd Catarrhal Fever months. (MHCF) were noted in Schmidtsdrift No. 3. Cattle in this area graze in the adjacent Avian influenza Game Reserve. MHCF is an indicator Some backyard chickens in Campbell and disease of the wildlife-livestock interface. Majeng have tested positive for Avian This should be seen in the context of the Influenza on ELISA. The influenza strain is anthrax outbreak in wildlife-livestock not H5, H6 or H7 as shown on follow up interface. Investigation of the cases have Hemagglutinin Inhibition test. However, a shown that a number of MHCF go follow up test is underway. Enquiries with unreported and the wildlife-livestock Ondersterpoort Veterinary Institute (OVI) interface in this area is soft. This raises have been initiated with limited results. The challenges with diseases such as officials at OVI state that their mandate is to brucellosis, anthrax and bovine tuberculosis.

Veterinary Public Health & Export Control Training, extension and Liaison Schools No of Food- Public Farmers Community learners Safety institutions days out-reach reached programs Calvinia 0 0 0 2 0 0 De Aar 15 608 2 17 0 0 Kimberley 7 0 1 4 0 0 Kuruman 5 0 2 8 0 1 Mothibistad 11 598 1 11 5 1 Springbok 14 110 2 8 0 0 Upington 20 0 1 4 2 1 Grand Total 72 1316 9 54 7 3

73 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

School visit in JTG School visit Namaqua region

A total of 2118 Rabies Pamphlets were restoration of individual registration with the distributed within the ZF Mgcawu region HPCSA council. The 5 officials who sat for following a Rabies outbreak at Upington, the exam managed to successfully complete Swartkopdam & Spitskop. the exam. The unit is the second in the country after Free State province to VPH officials finally sat down on the 11 complete the HPCSA board exam March 2016 for the much anticipated successfully. Environmental health board exam for the

Distribution of Abattoirs

All 59 (53 red meat and 6 poultry) abattoirs The year also saw some milestones being were visited quarterly. Our abattoirs reached with two more abattoirs being continue to be operated at a standard higher approved for export among them Malu than what is expected on a national level abattoir. The unit was extremely excited and we are striving to keep it that way. It is about the massive investment by the still unclear if the operation at the Kuruman Mosstrich group in the Pixley Ka Seme Abattoir will stop indefinitely. The district under De Aar State Vet Area where management of the facility took a decision to they revived one of the abandoned slaughter stop the operation following the sad passing facilities Moreson abattoir into a state of the on of the new owner. art slaughter facility for both local and export market.

74 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Slaughter Statistics

Due to the severe drought slaughter slaughtered in the province and what numbers of especially sheep increased a lot condition they are in. The graph clearly towards the end of 2015. It will be interesting shows that while other species are picking to see what this does in the new up, poultry slaughter is steadily coming financialyear. down. The reasons for such a decline are Slaughter statistics are collected from all mainly due to the economics of this abattoirs to monitor how many animals are commodity in relation to global markets.

Bovine Spongiform Encephalopathy Sampling

BSE samples 2014 - 2015

500 450 400 350 300 250 200 150 100 50 0 Mothibist De Aar Kimberley Calvinia Kuruman Upington Springbok Total ad 2014/15 40 87 0 59 246 42 0 474 2015/16 92 0 0 85 165 6 91 439

Total BSE samples generated from 01 April 2016, a total of 33 meat handling outlets 2015 to 31 March 2016 is 439 which is ranging from butcheries to supermarkets below the National set target. were profiled in collaboration with Environmental Health from the local Illegal Slaughtering Municipalities since the inception of the As part of the ongoing implementation of project trial run. The project will be rolled out National VPH food-safety project for 2015- within the entire province. The unit deems

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape this initiative as an important tool which can Pension pay-points food-selling stalls are be used in curbing illegal slaughtering within regularly visited in the John Taolo Gaetsewe the province. The project is a collaborative Region to ensure that the meat sold to the effort with local Environmental Health pensioners is safe. They also train as part of Practitioners from the local municipalities community outreach program small which are the custodians of the Health act producers and handlers. and mandated with regulating the food handling and selling points.

Workshop on illegal slaughtering

Hygiene Assessment Score 60 % benchmark. The overall average score The inception of Hygiene Assessment stands at 78.8% System as a transversal indicator for 2014- 2019 has also seen a lot of improvements in Residue and Microbiological sampling terms of compliance and general hygiene The Implementation of the National Residue standard of our provincial abattoirs. A total Monitoring Programme (NRMP) was of 90 Hygiene Assessments system audits concluded by the end of February 2016 with were carried out at High, Low and Rural a total of 117 residue samples collected Throughput abattoirs within the borders of from May 2015 - February 2016 spread the province from April 2015 to March 2016. across 8 participating abattoirs within the With compliance level ranging from 76% - province. No NRMP sampling was 80%, we were above the expected national implemented.

Export Control Certification

Certification 2009 - 2015 1400 1200 1000 800 600 400 200 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total Health Attestation 1243 1306 1160 1280 1288 1180 804 Authentic Paper 622 204 306 258 804 883 161

76 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

There was a drastic decline in the number of health certificates issued in 2015/16 due to the severe drought that the country is still recovering from.

Live Animal Imports

3500

3000

2500

2000

1500

1000

500

0 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Bovine Ovine Caprine

The number of sheep imported is steadily usually gemsbok and springbok. There is increasing due to high demand caused by also an increase of sables and rhinos from the drought. From the total sheep imported, the farms within the Kimberley State Vet to 95.16% was for slaughter and 4.84% was Namibia. for farming and feedlots. We have also witnessed an increase in import of wildlife from Namibia. These are

Trophies

Trophies Units 2009 - 2015 7000

6000 5000 4000 3000 2000

1000

0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Trophies Units 2208 3799 5038 4737 4884 5489 5987

77 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Feed and Lucern exports

Manure as fertilizer

Cattle manure from a feedlot in Windhoek, Namibia imported to mix with chicken manure and used as fertilizer in the vineyard

78 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Export of milk and milk products

The import permit is granted to Suide Koelkamers of Namibia for the imports of milk and milk products produced in Clover S.A. and send to the mentioned company in Keetmanshoop in Namibia.

Beef and Lamb exports

The increase in the exporting of meat Cape remains one of the leading Provinces particularly from Beefmaster is very in the meat export industry. encouraging. Coupled with that the opening of a new EU export abattoir, Moreson in De Aar which is registered to slaughter ostrich and game, will ensure that the Northern

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Veterinary Laboratory Services and The epidemiology section of the sub- Epidemiology programme invited DAFF and Gauteng The laboratory managed to recruit a Veterinary Services to impart knowledge on technologist, who has extensive experience foreign animal diseases to all technical and in diagnostics and research. This professional officials in Veterinary Services. appointment will go a long way in alleviating undue pressure on some of our A total of 48 officials that attended the technologists and provide back-up training include a representative from the personnel for some of the test methods. Red Meat Producers Organization and 2 from Disaster Management. Simulation The Complement Fixation Test for exercise on a foreign disease is planned for Brucellosis is ready for introduction at the the new financial year. The local traffic provincial Veterinary Laboratory after 2 department gave a demonstration on how to successive successful proficiency tests. set up a road block and provided tips on how to mend the operation during a disease Management review meeting was conducted outbreak operation so as not to disrupt for the first time to review and evaluate the normal flow of traffic. effectiveness of the Quality Management System (QMS) of the laboratory.

Dr Geertsma presenting to our officials

80 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Primary Animal Health Care

The livestock farmers in rural communities the province. The ambulatory vehicles will have welcomed the move by government to be stationed at Kimberly, Kuruman and introduce Compulsory Community Service Upington to services the town and programme to speed up rural animal health surrounding areas. The vehicles will be used care. Their livestock problems are attended by the CCS vets to treats and perform basic to within reasonable period and they pay an surgery during call outs and during affordable fee awareness campaigns.

We also welcome the arrival of the 3 Iveco ambulatory vehicles and 2 LWB bakkies in

Dr Fourie (SV Upington) together with Dr Ottermann, Dr Shuda, Dr Pistorius and Dr Govender

81 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Training & Extension  10 laboratory employees received training on Quality Management Systems and Internal auditing from an external service provider, Food BEV. Laboratory technical personnel received training on pipette verification using Calibration Dock Station.  TB refresher courses were offered to all technicians and Veterinarians. Deficiencies were identified and will be addressed in the new financial year. The same training was offered to the 4 CCS Veterinarians who can now do the test independently.  The Agricultural Research Council embarked on an animal health technician training program to equip and assist Animal Health Technicians to develop necessary skills to train farmers in primary animal health. 35 Animal Health Technicians attended the week long programme in Upington. The course is CPD (Continued Professional Development) accredited.  The province hosted the 3 days veterinary strategy consultative workshop 3 that was facilitated by DAFF. Representative from the industry and private veterinarians were part of the audience. The strategy once implemented will improve production in the animal sector and global market access for animals and animal products.

82 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

83 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

8. Programme 5: Technology Research and Development Services Purpose: The purpose of the programme is to render expert and needs based research, development and technology transfer services impacting on development objectives. Sub-Programmes:  Research  Technology Transfer Services  Infrastructure Support Services

Strategic Objectives:  To ensure that 13 medium to long term research and technology development projects are conducted to improve the agricultural production;  To disseminate information on research and technology developed to clients, peers and scientific community;  To provide and maintain seven infrastructure facilities for the line function to perform their research and other function; and

84 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Strategic objectives, performance indicators planned targets and actual outputs

Strategic Objectives: Programme: 5 Research and Technology Development Services

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 To ensure that 13 - 13 13 0 medium to long term research and technology development projects are conducted to improve the agricultural production To disseminate 50 74 68 -6 Challenges were experienced information on within the commercialisation of research and goats programme. Officials technology resigned and the posts were developed to clients, peers and scientific not filled due to requests to community evaluate and restructure the programme. To provide and 53 7 6 -1 One research station has maintain seven been part of an on-going infrastructure dispute with regard to a land facilities for the line claim. This matter is with the function to perform their research and high court and although a other function ruling was issued, the steps needed to return the farm to the Department is still in the process.

85 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Performance indicators: Sub-programme: 5.1 Research

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of 0 5.1.1 13 13 13 research and technology development projects implemented to improve agricultural production Number of 0 5.1.2 - 8 8 scientific investigations conducted

Sub-programme: 5.2 Technology Transfer Services

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of 5 7 9 2 Scientists were invited to 5.2.1 research present their work at national presentations events which they had not made nationally or planned for. It is difficult to internationally plan for invitations. Number of 2 2 2 0 5.2.2 scientific papers published nationally or internationally Number of 10 6 12 6 Scientist were invited to do 5.2.3 presentations made presentations at farmer’s at technology /information days (which they transfer events had not planned for), especially on veldt management and drought mitigation. Number of articles 4 3 3 0 5.2.4 in popular media Number of spatial 6 16 16 0 5.2.5 datasets and maps created Number of 12 11 11 0 5.2.6 development projects/program mes supported Number of reports 4 4 4 0 5.2.7 on training and skills development events

86 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Sub-programme: 5.2 Technology Transfer Services

Performance Indicators Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of goats 6 40 11 -29 The coordinator of this 5.2.8 cooperatives programme resigned during supported the year. This resulted in challenges with reaching the set targets.

Sub-programme: 5.3 Infrastructure Support Services

Performance indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of -1 One research station is still 5.3.1 - 7 6 research part of a land claim dispute. infrastructure managed

Number of reports -4 Due to the research station 5.3.2 - 28 24 on support to being part of the land claim, research projects we are unable to access the farm and support the projects. Theft and security problems have resulted in certain projects (e.g. maize, goats) being stopped.

Strategy to overcome areas of under performance The only area underperforming within the programme is the commercialization of goats programme operating directly with cooperatives and the small farmers. An evaluation of this programme is currently underway and this will indicate how and what strategy should be implemented to create a turnaround.

Changes to the planned targets None

Linking performance with budgets Sub programme expenditure

87 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

2015/2016 2014/2015 Final Actual (Over)/Under Final Actual (Over)/Under Sub- Programme Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Research 23 842 23 842 - 23 621 23 620 1 Technology Transfer Services - - - 4 3 1 Infrastructure Support Services 19 466 19 223 243 20 274 20 270 4 Total 43 308 43 065 243 43 899 43 893 6

8.2 Service Delivery Highlights

Comprehensive support to the Beef implementation of research projects on Cattle Production and Development crossbreeding with specialized sire lines. Strategy The outputs of the beef cattle research are The Northern Cape IDC Nguni Cattle reflected through two scientific publications, Development Project had 2014 as the five articles in popular media and five termination date and an initiative was presentations at technology transfer events. proposed as a new and more comprehensive strategy to expand the In a study on breed effects on sensory objectives embodied in the Nguni properties of five beef cattle breeds, it was Development Project. The Beef Cattle found that the indigenous Afrikaner breed Production and Development Strategy had the most favourable sensory profile includes other beef cattle breeds with the relative to the imported breeds. This was primary goal to develop a vibrant beef cattle particularly true for shear force and industry in the Northern Cape. The tenderness. The individual additive effects Department is fully supportive of the new on sensory traits are reflected in the strategy and has identified the new project following graph. These results indicate that manager that will take over the crossbreeding with exotic germ-plasma has responsibilities of the current project little to offer in terms of consumer manager from the University of the Free satisfaction relative to the use of the State. Afrikaner cattle breed.

The support to small scale beef cattle farmers by the Department continued with different projects/programmes. The support from Programme 5 was mainly through the

88 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape mini-symposium on beef cattle breeding was outlined the new crossbreeding project. held at Vaalharts Research Station on 28th Other presentations included Ms. M. May 2015. The symposium was the joint Mokolobate (ARC) on improved calf-cow action between DALRRD, the ARC-Animal efficiency in extensive beef production Production Institute and the Red Meat systems, Mr. W. Peterson (DALRRD) on the Producers Organization. The mini- first results of the crossbreeding project and symposium focused on the first research Mrs. A. Theunissen (DALRRD) on results and the way forward regarding beef crossbreeding systems. cattle crossbreeding research at Vaalharts Research Station. The proceedings concluded that beef productivity has to increase by increasing The motivation behind the comprehensive cow fertility and calf-cow efficiency, crossbreeding project was the growing decrease age at slaughter, improve feed concern on what climate change could do to conversion and carcass yield and production beef production in the coming decades. must be accompanied with a lower carbon Cows and bulls from three indigenous footprint. The two most important principles breeds (Afrikaner, Bonsmara and Nguni) regarding crossbreeding of beef cattle are and bulls from two European breeds (Angus that adapted animals can be used in ‘spatial’ and Simmentaler) are used in the and ‘rotation-in-time’ systems. However, experiment. The reason behind this is that ‘terminal’ systems allow for bulls that are production-efficiency can be increased with widely removed from the cows on the cattle a crossbreeding system in which there are genealogical family tree in order to maximize lower feed intake and maintenance complementarities. Delegates were requirements by smaller cows. The benefit provided with the opportunity to view the first not only lies in increased growth rates per eight genotypes of crossbred weaner calves se, but also in the extent to which slaughter of the new crossbreeding project. or feedlot animals gain weight in relation to their dams. The current beef cattle research projects of the department are highly regarded by the The event was attended by 106 farmers, scientific fraternity and all efforts will be farmer support officials, animal scientists made to ensure continuation of the and other stakeholders. The main speaker, research. The implementation of the Beef Prof. M. Scholtz from the ARC, delivered a Cattle Production and Development Strategy presentation on the effects of global should continue as a concerted effort to warming on beef production and also support the industry.

Goat Research characteristics that allow them to cope with The conservation of the Tankwa feral goat these environmental constraints and this will population ties in with the international drive become more important as the effects of of, amongst others, the Food & Agriculture climate change become more pronounced. Organisation (FAO) of the United Nations, to ensure the conservation of farm animal The establishment of a viable population of genetic resources. The current genetic the Tankwa Feral goats at Carnarvon diversity amongst livestock populations of Research Station was a huge success and the world are the combined effect of 1000’s numbers of the original 80 captured goats of years of natural selection, controlled has grown to more than 400. Due to limited breeding and animal husbandry. It is space available the Department was forced estimated that of the 7,616 livestock breeds to slaughter surplus bucks and three groups in the world at least 20% can be classified of goats has been placed at other locations. as at risk and 62 breeds have become This is an important step in the conservation extinct over the past six years. Livestock of the goats as it will ensure that the risk of breeds that have adapted to extensive and extinction is mitigated to a certain extent. harsh production environments possess

89 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

The Tankwa goat population has been identified as a unique genetic resource with The natural resource monitoring continued, genetic diversity comparable to the values 13 sites were evaluated for specie for other breeds. All phenotypic information composition and veld condition. No clear is collected and will be analyzed for breed vegetation shifts were detected and the veld registration purposes. Biomaterials that condition scores have shown a small include blood (serum and EDTA samples) increase. and hair are collected and stored in the National Zoological Gardens (NZG) biobank. The improved reproductive efficiency study Semen samples were collected and will be used for a master’s degree and is in evaluated for a number of parameters its early phases of implementation. The (volume, motility, concentration, main activities will take place during the next morphology, vitality and acrosomal status). financial year and will include semen Good quality semen is frozen and 950 collection, semen freezing and artificial straws have been banked in the NZG insemination. biobank.

Animal health technicians working Staff herding the goats with the Tankwa goats

Support to a pilot experimental small also recognizes the fishery research scale fisheries project at Van der Kloof undertaken on the dam in the 1980’s that In the Rhenosterberg Local Municipality, supports the potential to develop a fishery DALRRD has identified Vanderkloof Dam as on the dam. This was substantiated by a a site, in addition to the aquaculture trial, to biological survey done by Rhodes University develop a small scale fishery. Expanding in April 2013. Based on this report the agriculture has limited scope in the Department decided to appoint Rhodes Municipal area; therefore, the potential of University to implement the development of developing a small-scale fishery on the dam a small scale fishery on Vanderkloof dam. could be a real opportunity to benefit the The governance phase of the project started communities of Keurtjieskloof (the in the 2014/15 financial year and during “township” in Vanderkloof) and Petrusville. consultation with stakeholders it became These communities are impoverished and apparent that the inception phase should be marginalized. an experimental fishery.

As a precautionary approach, the DALRRD A team of specialists, from both Government will initiate an experimental fishery over a 2 - and tertiary institutions, was identified during 3 year period. If the outcomes of the a stakeholder meeting to develop a Fishery experimental fishery are favourable, the Management Plan (FMP) to guide the fishery will be stepped up to a small-scale, experimental fishery. The main target community-based fishery. The Department species of the experimental fishery will be

90 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape smallmouth yellow fish, catfish and carp. communities. Members of the technical While there will be some by-catch of committee have looked into the most largemouth yellow fish in the gill nets, it is suitable site as well as the necessary envisaged that these numbers will be low. studies needed to be conducted to establish One of the purposes of the experimental this small shop. fishery (and the Fishery Management Plan) will be to develop a process in which all The Kraal Fishery catches are recorded. It would then need to Below the dam wall there is an existing be determined as to what fishing strategies artisanal fishery on the river, using an would need to be instituted to keep catches indigenous method to fish – using stone of largemouth yellow fish (the item of kraals. The fishers depend on this fish for contention raised by the recreational fishers) their livelihoods. However, as Provincial to a minimum. ordinances do not recognize this indigenous method of fishing as “legal” and as such the After many challenging months the FMP is fishers have for many years been exposed in its final stages and Rhodes University has to harassment by various law enforcement been issued with a request by DALRRD to agencies. do a letter of intent for the experimental small scale fishery to the Department of Recently there has been an instance where Water Affairs and Sanitation, Department of a private individual allegedly destroyed two Environmental Affairs (DEA) and the kraals. It appears that the fishers are Provincial Department of Environment and continuously harassed, the catch removed Nature Conservation. and even being issued with fines. DALRRD recognizes the legitimacy of these fishers to The proposed experimental fishery and the fish and earn a livelihood, and as such potential small scale fishery would have interventions will be made to the relevant tangible positive impact on the communities Government Departments to formalize and of Keurtjieskloof and Petrusville. For legalize the kraal fishery and to also include starters, a large amount of fish will be this activity within the tourism sector. coming into the community; this will create jobs and contribute to the general well-being The DALRRD has also made a request to of the community and to make them feel that the Department of Economic Development they too have access to state resources. and Tourism to conduct a study on the economic impact of the recreational fishery It’s important to note, that though this is an in Vanderkloof and who the beneficiaries experimental fishery, from the onset the are. The recreational fisher sector, appears local community will be fishing. Their to be the major sector opposed to the catches will inform the viability of the fishery. development of Vanderkloof dam which can Currently the province imports fish from the contribute to the economic development of Western Cape Province (tinned pilchards) the area. A kraal fishery management plan which is provided to school children as part has been drafted and is close to finalization. of their feeding scheme. The project feels Applications for the required authorizations that the fishers will be able to substitute the and permits have been made to the relevant fish caught from the dam with this imported authorities. tinned fish. As part of the project, a small fish shop will be opened to retail the fish directly to the community. This fish shop will also create jobs and economic opportunities for the local

91 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Left: The photo shows the stone kraal underwater when the

turbines have been opened. Fish enter to feed, once the water level drops they are

caught and harvested. The smaller and unwanted fish are returned to the river

Coastal Audit power supply, favourable topography and The development of the coastal economy is existing dam for storage and water heating receiving a lot of attention under Operation and Twee Pad intake with excellent water Phakisa and the department has given the intake, but 40 km within mining area. It was Mariculture industry along the west coast concluded that: renewed attention. This included the establishment of a working group and active  DALRRD should ensure continued participation in the NC Provincial Coastal participation in the NC-PCC and the Committee (PCC). During the fourth quarter coastal audit process the department participated in the annual  Mariculture has the potential to coastal audit and joined the audit team for contribute substantially towards the the area stretching from Kleinzee to socio-economic development of Alexander Bay. communities in small coastal towns  Current Mariculture activities should be The current Mariculture activities along the supported west coast is very limited and consist of land  Include Mariculture specialist/s in future based (abalone & oysters), abalone audits with the sole task to identify ranching and kelp harvesting. Kelp possible development opportunities or harvesting rights are due for this should be done separately renewal/awarding and stakeholders should  Engage mining houses on collapsed ensure that they make inputs in this regard projects and possible sites for new to the issuing authority. Very little time was Mariculture development spent at operational Mariculture activities, but observations were made on a discarded Plant Production plant as well as possible sites for new The development of degradation indices development. Discussions regarding the in order to refine quantification of abandoned oyster production plant in the drought Alexkor area should be conducted between Drought events are one of the main stakeholders for possible revitalization. It limitations to the development of the was also clear that it might be necessary to agricultural sector in semi-arid areas of the include specialist/s in future audits with the world. Drought monitoring is therefore a key sole task to identify possible development performance area for the Department. The opportunities. vastness of this province necessitates the use of remote sensing for vegetation It is also recommended that an investigation monitoring as part of the drought monitoring should be conducted on possible strategy. While rangeland degradation is a development of Oubeep intake, south of function of both, climate trends and Port Nolloth which has good water intake, extremes as well as management practices,

92 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape it is important to distinguish between the Climate and Water, a time series of coarse areas affected by climate as opposed to resolution vegetation monitoring data from where the resilience of the vegetation has both SPOT and MODIS instruments been severely affected by human-induced together with multi-temporal LANDSAT degradation. Relying on Earth Observation imagery were analysed for a pre-determined Data towards Identification of degraded land area in the Nama Karoo biome. Significant in semi-arid and arid areas, poses various temporal trends and spatial anomalies of opportunities. Together with Dr Johan such trends were noticed. Malherbe from the ARC Institute for Soil,

Change in vector results between 5 March 2001 and 1 March 2014 based on LandSat imagery.

93 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Potential degrading areas as indicated by the combined Spearman Rank and Trend Change methods based on

MODIS data (red polygons) and Change analysis on the dynamics and trends Vector Analysis based on Landsat data observed in precipitation and vegetation (green areas). greenness during the study period (2015- A significant impediment for ecological 2018) will be based on a sample size of research in the southern Africa’s semi-arid around 72 weeks. Remote sensed data will rangelands is the lack of high resolution be acquired by making use of a geospatial data on vegetation conditions, as commercially available RPA system that is well as the impact from climate variability equipped with standard components and and rangeland management. Very few sensors. The camera system was mounted studies that make use of high resolution in the eBee Ag RPA and controlled with an remote sensing data have been undertaken autopilot computer program. The RPA in southern Africa rangelands. In order to delivers high-resolution aerial images taken produce such data and to be able to explore at a low altitude that can be processed using the use of the vegetation indices to detect the Post-flight terra 3D software. Camera’s the role of variable rainfall events impacting used to acquire the imagery included Red, vegetation biomass and –condition in the Green and Blue (RGB), near Infrared filters Upper Karoo, a remotely piloted aerial and Red edge. Remote sensing imagery will vehicle was used to survey a long term be used to monitor vegetation condition grazing trial at the Carnarvon Research changes within the grazing trail and Station using various sensors. reference farm study sites after climatic events. Comparing the response of Remotely Piloted Aircraft RPA) observations vegetation under different grazing pressures have proven to be a valuable resource of within the various climatic events timely data on monitoring vegetation and experienced during the study time frame. climate dynamics over large areas. Changes in the vegetation condition can be monitored This project is continuing and is being by assessing the photosynthetic activity of expanded to include the Southern Kalahari the vegetation layer. The spatial-temporal areas of the province.

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Technology transfer services The database now contains a total of 648 The purpose of this project is to create a project entities, of which 56 were funded complete agricultural database for the during the 2015/16 financial year. The Northern Cape Province, including the geo- accompanying maps depict the project of physical, biological and infrastructure the Department for the 2015/16 financial components. An important component of year, as well as for the past ten years. The this database will be to track the impact of first map shows the proportion of the the Department through its various projects number of CASP to Ilima Letsema projects on the agricultural sector of this Province. for the 2015/16 year per local municipality. Therefore, a spatial footprint of the The bigger the pie chart per local Department’s activities over time has been municipality on the map, the more projects developed. This footprint contains a were funded. The second chart depicts the database of project information dating back relationship of funds spent between CASP, to the 1999/2000 financial year to current. Ilima Letsema and other projects. Once The database typically contains information again the bigger the pie chart the more such as the name of the project, location of funds have been spent. The third graph the project, type of assistance/development, shows the project footprint of the information on the beneficiaries and financial Department over the past 10 financial years information of the project. Information from 2005/06 to 2015/16. The pie charts on captured in this database is presented in the the map represents the number of projects form of maps and graphs on maps to depict funded per local municipality over the where and how much resources were spent. mentioned period.

Relationship between the numbers of CASP and Ilima Letsema project per local municipality during 2015/16.

95 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Relationship between the funding of CASP, Ilima Letsema and other projects per local municipality during 2015/16.

Project footprint of the Department per local municipality based on number of projects for the period 2005/06 to 2015/16.

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Procurement of Remotely Piloted more detail with the use of the drone. Aerial Vehicle or Drone This allows us to do verification and ground truthing by simply flying the A fully autonomous eBee agricultural drone over affected areas. It is drone was procured during the 2015/16 therefore also a very effective research financial year. This drone is basically tool which allows us to generate data an unmanned aerial vehicle which is which can be used in predictive models. equipped with four different sensors in order to capture images from the air. The drone is also very effective for the All images is geo-referenced and 100% identification of fire scars and extent of compatible with our Geographic fires during disaster veldt fires. It also Information System. Currently the allows for the objective monitoring of Drone is equipped with near infra-red, veldt condition after the fire event, infra-red (red edge), red-green-blue and which allows us to determine when multispectral sensors. These sensors assistance to affected areas will no allows us to capture high resolution longer be required. detailed images of the normal state of conditions (normal photo), vegetation During disaster events such as floods, conditions (NIR), crop field conditions the drone can be launched to map out (Red Edge) and even disease surveys affected areas and provide imagery of on crops (Multi-spec). for instance structural damage where it would not be possible to reach by land. The department is responsible for the collection of data as early warning The main purpose of the drone is system with regards to disasters such therefore to: as drought. For this we use satellite imagery and produce a monthly bulletin  To provide us with high quality which is circulated to a number of role- and geo-referenced remote players from within the Department as sensing data. well as to co-workers on reference  Verify course scale satellite data farms. Satellite data, together with data in order to do ground truthing of from reference farms gives us the vegetation condition ability to build powerful models in order  Do biomass calculations to determine vegetation condition. In  Monitoring of rangelands and order to verify this data and to increase crops accuracy, the same images as from the  Disaster management (fire satellite can now be generated in much scars, floods etc.)

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

The following figures depict typical images that can be created using the drone in different situations.

Depicts the vegetation activity of lucerne trials where different cultivars are being compared.

98 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Depicts the vegetation activity of long term grazing capacity trials at Carnarvon Research Station.

These images would historically only have been possible using aircraft. Even so, the picture would not have been 100% geo-referenced. From this it should be clear that the drone presents us with aerial imagery which was previously unavailable to researchers due to the high cost thereof.

Inputs into drought monitoring and with the aim of assisting in disaster management The department has received 918 applications from commercial farmers which have been captured on a spatial data set. All land reform farms have also been captured in order to determine which of these are situated in drought affected areas. These are shown below where the land portions marked in green represents the commercial farm portions while the ones marked in blue represents land reform farms.

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The commercial farmer applications cover an area of 5 371 371.8ha with a carrying capacity of 209 839 Large Stock Units (LSU’s). The land reform portions that falls within the drought areas covers an area of 932 665.4ha with an official carrying capacity of 57 362 LSU’s.

It is however quite apparent that this does not give a true reflection of the overall impact of the drought on the economy of the Northern Cape Province, since many land portions which we believe are severely affected by drought, have not been included in the formal applications. We calculated the areas that have been drought affected for at least the previous 12 months to cover 15 277 267ha with a carrying capacity of 814 226LSU’s. The impact is therefor much higher than that determined from the formal applications.

The department however believe that the following map gives a true reflection of areas that were experiencing not only drought, but disaster drought. These areas have received significantly lower than average precipitation for at least 24 months and on these farms, stock numbers have been significantly reduced.

100

Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

The areas that have received less than average rainfall for at least 24 months have been calculated as 6 341 742ha with a stocking rate of 334 908 LSU’s. This represent a more accurate reflection on the current impact of the drought in the Province.

Windmill Maintenance Training The Infrastructure Support Services of the department has years of experience in its personnel and this is used amongst others for the training of small scale farmers. As part of farmer development in 2015/16 a number of windmill maintenance training courses were presented to farming communities in Namakwa (Pofadder, Pella, Komaggas, Steinkopf and Leliefontein). These events were attended by 56 farmers of which 27 were women. The training covered both theory and practical aspects of windmill maintenance which included the purpose of the training, maintenance schedules, registers, functionality, windmill parts, tools needed, safety measures, problem solving, construction and practical application. The training was highly successful and farmers were equipped with necessary skills to ensure constant stock water supply to their livestock.

101 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Top Left: Members of the group who received training in windmill maintenance

Top right: members grappling with the theory.

receiving Left: A member of the team skills training

102 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

103 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

9. Programme 6: Agricultural Economics Services

Purpose: The purpose of the Sub-programme is to provide Agric-Business support through entrepreneurial development, marketing services, value adding, production and resource economics.

Sub- Programmes:  Agri-business Support and Development; and  Macroeconomics Support.

Strategic Objectives:  To provide agribusinesses development support services to 130 agribusinesses(Farmers/Cooperatives/ enterprise)  To provide macroeconomic and statistical information on the performance of the agricultural sector in order to inform planning and decision making

Strategic objectives, performance indicators planned targets and actual outputs

Strategic Objectives Programme: 6 Agricultural Economics Services

Strategic objective Actual Planned Target Actual Deviation from planned Comment on deviations Achievement 2015/2016 Achievement target to Actual 2014/2015 2015/2016 Achievement for 2015/12016 To provide - 5756 52 704 The total numbers of agribusinesses targets of the sub- development support programme were services to 130 aggregated instead of agribusinesses(Farm taking the 130 five year ers/Cooperatives/ Strategic Plan target as enterprise) it is in the Strategic Objective. This has been corrected in the 2016/17 APP. To provide - 1 1 0 macroeconomic and statistical information on the performance of the agricultural sector in order to inform planning and decision making

5The total numbers of targets of the sub-programme were aggregated instead of taking the 130 five year Strategic Plan target as it is in the Strategic Objective. This has been corrected in the 2016/17 APP.

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Performance indicators: Sub-programme: 6.1 Agri-business Support and Development

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016

Number of agri- 5 8 5 -3 Not all negotiations with buyers 6.1.1 Businesses resulted in transactions being supported with made. agricultural economic services to access markets Number of clients 458 677 878 201 Demand for advice was more 6.1.2 who have benefitted than anticipated and more from agricultural people attended information economic advice sharing sessions and workshops held. provided Number of 25 12 11 -1 More economic studies were 6.1.3 agricultural conducted (i.e. commodity economic studies prices), but only 11 feasibility conducted studies/ business plans Number of 9 20 18 -2 The planned number of 6.1.4 information sessions sessions in quarters 3 and 4 on marketing could not be met due to non- attendance of invited farmers. Number of new 1 1 0 -1 No facilitation of new agro- 6.1.5 agro-processing processing facilities was done and value adding as there were no new agro- industries facilitated processing projects undertaken. Number of new jobs 69 60 0 -60 As there were no new agro- 6.1.6 created through processing or value adding agro-processing projects that were undertaken, and value adding there were no new jobs created. industries Number of MAFISA 8 10 5 -5 Fewer applications were 6.1.7 screening committee received resulting in fewer meetings held to screening committee meetings process applications being held this could be attributable to the drought conditions that prevailed this past year. Number of export 3 2 5 3 The number of projects and 6.1.8 opportunities farmers that were available to created attend trade exhibitions was higher than planned. Number of new 10 5 8 3 More interest and demand was 6.1.9 cooperatives shown in establishing established cooperatives by smallholder farmers.

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Sub-programme: 6.1 Agri-business Support and Development

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016

Number of 5 12 12 0 6.1.10 workshops conducted to promote affiliation to commodity organisations by smallholder farmers Number of small 23 26 0 -26 Drought in the province has 6.1.11 holder farmers resulted in less surplus supported to marketable produce from access markets identified smallholder farmers.

Sub-programme: 6.2 Macroeconomic Support

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of 5 8 10 2 More requests received and 6.2.1 agricultural information/reports were economic provided for those information responses provided Number of 12 12 12 0 6.2.2 economic reports compiled Number of new 5 5 5 0 6.2.3 enterprise budgets (combuds) developed Enterprise budgets 1 1 1 0 6.2.4 (combuds) annual prices updated and report generated Functional 1 1 1 0 6.2.5 statistical economic database available

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Strategy to overcome areas of under performance

Changes to planned targets None

Linking performance with budgets Sub programme expenditure

2015/2016 2014/2015 Final Actual (Over)/Under Final Actual (Over)/Under Sub- Programme Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Agric-Business Support and Development 3 544 2 861 683 3 421 3 417 4 Macroeconomics Support 5 575 5 277 298 6 318 6 318 0 Total 9 119 8 138 981 9 739 9 735 4

9.1 Service Delivery Highlights Tomatoes and green pepper farmer outside Kimberley was linked to Pick n Pay in Agri-Businesses Supported With Galeshewe where a relationship was Agricultural Economic Services to established. The farmer managed to sell 30 Access Markets boxes of tomatoes for R60/box and 20

boxes of green pepper for R35/box. The Reikemetse Cooperative in Schmidtdrift market indicated that they will continue to was linked and CIARAROX a vegetable take produce from the farmer as they are producing project in Platfontein on the satisfied with the quality of her produce Barkley West road were both assisted and linked with Pick n Pay in Galeshewe, Kimberley. Reikemetse Cooperative Agricultural Potential Reports (APR’S) The department concluded 10 feasibility managed to supply the store with 153 studies as part of the agricultural potential bundles of spinach during December 2015 reports (APR’s) for the Department of Rural and CIARAROX supplied 128 bundles of Development and Land Reform. spinach.

Spinach harvested for the market

107 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Information Sessions on Marketing

18 information sharing sessions were held in Frances Baard, Namakwa, Pixley ka Seme, John Taolo Gaetsewe and ZF Mgcawu during the financial year. The presentations made focused on the following:  Agricultural cooperatives and registration process;  Agricultural marketing;  Animal health;  Marketing;  Cooperatives;  business planning and  commodity associations.

New Cooperatives Established Cooperatives Registered 2015/16

NAME DISTRICT COMMODITY PRODUCED

1 Atolang Agricultural Cooperative Frances Baard Mix farming (Livestock, crops & Vegetables) 2 Balemi Agric cooperative Frances Baard Vegetables & Crops 3 Chicken Projects & Trading agric coop Frances Baard Poultry 4 Cholohelo Ntle Agric cooperative Frances Baard Livestock (SSU) 5 Kutlwano Agric Cooperative Frances Baard Livestock (LSU&SSU) 6 Tshepanang Poultry Agric cooperative Frances Baard Poultry 7 Zakhele Agric Cooperative Frances Baard Poultry 8 Umsobumvu Cooperative Pixley Ka Seme Livestock 9 Vertrou Ons Cooperative Pixley Ka Seme Fresh produce 10 Popagano Garden Cooperative ZF Mcgawu Vegetables 11 Rethusitswe Ke Kgomo ZF Mcgawu Livestock 12 Bomaja Ka Thata Cooperative ZF Mcgawu Livestock

Financial Record Keeping Training Training on financial record keeping is provided to districts through the Farmer Training and Capacity Building programme. Training was provided to 268 farmers during 17 training events held in the Districts of Frances Baard (3 events), Pixley Ka Seme (2 events), JTG (4 events), ZF Mgcawu (2 events) and Namakwa (6 events). From the farmers attending, 91 (34%) were youth and 119 (44%) were female.

108 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

AGRIBEE Sector Code Public Consultation

Consultation workshops on AGRIBEE

The National Department of Agriculture, Forestry and Fisheries called for Public Farmers were further advised to organise consultation workshops which were held in themselves more and mobilise their Springbok, Kuruman, Upington and De Aar, members to benefit from the AgriBEE Sector where farmers, stakeholders from the Code. Business models will be developed at districts, and Extension officers attended. DAFF to make implementation smoother and to ease understand of the technical The small holder farmers expressed their concepts, contained in the Draft Amended gratitude towards DAFF for inviting them to AgriBEE Sector Codes. attend the Workshop on the Draft Amended AgriBEE Sector Code. It is critical that Namakwa Irrigation Development Plan people from rural areas get the opportunity The Department drafted the development to provide inputs before the Amended sector plan and completed the feasibility on all code for the Agricultural Sector is finalized projects that form part of the plan. for implementation. Economic Reports Compiled Presentation on AgriBEE by Directorate The following reports were compiled and BBBEE Charters Compliance covered the submitted: following topics:  Reports on financial figures from one of  Major amendments in the BBBEE the Fetsa Tlala projects, Amendment Act, which informs the  Economic outlook on agricultural amendments to the AgriBEE Sector commodity prices, feasibility study on Code; Warrenton SuperChicken feed mill,  Key principles and new changes in BEE performance of small holder farmers in Elements and Scorecard, as per the the Province and analysis on CPI, PPI, Amended Codes of Good Practice; GDP,  Functions of the AgriBEE Charter  Employment of the previous Quarter Council and its Provincial AgriBEE with special reference to the impact on Representatives Forum; the Northern Cape, the agricultural  Process to submit public comments on sector and food prices, the Draft Amended AgriBEE Sector  A report on Socio-economic indicators Code before deadline. from 1996 to 2014 for Namakwa, Pixley ka Seme, Frances Baard, John Taolo Attendees were requested to make written Gaetsewe and ZF Mgcawu Districts submissions on the Draft Amended AgriBEE was compiled. Sector Code, as this is the only time &  Reports regarding measurement of the opportunity they will get, before the Amended agricultural sector performance in the AgriBEE Sector Code is finalised in terms of Northern Cape (Non-commercial); Section 9 (1) of the BBBEE Amendment Act. Analysis of the agricultural sector:

109 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Northern Cape (Commercial); and effort in recruiting a number of Marco-economic impact of disaster producers in its operational area. A drought on livestock production: total of 209 producers thus far have Northern Cape passed the audits and are certified with  Other aspects investigated were the a total of 417 farming units on more profitability of Karakul production vs than 1.9 million hectares of which most mutton sheep production as part of a are situated in the Northern Cape. This master plan to support the Karakul includes 42 emerging producers industry and the evaluation of an farming on more than 100 000 hectares acquisition of shareholding for farm in the Carnarvon, Loxton, Fraserburg, workers in an empowerment project. Sutherland, Williston, Brandvlei and Calvinia areas that are already Enterprise Budgets (Combud’s) marketing through the commercial The enterprise budgets for horticultural, field structures. Farmers need to be crops and livestock were updated in January certified to adhere to the principles of 2016 using the latest prices of all inputs and place of origin and sustainability. products and compiled into a bundle for reference and distribution to interested  A total of five abattoirs passed the parties. audits and are registered in the Northern Cape in the towns of Calvinia Karoo Meat of Origin Project: (Ramskop), Groblershoop, Carnarvon, The Karoo Meat project has now entered the De Aar and Williston. The GWK implementation phase with the registering of abattoirs at Groblershoop and De Aar enough producers and abattoirs to start failed to comply with the prescribed operation on a commercial level. During the procedures of registration and past few years a lot of emphasis was placed certification of their producers and was on getting the supply side registered and removed from the list in 2016. certified and to test the operations. Furthermore meat Continuous adaptations on procedures and packers/processors/butcheries that logistics are made as volumes and areas of package meat products for retail outlets operation increases. are also certified and a total of 27 are The Department has funded the project now certified. Carnarvon- and Williston since 2011/12 and the total amount spent abattoirs have really taken ownership of over four years amounts to R5.332 million the project and are actively marketing which includes R157 000 for 2015/16. their produce through this initiative and are using it as a marketing concept and Achievements for 2015/16 include the tool. The largest concentration of following: registered producers is around these  The KDF Trust acts as an implementing abattoirs. Calvinia abattoir has only agent for the initiative and a Service completed a test run and still need to Level Agreement was implemented. participate actively.  The Karoo Meat of Origin certification scheme and its rules were published in  The protection of Karoo Lamb under the Government Gazette on 1 the Agricultural Products Standards Act November 2013 which is the first made it possible to include it as a South legislation that seeks to protect the African product of Geographic products of the Karoo against Indication (GI) in the Free Trade misappropriation. DAFF is to take over Agreement with the EU and was the functions to ensure compliance included, meaning that Karoo Lamb will from all role players. be protected in the EU for  Registration and certification of misappropriation if exported to the EU. producers continues in order to ensure  Roll out of a marketing campaign and a stable and big enough supply basis. profiling of the Karoo certification mark Calvinia (Ramskop) abattoir made an was initiated and is continuously

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supported. This included the Karoo aimed at both consumers and Meat of Origin website, a Facebook producers. page and an electronic newsletter that  Printing of certification marks, labels, aims to keep all members, partners, barcodes and carcass tracking labels sponsors and interested parties up to continue as is needed. These are date with developments. This exposure essential components of the integrated was supplemented by exposure on system required and the requested national television and printed media material was printed and distributed to points were it is required.

Map Indicating Distribution of Registered Producers and –Abattoirs of Karoo Meat of Origin in the Northern Cape March 2016

111 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

112 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

10. Programme 7: Rural Development and Coordination

Purpose: The purpose of the programme is to co-ordinate the intervention programmes of all departments and institutions in rural areas to ensure that the land and agrarian reform and rural development mandate is achieved. To coordinate joint planning, identify specific areas for targeted interventions, and monitor progress with CRDP implementation plans in the province.

Sub- Programmes:  Development Planning  Social Facilitation

Strategic Objectives:  To ensure Comprehensive Rural Development;  To support development structures at CRDP Sites; and  To facilitate provision of services to people living and working on farms.

Strategic objectives, performance indicators planned targets and actual outputs

Strategic Objectives: Programme: 7 Rural Development Coordination

Strategic objective Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 To ensure - 17 13 -4 Due to unavailability of key Comprehensive stakeholders the LRDCC Rural Development meetings could not take place To support 15 10 11 1 More information sharing development sessions were conducted with structures at CRDP the aim to achieve social Sites cohesion

To facilitate provision 554 575 603 28 More advocacy sessions and of services to people training aimed at reaching more living and working on farm workers and dwellers were farms conducted.

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Performance indicators: Sub-programme: 7.1 Development Planning

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of CRDP 5 5 5 0 7.1.1 implementation plans developed Number of - 4 0 -4 This meeting could not take 7.1.2 LRRDCC meetings place due to unavailability of convened key external stakeholders. Number of CRDP 12 4 4 0 7.1.3 progress reports compiled Number of reports 4 4 4 0 7.1.4 on outcome 7

Sub-programme: 7.2 Social Facilitation

Performance Indicator Actual Planned Actual Deviation from Comment on deviations Achievement Target Achievement planned target to 2014/2015 2015/2016 2015/2016 Actual Achievement for 2015/12016 Number of 0 5 3 -2 The municipalities were not 7.2.1 structures available at the agreed dates establish to achieve social cohesion and development Number of 15 10 11 1 More information sharing 7.2.2 structures sessions were conducted with supported to the aim to achieve social achieve social cohesion cohesion and development Number of 16 25 22 -3 Farm owners refused to 7.2.3 farmworker release workers to attend advocacy Advocacy Sessions in sessions held identified farms Number of farm 554 550 581 31 More workers availed 7.2.4 workers and themselves for assistance in dwellers assisted the targeted farms to access government services Number of 4 4 3 -1 Relevant stakeholder did not 7.2.5 Provincial delivery attend the planned meetings forum meetings held Number of farm - 100 105 5 Negotiated with the service 7.2.6 workers and provider to train more farm dwellers workers benefitting from training and development

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Sub-programme: 7.2 Social Facilitation

Strategy to overcome areas of under performance

Changes to the planned targets

None

Linking performance with budgets

Sub programme expenditure

2015/2016 2014/2015

Final Actual (Over)/Under Final Actual (Over)/Under Sub- Programme Name Appropriatio Appropriatio Expenditure Expenditure Expenditure Expenditure n n R’000 R’000 R’000 R’000 R’000 R’000 Development Planning 12 916 12 900 16 12 278 12 277 1 Total 12 916 12 900 16 12 278 12 277 1

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10.1 Service Delivery Highlights violence Against Women and Children. The campaign which was conducted in CRDP Implementation Plans Developed Kakamas, ZF Mgcawu District culminating in The following CRDP implementation plans the testing of 175 farm workers in three have been developed: Kai Garib Local farms namely; Barekesanang Trust, DDD Municipality (ward 8), Joe Morolong (ward Farm and Chargo Trust. 10), Kammiesberg (ward 1, 2 & 4), Phokwane and Umsobomvu Local Farm Workers and Dwellers Benefiting Municipality. from Training and Development Initiatives in the Province Farmworker Advocacy Sessions Held Farm workers were provided with training on Advocacy Sessions were held in the the following areas: following Districts:  Grazing  Frances Baard  Welding  ZF Mgcawu  First Aid  John Taolo Gaetsewe  Pixley ka Seme Workers who attended these training sessions were awarded certificates of The Department worked in collaboration with attendance other stakeholders like Human Rights Commission, Labour Unions, SASSA, and Youth Skills Development the Department of Labour to educate The Department has entered into workers about their rights, Farm workers’ partnership with the Construction Education 2016 Wage Sectorial Determination Act and Training Authority to provide skills to 1254 youth in the Province. The training will Farm Workers and Dwellers Assisted to focus on Community House Building, Access Government Services Plumbing, Bricklaying, Carpentry and The department together with Cosatu, SAPS Internship. The first phase of the program and the Department of Rural Development started in August 2015 accommodating 102 and Land Reform successfully intervened to learners on a Learnership program. stop an eviction of a farm dweller in Richmond. At the end of the training program each learner completing the programme will The Department together with the NGO receive a certificate that will provide the called Voluntary Testing and Counselling learners the opportunity of seeking provided farm workers with mobile health employment in the construction industry. services where workers were tested for HIV/ Equally depending on the learner’s AIDS, Tuberculosis, High Blood Pressure capability and initiative, some will have the and Sugar Diabetes. Tested workers were opportunity of organising themselves into Counselled by the team of professionals and companies or cooperatives which will bid for those needing Medical attention were given work both in private and public sector and referral letters for more assistance e.g. become employers contributing to the socio Medication. The areas attended to were the economic development of the Province. Chargo Farms, Tripple D and Farms.

The Department of Agriculture, Land Reform and Rural Development focused on one of the Social Determinants-Health, of the resolutions of the farmworkers and dwellers summit. The emphasis of the program was on Voluntary HIV Testing and also highlighted the 16 Days of Activism for no Learners at an induction

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Expanded Public Works Program (EPWP) Forty (40) people were employed on a six months contract in Maphiniki Kuruman to control Acacia Mallifera.

Furthermore forty (40) people were employed on a six months contract in Richmond for Donga rehabilitation.

TRANSFER PAYMENTS

The table below reflects the transfer payments made to public entities for the period 1 April 2014 to 31 March 2016 Amount transferred to Name of Public Entity Services rendered by the public entity the public entity (R’000)  Management of the production farm  Marketing of animals and animal products Kalahari Kid Corporation 3,053  Marketing of animals from co-operatives and procurement of goods from emerging farmers  Market and economic research National Agricultural Marketing  Statutory measures 27,049 Council  Agricultural trust  Agri-business development

Transfer payments to all organisations other than public entities The table below reflects the transfer payments made for the period 1 April 2015 to 31 March 2016. There are no specific monthly monitoring measures in place since the grants are ad hoc with the exception of the transfers to Karoo Development Foundation (KDF). In respect of the transfers to KDF, there is a service level agreement in place with specific deliverables. These are monitored and reviewed at the level of the cost centre before the payments are made to KDF.

The table below reflects the transfer payments made for the period 1 April 2015 to 31 March 2016

Name of transferee Type of organisation Purpose for which the funds were used Amount transferred (R’000) Niewoudtville Rooibos Private Enterprise Capital investment related to extraction plant R10.415 Pty Ltd Karoo Development Non-profit R0.157  Marketing of the “Karoo Meat of Origin” brand Foundation Organisation

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CONDITIONAL GRANTS

Conditional grants and earmarked funds received 2015/2016 2014/2015 Final Actual (Over)/Under Final Actual (Over)/Under Conditional Grant Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Comprehensive Agricultural Support 135 768 134 127 1 641 380 339 380 076 263 Programme Grant Ilima / Letsema 69 460 69 288 172 74 762 74 760 2 Projects Grant LandCare Programme Grant: Poverty Relief 7 302 7 256 46 7 462 7 451 11 and Infrastructure Development Expanded Public Works Programme 2 000 1 999 1 2 102 2 102 - Integrated Grant Provincial Disaster - - - 50 000 43 212 6 788 Grant Total 214 530 212 670 1 860 514 665 507 601 7 064

The total budget allocation for the 2015/16 financial year amounted to R214.530 million of which R212.670 million or 99 percent was spent. The full amount that was appropriated to the department was received and none of the funds were withheld by any of the transferring departments. The unspent portions of the CASP and Ilima/Letsema were requested for rollover since these funds were committed to identifiable projects. The specific performance of each grant is discussed in detail under the relevant programme that administers and implements the grants. The tables below details the conditional grants and ear marked funds received during for the period 1 April 2015 to 31 March 2016. Comprehensive Agricultural Support Programme Grant: Department who transferred the grant National Department of Agriculture, Forestry and Fisheries

Purpose of the grant To provide effective agricultural support services, promote and facilitate agricultural development by targeting beneficiaries of land restitution and redistribution, and other previously disadvantaged producers who have acquired land through private means and are engaged in value-adding enterprises domestically, or involved in exports; to address damage to infrastructure caused by floods.

Expected outputs of the grant  Number of subsistence, smallholder and commercial farmers supported through CASP  Number of youth and women farmers supported through CASP  Number of on-off farm infrastructure provided  Number of beneficiaries of CASP trained on farming methods  Number of beneficiaries of CASP with markets identified  Number of extension officers upgrading qualifications in various institutions  Successful partnerships created to support farmers

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Actual outputs achieved  Number of farmers supported through CASP: o Subsistence: 317 o Smallholder: 720 o Commercial: 94  On and off-farm infrastructure provided: o 300 kilometres of fence o 22 stock handling facilities o 16 stock water systems o 30 boreholes drilled and equipped  Mechanization provided: 6  Vehicles: 1 Light Delivery Vehicle  Livestock inputs: 1000 ewes; 50 rams  Beneficiaries of CASP with markets identified: 814  Number of jobs created:  Successful partnerships created to support farmers: o Nguni Cattle Initiative with University of the Free State & Industrial Development Corporation (IDC) o Goats initiative: LAW abattoir & IDC o Vineyard Development Scheme: National Agricultural Marketing Council, OWK, Distell, Winetech, Dried Fruit Technical Committee; S.A.D., VinPro o Ostrich development: South African Ostrich Business Amount per amended DORA (R’000) R135.768 millionChamber and Klein Karoo Cooperative

Amount received (R’000) R135.768 million

Reasons if amount as per DORA was not received N/A

Amount spent by the department (R’000) R134.127 million

Reasons for the funds unspent by the entity R1.641 million unspent is as a result of delays in project implementation Reasons for deviations on performance

Measures taken to improve performance

Monitoring mechanism by the receiving department

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Ilima/Letsema Projects Grant

National Department of Agriculture, Forestry and Fisheries Department who transferred the grant

To assist vulnerable South African farming communities to achieve Purpose of the grant an increase in agricultural production and invest in infrastructure that unlocks agricultural production.

 Number of hectares (ha) planted  Number of tonnes produced within agricultural development corridors, e.g. maize  Number of beneficiaries/entrepreneurs supported by the grant Expected outputs of the grant  Number of newly established infrastructure plants through the grant  Number of hectares (ha) of rehabilitated and expanded irrigation schemes

 Newly established infrastructure plants through the grant: o 2 overnight dams o 6 centre pivots o 101 ha of trellising infrastructure o 2 Hydroponics structures o 8 solar pump o 1 windmill  Hectares (ha) of irrigation schemes rehabilitated: Vaalharts Revitalization o 2875m of subsurface drainage was installed to service 50.5 ha of irrigation farms Actual outputs achieved o 794.88 m of communal main water outfall line was installed to service 50ha of land o Construction and installation of a 1200mm diameter concrete sleeve with Pipe Jacking to accommodate a communal water outfall pipeline, that would service 362ha lands  Expanded irrigation schemes: o Onseepkans: 99.4 ha o Pella: 15ha o Coboop: 10ha

Amount per amended DORA (R’000) R69.460 million

Amount received (R’000) R69.460 million

Reasons if amount as per DORA was not received N/A

Amount spent by the department (R’000) R69.288 million

R0.172 million was requested for rollover for multi-year projects Reasons for the funds unspent by the entity

Reasons for deviations on performance

Measures taken to improve performance

Monitoring mechanism by the receiving department

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Land Care Programme Grant: Poverty Relief and Infrastructure Development

Department who transferred the grant National Department of Agriculture, Forestry and Fisheries

To promote sustainable use and management of natural resources by engaging in community based initiatives that support the pillars Purpose of the grant of sustainability (social, economic and environmental) leading to greater productivity, food security, job creation and better well- being for all.

 7703ha Number of hectares protected/rehabilitated to improve agricultural production  174 Junior LandCare participants involved in the programme  100 Number of beneficiaries adopting/practising sustainable Expected outputs of the grant production  2 capacity building initiatives conducted by Land Carers  2 awareness campaigns conducted and Land Carers attended  244 green jobs created

 7703ha Number of hectares protected/rehabilitated to improve agricultural production  174 Junior LandCare participants involved in the programme  100 Number of beneficiaries adopting/practising sustainable production Actual outputs achieved  2 capacity building initiatives conducted by Land Carers  2 awareness campaigns conducted and Land Carers attended  244 green jobs created

Amount per amended DORA (R’000) R7.302 million

Amount received (R’000) R7.302 million

Reasons if amount as per DORA was not received N/A

Amount spent by the department (R’000) R7.256 million

R0.046 million is to be surrendered as all projects fully implemented Reasons for the funds unspent by the entity

Reasons for deviations on performance

Measures taken to improve performance

Monitoring mechanism by the receiving department

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Expanded Public Works Programme Integrated Grant for Provinces

Department who transferred the grant National Public Works

To incentivise provincial departments to expand work creation efforts through the use of labour intensive delivery methods in the following identified focus areas, in compliance with the Expanded Public Works Programme guidelines: road maintenance and the Purpose of the grant maintenance of buildings, low traffic volume roads and rural roads, other economic and social infrastructure, tourism and cultural industries, sustainable land based livelihoods and waste management.

 Number of people employed and receiving income through the EPWP Expected outputs of the grant  Increased average duration of the work opportunities created

Actual outputs achieved

Amount per amended DORA R2.000 million

Amount received (R’000) R2.000 million

Reasons if amount as per DORA was not received N/A

R0.001 million is to be surrendered as all projects fully implemented Amount spent by the department (R’000)

Reasons for the funds unspent by the entity

Reasons for deviations on performance

Measures taken to improve performance

 Conduct internal monitoring visits Monitoring mechanism by the receiving department  Monthly reporting as well final report

Donor Funds

Donor Funds Received None

CAPITAL INVESTMENT

Capital investment, maintenance and asset management plan The department did not undertake any major maintenance for the year under review. There was however some minor maintenance that was done at some of the research stations. As was previously reported, there exists a significant backlog of infrastructure maintenance on the department’s research stations. This is proving a challenge to address since no dedicated funding has been made available. Management has committed itself to find the necessary resources within the current budget allocation. As per the table below though, expenditure incurred on infrastructure relates to conditional grant spending and earmarked funds to for flood divergent walls, that are not considered to be departmental infrastructure.

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2015/2016 2014/2015 Final Actual (Over)/Under Final Actual (Over)/Under Infrastructure projects Appropriatio Expenditur Appropriatio Expenditur Expenditure Expenditure n e n e R’000 R’000 R’000 R’000 R’000 R’000 New and replacement assets 78 474 49 915 28 559 71 259 71 259 - Existing infrastructure assets 102 812 64 201 38 611 263 249 263 249 - -Upgrades and additions 950 57 524 -56 574 259 599 259 599 - -Rehabilitation,renovations and 98 862 2 709 96 153 431 431 - refurbishments -Maintenance and repairs 3 000 3 968 -968 3219 3 219 - Infrastructure transfer ------Current - - - - -Capital ------Total 181 286 114 116 67 170 334 508 334 508 -

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obligated to do financial disclosures to 1. INTRODUCTION DPSA through e-disclosure, as a The Department remains committed to measure of minimising conflict of ensure good corporate governance in interest. The Supply Chain the interest of the general public and all Management (SCM) procedures also relevant stakeholders, providing the ensure that conflict of interest is tested necessary comfort that public finances and evaluated before awards are made and resources are utilized effectively, on tenders. efficiently and economically. The corporate governance structures within Any official that has business interest the department include: Departmental outside of the department must obtain Executive Committee (DEC); the written approval from the Accounting Service Delivery Forum (SDF); the Risk Officer annually. The Accounting Officer Management Committee (RMC); and assesses whether there is any conflict the Audit Committee. of interest before approval is granted.

2. RISK MANAGEMENT 5. CODE OF CONDUCT Risk management policy and strategy The department undertook information were reviewed by the RMC and sessions throughout the province to recommended for approval by the capacitate new and current employees HOD. The risk assessment was on the Code of Conduct for the Public conducted during the year under review Service.This explanatory manual, on all programmes. The RMC met together with the Disciplinary Code and thrice during the year, however the 4th Procedure are intended to serve as quarter meeting was deferred to early internal communication tools to reduce April 2016 as a quorum could not be both misconduct and grievances cases. formed. The RMC advises The Code outlines categories of management on the system of risk acceptable conduct and helps management and assisted employees and supervisors who are management on the mitigation of high charged with enforcing discipline. It profile risks. further conveys consequences for poor decisions. We had a total of 500 The RMC compromises of both internal employees who attended the session and external members of which Senior which constitutes more than 80% and Managers constitute the majority. all these employees signed attendance registers indicating their attendance 3. FRAUD AND CORRUPTION and knowledge of the said Code. The Department has an approved fraud For the year under review there was a prevention plan and it was still under decrease of misconduct, grievances review during at financial year end. The and dispute cases referred to the Department also has an Anti-Fraud and Labour Relations Unit and these were Whistle blower policy that has been resolved within the stipulated communicated to employees in the timeframe. We view these actions as an Department. indication that employees and supervisors are more empowered to The Department also responded on exercise their legal duties as outlined in historic cases to the Public Service the relevant prescripts. Over and above Commission during the year under the Code, a departmental Employee review. Manual has been developed specifically for new employees to understand from 4. MINIMISING CONFLICT OF the onset what the vision, mission and INTEREST culture of the department is and also on As part of the functions of the how different programmes within the Department, all senior managers are department serve the public.

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6. HEALTH SAFETY AND During the 2015/16 performance cycle, ENVIRONMENTAL ISSUES three (3) cases were reported for The employer has general legal duties Compensation for Occupational Injuries to provide a workplace that is without and Diseases and all were minor risk to employees’ health and safety. injuries as compared to seven (7) cases The compliance is also to equip of 2014/15 which shows a decrease in employees with the skills and abilities to reported cases; that indicates that safe-guard their own welfare and safety necessary Health and Safety above the efforts of the employer. One requirements were met in accordance strategy of addressing the issue was to to the Occupational Health and Safety establish a well-structured Health and Act. Human Resources developed four Safety committee with clear-cut (4) policies namely; Health and purposes and composed of Productivity Management; Wellness knowledgeable members who are fully Management; SHERQ and HIV/AIDS aware of their responsibilities. We and TB Management Policy with the further have an approved Health and Implementation and Monitoring Tool Safety Policy which we plan to use as a system which were approved. briefing/training guide as well as an information source for all employees.

7. PORTFOLIO COMMITTEES DATE OF MEETING MATTERS DISCUSSED

17 April 2015 Annual Performance Plan 2015/2016 presentation Budget Presentation MTEF 2015/2016 – 2017/18

12 May 2015 Budget Speech Vote 12

10 September 2015 Present 1st Quarter 2015/2016

25 November 2015 Present 2nd Quarter 2015/2016

25 November 2015 Present Annual Report 2014/2015 to Joint Sitting of Portfolio Committee & Standing Committee on Public Accounts (SCOPA)

16 March 2016 Present 3rd Quarter 2015/2016

7. SCOPA RESOLUTIONS Resolution Subject Details Response by the Resolved No. department (Yes/No) 1 Prevention of irregular The Committee resolved The Department committed to Yes expenditure that the Department should investigating 100% of all take steps to prevent 2014/2015 batches to irregular expenditure and to determine the extent of minimize risk irregular expenditure and to put controls in place to address irregular expenditure 2 Supporting The Committee resolved The Department concurred Yes documentation for audit that all documentation as and committed to ensuring required by the Auditor- submission of all General must be submitted documentation to the for audit purposes Auditor-General 3 Implementation of The Committee resolved The Department committed to Yes SCOPA resolutions and that the Accounting Officer ensuring the implementation Auditor-General should take responsibility to of AG and SCOPA recommendations ensure that SCOPA recommendatioons

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resolutions and the Auditor- General recommendations are implemented 4 Procurement of goods The Committee The Department concurs Yes and services above recommended that the R500,000 through a department ensures that it bidding process subjects its procurement above R500,000 to a bidding process

8. PRIOR MODIFICATIONS TO AUDIT REPORTS Nature of qualification, disclaimer, Financial year in Progress made in clearing / resolving the matter adverse opinion and matters of non- which it first arose compliance Qualification – assets 2014/2015 A reverification exercise has been performed to correct the deficiencies in the asset register Qualification – commitments and 2014/2015 The deficiencies have been identified and controls put accruals in place to address. Qualification – aggregation of 2014/2015 A reverification exercise has been performed to correct immaterial misstatement (Accruals, the deficiencies in the asset register biological assets, minor assets and intangible assets)

9. INTERNAL CONTROL UNIT and effectiveness of governance, risk During the year under review the management and internal control Internal Control unit focused on testing processes. The internal audit unit is the expenditure transactions for guided by an Internal Audit Charter compliance of all areas. We also had a approved by the mammoth task of identifying irregular expenditure in the department for the Committee and performs its functions 2014-15 and 2015-16 financial years. provided in the Public Finance This was the result of the unfavourable Management Act (PFMA and the audit outcomes of the prior year. The internal audit charter) unit embarked on a 100% batch population testing action of both The internal audit unit compiles a three financial years with the help of some year risk-based plan and prepares an other units in the department. annual plan after taking into consideration the risk facing the Some policy reviews were done and the department, strategic objectives the Manager of the unit is an active department’s mandate, audit issues member of the Departmental Risk and inputs by management. The audit management committee of the committee approves the Internal Audit department. There is also a strong co- Plan for implementation. The internal operation and coordination function audit review performed for the financial between the Auditor General and this year under review, were all in line with unit to ensure that audit processes run the approved annual audit plan and are as smooth as possible. detailed in the Audit Committee annual report. 10. INTERNAL AUDIT AND AUDIT COMMITTEES Audit Committee Internal Audit Throughout the year under review, the The Department’s internal audit Audit Committee operated in terms of function is performed by the Shared an approved Audit Committee Charter, Provincial Internal Audit Unit which which was the committee’s approved fulfils an independent assurance terms of reference. The Committee function. The internal audit unit follows comprised of three external members a risk-based audit approach in and two internal members. providing management and the audit committee with assurance on the The Audit Committee has, as part of its adequacy oversight responsibility on a quarterly

127 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape basis, followed up on the audit findings incorporated in the annual report of the to ensure that issues raised were department. addressed timely. Further information relating to the Audit Committee as The Audit Committee’s Report outlines required by the PFMA and the Treasury a table of information relating to the Regulations is included in the Audit committee members and attendance. Committee’s Report, which is

The table below discloses relevant information on the audit committee members: # Internal or external Qualifications Date appointed Number of Name member meetings attended 1 Mr. Zola Luxolo Chairperson - External M.Comm, CA (SA) 1/01/2015 – 5 out of 5 Fihlani member 30/11/2017 2. Mr. Kgoale Maja External member Masters in Business 1/01/2015 – 5 out of 5 Leadership (MBL) 30/11/2017 3. Mr. Mava Dada External member CA (SA) 1/01/2015 – 4 out of 5 30/11/2017 4. Ms Philia Potgieter Internal member Advanced programme in 1/01/2015 – 4 out of 5 Supply Chain 30/11/2017 Management certificate; B Administration degree 5. Mr. Darryl Internal member Masters in Business 1/01/2015 – 2 out of 5 Christians Administration (MBA) 30/11/2017

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1. REPORT OF THE AUDIT 4. EVALUATION OF FINANCIAL COMMITTEE FOR 2015/16 STATEMENTS We are pleased to present our report for the 4.1 The Audit Committee has reviewed financial year ended 31 March 2016. The the financial statements for the year Audit Committee has been functional ended 31 March 2016 on the throughout the financial year. The Audit meeting which took place on 24 May Committee acknowledges the attendance 2016. In addition the Audit and participation of the Accounting Officer Committee reviewed the draft and senior management in the Audit Annual Report of the department. Committee meetings 4.2 The Audit Committee has reviewed 2. AUDIT COMMITTEE the accounting policies applied in RESPONSIBILITY the compilation of the annual The Audit Committee reports that it has financial statements and is satisfied complied with its responsibilities arising from that the policies are consistent with section 38 (1) (a) (ii) of the Public Finance those of prior year, have been Management Act and Treasury Regulation consistently applied and are in 3.1.13. The Audit Committee also reports accordance with the National that it has adopted appropriate formal terms Treasury guidelines. of reference as its Audit Committee Charter, has regulated its affairs in compliance with 4.3 The Audit Committee has reviewed this charter and has discharged all its the department’s compliance with responsibilities as contained therein and has legal and regulatory provisions discharged all its responsibilities. during the quarterly audit committee meetings and management has 3. IN-YEAR MANAGEMENT AND been directed to implement remedial MONTHLY/QUARTERLY REPORT measures where instances of non- The Audit Committee has satisfied itself of compliance were noted. the expertise, resources and experience of the departments finance function as required 5. THE EFFECTIVENESS OF INTERNAL in the King III report on corporate CONTROL AND INTERNAL AUDIT governance. The department has and maintains the The department has been reporting monthly Internal Control unit responsible for and quarterly to the Treasury as is required management of internal controls within the by the PFMA. We had engagements with department. the Department’s management to provide The Audit Committee is satisfied as to clarity on completeness and quality of the effectiveness of internal audit function during monthly and quarterly reports during our the year and that the internal audit activity quarterly meetings and officials of the has to a large extent addressed the risks Department were able to clarify areas of pertinent to the Department. concern raised by the Audit Committee. Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the department revealed certain weaknesses, which were then raised with the Department.

5.1

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5.1 The following internal audit work was 6. AUDITOR-GENERAL SOUTH AFRICA completed during the year under We have reviewed the Department’s review: implementation plan for audit issues raised in the prior year and we are satisfied that the matters have been adequately resolved except 5.2 The following were areas of concern: for the issues relating to restatement of 5.2.1 Delays in addressing qualification areas corresponding figures, moveable assets, resulting to same negative results irregular expenditure as well as payables. during Interim Financial Statements audit The audit committee met with representatives 5.2.2 Human resources practices including from the Office of the Auditor-General South fleet and bursary management Africa during the year and discussed issues of mutual concern and ensured that there were no Management has however developed a unresolved issues. pragmatic action plan to address the above issues within a reasonable time period. The The Audit Committee concurs and accepts the Audit Committee monitored the implementation conclusions of the Auditor-General on the of the plan during the quarterly audit committee annual financial statements and is of the opinion meetings and is partially satisfied with the that the audited annual financial statements be implementation of its recommendations. accepted and read together with the report of the Auditor-General. The Internal Audit activity also maintains combined assurance framework and plan which 7. CLOSING were developed in collaboration with the The Audit Committee wishes to congratulate the departmental risk management and Auditor department for an improved audit outcome. General. The plan has been useful in ensuring that assurance is placed at all high risks by various assurance providers.

______

Z. Fihlani

Chairperson of the Audit Committee

Northern Cape Department of Agriculture, Land

Reform and Rural Development

11 August 2016

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1. INTRODUCTION

2. OVERVIEW OF HUMAN RESOURCES

Status in the Department The department’s personnel establishment is of R17 764.50 each for thirty year service. The standing at 602 officials employed, 571 are total cash bonuses amounted to R195 406.00. permanent, while 31 are appointment on a contractual basis. Our staff turnover rate for the The department complied with the signing and year under review was 4.1% and this is in capturing of Performance Agreements for 10 compliance with our MPAT requirements SMS members and these were captured on The Human Resources embarked on an PERSAL in compliance with MPAT requirement. establishment cleaned up, particularly unfunded vacancies which created an impression of a For the year under review, we had 416 bloated structure. We have abolished unfunded employees who qualified for EPMDS cycle. Of posts and we are therefore confident that no those, 132 employees received notches and ghost workers are in our department. 206 received bonuses.

Thirty eight (38) employees qualified for long service recognition in line with Resolution 1 of 3.1 Personnel related expenditure 2012 and of those, ten (10) employees received certificates for their 10 year service, fourteen The following tables summarises the final (14) received certificates and cash bonuses of audited personnel related expenditure by R 8882.00 each for their 20 year service while programme and by salary bands. In particular, it four (4) received certificates and cash bonuses provides an indication of the following:  amount spent on personnel  amount spent on salaries, overtime, homeowner’s allowances and medical aid.

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2015 to 31 March 2016 Programme Total Personnel Training Professional and Personnel Average expenditure expenditure expenditure special services expenditure as personnel cost (R’000) (R’000) (R’000) expenditure a % of total per employee (R’000) expenditure (R’000)

Administration 228 0 57.8 102 106,472 61 609 Sustainable 97,496 186 0 15.7 25 15 315 Resource Man Farmer Support & 243,345 40 993 362 0 16.8 68 Dev Veterinary Services 42,682 30 343 0 0 71.1 50 Research & Tech 43,065 30 028 0 0 69.7 50 Dev Serv Agricultural 8,138 6 004 0 0 73.7 10 Economics Serv Rural Dev 12,900 8 283 23 0 64.2 14 Total 554,098 192 575 798 519 0 34.7 318

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Table 3.1.2 Personnel costs by salary band for the period 1 April 2015 to 31 March 2016 Salary band Personnel % of total No. of employees Average personnel expenditure personnel cost cost per employee (R’000) (R’000) Lower skilled (Levels 1-2) 5 0.0 0 0 Skilled (level 3-5) 43,791 22.7 256 171 Highly skilled production (levels 6-8) 62,376 32.4 198 315 Highly skilled supervision (levels 9-12) 61,437 31.9 106 580 Senior and Top management (levels 13-16) 13,646 7.1 12 1,137 Contract (Levels 1-2) 0 - 0 0 Contract (Levels 3-5) 1,461 0.8 13 112 Contract (Levels 6-8) 3,777 2.0 10 378 Contract (Levels 9-12) 4,764 2.5 9 529 Contract (Levels 13-16) 1,076 0.6 1 1,076 Periodical Remuneration 187 0.1 8 23 Abnormal Appointment 0 - 0 0 Total 192 575 100 613 314,062

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2015 to 31 March 2016 Salaries Overtime Home Owners Medical Aid Allowance Programme Amount Salaries as Amount Overtime Amount HOA as Amount Medical aid (R’000 a % of (R’000) as a % of (R’000) a % of (R’000) as a % of personnel personnel personn personnel costs costs el costs costs Administration 46,410 73.2 0 0 1,757 2.8 2,603 4.1

Sust Res Man 12,218 60.7 0 0 320 1.6 537 2.7

Farmer Sup & Dev 29,535 65.2 0 0 1,291 2.9 1,940 4.3

Veterinary Serv 22,758 66.3 0 0 804 2.3 1,056 3.1 Res & tech Dev 20,548 65.7 750 2.4 1,383 4.4 2,256 7.2 Services Agri Eco Service 4,827 74.4 0 0 116 1.8 144 2.2

Rural Dev Coor 6,198 71.1 0 0 300 3.4 360 4.1

Total 142,494 68 750 0.4 5,971 2.8 8,896 4.2

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2015 to 31 March 2016 Salaries Overtime Home Owners Allowance Medical Aid Salary band Amount Salaries as a Amount Overtime as Amount HOA as a % Amount Medical aid (R’000 % of (R’000) a % of (R’000) of personnel (R’000) as a % of personnel personnel costs personnel costs costs costs Skilled (Levels 3-5) 28,966 65.7 496 1.1 3,108 7.1 4,423 10

Highly skilled 44,404 66.9 227 0.3 2,039 3.1 2,801 4.2 production (Levels 6-8)

Highly skilled 46,707 65.8 0 0 732 1 1,478 2.1 supervision (Levels 9-12)

Senior 11,397 72.3 0 0 94 0.6 194 1.2 management (Levels 13-16)

Contract (Levels 3- 1442 89.2 15 0.9 0 0 0 0 5)

Contract (Levels 6- 3769 97.2 6 0.2 0 0 0 0

134 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Contract (Levels 9- 4732 85.3 0 0 0 0 0 0 12)

Contract (Levels 1076 92.5 0 0 0 0 0 0 13-16)

TOTAL 142,493 68 744 0.4 5,973 2.9 8,896 4.2

3.2 Employment and Vacancies

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables:  programme  salary band  critical occupations (see definition in notes below).

Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.

Table 3.2.1 Employment and vacancies by programme as on 31 March 2016 Programme Number of posts on Number of posts Vacancy Rate Number of employees approved filled additional to the establishment establishment Administration 185 173 6.5 0 Sustainable resource manage 43 39 9.3 0 Farmer support& development 143 134 6.3 0 Veterinary services 91 86 5.5 0 Research & technological development services 135 128 5.2 0 Agricultural economics services 16 14 12.5 0 Rural development 33 31 6.1 0 Total 646 605 6.3 0

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2016 Salary band Number of posts on Number of posts Vacancy Rate Number of employees approved filled additional to the establishment establishment Skilled(3-5) 267 256 3.4 0 Highly skilled production (6-8) 219 198 9.6 0 Highly skilled supervision (9-12) 113 106 6.2 0 Senior management (13-16) 14 12 14.3 0 Contract (Levels 3-5), Permanent 13 13 0 0 Contract (Levels 6-8), Permanent 10 10 0 0 Contract (Levels 9-12), Permanent 9 9 0 0 Contract (Levels 13-16), Permanent 1 1 0 0 Total 646 605 6.3 0

135 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2016 Critical occupation Number of posts on Number of posts Vacancy Number of employees approved filled Rate additional to the establishment establishment Administrative related, Permanent 64 62 3.1 0 Agricul animal oceanography forestry & other scien, Permanent 48 46 4.2 0 Agriculture related, Permanent 110 104 5.5 0 Auxiliary and related workers, Permanent 5 4 20 0 Biochemistry pharmacol. zoology & life scie.techni, Permanent 4 4 0 0 Civil engineering technicians, Permanent 18 16 11.1 0 Cleaners in offices workshops hospitals etc., Permanent 42 40 4.8 0 Client inform clerks(switchb recept inform clerks), Permanent 3 2 33.3 0 Communication and information related, Permanent 6 6 0 0 Economists, Permanent 10 9 10 0 Engineers and related professionals, Permanent 5 4 20 0 Farm hands and labourers, Permanent 100 98 2 0 Farming forestry advisors and farm managers, Permanent 4 4 0 0 Finance and economics related, Permanent 1 1 0 0 Financial and related professionals, Permanent 5 5 0 0 Financial clerks and credit controllers, Permanent 13 11 15.4 0 Head of department/chief executive officer, Permanent 1 1 0 0 Horticulturists foresters agricul.& forestry techn, Permanent 5 3 40 0 Human resources clerks, Permanent 4 4 0 0 Human resources related, Permanent 5 5 0 0 Information technology related, Permanent 7 5 28.6 0 Legal related, Permanent 1 0 100 0 Library mail and related clerks, Permanent 23 23 0 0 Light vehicle drivers, Permanent 1 1 0 0 Logistical support personnel, Permanent 1 1 0 0 Material-recording and transport clerks, Permanent 16 13 18.8 0 Messengers porters and deliverers, Permanent 4 4 0 0 Motorised farm and forestry plant operators, Permanent 6 6 0 0 Other administrat & related clerks and organisers, Permanent 46 44 4.3 0 Other occupations, Permanent 1 1 0 0 Safety health and quality inspectors, Permanent 9 9 0 0 Secretaries & other keyboard operating clerks, Permanent 24 21 12.5 0 Security guards, Permanent 24 23 4.2 0 Senior managers, Permanent 12 10 16.7 0 Trade labourers, Permanent 6 6 0 0 Veterinarians, Permanent 12 9 25 0 TOTAL 646 605 6.3 0

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3.3 Filling of SMS Posts

The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.

Table 3.3.1 SMS post information as on 31 March 2016 SMS Level Total number of Total number of % of SMS posts Total number of % of SMS funded SMS SMS posts filled filled SMS posts vacant posts vacant posts Head of Department (Level 15) 1 1 100.0 0 0 Salary Level 14 5 5 100.0 0 0 Salary Level 13 11 5 45.5 6 54.5 Total 17 11 64.7 6 35.3

Table 3.3.2 SMS post information as on 30 September 2015 SMS Level Total number of Total number of % of SMS posts Total number of % of SMS funded SMS SMS posts filled filled SMS posts vacant posts vacant posts Head of Department (Level 15) 1 1 100.0 0 0 Salary Level 14 5 5 100.0 0 0 Salary Level 13 11 5 45.5 6 54.5 Total 17 11 64.7 6 35.3

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2015 to 31 March 2016 SMS Level Advertising Filling of Posts Number of vacancies per level Number of vacancies per level Number of vacancies per level not advertised in 6 months of filled in 6 months of becoming filled in 6 months but filled in 12 becoming vacant vacant months Director-General/ Head of Department Salary Level 16 0 0 0 Salary Level 15 0 0 0 Salary Level 14 0 0 0 Salary Level 13 0 0 0 Total 0 0 0

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3.4 Job Evaluation

The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2015 to 31 March 2016 Salary band Number of posts Number of % of posts Posts Upgraded Posts downgraded on approved Jobs evaluated by Number % of posts Number % of posts establishment Evaluated salary bands evaluated evaluated Skilled (Levels 3-5) 280 0 0 0 0 0 0 Highly skilled production (Levels 6-8) 229 0 0 0 0 0 0 Highly skilled supervision (Levels 9-12) 122 0 0 0 0 0 0 Senior Management Service Band A 8 0 0 0 0 0 0 Senior Management Service Band B 5 0 0 0 0 0 0 Senior Management Service Band C 1 0 0 0 0 0 0 Senior Management Service Band D 1 0 0 0 0 0 0 Total 646 0 0 0 0 0 0

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2015 to 31 March 2016 Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0

Employees with a disability

The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2015 to 31 March 2016 Occupation Number of employees Job evaluation level Remuneration level Reason for deviation None 0 0 0 0 None 0 0 0 0 None 0 0 0 0 None 0 0 0 0 Total number of employees whose salaries exceeded the level determined by job evaluation Percentage of total employed

138 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2015 to 31 March 2016 Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0

Employees with a disability 0 0 0 0 0

 If there were no cases where the salary levels were higher than those determined by job evaluation, keep the heading and replace the table with the following:

Total number of Employees whose salaries exceeded the grades determine by job evaluation None

3.5 Employment Changes

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below).

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2015 to 31 March 2016 Salary band Number of employees Appointments and Terminations and Turnover rate at beginning of period- transfers into the transfers out of the 1 April 2015 department department Skilled (Levels3-5) 268 1 9 3.4 Highly skilled production (Levels 6-8) 186 5 5 2.7 Highly skilled supervision (Levels 9-12) 107 0 5 4. Senior Management Service Bands A 7 0 1 14.3 Senior Management Service Bands B 4 1 0 0 Senior Management Service Bands C 1 0 0 0 Senior Management Service Bands D 1 0 0 0 Contracts 33 15 5 15.1 Total 607 22 25 4.1

Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2015 to 31 March 2016

Critical occupation Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of period- department department April 2015 Administrative related, Permanent 53 4 2 3.8 Agricul animal oceanography forestry & other scien, Permanent 44 1 0 0 Agriculture related, Permanent 96 7 4 4.2 Auxiliary and related workers, Permanent 5 0 0 0 Biochemistry pharmacol. zoology & life scie.techni, Permanent 6 0 0 0 Civil engineering technicians, Permanent 17 0 1 5.9 Cleaners in offices workshops hospitals etc., Permanent 40 0 1 2.5 Client inform clerks(switchb recept inform clerks), Permanent 2 0 0 0 Communication and information related, Permanent 7 0 0 0 Economists, Permanent 9 1 1 11.1 Engineers and related professionals, Permanent 4 0 0 0 Farm hands and labourers, Permanent 99 4 4 4 Farming forestry advisors and farm managers, Permanent 4 0 0 0

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Finance and economics related, Permanent 1 0 0 0 Financial and related professionals, Permanent 5 0 0 0 Financial clerks and credit controllers, Permanent 13 0 1 7.7 General legal administration & rel. professionals, Permanent 1 0 0 0 Horticulturists foresters agricul.& forestry techn, Permanent 3 0 0 0 Human resources clerks, Permanent 4 1 1 25 Human resources related, Permanent 5 0 0 0 Information technology related, Permanent 4 1 0 0 Library mail and related clerks, Permanent 25 0 0 0 Light vehicle drivers, Permanent 1 0 0 0 Logistical support personnel, Permanent 2 0 0 0 Material-recording and transport clerks, Permanent 14 0 1 7.1 Messengers porters and deliverers, Permanent 6 0 1 16.7 Motorised farm and forestry plant operators, Permanent 6 0 0 0 Other administrat & related clerks and organisers, Permanent 41 2 2 4.9 Other administrative policy and related officers, Permanent 2 0 0 0 Other occupations, Permanent 1 0 0 0 Safety health and quality inspectors, Permanent 9 0 0 0 Secretaries & other keyboard operating clerks, Permanent 24 0 0 0 Security guards, Permanent 24 0 1 4.2 Senior managers, Permanent 11 1 1 9.1 Trade labourers, Permanent 7 0 1 14.3 Veterinarians, Permanent 12 0 3 25 TOTAL 607 22 25 4.1

The table below identifies the major reasons why staff left the department.

Table 3.5.3 Reasons why staff left the department for the period 1 April 2015 to 31 March 2016 Termination Type Number % of Total Resignations Death 3 11.1 Resignation 12 44.4 Expiry of contract 5 18.5 Dismissal – misconduct 3 11.1 Retirement 2 7.4 Transfer to other Public Service Departments 2 7.4 Total 27 100 Total number of employees who left as a % 4.2 of total employment

140 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Table 3.5.4 Promotions by critical occupation for the period 1 April 2015 and 31 March 2016 Occupation Employees at Promotions to Salary level Progressions to Notch progression 01 April 2015 another salary promotions as a % of another notch as a % of employees level employees by within a salary by occupation occupation level Administrative related 53 2 3.8 27 50.9 Agricul animal oceanography 44 0 0 26 59.1 forestry & other scien Agriculture related 96 0 0 54 56.3 Auxiliary and related workers 5 0 0 3 60 Biochemistry pharmacol. 6 0 0 2 33.3 zoology & life scie.techni Civil engineering technicians 17 0 0 4 23.5 Cleaners in offices workshops 40 0 0 21 52.5 hospitals etc. Client inform clerks(switchb 2 0 0 1 50 recept inform clerks) Communication and information 7 0 0 3 42.9 related Economists 9 0 0 8 88.9 Engineers and related 4 0 0 0 0 professionals Farm hands and labourers 99 7 7.1 76 76.8 Farming forestry advisors and 4 0 0 0 0 farm managers Finance and economics related 1 0 0 1 100 Financial and related 5 0 0 4 80 professionals Financial clerks and credit 13 0 0 7 53.8 controllers General legal administration & 1 0 0 0 0 rel. professionals Horticulturists foresters agricul.& 3 0 0 1 33.3 forestry techn Human resources clerks 4 1 25 3 75 Human resources related 5 0 0 5 100 Information technology related 4 0 0 2 50 Library mail and related clerks 25 0 0 5 20 Light vehicle drivers 1 0 0 0 0 Logistical support personnel 2 0 0 0 0 Material-recording and transport 14 0 0 12 85.7 clerks Messengers porters and 6 0 0 4 66.7 deliverers Motorised farm and forestry 6 0 0 5 83.3 plant operators Other administrat & related 41 0 0 34 82.9 clerks and organisers Other administrative policy and 2 0 0 0 0 related officers Other occupations 1 0 0 0 0 Safety health and quality 9 0 0 3 33.3 inspectors Secretaries & other keyboard 24 0 0 18 75 operating clerks Security guards 24 0 0 7 29.2 Senior managers 11 1 9.1 1 9.1 Trade labourers 7 0 0 3 42.9 Veterinarians 12 0 0 3 25 TOTAL 607 11 1.8 343 56.5

141 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Table 3.5.5 Promotions by salary band for the period 1 April 2015 to 31 March 2016

Salary Band Employees at Promotions to Salary bands Progressions to Notch progression as 01 April 2015 another salary promotions as a % of another notch a % of level employees by salary within a salary employees by salary level level bands Skilled (Levels 3-5), Permanent 268 7 2.6 160 59.7 Highly skilled production (Levels 186 1 0.5 115 61.8 6-8), Permanent Highly skilled supervision 107 2 1.9 66 61.7 (Levels 9-12), Permanent Senior management (Levels 13- 13 1 7.7 2 15.4 16), Permanent Contract (Levels 3-5), 11 0 0 0 0 Permanent Contract (Levels 6-8), 13 0 0 0 0 Permanent Contract (Levels 9-12), 8 0 0 0 0 Permanent Contract (Levels 13-16), 1 0 0 0 0 Permanent TOTAL 607 11 1.8 343 56.5

3.6 Employment Equity

Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2016 Occupational category Male Female Total

African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers 6 0 0 1 2 3 0 0 12 Professionals 80 20 0 17 52 11 0 14 194 Technicians and associate professionals 33 10 2 14 25 12 1 6 103 Clerks 24 7 0 0 59 13 1 14 118 Service and sales workers 9 1 0 0 13 0 0 0 23 Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0 Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and assemblers 2 5 0 0 0 0 0 0 7 Elementary occupations 53 51 0 1 27 16 0 0 148 Total 207 94 2 33 178 55 2 34 605 Employees with disabilities 0 0 0 0 1 1 0 0 2

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Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2016 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White

Top Management, Permanent 2 0 0 0 0 0 0 0 2 Senior Management, Permanent 5 0 0 1 1 2 0 0 9 Professionally qualified and experienced specialists and mid- management, Permanent 35 5 1 24 25 6 1 9 106 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 75 22 1 4 65 13 1 17 198 Semi-skilled and discretionary decision making, Permanent 81 64 0 0 77 27 0 7 256 Contract (Senior Management), Permanent 0 0 0 0 0 1 0 0 1 Contract (Professionally qualified), Permanent 3 0 0 3 2 1 0 0 9 Contract (Skilled technical), Permanent 3 1 0 0 2 3 0 1 10 Contract (Semi-skilled), Permanent 3 2 0 0 6 2 0 0 13 TOTAL 207 94 2 33 178 55 2 34 605

Table 3.6.3 Recruitment for the period 1 April 2015 to 31 March 2016 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Top Management 0 0 0 0 0 0 0 0 0 Senior Management 0 0 0 0 0 1 0 0 1 Professionally qualified and experienced specialists and mid- management 0 0 0 0 1 0 0 1 2 Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents 3 1 0 0 4 3 0 0 11 Semi-skilled and discretionary decision making 1 1 0 0 4 1 0 1 8 Unskilled and defined decision making 0 0 0 0 0 0 0 0 0 Total 4 2 0 0 9 5 0 2 22 Employees with disabilities 0 0 0 0 1 1 0 0 2

Table 3.6.4 Promotions for the period 1 April 2015 to 31 March 2016 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Senior Management 1 0 0 1 1 0 0 0 3 Professionally qualified and experienced specialists and mid- management 25 3 0 14 17 4 1 4 68 Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents 39 14 0 2 36 8 1 16 116 Semi-skilled and discretionary decision making 57 50 0 0 39 16 0 5 167 Unskilled and defined decision making 0 0 0 0 0 0 0 0 0 Total 123 67 0 17 92 28 2 25 353 Employees with disabilities 0 0 0 0 1 1 0 0 2

Table 3.6.5 Terminations for the period 1 April 2015 to 31 March 2016 Occupational band Male Female Total

143 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

African Coloured Indian White African Coloured Indian White Senior Management 1 0 0 0 0 0 0 0 1 Professionally qualified and 2 1 0 1 0 0 0 2 6 experienced specialists and mid- management Skilled technical and academically 1 0 0 0 3 1 1 1 7 qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and discretionary 7 0 0 0 3 0 1 0 11 decision making Unskilled and defined decision 0 0 0 0 0 0 0 0 0 making Total 11 2 0 0 6 1 2 3 25 Employees with Disabilities 0 0 0 0 1 0 0 0 1

Table 3.6.6 Disciplinary action for the period 1 April 2015 to 31 March 2016 Disciplinary action Male Female Total African Coloured Indian White African Coloured Indian White 4 3 0 0 0 1 0 0 0 4

Table 3.6.7 Skills development for the period 1 April 2015 to 31 March 2016 Occupational category Male Female Total

African Coloured Indian White African Coloured Indian White Legislators, senior officials and 2 0 0 0 0 1 0 0 3 managers Professionals 18 6 0 5 4 0 0 1 34 Technicians and associate 23 12 0 16 21 6 0 3 81 professionals Clerks 0 0 0 0 0 0 0 0 0 Service and sales workers 0 0 0 0 0 0 0 0 0 Skilled agriculture and fishery 0 0 0 0 0 0 0 0 0 workers Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and 0 0 0 0 0 0 0 0 0 assemblers Elementary occupations 0 0 0 0 0 0 0 0 0 Total 43 18 0 21 25 7 0 4 118 Employees with disabilities 0 0 0 0 0 0 0 0 0

3.7 Signing of Performance Agreements by SMS Members

All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 March 2016 SMS Level Total number of Total number of SMS Total number of signed Signed performance funded SMS posts members performance agreements agreements as % of total number of SMS members Head of Department (Level 15) 1 1 1 100 Salary Level 14 5 5 5 100 Salary Level 13 5 5 5 100 Total 11 11 11 100

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2016 Reasons none

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3.8 Performance Rewards

To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below).

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2015 to 31 March 2016 Beneficiary Profile Cost Race and Gender Number of Number of % of total within Cost Average cost beneficiaries employees group (R’000) per employee

African Male 66 207 31.9 667 10,108 Female 52 177 29.4 577 11,098 Asian Male 1 2 50 30 29,723 Female 2 2 100 27 13,671 Coloured Male 25 94 26.6 233 9,329 Female 21 54 38.9 234 11,127 White Male 22 33 66.7 453 20,580 Female 21 34 61.8 258 12,279 Blacks Male 92 303 30.4 930 10,109 Female 75 233 32.2 838 11,175 Employees with a disability 0 2 0 0 0 TOTAL 210 605 34.7 2,479 11,804

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2015 to 31 March 2016 Beneficiary Profile Cost Salary band Number of Number of % of total within Total Cost Average beneficiaries employees salary bands (R’000) cost per employee Skilled (level 3-5) 71 256 27.7 376 5,296 Highly skilled production (level 6-8) 77 198 38.9 834 10,831 Highly skilled supervision (level 9-12) 60 106 56.6 1,217 20,283 Contract (Levels 3-5) 0 13 0 0 0 Contract (Levels 6-8) 0 10 0 0 0 Contract (Levels 9-12 1 9 11.1 18 18,000 TOTAL 209 600 34.8 2,445 11,699

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2015 to 31 March 2016 Beneficiary Profile Cost Critical occupation Number of Number of % of total within Total Cost Average cost per beneficiaries employees occupation (R’000) employee Administrative related 24 62 38.7 366 15,250

145 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Agricul Animal Oceanography 18 46 39.1 273 15,167 Forestry & other Scie Agriculture related 36 104 34.6 585 16,250 Auxiliary and related workers 1 4 25 6 6,000 Biochemistry pharmacol. Zoology 3 4 75 54 18,000 & life scie. Techni Civil engineering technicians 6 16 37.5 122 20,333 Cleaners in offices workshops 13 40 32.5 61 4,692 hopistals etc. Client inform clersk (swithb 1 2 50 5 5,000 recept inform clerks) Communication and information 3 6 50 35 11,667 related Economists 2 9 22.2 40 20,000 Engineers an related 0 4 0 0 0 professionals Farm hands and labourers 27 98 27.6 132 4,889 Farming forestry advisors and 2 4 50 31 15,500 farm managers Finance and economics related 1 1 100 22 22,000 Financial and related 2 5 40 24 12,000 professionals Financial clerks and credit 5 11 45.5 74 14,800 controllers Head of department/chief 0 1 0 0 0 executive officer Horticulturists’ foresters’ agricul. 1 3 33.3 17 17,000 & forestry techn Human resource clerks 2 4 50 16 8,000 Human reosurces related 4 5 80 50 12,500 Information technology related 3 5 30 39 13,000 Library mail an related clerks 2 23 8.7 26 13,000 Light vehicle drivers 0 1 0 0 0 Logistical support personnel 0 1 0 0 0 Material-recording and transport 8 13 61.5 62 7,750 clerks Messengers porters and 1 4 25 5 5,000 deliverers Motorised farm and forestry plant 1 6 16.7 6 6,000 operators Other adminstrat & related clerks 18 44 40.9 166 9,222 and organisers Other occupations 0 1 0 0 0 Safety health and quality 4 9 44.4 57 14,250 inspectors Secretaries & other keyboard 13 21 61.9 97 7,462 operating clerks Security guards 3 23 13 13 4,333 Senior Managers 0 10 0 0 0 Trade labourers 3 6 50 15 5,000 Veterinarians 3 9 33.3 78 26,000 TOTAL 210 605 34.7 2,477 11,795

146 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2015 to 31 March 2016 Beneficiary Profile Cost Total cost as a % of Salary band Number of Number of % of total within Total Cost Average cost per the total personnel beneficiaries employees salary bands (R’000) employee expenditure

Band A 1 6 16.7 33 33,000 0.5 Band B 0 5 0 0 0 0 Band C 0 1 0 0 0 0 Band D 0 1 0 0 0 0 Total 1 13 7.7 33 33,000 0.5

3.9 Foreign Workers

The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.

Table 3.9.1 Foreign workers by salary band for the period 1 April 2015 to 31 March 2016 Salary band 01 April 2015 31 March 2016 Change Number % of total Number % of total Number % Change Lower skilled 0 0 0 0 0 0

Highly skilled production (Lev. 6-8) 0 0 0 0 0 0 Highly skilled supervision (Lev. 9-12) 3 50 6 100% 5 83.3% Contract (level 9-12) 3 50 6 100% 5 83.3% Contract (level 13-16) 0 0 0 0 0 0 Total 6 100 6 100 5 -1

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2015 to 31 March 2016 Major occupation 01 April 2015 31 March 2016 Change Number % of total Number % of total Number % Change Professionals and Managers 6 100 5 100 -1 83.3% Total 6 100 5 100 -1 83.3%

3.10 Leave utilisation

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.

Table 3.10.1 Sick leave for the period 1 January 2015 to 31 December 2015 Salary band Total % Days with Number of % of total Average Estimated days Medical Employees employees days per Cost certification using sick using sick employee (R’000) leave leave Skilled (levels 3-5) 1,143 90.3 158 48 16 656 Highly skilled production (levels 6-8) 869 87 117 36 11 1,008 Highly skilled supervision (levels 9 -12) 349 81.1 55 15 9 691 Top and Senior management (levels 13-16) 23 85.7 8 10 5 87 Total 2,384 56.9 338 100 41 2,442

147 Annual Report for 2015 / 2016 Financial Year Vote 12: Department of Agriculture, Land Reform and Rural Development, Province of the Northern Cape

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2015 to 31 December 2015 Salary band Total days % Days with Number of % of total Average Estimated Medical Employees employees days per Cost (R’000) certification using using employee disability leave disability leave Skilled (Levels 3-5) 30 100 3 59 10 19

Highly skilled production (Levels 6- 24 100 3 40.7 22 23 8) Highly skilled supervision (Levels 9- 5 100 1 8.5 5 8 12) Total 59 100 7 100 14 50

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

Table 3.10.3 Annual Leave for the period 1 January 2015 to 31 December 2015 Salary band Total days taken Number of Employees Average per employee using annual leave Skilled Levels 3-5) 5,275 258 29 Highly skilled production (Levels 6-8) 4,379 209 29 Highly skilled supervision(Levels 9-12) 2,532 114 36 Senior management (Levels 13-16) 298 14 36 Total 12,471 595 21

Table 3.10.4 Capped leave for the period 1 January 2015 to 31 December 2015 Salary band Total days of Number of Average number of Average capped leave capped leave Employees using days taken per per employee as on 31 taken capped leave employee December 2015 Skilled Levels 3-5) 22 6 4 26 Highly skilled production (Levels 6-8) 6 2 3 31 Highly skilled supervision(Levels 9-12) 2 1 2 43 Total 30 9 3 32

The following table summarise payments made to employees as a result of leave that was not taken.

Table 3.10.5 Leave payouts for the period 1 April 2015 to 31 March 2016 Reason Total amount (R’000) Number of Average per employees employee (R’000) Capped leave payouts on termination of service for 2015/2016 1,078 19 56,737 Current leave payout on termination of service for 2015/2016 167 9 18,556 Total 1,245 28 44,464

3.11 HIV/AIDS & Health Promotion Programmes

Table 3.11.1 Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if Key steps taken to reduce the risk any)

Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

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Question Yes No Details, if yes 1. Has the department designated a member of the SMS to implement the X The HR Senior Manager provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position. 2. Does the department have a dedicated unit or has it designated specific The department has 1 employee who deals staff members to promote the health and well-being of your employees? If X with the promotion of health and wellbeing of so, indicate the number of employees who are involved in this task and the employees. annual budget that is available for this purpose. 3. Has the department introduced an Employee Assistance or Health X Wellness days and information sessions Promotion Programme for your employees? If so, indicate the key elements/services of this Programme. 4. Has the department established (a) committee(s) as contemplated in X Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent. 5. Has the department reviewed its employment policies and practices to X HIV/AIDS, TB and STI policy ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed. 6. Has the department introduced measures to protect HIV-positive X  Awareness, education and training employees or those perceived to be HIV-positive from discrimination? If so, on the rights of persons with list the key elements of these measures. regards to HIV/AIDS

 Providing support to all employees infected/affected by HIV/AIDS 7. Does the department encourage its employees to undergo Voluntary X The results are still minimum as most of the Counselling and Testing? If so, list the results that you have you achieved. employees that take part in wellness screenings do not undergo the HCT testing 8. Has the department developed measures/indicators to monitor & X GEMS reports evaluate the impact of its health promotion programme? If so, list these measures/indicators.

3.12 Labour Relations

Table 3.12.1 Collective agreements for the period 1 April 2015 to 31 March 2016 Subject matter Date None none

Total number of Collective agreements None

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Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2015 to 31 March 2016 Outcomes of disciplinary hearings Number % of total Correctional counselling 0 Verbal warning 0 Written warning 0 Final written warning 2 Suspended without pay 1 Fine 0 Demotion 0

Dismissal 1 Not guilty 0 Case withdrawn 0 Total 4

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2015 to 31 March 2016 Type of misconduct Number % of total Absenteeism & unauthorised leave 2 Gross insubordination 1 Multiple misconduct 1 TOTAL 4

Table 3.12.4 Grievances logged for the period 1 April 2015 to 31 March 2016 Grievances Number % of Total Number of grievances resolved 0 Number of grievances not resolved 1 Total number of grievances lodged 1

Table 3.12.5 Disputes logged with Councils for the period 1 April 2015 to 31 March 2016 Disputes Number % of Total Number of disputes upheld 0 Number of disputes dismissed 1 Total number of disputes lodged 4

Table 3.12.6 Strike actions for the period 1 April 2015 to 31 March 2016 Total number of persons working days lost 0 Total costs working days lost 0 Amount recovered as a result of no work no pay (R’000) 0

Table 3.12.7 Precautionary suspensions for the period 1 April 2015 and 31 March 2016 Number of people suspended 1 Number of people who’s suspension exceeded 30 days 1 Average number of days suspended 60 DAYS Cost of suspension(R’000) R24 743.50

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3.13 Skills development

This section highlights the efforts of the department with regard to skills development.

Table 3.13.1 Training needs identified for the period 1 April 2015 to 31 March 2016 Occupational category Gender Number of Training needs identified at start of the reporting period employees as Learnerships Skills Other forms Total at Programmes & of training 01 April 2015 other short courses Legislators, senior officials and Female 5 0 1 0 1 managers Male 7 0 0 0 Professionals Female 77 0 9 0 9 Male 117 0 13 2 15 Technicians and associate Female 44 0 40 8 48 professionals Male 59 0 53 4 57 Clerks Female 87 1 28 0 28 Male 31 2 5 0 7 Service and sales workers Female 13 0 0 0 0 Male 10 0 0 0 0 Skilled agriculture and fishery Female 0 0 0 0 0 workers Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and Female 0 0 0 0 0 assemblers Male 7 0 0 0 0 Elementary occupations Female 43 0 5 0 5 Male 105 0 26 0 26 Sub Total Female 269 1 83 6 90 Male 336 2 97 8 107 Total 605 3 180 14 197

Table 3.13.2 Training provided for the period 1 April 2015 to 31 March 2016 Occupational category Gender Number of Training provided within the reporting period employees as at Learnerships Skills Other forms Total 01 April 2015 Programmes & of training other short courses Legislators, senior officials and Female managers Male Professionals Female Male Technicians and associate Female professionals Male Clerks Female Male 1 Service and sales workers Female Male Skilled agriculture and fishery Female workers Male Craft and related trades workers Female Male Plant and machine operators and Female assemblers Male Elementary occupations Female Male Sub Total Female Male 1 Total

3.14 Injury on duty

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The following tables provide basic information on injury on duty.

Table 3.14.1 Injury on duty for the period 1 April 2015 to 31 March 2016 Nature of injury on duty Number % of total Required basic medical attention only 3 100 Temporary Total Disablement 0 0 Permanent Disablement 0 0 Fatal 0 0 Total 3 100

3.15 Utilisation of Consultants

The following tables relates information on the utilisation of consultants in the department. In terms of the Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source:

(a) The rendering of expert advice; (b) The drafting of proposals for the execution of specific tasks; and (c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department.

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2015 to 31 March 2016 Project title Total number of Duration Contract value in consultants that (work days) Rand worked on project Environmental impact assessment for the animal carcass 1 8 Months 229 194.72 incinerator

Obtaining of environmental authorisation (full EIA) at henrkies 1 8 Months 282 993.6 farm

Organisational design and job evaluation 1 2 Months 485 000.00

Obtaining of environmental authorisation amended for pump 1 12 Months 491 568.00 scheme option for the repair and upgrade of the Onseepkaans irrigation canal and for development of irrigation

Training of departmental bid committees and review of scm 1 10 Months 49 248 policy

Provision of rapid market assessment; marketing and business 1 24 Months 4 587 189.00 plan and mentorship services

Obtaining of environmental authorisation (fulll eia as pre nema 1 12 months 253 076.00 and 2014 eia regulations) at sonderkraal and tweerivier, nieuwoudtville area

Provision of a decision support management system “dsms” to 1 6 months 2 214 894.00 assist the department

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3.16 Severance Packages

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2015 to 31 March 2016 Salary band Number of applications Number of applications Number of applications Number of packages received referred to the MPSA supported by MPSA approved by department Lower skilled (Levels 1-2) Skilled Levels 3-5) Highly skilled production (Levels 6-8) Highly skilled supervision(Levels 9-12) Senior management (Levels 13-16) Total

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The ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY FOR ANNUAL FINANCIAL STATEMENTS The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standards and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgments made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resource information and the financial affairs of the department for the financial year ended 31 March 2016.

Yours faithfully

______

Accounting Officer

Mr WVD Mothibi

Department of Agriculture, Land Reform and Rural Development

May 2016

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Report of the auditor-general to the Northern The procedures selected depend on the Cape Provincial Legislature on vote no. 12: auditor’s judgement, including the Department of Agriculture, Land Reform and assessment of the risks of material Rural Development misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor Report on the financial statements considers internal control relevant to the entity’s preparation and fair presentation of Introduction the financial statements in order to design 1. I have audited the financial statements of the audit procedures that are appropriate in the department of Agriculture, Land Reform and circumstances, but not for the purpose of Rural Development set out on pages 161 to expressing an opinion on the effectiveness 248, which comprise the appropriation of the entity’s internal control. An audit also statement, the statement of financial position includes evaluating the appropriateness of as at 31 March 2016, the statement of accounting policies used and the financial performance, statement of changes reasonableness of accounting estimates in net assets and cash flow statement for the made by management, as well as evaluating year then ended, as well as the notes, the overall presentation of the financial comprising a summary of significant statements. accounting policies and other explanatory information. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to Accounting Officer’s responsibility for the provide a basis for my audit opinion. financial statements 2. The accounting officer is responsible for the Opinion preparation and fair presentation of these 6. In my opinion, the financial statements financial statements in accordance with the present fairly, in all material respects, the Modified Cash Standard prescribed by financial position of the Department of National Treasury, the requirements of the Agriculture, Land Reform and Rural Public Finance Management Act of South Development as at 31 March 2016 and its Africa, 1999 (Act No. 1 of 1999) (PFMA) and financial performance and cash flows for the the Division of Revenue Act of South Africa, year then ended, in accordance with the 2015 (Act No. 1 of 2015) (DoRA), and for Modified Cash Standard prescribed by such internal control as the accounting National Treasury and the requirements of officer determines is necessary to enable the the PFMA and DoRA. preparation of financial statements that are free from material misstatement, whether Emphasis of matters due to fraud or error. 7. I draw attention to the matters below. My opinion is not modified in respect of these Auditor-general’s responsibility matters. 3. My responsibility is to express an opinion on these financial statements based on my Irregular Expenditure audit. I conducted my audit in accordance 8. The full extent of the irregular expenditure of with International Standards on Auditing. R37 170 000 as disclosed in note 25.1 to the Those standards require that I comply with financial statements is still in the process of ethical requirements, and plan and perform being determined. the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Movable Assets 4. An audit involves performing procedures to 9. Movable assets to the value of R21 531 000 obtain audit evidence about the amounts included in the balance disclosed in note 30 and disclosures in the financial statements. to the financial statements are currently

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under investigation as the department was conclusion on these matters. unable to reconcile the assets to the 100% physically verification process performed. Predetermined objectives 15. I performed procedures to obtain evidence Restatement of corresponding figures about the usefulness and reliability of the 10. As disclosed in note 30.3.1 to the financial reported performance information of the statements, the corresponding figures for 31 following selected programmes presented in March 2015 have been restated as a result the annual performance report of the of an error discovered during the year ended department for the year ended 31 March 2016 in the financial statements of 31 March 2016: the Department of Agriculture, Land Reform  and Rural Development. Programme 2: Sustainable Resource Development on pages 41 to 53 Payables 11. Payables which exceed the payment term of  Programme 3: Farmer Support and 30 days as required in Treasury Regulation Development on pages 54 to 65 8.2.3 amount to R15 572 000. This amount, in turn, exceeds the voted funds to be  Programme 4: Veterinary Services on pages surrendered of R3 897 000 as per the 66 to 83 statement of financial performance by R11 675 000. The amount of R11 675 000 16. I evaluated the usefulness of the reported would therefore have constituted performance information to determine unauthorised expenditure had the amounts whether it was presented in accordance with due been paid in a timely manner. the National Treasury’s annual reporting principles and whether the reported performance was consistent with the Additional matter planned programmes. I further performed 12. I draw attention to the matter below. My tests to determine whether indicators and opinion is not modified in respect of this targets were well defined, verifiable, specific, matter. measurable, time bound and relevant, as Unaudited supplementary schedules required by the National Treasury’s 13. The supplementary information set out on Framework for managing programme pages 239 to 248 does not form part of the performance information (FMPPI). financial statements and is presented as 17. I assessed the reliability of the reported additional information. I have not audited performance information to determine these schedules and, accordingly, I do not whether it was valid, accurate and complete. express an opinion thereon.

18. The material findings in respect of the Report on other legal and regulatory selected programmes are as follows: requirements 14. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and Programme 3: Farmer Support and the general notice issued in terms thereof, I Development have a responsibility to report findings on the reported performance information against Reliability of reported performance predetermined objectives of selected information programmes presented in the annual 19. The FMPPI requires auditees to have performance report, compliance with appropriate systems to collect, collate, verify legislation and internal control. The objective and store performance information to ensure of my tests was to identify reportable reliable reporting of actual achievements findings as described under each against planned objectives, indicators and subheading but not to gather evidence to targets. The reported achievements against express assurance on these matters. planned targets of one important indicator Accordingly, I do not express an opinion or

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were not reliable when compared to the Procurement and contract management evidence provided. 25. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as Additional matters required by Treasury Regulation 16A6.1. 20. I draw attention to the following matters: 26. Goods and services of a transaction value Achievement of planned targets above R500 000 were procured without 21. Refer to the annual performance report on inviting competitive bids, as required by pages 22 to 131 for information on the Treasury Regulations 16A6.1. Deviations achievement of planned targets for the year. were approved by the accounting officer This information should be considered in the even though it was not impractical to invite context of the material findings on the competitive bids, in contravention of reliability of the reported performance Treasury regulation 16A6.4. information in paragraph 19 of this report. 27. Invitations for competitive bidding were not always advertised in at least the government Adjustment of material misstatements tender bulletin as required by Treasury 22. We identified material misstatements in the Regulation 16A6.3(c) annual performance report submitted for auditing. These material misstatements were 28. Invitations for competitive bidding were not on the reported performance information of always advertised for a required minimum Programme 2: Sustainable Resource period, as required by Treasury Regulations Management and Programme 4: Veterinary 16A6.3(c). Services. As management subsequently corrected the misstatements, we did not raise any material findings on the usefulness Expenditure management and reliability of the reported performance 29. Effective steps were not taken to prevent information. irregular expenditure as required by section 38(1)(c)(ii) of the Public Finance Management Act and Treasury Regulation Compliance with legislation 9.1.1. The value of R37 170 000 as 23. I performed procedures to obtain evidence disclosed in note 25 is not complete as that the department had complied with management is still being with the exercise applicable legislation regarding financial to quantify the full extent of the irregular matters, financial management and other expenditure. related matters. My material findings on compliance with specific matters in key 30. Effective steps were not taken to prevent legislation, as set out in the general notice fruitless and wasteful expenditure, issued in terms of the PAA, are as follows: amounting to R62 000 as disclosed in note 26 of the AFS, as required by section Financial statements, performance and 38(1)(c)(ii) of the Public Finance annual reports Management Act and Treasury Regulation 24. The financial statements submitted for 9.1.1. auditing were not prepared in accordance with the prescribed financial reporting Consequence management framework as required by section 40(1)(a) of 31. Allegations of financial misconduct against the Public Finance Management Act. the accounting officer and officials were not Material misstatements of disclosure items investigated, as required by Treasury identified by the auditors in the submitted Regulation 4.1.3. and 4.1.1 financial statement were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

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laws and regulations. Internal control 32. I considered internal control relevant to my Financial and performance management audit of the financial statements, the annual 35. The department did not implement proper performance report and compliance with record keeping in a timely manner to ensure legislation. The matters reported below are that complete, relevant and accurate limited to the significant internal control information is accessible and available to deficiencies that resulted in the findings on support financial and performance reporting. the annual of performance report and the findings on compliance with legislation 36. Management did not ensure that on-going included in this report. monitoring and supervision were undertaken to enable an assessment of the effectiveness of internal control over Leadership performance information and compliance Specific duties and responsibilities were not 33. with laws and regulations. delegated to officials to facilitate the continuous monitoring of internal controls which resulted in misstatement in the asset Governance register. 37. Appropriate risk management activity was not effective to ensure that adequate risk 34. Leadership did not exercise its oversight assessments, including consideration of IT responsibility over performance reporting risks, are conducted to detect and prevent and regular monitoring of compliance with the number of control deficiencies identified. laws and regulations.

Auditor-General Kimberley 29 July 2016

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ANNUAL FINANCIAL STATEMENTS FOR DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL

DEVELOPMENT

For the year ended 31 March 2016

162 DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

ACCOUNTING POLICIES for the year ended 31 March 2016

Table of Contents

Accounting Policies 164

Appropriation Statement 172

Notes to the Appropriation Statement 203

Statement of Financial Performance 205

Statement of Financial Position 206

Statement of Changes in Net Assets 207

Cash Flow Statement 208

Notes to the Annual Financial Statements (including Accounting policies) 209

Annexures 239

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ACCOUNTING POLICIES for the year ended 31 March 2016

Summary of significant accounting policies The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation. Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act. 1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard (MCS). 2 Going concern The financial statements have been prepared on a going concern basis. 3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department. 4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000). 5 Comparative information 5.1 Prior period comparative information Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements. 5.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.

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6 Revenue 6.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective. The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

6.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise. Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position. 6.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:  it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and  the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable. Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

7 Expenditure 7.1 Compensation of employees 7.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment. Wages paid to departmental projects are recognised in the statement of financial performance on the date of payment to the project.

7.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.

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7.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold. Other expenditure on departmental projects such as goods and services (e.g. transport) are recognised in the statement of financial performance on the date of the payment to the project.

7.3 Accrued expenditure payable Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department or in the case of transfers and subsidies when they are due and payable. Accrued expenditure payable is measured at cost.

7.4 Leases 7.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements.

7.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:  cost, being the fair value of the asset; or  the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest. 8 Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts. 9 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost. 10 Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy.

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11 Financial assets 11.1 Financial assets (not covered elsewhere) A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial. At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. 11.2 Impairment of financial assets Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements. 12 Payables Loans and payables are recognised in the statement of financial position at cost. 13 Capital Assets 13.1 Immovable capital assets Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined reliably, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department. Immovable capital assets for departmental projects (e.g. project expenditure on conditional grants) for assets that are no longer owned or managed by the Department, are derecognised at the end of the financial period.

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ACCOUNTING POLICIES for the year ended 31 March 2016

13.2 Movable capital assets Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department. Capital assets for departmental projects (e.g. project expenditure on conditional grants) for assets that are no longer owned or managed by the Department, are derecognised at the end of the financial period. 13.3 Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

13.4 Biological assets Biological assets are initially recorded in the notes to the financial statements at cost. Cost is determined by reference to the purchase price or deemed cost determined in accordance with approved animal tariffs. Biological assets acquired through non exchange transactions are measured at deemed fair value at the date of acquisition. Where the cost of biological assets cannot be determined accurately, the biological assets are measured at fair value and where value cannot be determined reliably, the biological assets are measured at R1. Biological capital assets are subsequently carried at cost or at the new updated tariffs for those animals which have not reached the tariff ceiling.

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14 Provisions and Contingents 14.1 Provisions Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

14.2 Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably. 14.3 Contingent assets Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department. 14.4 Commitments Commitments are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.

15 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:  approved by Parliament or the Provincial Legislature with funding and the related funds are received; or  approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or  transferred to receivables for recovery. Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

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ACCOUNTING POLICIES for the year ended 31 March 2016

16 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written- off as irrecoverable.

17 Irregular expenditure Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable. 18 Changes in accounting policies, accounting estimates and errors Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable. Changes in accounting estimates are applied prospectively in accordance with MCS requirements. Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

19 Events after the reporting date Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

170

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

ACCOUNTING POLICIES for the year ended 31 March 2016

20 Principal-Agent arrangements The department is party to a principal-agent arrangement for [include details here].In terms of the arrangement the department is the [principal / agent] and is responsible for [include details here].All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclosures have been provided in the notes to the financial statements where appropriate. 21 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off. 22 Related party transactions A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.

23 Inventories(Effective from 1 April 2017) At the date of acquisition, inventories are recorded at cost price in the notes to the financial statements Where inventories are acquired as part of a non-exchange transaction, the cost of inventory is its fair value at the date of acquisition. Inventories are subsequently measured at the lower of cost and net realisable value or the lower of cost and current replacement value.

171

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Appropriation per programme 2015/16 2014/15 Expenditure as Adjusted Shifting Final Actual % of final Final Actual Appropriation of Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Voted funds and Direct charges R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Programme 1 Administration 103 061 - 3,430 106,491 106,424 67 99.9% 97,390 97,274 2 Sustainable Resource Management 96,846 - 654 97,500 97,496 4 100.0% 342,031 334,959 3 Farmer Support And Development 246,565 - (969) 245,596 243,345 2,251 99.1% 230,667 230,602 4 Veterinary Services 42,445 - 572 43,017 42,682 335 99.2% 40,634 40,633 5 Research and Technology Development Services 46,203 - (2,895) 43,308 43,065 243 99.4% 43,899 43,893 6 Agricultural Economics Services 9,911 - (792) 9,119 8,138 981 89.2% 9,739 9,735 7 Rural Development 12,916 - - 12,916 12,900 16 99.9% 12,278 12,277 TOTAL 557,947 - - 557,947 554,050 3 897 99.3% 776,638 769,374 Reconciliation with Statement of Financial Performance Add:

Departmental receipts 913 864

NRF Receipts - -

Aid assistance - -

Actual amounts per Statement of Financial Performance (Total Revenue) 558,860 777,502 Add: Aid assistance Prior year unauthorised expenditure approved without funding - -

Actual amounts per Statement of Financial Performance 554,050 769,374

172

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Appropriation per economic classification 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 428,400 (51,067) (413) 376,920 373,026 3,846 99.0% 384,514 377,272 Compensation of employees 198,519 (4,216) (982) 193,321 192,575 746 99.6% 179,227 179,210 Salaries and wages 169,052 (2,738) (610) 165,704 165,342 362 99.8% 156,140 155,431 Social contributions 29,467 (1,478) (372) 27,617 27,233 384 98.6% 23,087 23,779 Goods and services 229,881 (46,851) 569 183,599 180,429 3,170 98.3% 205,285 198,061 Administrative fees 574 235 44 853 830 23 97.3% 1,297 1,284 Advertising 1,422 248 - 1,670 1,656 14 99.2% 1,606 1,739 Minor assets 2,045 601 - 2,646 2,641 5 99.8% 1,445 1,446 Audit costs: External 3,554 703 341 4,598 4,598 - 100.0% 3,373 3,374 Bursaries: Employees 422 478 - 900 900 - 100.0% 1,270 1,250 Catering: Departmental activities 2,775 (301) - 2,474 2,489 (15) 100.6% 1,947 1,948 Communication (G&S) 4,132 1,165 (59) 5,238 5,221 17 99.7% 5,105 5,104 Computer services 2,153 (40) 90 2,203 2,203 - 100.0% 2,000 2,000 Consultants: Business and advisory services 618 5,456 450 6,524 6,398 126 98.1% 4,362 4,362 Infrastructure and planning services 5,399 10,297 - 15,696 15,709 (13) 100.1% 5,726 5,726 Laboratory services 203 1,343 150 1,696 1,696 - 100.0% 143 143 Legal services 264 49 52 365 365 - 100.0% 978 978 Contractors 61,476 (44,975) 78 16,579 16,367 212 98.7% 23,604 23,352 Agency and support / outsourced services 28,171 (24,337) (867) 2,967 1,351 1,616 45.5% 874 737 Entertainment 27 (27) - - - - 0.0% 295 295 Fleet services (incl. government motor transport) 23,710 (11,635) (1,066) 11,009 10,706 303 97.2% 13,626 13,586 Inventory: Clothing material and accessories - 607 11 618 616 2 99.7% 4 3 Inventory: Farming supplies 28,815 7,885 (636) 36,064 35,779 285 99.2% 78,250 71,398 Inventory: Food and food supplies 219 (133) - 86 86 - 100.0% 64 63 Inventory: Fuel, oil and gas 1,352 2,591 (201) 3,742 3,731 11 99.7% 2,669 2,669 Inventory: Materials and supplies 2,901 6,721 (555) 9,067 9,055 12 99.9% 3,753 3,752 0 Inventory: Medical supplies 51 (20) - 31 31 - 100.0% - 173

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2014/15 2015/16

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Inventory: Medicine 341 29 25 395 395 - 100.0% 320 320 Inventory: Other supplies 15 28 - 43 43 - 100.0% 63 63 Consumable supplies 12,167 (10,196) 87 2,058 2,062 (4) 100.2% 2,867 2,864 Consumable: Stationery, printing & office supplies 2,173 (396) 43 1,820 1,821 (1) 100.1% 1,552 1,553 Operating leases 12,671 (1,448) 1,112 12,335 12,326 9 99.9% 11,217 11,216 Property payments 4,411 3,984 286 8,681 8,681 - 100.0% 7,082 7,081 Transport provided: Departmental activity 872 (872) - - - - 0.0% - - Travel and subsistence 22,016 5,444 1,130 28,590 28,476 114 99.6% 26,375 26,356 Training and development 1,566 (16) 35 1,585 1,585 - 100.0% 1,035 1,020 Operating payments 2,052 (448) 19 1,623 1,622 1 99.9% 1,499 1,496 Venues and facilities 1,314 (562) - 752 752 - 100.0% 689 688 Rental and hiring - 691 - 691 238 453 34.4% 195 195 Interest and rent on land - - - - 22 (22) 0.0% 2 2 Interest (Incl. interest on unitary payments (PPP)) - - - - 21 (21) 0.0% 2 2 Rent on land - - - - 1 (1) 0.0% - - Transfers and subsidies 57,076 (10,470) 413 47,019 47,016 3 100.0% 41,734 41,731 Provinces and municipalities - 74 - 74 54 20 73.0% - - Provinces - 20 - 20 19 1 95.0% - - Provincial agencies and funds - 20 - 20 19 1 95.0% - - Municipalities - 54 - 54 35 19 64.8% - - Municipal bank accounts - 54 - 54 35 19 64.8% - - Departmental agencies and accounts 42,550 (12,434) - 30,116 30,101 15 100.0% 34,220 34,220 Departmental agencies (non-business entities) 42,550 (12,434) - 30,116 30,101 15 100.0% 34,220 34,220 Public corporations and private enterprises 10,400 - - 10,400 10,415 (15) 100.1% 1,522 1,522 Public corporations 10,400 - - 10,400 10,415 (15) 100.1% 1,372 1,372 Other transfers to public corporations 10,400 - - 10,400 10,415 (15) 100.1% 1,372 1,372 Private enterprises ------0.0% 150 150 174

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Other transfers to private 150 enterprises ------0.0% 150 1,562 Non-profit institutions - 157 - 157 157 - 100.0% 1,562 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Households 4,126 1,733 413 6,272 6,289 (17) 100.3% 4,430 4,428 Social benefits 926 144 - 1,070 1,069 1 99.9% 609 608 Other transfers to households 3,200 1,589 413 5,202 5,220 (18) 100.3% 3,821 3,819 Payments for capital assets 72,471 61,537 - 134,008 134,007 1 100.0% 350,390 350,371 Buildings and other fixed structures 37,862 71,573 - 109,435 109,464 (29) 100.0% 332,127 332,112 Other fixed structures 37,862 71,573 - 109,435 109,464 (29) 100.0% 332,127 332,112 Machinery and equipment 34,553 (12,746) (39) 21,768 21,738 30 99.9% 16,209 16,153 Transport equipment - 1,176 - 1,176 1,176 - 100.0% 295 295 Other machinery and equipment 34,553 (13,922) (39) 20,592 20,562 30 99.9% 15,914 15,857 Biological assets - 930 - 930 930 - 100.0% 1,545 1,546 Software and other intangible assets 56 1,780 39 1,875 1,875 - 100.0% 509 561 Payment for financial assets - - - - 1 (1) 0.0% - -

TOTAL 557,947 - - 557,947 554,050 3,897 99.3% 776,638 769,374

175

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Programme 1: Administration 2015/16 2014/15

Sub programme 1 Office of the MEC 10,598 (126) 546 11,018 10,951 67 99.4% 10,016 9,956 2 Senior Management 19,836 539 (19) 20,356 20,356 - 100.0% 14,665 14,654 3 Corporate Services 40,125 (100) 1,575 41,600 41,600 - 100.0% 41,846 41,822 4 Financial Management 22,074 783 1,328 24,185 24,184 1 100.0% 21,476 21,458 5 Communication Services 10,428 (1,096) - 9,332 9,333 (1) 100.0% 9,387 9,384

103,061 - 3,430 106,491 106,424 67 99.9% 97,390 97,274

Economic classification Current payments 99,495 (482) 3,056 102,069 102,051 18 100.0% 92,274 92,163 Compensation of employees 62,727 (1,116) - 61,611 61,609 2 100.0% 55,740 55,738 Salaries and wages 54,698 (1,650) - 53,048 53,047 1 100.0% 48,406 48,404 Social contributions 8,029 534 - 8,563 8,562 1 100.0% 7,334 7,334 Goods and services 36,768 634 3,056 40,458 40,394 64 99.8% 36,532 36,423 Administrative fees 55 (23) 44 76 76 - 100.0% 126 125 Advertising 65 119 - 184 184 - 100.0% 392 526 Minor assets 144 (57) - 87 87 - 100.0% 200 199 Audit costs: External 3,554 - 341 3,895 3,895 - 100.0% 2,973 2,973 Bursaries: Employees 408 (191) - 217 217 - 100.0% 599 579 Catering: Departmental activities 523 - - 523 523 - 100.0% 294 294 Communication (G&S) 2,190 (324) 147 2,013 2,014 (1) 100.0% 2,235 2,235 Computer services 2,127 (378) - 1,749 1,749 - 100.0% 1,978 1,978 Consultants: Business and advisory services - 426 450 876 876 - 100.0% 78 78 Legal services 262 51 52 365 365 - 100.0% 783 783 Contractors 277 82 36 395 395 - 100.0% 192 193 655

Agency and support / outsourced services 93 673 - 766 766 - 100.0% 790 176

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2014/15 2015/16

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Entertainment 6 (6) - - - - 0.0% 295 295 Fleet services (incl. government motor transport) 1,992 (931) - 1,061 1,061 - 100.0% 1,434 1,431 Inventory: Clothing material and accessories - 169 11 180 180 - 100.0% - - Inventory: Farming supplies - 30 - 30 30 - 100.0% - 0 Inventory: Food and food supplies 141 (77) - 64 64 - 100.0% 39 38 Inventory: Fuel, oil and gas 26 (26) - - - - 0.0% - 0 Inventory: Materials and supplies 277 (262) - 15 15 - 100.0% 22 22 Consumable supplies 757 65 - 822 822 - 100.0% 774 774 Consumable: Stationery, printing & office supplies 976 (220) - 756 756 - 100.0% 551 550 Operating leases 10,643 (290) 1,112 11,465 11,465 - 100.0% 10,453 10,452 Property payments 3,623 2,129 286 6,038 6,038 - 100.0% 5,160 5,159 Travel and subsistence 7,155 169 566 7,890 7,824 165 99.2% 6,511 6,446 Training and development 465 (195) - 270 270 - 100.0% (6) (20) Operating payments 398 (65) 11 344 344 - 100.0% 229 228 Venues and facilities 611 (363) - 248 248 - 100.0% 413 412 Rental and hiring - 129 - 129 129 - 100.0% 17 17 Interest and rent on land ------0.0% 2 2 Interest (Incl. interest on unitary payments (PPP)) ------0.0% 2 2 Transfers and subsidies 3,283 480 413 4,176 4,175 1 100.0% 3,731 3,729 Provinces and municipalities - 54 - 54 35 19 64.8% - - Municipalities - 54 - 54 35 19 64.8% - - Municipal bank accounts - 54 - 54 35 19 64.8% - - Households 3,283 426 413 4,122 4,140 (18) 100.4% 3,731 3,729 Social benefits 83 - - 83 83 - 100.0% - - Other transfers to households 3,200 426 413 4,039 4,057 (18) 100.4% 3,731 3,729 Payments for capital assets 283 2 (39) 246 246 - 100.0% 1,385 1,382 Buildings and other fixed structures ------0.0% 40 39 Other fixed structures ------0.0% 40 39

177

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Machinery and equipment 283 2 (39) 246 246 - 100.0% 891 889 Other machinery and equipment 283 2 (39) 246 246 - 100.0% 891 889 Software and other intangible assets ------0.0% 454 453 Total 103,061 - 3,430 106,491 106,424 67 99.9% 97,390 97,274

Sub-Programme: 1.1: Office of the MEC 2015/16 2014/15

178

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 1.2: Senior Management 2015/16 2014/15

Sub-Programme: 1.3: Corporate Services 2015/16 2014/15

Adjusted Shifting Final Expenditure as % of final Actual Appropriation of Funds Virement Appropriation Actual Expenditure Variance appropriation Final Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 37,033 101 1,575 38,709 38,709 - 100.0% 38,099 38,077 Compensation of employees 18,996 (491) - 18,505 18,504 1 100.0% 16,943 16,943 Goods and services 18,037 592 1,575 20,204 20,205 (1) 100.0% 21,156 21,134 Transfers and subsidies 3,063 (177) - 2,886 2,886 - 100.0% 3,561 3,559 Provinces and municipalities - 22 - 22 22 - 100.0% - - Households 3,063 (199) - 2,864 2,864 - 100.0% 3,561 3,559 Payments for capital assets 29 (24) - 5 5 - 100.0% 186 186 Buildings and other fixed structures ------0.0% 31 31 Machinery and equipment 29 (24) - 5 5 - 100.0% 155 154 Total 40,125 (100) 1,575 41,600 41,600 - 100.0% 41,846 41,822

179

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 1.4: Financial Management 2015/16 2014/15

Adjusted Shifting Final Expenditure as % of final Final Actual Appropriation of Funds Virement Appropriation Actual Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 21,989 151 915 23,055 23,054 1 100.0% 20,810 20,793 Compensation of employees 16,274 586 - 16,860 16,859 1 100.0% 15,848 15,847 Goods and services 5,715 (435) 915 6,195 6,195 - 100.0% 4,962 4,946 Transfers and subsidies 3 587 413 1,003 1,003 - 100.0% - - Households 3 587 413 1,003 1,003 - 100.0% - - Payments for capital assets 82 45 - 127 127 - 100.0% 666 665 Machinery and equipment 82 45 - 127 127 - 100.0% 212 212 Software and other intangible assets ------0.0% 454 453 Total 22,074 783 1,328 24,185 24,184 1 100.0% 21,476 21,458

Sub-Programme: 1.5: Communication Services 2015/16 2014/15

Programme 2: Sustainable Resource Management

180

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2015/16 2014/15 Expenditure as Adjusted Shifting of Final Actual % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Sub programme 6,689 (1,784) 39 4,944 4,941 3 99.9% 3,303 3,290 1 Engineering Services 7,302 138 - 7,440 7,439 1 100.0% 7,462 7,451 2 Land Care 14,993 1,181 615 16,789 16,789 - 100.0% 17,683 17,674 3 Land Use Management 67,862 465 - 68,327 68,327 - 100.0% 313,583 306,545 4 Disaster Risk Management 97,500 96,846 - 654 97,496 4 100.0% 342,031 334,959

Economic classification 58,356 (18,153) 615 40,818 40,813 5 100.0% 81,437 74,322 Current payments 16,165 (850) - 15,315 15,315 - 100.0% 13,690 13,678 Compensation of employees 13,852 (406) - 13,446 13,446 - 100.0% 12,112 12,100 Salaries and wages 2,313 (444) - 1,869 1,869 - 100.0% 1,578 1,578 Social contributions 42,191 (17,303) 615 25,503 25,498 5 100.0% 67,747 60,644 Goods and services 205 (159) - 46 46 - 100.0% 113 102 Administrative fees 231 (94) - 137 137 - 100.0% 27 27 Advertising 33 184 - 217 216 1 99.5% 66 65 Minor assets 506 (262) - 244 244 - 100.0% 38 38 Catering: Departmental activities 214 (2) - 212 212 - 100.0% 179 179 Communication (G&S) 6 36 - 42 42 - 100.0% 13 13 Computer services - 82 - 82 82 - 100.0% - - Consultants: Business and advisory services 5,000 6,660 - 11,660 11,660 - 100.0% 4,751 4,751 Infrastructure and planning services 7,482 (2,399) 51 5,134 5,088 46 99.1% 5,626 5,374 Contractors 2,345 (2,345) - - - - 0.0% 2 - Agency and support / outsourced services - 60 - 60 105 (45) 175.0% 53 53 Fleet services (incl. government motor transport) - 234 - 234 234 - 100.0% - - Inventory: Clothing material and accessories 20,000 (19,992) - 8 8 - 100.0% 50,481 43,632 Inventory: Farming supplies - 1 - 1 1 - 100.0% - 0

Inventory: Food and food supplies

181

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2015/16 2014/15

Expenditure as Adjusted Shifting of Final Actual % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 - 1,868 - 1,868 1,868 - 100.0% 905 906 Inventory: Fuel, oil and gas 63 (55) - 8 8 - 100.0% 390 390 Inventory: Materials and supplies - 23 - 23 23 - 100.0% - - Inventory: Medicine - 5 - 5 5 - 100.0% - - Inventory: Other supplies 2,045 (1,927) - 118 118 - 100.0% 221 221 Consumable supplies 168 30 - 198 199 (1) 100.5% 153 157 Consumable: Stationery, printing & office supplies - 85 - 85 85 - 100.0% 63 64 Operating leases ------0.0% 10 10 Property payments 3,137 1,158 564 4,859 4,855 4 99.9% 4,383 4,389 Travel and subsistence 128 66 - 194 194 - 100.0% 137 137 Training and development 254 (197) - 57 57 - 100.0% 103 103 Operating payments 374 (374) - - - - 0.0% 4 4 Venues and facilities - 11 - 11 11 - 100.0% 29 29 Rental and hiring 554 - - 554 554 - 100.0% - - Transfers and subsidies 554 - - 554 554 - 100.0% - - Households 554 - - 554 554 - 100.0% - - Social benefits 37,936 18,153 39 56,128 56,129 (1) 100.0% 260,594 260,637 Payments for capital assets 37,862 18,121 - 55,983 55,983 - 100.0% 260,178 260,178 Buildings and other fixed structures 37,862 18,121 - 55,983 55,983 - 100.0% 260,178 260,178 Other fixed structures 74 (8) - 66 67 (1) 101.5% 416 406 Machinery and equipment 74 (8) - 66 67 (1) 101.5% 416 406 Other machinery and equipment - 40 39 79 79 - 100.0% - 52 Software and other intangible assets Total 96,846 - 654 97,500 97,496 4 100.0% 342,031 334,959

182

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 2.1: Engineering Services 2015/16 2014/15

Sub-Programme: 2.2: Land Care 2015/16 2014/15

183

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 2.3: Land Use Management 2015/16 2014/15

Sub-Programme: 2.4: Disaster Risk Management 2015/16 2014/15

184

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Programme 3: Farmer Support and Development 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Sub programme 4,346 (238) - 4,108 4,108 - 100.0% 4,168 4,167 1 Farmer-Settlement and Development 236,855 187 (969) 236,073 233,822 2,251 99.0% 221,364 221,301 2 Extension and Advisory Services 5,364 51 - 5,415 5,415 - 100.0% 5,135 5,135 3 Food Security

246,565 - (969) 245,596 243,345 2,251 99.1% 230,667 230,602

Economic classification 162,766 (29,682) (969) 132,115 129,865 2,250 98.3% 112,792 112,786 Current payments 42,172 (616) (333) 41,223 40,993 230 99.4% 37,552 37,551 Compensation of employees 33,540 1,401 - 34,941 34,941 - 100.0% 32,309 32,308 Salaries and wages 8,632 (2,017) (333) 6,282 6,052 230 96.3% 5,243 5,244 Social contributions 120,594 (29,066) (636) 90,892 88,853 2,039 97.8% 75,240 75,235 Goods and services 36 518 - 554 554 - 100.0% 665 664 Administrative fees 829 499 - 1,328 1,328 - 100.0% 1,185 1,184 Advertising 1,549 500 - 2,049 2,049 - 100.0% 842 842 Minor assets - 683 - 683 683 - 100.0% 671 671 Bursaries: Employees 1,186 328 - 1,514 1,514 - 100.0% 1,405 1,404 Catering: Departmental activities 657 1,289 - 1,946 1,946 - 100.0% 1,817 1,817 Communication (G&S) - 219 - 219 219 - 100.0% - - Computer services Consultants: Business and advisory 200 4,985 - 5,185 5,185 - 100.0% 3,424 3,423 services - 3,206 - 3,206 3,206 - 100.0% 793 792 Infrastructure and planning services - 1,190 - 1,190 1,190 - 100.0% - - Laboratory services 2 (2) - - - - 0.0% - - Legal services 50,526 (41,489) - 9,037 8,911 126 98.6% 14,747 14,749 Contractors 24,547 (22,387) - 2,160 544 1,616 25.2% 33 33 Agency and support / outsourced services Fleet services (incl. government motor 11,917 (7,750) - 4,167 4,167 - 100.0% 5,690 5,684 transport) Inventory: Clothing material and - 20 - 20 20 - 100.0% - - accessories 185

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2014/15 2015/16

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 8,300 26,177 (636) 33,841 33,544 297 99.1% 27,181 27,179 Inventory: Farming supplies 49 (29) - 20 20 - 100.0% 25 24 Inventory: Food and food supplies 460 1,124 - 1,584 1,584 - 100.0% 1,474 1,474 Inventory: Fuel, oil and gas 1,742 7,116 - 8,858 8,858 - 100.0% 2,680 2,679 Inventory: Materials and supplies - 1 - 1 1 - 100.0% - - Inventory: Medical supplies 8,265 (7,751) - 514 514 - 100.0% 1,160 1,158 Consumable supplies Consumable: Stationery, printing & office 393 (2) - 391 391 - 100.0% 343 343 supplies 1,627 (1,242) - 385 385 - 100.0% 351 351 Operating leases 628 1,427 - 2,055 2,055 - 100.0% 1,581 1,581 Property payments 233 (233) - - - - 0.0% - - Transport provided: Departmental activity 6,209 1,712 - 7,921 7,921 - 100.0% 7,507 7,518 Travel and subsistence 329 616 - 945 945 - 100.0% 813 812 Training and development 639 (27) - 612 612 - 100.0% 456 456 Operating payments 271 139 - 410 410 - 100.0% 253 253 Venues and facilities - 97 - 97 97 - 100.0% 144 144 Rental and hiring - - - - 19 (19) 0.0% - - Interest and rent on land Interest (Incl. interest on unitary payments - - - - 18 (18) 0.0% - - (PPP)) - - - - 1 (1) 0.0% - - Rent on land 50,409 (11,616) - 38,793 38,793 - 100.0% 32,764 32,763 Transfers and subsidies 40,000 (12,937) - 27,063 27,048 15 99.9% 30,870 30,870 Departmental agencies and accounts Departmental agencies (non-business 40,000 (12,937) - 27,063 27,048 15 99.9% 30,870 30,870 entities) 10,400 - - 10,400 10,415 (15) 100.1% - - Public corporations and private enterprises 10,400 - - 10,400 10,415 (15) 100.1% - - Public corporations Other transfers to public 10,400 - - 10,400 10,415 (15) 100.1% - - corporations - 157 - 157 157 - 100.0% 1,562 1,562 Non-profit institutions 9 1,164 - 1,173 1,173 - 100.0% 332 332 Households 9 1 - 10 10 - 100.0% 242 241 Social benefits Other transfers to households - 1,163 - 1,163 1,163 - 100.0% 90 90

186

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 33,390 41,298 - 74,688 74,687 1 100.0% 85,111 85,053 Payments for capital assets Buildings and other fixed - 51,971 - 51,971 51,971 - 100.0% 70,801 70,787 structures - 51,971 - 51,971 51,971 - 100.0% 70,801 70,787 Other fixed structures 33,346 (12,663) - 20,683 20,682 1 100.0% 13,920 13,876 Machinery and equipment - 1,176 - 1,176 1,176 - 100.0% 295 295 Transport equipment Other machinery and 33,346 (13,839) - 19,507 19,506 1 100.0% 13,625 13,581 equipment - 238 - 238 238 - 100.0% 390 390 Biological assets ------0.0% - - Land and sub-soil assets Software and other intangible 44 1,752 - 1,796 1,796 - 100.0% - - assets 246,565 - (969) 245,596 243,345 2,251 99.1% 230,667 230,602

Sub-Programme: 3.1: Farmer-Settlement and Development 2015/16 2014/15

Sub-Programme: 3.2: Extension And Advisory Services 187

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

2015/16 2014/15 Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 153,866 (28,989) (969) 123,908 121,658 2,250 98.2% 105,004 105,000 Compensation of employees 38,950 (1,136) (333) 37,481 37,250 231 99.4% 34,625 34,624 Goods and services 114,916 (27,853) (636) 86,427 84,389 2,038 97.6% 70,379 70,376 Interest and rent on land - - - - 19 (19) 0.0% - - Transfers and subsidies 50,409 (11,616) - 38,793 38,793 - 100.0% 32,591 32,590 Departmental agencies and accounts 40,000 (12,937) - 27,063 27,048 15 99.9% 30,870 30,870 Public corporations and private enterprises 10,400 - - 10,400 10,415 (15) 100.1% - - Non-profit institutions - 157 - 157 157 - 100.0% 1,462 1,462 Households 9 1,164 - 1,173 1,173 - 100.0% 259 259 Payments for capital assets 32,580 40,792 - 73,372 73,371 1 100.0% 83,769 83,711 Buildings and other fixed structures - 51,083 - 51,083 51,083 - 100.0% 70,325 70,311 Machinery and equipment 32,536 (12,281) - 20,255 20,254 1 100.0% 13,444 13,399 Biological assets - 238 - 238 238 - 100.0% - - Software and other intangible assets 44 1,752 - 1,796 1,796 - 100.0% - - Total 236,855 187 (969) 236,073 233,822 2,251 99.0% 221,364 221,301 Sub-Programme: 3.3: Food Security 2015/16 2014/15 Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 4,918 (819) - 4,099 4,099 - 100.0% 3,853 3,852 Compensation of employees 1,067 71 - 1,138 1,139 (1) 100.1% 1,094 1,095 Goods and services 3,851 (890) - 2,961 2,960 1 100.0% 2,759 2,757 Transfers and subsidies ------0.0% 102 102 Non-profit institutions ------0.0% 100 100 Households ------0.0% 2 2 Payments for capital assets 446 870 - 1,316 1,316 - 100.0% 1,180 1,181 Buildings and other fixed structures - 888 - 888 888 - 100.0% 476 475 Machinery and equipment 446 (18) - 428 428 - 100.0% 314 315 Biological assets - - 0.0% 390 390 Total 5,364 51 - 5,415 5,415 - 100.0% 5,135 5,135 Programme 4: Veterinary Services 2015/16 2014/15 188

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Adjusted Shifting of Actual Expenditure as % of final Actual Appropriation Funds Virement Final Appropriation Expenditure Variance appropriation Final Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Sub programme 1 Animal Health 29,649 216 134 29,999 29,665 334 98.9% 28,690 28,689 2 Export Control 1,650 (86) - 1,564 1,562 2 99.9% 870 870 3 Veterinary Public Health 5,358 (131) - 5,227 5,228 (1) 100.0% 4,201 4,201 4 Veterinary Laboratory Services 5,788 1 438 6,227 6,227 - 100.0% 6,873 6,873 42,445 - 572 43,017 42,682 335 99.2% 40,634 40,633

Economic classification 41,723 (812) 572 41,483 41,148 335 99.2% 39,114 39,113 Current payments 30,210 - 134 30,344 30,343 1 100.0% 29,144 29,145 Compensation of employees 25,364 939 134 26,437 26,436 1 100.0% 25,724 25,724 Salaries and wages 4,846 (939) - 3,907 3,907 - 100.0% 3,420 3,420 Social contributions 11,513 (812) 438 11,139 10,805 334 97.0% 9,970 9,969 Goods and services 79 (15) - 64 64 - 100.0% 16 16 Administrative fees 21 (21) - - - - 0.0% - 1 Advertising 98 53 - 151 147 4 97.4% 145 146 Minor assets 70 (6) - 64 64 - 100.0% 15 15 Catering: Departmental activities 367 273 - 640 639 1 99.8% 537 536 Communication (G&S) 20 83 90 193 193 - 100.0% 9 8 Computer services 135 37 150 322 322 - 100.0% 95 95 Laboratory services 200 (57) - 143 (3) 146 -2.1% 493 493 Contractors 19 (3) - 16 16 - 100.0% - - Agency and support / outsourced services Fleet services (incl. government motor 4,730 (1,667) - 3,063 2,875 188 93.9% 3,025 3,018 transport) Inventory: Clothing material and - - - - 1 (1) 0.0% 1 1 accessories 515 (4) - 511 511 - 100.0% 2 1 Inventory: Farming supplies 21 (21) - - - - 0.0% 30 30 Inventory: Fuel, oil and gas 89 (78) - 11 11 - 100.0% 1 1 Inventory: Materials and supplies 2015/16 2014/15

189

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 51 (21) - 30 30 - 100.0% - - Inventory: Medical supplies 310 (17) 25 318 318 - 100.0% 155 156 Inventory: Medicine 15 23 - 38 38 - 100.0% 63 63 Inventory: Other supplies 300 (42) 87 345 349 (4) 101.2% 357 358 Consumable supplies Consumable: Stationery, printing & office 335 (102) 43 276 276 - 100.0% 305 305 supplies 335 (36) - 299 299 - 100.0% 243 243 Operating leases 20 (2) - 18 18 - 100.0% 90 90 Property payments 2,951 966 - 3,917 3,917 - 100.0% 3,690 3,696 Travel and subsistence 303 (185) 35 153 153 - 100.0% 40 40 Training and development 492 14 8 514 514 - 100.0% 641 641 Operating payments 37 16 - 53 53 - 100.0% 17 17 Venues and facilities 230 93 - 323 322 1 99.7% 173 173 Transfers and subsidies - 20 - 20 19 1 95.0% - - Provinces and municipalities - 20 - 20 19 1 95.0% - - Provinces - 20 - 20 19 1 95.0% - - Provincial agencies and funds 230 73 - 303 303 - 100.0% 173 173 Households 230 73 - 303 303 - 100.0% 173 173 Social benefits 492 719 - 1,211 1,211 - 100.0% 1,347 1,347 Payments for capital assets - 1,057 - 1,057 1,086 (29) 102.7% 631 631 Buildings and other fixed structures - 1,057 - 1,057 1,086 (29) 102.7% 631 631 Other fixed structures 492 (338) - 154 125 29 81.2% 661 661 Machinery and equipment 492 (338) - 154 125 29 81.2% 661 661 Other machinery and equipment ------0.0% 55 55 Software and other intangible assets Total 42,445 - 572 43,017 42,682 335 99.2% 40,634 40,633

190

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 4.1: Animal Health 2015/16 2014/15 Expenditure Adjusted Shifting of Final Actual as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 29,157 155 134 29,446 29,112 334 98.9% 28,455 28,454 Compensation of employees 21,014 431 134 21,579 21,579 - 100.0% 21,595 21,595 Goods and services 8,143 (276) - 7,867 7,533 334 95.8% 6,860 6,859 Transfers and subsidies 230 18 - 248 247 1 99.6% 151 151 Provinces and municipalities - 20 - 20 19 1 95.0% - - Households 230 (2) - 228 228 - 100.0% 151 151 Payments for capital assets 262 43 - 305 305 - 100.0% 84 84 Buildings and other fixed structures - 258 - 258 258 - 100.0% 16 16 Machinery and equipment 262 (215) - 47 47 - 100.0% 68 68 Payment for financial assets - - - - 1 (1) 0.0% - - Total 29,649 216 134 29,999 29,665 334 98.9% 28,690 28,689

Sub-programme: 4.2: Export Control 2015/16 2014/15 Expenditure Adjusted Shifting of Final Actual as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 1,629 (479) - 1,150 1,148 2 99.8% 738 739 Compensation of employees 674 (240) - 434 433 1 99.8% 540 540 Goods and services 955 (239) - 716 715 1 99.9% 198 199 Payments for capital assets 21 393 - 414 414 - 100.0% 132 131 Buildings and other fixed structures - 414 - 414 414 - 100.0% 132 131 Total 1,650 (86) - 1,564 1,562 2 99.9% 870 870

191

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 4.3: Veterinary Public Health 2015/16 2014/15

Sub-Programme: 4.4: Veterinary Laboratory Services 2015/16 2014/15

192

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Programme 5: Research and Technology Development Services 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Sub programme 26,698 (167) (2,689) 23,842 23,842 - 100.0% 23,621 23,620 1 Research ------0.0% 4 3 2 Technology Transfer Services 19,505 167 (206) 19,466 19,223 243 98.8% 20,274 20,270 3 Infrastructure Support Services

46,203 - (2,895) 43,308 43,065 243 99.4% 43,899 43,893

Economic classification 43,371 (1,616) (2,895) 38,860 38,617 243 99.4% 38,309 38,304 Current payments 31,012 (984) - 30,028 30,028 - 100.0% 28,603 28,601 Compensation of employees 26,821 (1,746) - 25,075 25,075 - 100.0% 24,306 24,076 Salaries and wages 4,191 762 - 4,953 4,953 - 100.0% 4,297 4,525 Social contributions 12,359 (632) (2,895) 8,832 8,586 246 97.2% 9,706 9,702 Goods and services 170 (94) - 76 76 - 100.0% 294 294 Administrative fees 262 (262) - - - - 0.0% 2 1 Advertising 205 (143) - 62 62 - 100.0% 149 149 Minor assets - 703 - 703 703 - 100.0% 400 401 Audit costs: External 6 (6) - - - - 0.0% - - Bursaries: Employees 318 (290) - 28 28 - 100.0% 23 26 Catering: Departmental activities 564 6 (206) 364 364 - 100.0% 276 276 Communication (G&S) Consultants: Business and advisory 31 224 - 255 255 - 100.0% 300 300 services 399 (305) - 94 94 - 100.0% - - Infrastructure and planning services 68 116 - 184 184 - 100.0% 48 48 Laboratory services 615 19 - 634 634 - 100.0% 980 978 Contractors 922 (30) (867) 25 25 - 100.0% 49 48 Agency and support / outsourced services 21 (21) - - - - 0.0% - - Entertainment Fleet services (incl. government motor 4,230 (638) (1,066) 2,526 2,280 246 90.3% 2,947 2,946 transport) - 88 - 88 88 - 100.0% 3 3 Inventory: Clothing material and 193

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

accessories 2015/16 2014/15 Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Inventory: Farming supplies - 450 - 450 450 - 100.0% 586 585 Inventory: Food and food supplies 15 (14) - 1 1 - 100.0% - - Inventory: Fuel, oil and gas 832 (461) (201) 170 170 - 100.0% 260 260 Inventory: Materials and supplies 730 (42) (555) 133 133 - 100.0% 123 123 Inventory: Medicine 31 23 - 54 54 - 100.0% 165 165 Consumable supplies 713 (560) - 153 153 - 100.0% 219 218 Consumable: Stationery, printing & office 120 (3) - 117 117 - 100.0% 147 146 supplies Operating leases 57 35 - 92 92 - 100.0% 94 94 Property payments 106 464 - 570 570 - 100.0% 241 241 Travel and subsistence 1,467 469 - 1,936 1,936 - 100.0% 2,301 2,303 Training and development 264 (264) - - - - 0.0% 51 51 Operating payments 212 (136) - 76 76 - 100.0% 48 48 Venues and facilities 1 40 - 41 41 - 100.0% - - Interest and rent on land - - - - 3 (3) 0.0% - - Interest (Incl. interest on unitary payments - - - - 3 (3) 0.0% - - (PPP)) Transfers and subsidies 2,600 550 - 3,150 3,150 - 100.0% 3,684 3,684 Departmental agencies and accounts 2,550 503 - 3,053 3,053 - 100.0% 3,350 3,350 Departmental agencies (non-business 2,550 503 - 3,053 3,053 - 100.0% 3,350 3,350 entities) Public corporations and private enterprises ------0.0% 150 150 Private enterprises ------0.0% 150 150 Other transfers to private ------0.0% 150 150 enterprises Households 50 47 - 97 97 - 100.0% 184 184 Social benefits 50 47 - 97 97 - 100.0% 184 184 Payments for capital assets 232 1,066 - 1,298 1,298 - 100.0% 1,906 1,906 Buildings and other fixed structures - 424 - 424 424 - 100.0% 477 477 Other fixed structures - 424 - 424 424 - 100.0% 477 477 Machinery and equipment 232 (50) - 182 182 - 100.0% 274 273 Other machinery and equipment 232 (50) - 182 182 - 100.0% 274 273 Biological assets - 692 - 692 692 - 100.0% 1,155 1,156

194

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

46,203 - (2,895) 43,308 43,065 243 99.4% 43,899 43,893 Sub-Programme: 5.1: Research 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 23,944 (1,369) (2,689) 19,886 19,886 - 100.0% 19,499 19,499 Compensation of employees 14,701 (660) - 14,041 14,041 - 100.0% 13,756 13,756 Goods and services 9,243 (709) (2,689) 5,845 5,845 - 100.0% 5,743 5,743 Transfers and subsidies 2,550 539 - 3,089 3,089 - 100.0% 3,500 3,500 Departmental agencies and accounts 2,550 503 - 3,053 3,053 - 100.0% 3,350 3,350 Public corporations and private enterprises ------0.0% 150 150 Households - 36 - 36 36 - 100.0% - - Payments for capital assets 204 663 - 867 867 - 100.0% 622 622 Buildings and other fixed structures - 29 - 29 29 - 100.0% 96 96 Machinery and equipment 204 (58) - 146 146 - 100.0% 223 223 Biological assets - 692 - 692 692 - 100.0% 303 303 Total 26,698 (167) (2,689) 23,842 23,842 - 100.0% 23,621 23,620

Sub-Programme: 5.2: Technology Transfer Services 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments ------0.0% 4 3 Compensation of employees ------0.0% 2 2 Goods and services ------0.0% 2 1 Total ------0.0% 4 3

195

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 5.3: Infrastructure Support Services 2015/16 2014/15

196

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Programme 6: Agricultural Economics Services 2015/16 2014/15

Sub programme 3,483 61 - 3,544 2,861 683 80.7% 3,421 3,417 1 Agric-Business Support and Development 6,428 (61) (792) 5,575 5,277 298 94.7% 6,318 6,318 2 Macroeconomics Support

9,911 - (792) 9,119 8,138 981 89.2% 9,739 9,735

Economic classification Current payments 9,773 (293) (792) 8,688 7,709 979 88.7% 8,333 8,329 Compensation of employees 7,212 - (783) 6,429 6,004 425 93.4% 6,391 6,390 Salaries and wages 6,289 - (744) 5,545 5,273 272 95.1% 5,686 5,685 Social contributions 923 - (39) 884 731 153 82.7% 705 704 Goods and services 2,561 (293) (9) 2,259 1,705 554 75.5% 1,942 1,940 Administrative fees 29 1 - 30 7 23 23.3% 66 66 Advertising 14 - - 14 - 14 0.0% - - Minor assets 16 1 - 17 17 - 100.0% 24 25 Catering: Departmental activities 25 (17) - 8 8 - 100.0% 20 20 Communication (G&S) 74 (11) - 63 46 17 73.0% 61 62 Consultants: Business and advisory 387 (261) - 126 - 126 0.0% 560 561 services Infrastructure and planning services - 208 - 208 208 - 100.0% 182 182 Contractors 126 (22) (9) 95 178 (83) 187.4% 49 49 Agency and support / outsourced services 245 (245) - - - - 0.0% - - Fleet services (incl. government motor 79 (57) - 22 22 - 100.0% 63 43 transport) Inventory: Farming supplies - 221 - 221 238 (17) 107.7% - - Inventory: Fuel, oil and gas 13 107 - 120 109 11 90.8% - - Consumable supplies 31 (31) - - - - 0.0% 5 5 Consumable: Stationery, printing & office 131 (104) - 27 27 - 100.0% 50 50 supplies Operating leases 9 - - 9 - 9 0.0% 13 13 197

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

562 (562) - - - - 0.0% - - Transport provided: Departmental activity 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Travel and subsistence 688 157 - 845 845 - 100.0% 846 865 Training and development 55 (55) - - - - 0.0% - - Operating payments 57 (56) - 1 - 1 0.0% 1 - Venues and facilities 20 (20) - - - - 0.0% 2 - Rental and hiring - 453 - 453 - 453 0.0% - - Transfers and subsidies - 23 - 23 22 1 95.7% 1,372 1,372 Public corporations and private enterprises ------0.0% 1,372 1,372 Public corporations ------0.0% 1,372 1,372 Other transfers to public corporations ------0.0% 1,372 1,372 Households - 23 - 23 22 1 95.7% - - Social benefits - 23 - 23 22 1 95.7% - - Payments for capital assets 138 270 - 408 407 1 99.8% 34 34 Machinery and equipment 126 282 - 408 407 1 99.8% 34 34 Other machinery and equipment 126 282 - 408 407 1 99.8% 34 34

Total 9,911 - (792) 9,119 8,138 981 89.2% 9,739 9,735

198

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 6.1: Agric-Business Support and Development 2015/16 2014/15

Public corporations and private enterprises ------0.0% 1,372 1,372 Households - 23 - 23 22 1 95.7% - - Payments for capital assets 63 331 - 394 394 - 100.0% - - Machinery and equipment 63 331 - 394 394 - 100.0% - - Total 3,483 61 - 3,544 2,861 683 80.7% 3,421 3,417

Sub-programme: 6.2: Macroeconomics Support 2015/16 2014/15

199

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Programme 7: Rural Development 2015/16 2014/15

Sub programme 12,916 - - 12,916 12,900 16 99.9% 12,278 12,277 1 Rural Development Coordination

12,916 - - 12,916 12,900 16 99.9% 12,278 12,277

Economic classification 12,916 (29) - 12,887 12,871 16 99.9% 12,255 12,254 Current payments 9,021 (650) - 8,371 8,283 88 98.9% 8,107 8,107 Compensation of employees 8,488 (1,276) - 7,212 7,124 88 98.8% 7,597 7,133 Salaries and wages 533 626 - 1,159 1,159 - 100.0% 510 974 Social contributions 3,895 621 - 4,516 4,588 (72) 101.6% 4,148 4,148 Goods and services - 7 - 7 7 - 100.0% 17 17 Administrative fees - 7 - 7 7 - 100.0% - - Advertising - 63 - 63 63 - 100.0% 19 19 Minor assets 8 (8) - - - - 0.0% - - Bursaries: Employees 147 (54) - 93 108 (15) 116.1% 152 152 Catering: Departmental activities 66 (66) - - - - 0.0% - - Communication (G&S) - 528 - 528 541 (13) 102.5% - - Infrastructure and planning services ------0.0% 195 195 Legal services 2,250 (1,109) - 1,141 1,164 (23) 102.0% 1,517 1,517 Contractors Fleet services (incl. government motor 762 (652) - 110 196 (86) 178.2% 414 413 transport) Inventory: Clothing material and - 96 - 96 93 3 96.9% - - accessories - 1,003 - 1,003 998 5 99.5% - - Inventory: Farming supplies 14 (14) - - - - 0.0% - - Inventory: Food and food supplies - 42 - 42 30 12 71.4% 537 537 Inventory: Materials and supplies 56 50 - 106 106 - 100.0% 131 131 Consumable supplies Consumable: Stationery, printing & office 50 5 - 55 55 - 100.0% 3 3 supplies 200

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

34 (34) - - - - 0.0% - - Property payments 2015/16 2014/15

Adjusted Shifting of Final Actual Expenditure as % of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 77 (77) - - - - 0.0% - - Transport provided: Departmental activity 409 813 - 1,222 1,177 45 96.3% 1,137 1,138 Travel and subsistence 22 1 - 23 23 - 100.0% - - Training and development - 19 - 19 19 - 100.0% 21 21 Operating payments ------0.0% - 1 Venues and facilities - 1 - 1 1 - 100.0% 5 5 Rental and hiring ------0.0% 10 10 Transfers and subsidies ------0.0% 10 10 Households ------0.0% 10 10 Social benefits - 29 - 29 29 - 100.0% 13 13 Payments for capital assets - 29 - 29 29 - 100.0% 13 13 Machinery and equipment - 29 - 29 29 - 100.0% 13 13 Other machinery and equipment Total 12,916 - - 12,916 12,900 16 99.9% 12,278 12,277

201

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

APPROPRIATION STATEMENT for the year ended 31 March 2016

Sub-Programme: 7.1: Rural Development Coordination 2015/16 2014/15

202

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2016

1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Actual Variance as a % of Appropriation Expenditure Variance Final Approp. R’000 R’000 R’000 % Farmer Support and Development 245,730 243,467 2,263 0,9%

A significant portion of the unspent funds relate to conditional grants that were committed but not spent. Roll-over of funds were requested. Further savings were realised from the delay in the filling of vacant posts.

Agricultural Economic Services 9,119 8,138 981 10,8%

Unspent funds relate to non-filling of vacant posts as well delays with implementation of agro-processing initiatives.

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2016

Final Actual Variance as a % of 4.2 Per economic classification: Appropriation Expenditure Variance Final Approp. R’000 R’000 R’000 %

Current expenditure

Compensation of employees 193,321 192 575 746 0.4% Goods and services 183,599 180 477 3 122 1.7% Interest and rent on land - 22 (22) - Transfers and subsidies

Provinces and municipalities 74 54 20 27.0% Departmental agencies and accounts 30,116 30 101 15 0.0% Public corporations and private enterprises 10,400 10 415 (15) -0.1% Non-profit institutions 157 157 - 0.0% Households 6,272 6 289 (17) -0.3% Payments for capital assets

Buildings and other fixed structures 109,435 109 464 (29) 0.0% Machinery and equipment 21,768 21 738 30 0.1% Biological assets 930 930 - 0.0% Software and other intangible assets 1,875 1 875 - 0.0% Payments for financial assets - 1 (1) -

Final Actual Variance as a % 4.3 Per conditional grant Appropriation Expenditure Variance of Final Approp. R’000 R’000 R’000 %

DAFF-CASP 135 768 134 127 1 641 1.2% DAFF-Land Care 7 302 7 256 46 0.6% DAFF-Ilima/Letsema 69 460 69 288 172 0.2% Public Works-EPWP Incentive Grant 2 000 1 999 1 0.1%

The unspent funds on the CASP and Ilima/Letsema grant were committed and requested for roll-over to the 2016/17 financial year.

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2016

Note 2015/16 2014/15 R'000 R'000 REVENUE Annual appropriation 1 557,947 776,638

Departmental revenue 2 913 864

TOTAL REVENUE 558,860 777,502

EXPENDITURE Current expenditure Compensation of employees 3 192,575 179,210 Goods and services 4 180,429 198,061 Interest and rent on land 5 22 2

Total current expenditure 373,026 377,273

Transfers and subsidies Transfers and subsidies 7 47,016 41,731

Total transfers and subsidies 47,016 41,731

Expenditure for capital assets Tangible assets 8 132,132 349,809 Intangible assets 8 1,875 561 Total expenditure for capital assets 134,007 350,370

Payment for financial assets 6 1 -

TOTAL EXPENDITURE 554,050 769,374

SURPLUS/(DEFICIT)FOR THE YEAR 4,810 8,128

Reconciliation of Net Surplus/(Deficit) for the year Voted funds 3,897 7,264 Annual appropriation 2,037 200 Conditional grants 1,860 7,064 Departmental revenue and NRF Receipts 913 864

SURPLUS/(DEFICIT) FOR THE YEAR 4,810 8,128

The net surplus reconciliation for the 2014/15 financial year was understated with R65’000 i.e. Annual Appropriation (R61’000) and Conditional Grant (R4’000).

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

STATEMENT OF FINANCIAL POSITION for the year ended 31 March 2016

Note 2015/16 2014/15 R'000 R'000 ASSETS

Current assets 3,014 6,541 Unauthorised expenditure 9 97 97 Cash and cash equivalents 10 1,064 5,812 Prepayments and advances 11 561 - Receivables 12 1,292 632

Non-current assets 4,165 4,215 Receivables 12 4,165 4,215

TOTAL ASSETS 7,179 10,756

LIABILITIES

Current liabilities 4,448 8,036 Voted funds to be surrendered to the Revenue Fund 14 3,897 7,264 Departmental revenue and NRF Receipts to be surrendered to 15 326 772 the Revenue Fund Payables 16 225 -

TOTAL LIABILITIES 4,448 8,036

NET ASSETS 2,731 2,720

Note 2015/16 2014/15

R'000 R'000 Represented by: Capitalisation reserve 23 23 Recoverable revenue 2,708 2,797

TOTAL 2,731 2,720

The Capitalization reserve has been restated for the financial year 2014/15 financial year

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2016

Note 2015/16 2014/15 R'000 R'000

Capitalisation Reserves 23 34,582 Opening balance Transfers: Movement in Equity - (34,559) Closing balance 23 23

Recoverable revenue Opening balance 2,697 2,697 Transfers: 11 - Debts raised 11 - Closing balance 2,708 2,697

TOTAL 2,731 2,720

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

CASH FLOW STATEMENT for the year ended 31 March 2016

Note 2015/16 2014/15 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 560,915 779,451 Annual appropriated funds received 1.1 557,947 776,638 Departmental revenue received 2 2,968 2,802 Interest received 2.2 - 11

Net (increase)/decrease in working capital (946) 3,838 Surrendered to Revenue Fund (10,678) (6,877) Current payments (373,004) (377,271) Interest paid 5 (22) (2) Payments for financial assets (1) - Transfers and subsidies paid (47,016) (41,731) Net cash flow available from operating activities 17 129,248 357,408

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 8 (134,007) (350,370) (Increase)/decrease in investments - - Net cash flows from investing activities (134,007) (350,370)

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets 11 (559) Net cash flows from financing activities 11 (559)

Net increase/(decrease) in cash and cash equivalents (4,748) 6,479

Cash and cash equivalents at beginning of period 5,812 (667)

Cash and cash equivalents at end of period 18 1,064 5,812

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

1. Annual Appropriation

1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for Provincial Departments:

2015/16 2014/15

Funds not Final Actual Funds requested/ Appropriation Appropriation Received not received Final Appropriation received R’000 R’000 R’000 R’000 Administration 106,491 106,491 - 97,370 97,370 Sustainable Resource 97,500 97,500 - 344,711 344,711 Development Farmer Support & Development 245,596 245,596 - 228,410 228,410 Veterinary Services 43,017 43,017 - 39,320 39,320 Research & Development 43,308 43,308 - 45,313 45,313 Agricultural Economics Services 9,119 9,119 - 10,118 10,118 Rural Development 12,916 12,916 - 11,396 11,396 Total 557,947 557,947 - 776,638 776,638

1.2 Conditional grants

Note 2015/16 2014/15 R’000 R’000

Total grants received 214,530 514,665

Conditional grants are included in the amounts per the final appropriation as per note 1.1 above.

2. Departmental revenue

Note 2015/16 2014/15 R’000 R’000

Sales of goods and services other than capital assets 2.1 2,820 2,722 Interest, dividends and rent on land 2.2 9 11 Transactions in financial assets and liabilities 2.3 139 80 Total revenue collected 2,968 2,813 Less: Own revenue included in appropriation 15 (2,055) (1,949) Departmental revenue collected 913 864

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

2.1 Sales of goods and services other than capital assets

Note 2015/16 2014/15 3 R’000 R’000 Sales of goods and services produced by the department 2,820 2,722 Sales by market establishment 580 788 Administrative fees 75 38 Other sales 2,165 1,896

Total 2,820 2,722

2.2 Interest, dividends and rent on land

Note 2015/16 2014/15 2 R’000 R’000 Interest - 11 Rent on land 9 - Total 9 11

2.3 Transaction in financial assets and liabilities Note 2015/16 2014/15 2 R’000 R’000 Receivables 120 74 Stale cheque written back 19 - Other Receivables including Recoverable Revenue - 6 Total 139 80

2.4 Cash received not recognised (not included in the main note)

2015/16 Name of entity Amount received Amount paid to Balance the revenue fund R’000 R’000 R’000

Individuals 26 - 26 Total 26 - 26

Cash received from individuals for the sale of dates.

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

3. Compensation of employees

3.1 Salaries and Wages

Note 2015/16 2014/15 R’000 R’000 Basic salary 133,099 124,208 Performance award 2,485 3,968 Service Based 169 171 Compensative/circumstantial 1,622 1,730 Periodic payments 187 131 Other non-pensionable allowances 27,780 25,223 Total 165,342 155,431

3.2 Social contributions

Note 2015/16 2014/15 R’000 R’000 Employer contributions Pension 16,369 15,168 Medical 10,822 8,571 Bargaining council 42 40 Total 27,233 23,779

Total compensation of employees 192,575 179,210

Average number of employees 605 595

211

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

4. Goods and services

Note 2015/16 2014/15 R’000 R’000

Administrative fees 830 1,284 Advertising 1,656 1,740 Minor assets 4.1 2,643 1,447 Bursaries (employees) 900 1,250 Catering 2,488 1,948 Communication 5,222 5,105 Computer services 4.2 2,203 1,999 Consultants: Business and advisory services 6,398 4,362 Infrastructure and planning services 15,709 5,725 Laboratory services 1,696 143 Legal services 365 978 Contractors 16,370 23,355 Agency and support / outsourced services 1,350 737 Entertainment - 295 Audit cost – external 4.3 4,598 3,374 Fleet services 10,706 13,587 Inventory 4.4 49,731 78,266 Consumables 4.5 3,885 4,414 Operating leases 12,327 11,216 Property payments 4.6 8,681 7,083 Rental and hiring 238 195 Travel and subsistence 4.7 28,476 26,353 Venues and facilities 752 688 Training and development 1,584 1,020 Other operating expenditure 4.8 1,621 1,497 Total 180,429 198,061

4.1 Minor assets

Note 2015/16 2014/15 4 R’000 R’000 Tangible assets 2,638 1,438 Biological assets 1,806 693 Machinery and equipment 832 745 Intangible assets 5 9 Software 5 9 Total 2,643 1,447

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

4.2 Computer services

Note 2015/16 2014/15 4 R’000 R’000 SITA computer services 1,739 1,969 External computer service providers 464 30

Total 2,203 1,999

4.3 Audit cost – External

Note 2015/16 2014/15 4 R’000 R’000 Regularity audits 4,598 3,374 Total 4,598 3,374

4.4 Inventory

Note 2015/16 2014/15 4 R’000 R’000 Clothing material and accessories 615 3 Farming supplies 35,777 71,397 Food and food supplies 86 63 Fuel, oil and gas 3,731 2,669 Materials and supplies 9,053 3,751 Medical supplies 31 - Medicine 395 321 Other supplies 4.4.1 43 62 Total 49,731 78,266

4.4.1 Other supplies Note 2015/16 2014/15 4.4 R’000 R’000 Other 43 62 Total 43 62

213

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

4.5 Consumables

Note 2015/16 2014/15 4 R’000 R’000 Consumable supplies 2,061 2,861 Uniform and clothing 189 512 Household supplies 1,588 591 Building material and supplies - - Communication accessories - - IT consumables - - Other consumables 285 1,758 Stationery, printing and office supplies 1,823 1,553 Total 3,885 4,414

4.6 Property payments

Note 2015/16 2014/15 4 R’000 R’000 Municipal services 7,661 6,907 Property maintenance and repairs Other 1,019 176 Total 8,680 7,083

4.7 Travel and subsistence

Note 2015/16 2014/16 4 R’000 R’000 Local 26,909 25,809 Foreign 1,567 544 Total 28,476 26,353

4.8 Other operating expenditure

Note 2015/16 2014/15 4 R’000 R’000 Professional bodies, membership and subscription fees 21 - Resettlement costs 76 180 Other 1,524 1,317 Total 1,621 1,497

214

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

5. Interest and rent on land

Note 2015/16 2014/15 R’000 R’000 Interest paid 22 2 Total 22 2

6. Payments for financial assets Note 2015/16 2014/15 R’000 R’000 Other material losses written off 6.1 1 - Total 1 -

6.1 Other material losses Note 2015/16 2014/15 6 R’000 R’000 Nature of other material losses Incident Unpaid cheque 1 - Total 1 -

7. Transfers and subsidies

2015/16 2014/15 R’000 R’000 Note Provinces and municipalities 54 - Departmental agencies and accounts Annex 1A 30,102 34,220 Public corporations and private enterprises Annex 1B 10,415 1,522 Non-profit institutions Annex 1C 157 1,562 Households Annex 1D 6,288 4,427 Total 47,016 41,731

Included in the Province and Municipalities is an amount paid to municipalities for licence fees and penalties.

215

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

8. Expenditure for capital assets

Note 2015/16 2014/15 R’000 R’000 Tangible assets 132,132 349,809 Buildings and other fixed structures 32 109,465 332,111 Machinery and equipment 30 21,737 16,152 Biological assets 30 930 1,546

Intangible assets Software 31 1,875 561

Total 134,007 350,370

8.1 Analysis of funds utilised to acquire capital assets – 2015/16

Voted funds Total

R’000 R’000 Tangible assets 132,132 132,132 Buildings and other fixed structures 109,465 109,465 Machinery and equipment 21,737 21,737 Biological assets 930 930

Intangible assets Software 1,875 1,875

Total 134,007 134,007

8.2 Analysis of funds utilised to acquire capital assets – 2014/15

Voted funds Total R’000 R’000

Tangible assets 349,809 349,809 Buildings and other fixed structures 332,111 332,111 Machinery and equipment 16,153 16,153 Biological assets 1,545 1,545

Intangible assets 561 561 Software 561 561

Total 350,370 350,370

216

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditure Note 2015/16 2014/15 R’000 R’000 Opening balance 97 97 Prior period error - Closing balance 97 97

Analysis of awaiting authorisation per economic classification Capital Current 97 Transfers and subsidies Total 97

9.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification

2015/16 2014/15 R’000 R’000 Capital Current 97 97 Transfers and subsidies - - Total 97 97

9.3 Analysis of unauthorised expenditure awaiting authorisation per type

2015/16 2014/15 R’000 R’000 Unauthorised expenditure relating to overspending of the vote or a main division within a vote 97 97 Total 97 97

10. Cash and cash equivalents

Note 2015/16 2014/15 R’000 R’000 Consolidated Paymaster General Account 1,050 5,753 Cash receipts - 47 Cash on hand 14 12 Total 1,064 5,812

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

11. Prepayments and advances Note 2015/16 2014/15 R’000 R’000 Travel and subsistence (1) - Prepayments (Not expensed) 11.1 562 - Total 561 -

11.1 Prepayments (Not expensed) Note 2015/16 2014/15 11 R’000 R’000 Goods and services Interest and rent on land Transfers and subsidies Capital assets Other 562 - Total 562 -

Prepayments (Not expensed) refers to advances paid to departmental projects

12. Receivables

2015/16 2014/15 Current Non- Total Current Non- Total current current Note R’000 R’000 R’000 R’000 R’000 R’000 Claims recoverable 12.1 1,161 - 1,161 550 - 550 Recoverable expenditure 12.2 123 299 374 64 190 254 Other debtors 12.3 8 3,866 3,871 18 4,025 4,043 Total 1,292 4,165 5,409 632 4,215 4,847

12.1 Claims recoverable Note 2015/16 2014/15 12 and Annex 4 R’000 R’000 National departments 654 530 Provincial departments 487 - Private enterprises 20 20 Total 1,161 550

12.2 Recoverable expenditure (disallowance accounts) Note 2015/16 2014/15 12 R’000 R’000

Disallowance Miscellaneous 422 254 Total 422 254

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

12.3 Other debtors Note 2015/16 2014/15 12 R’000 R’000

Debt Account 3,858 3,906 Blombol Flower Bulb - 119 Tax debt 3 3 Dishoured cheque - 1 Pension recoverable - 6 Claims recoverable 8 8 Receipt Deposit control Account 2 - Income Tax 3 - Total 3,874 4,043

13. Investments

Note 2015/16 2014/15 R’000 R’000 Non-Current Shares and other equity Nocal (Equity) - - Kalahari Kid Corporation - - Nieuwoudt (Pty) Ltd (104 Ordinary Shares) - - @ R1.00 per Share) Total - -

2015/16 2014/15 R’000 R’000 Analysis of non-current investments Opening balance - 34,000 Additions in cash - - Disposals for cash - - Non-cash movements - (34,000) Closing balance - -

The department wrote off the R34 Million investment in Edugain 62(Pty) Ltd Nocal. This was a non cash transaction as no economic benefit of service potential can be realised. Kalahari Kid Corporation is no longer a private entity but a public entity and therefore the department hold no shares in this entity. It is listed a public entity.

219

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

14. Voted funds to be surrendered to the Revenue Fund

Note 2015/16 2014/15 R’000 R’000 Opening balance 7,264 4,984 Transfer from statement of financial performance (as restated) 3,849 7,264 Paid during the year (7,264) (4,984) Closing balance 3,897 7,264

15. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

Note 2015/16 2014/15 R’000 R’000 Opening balance 772 (148) As restated 772 (148) Transfer from Statement of Financial Performance 913 864 (as restated) Own revenue included in appropriation 2,055 1,949 Paid during the year (3,414) (1,893) Closing balance 326 772

16. Payables – current

Note 2015/16 2014/15

R’000 R’000

Clearing accounts 16.1 225 - Total 225 -

The department is administering the payment for CETA learnership.

16.1 Clearing accounts Note 2015/16 2014/15 16 R’000 R’000 CETA 225 - Total 225 -

220

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

17. Net cash flow available from operating activities

Note 2015/16 2014/15 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance 4,810 8,128 Add back non cash/cash movements not deemed operating 124,438 349,280 activities (Increase)/decrease in receivables – current (610) 3,210 (Increase)/decrease in prepayments and advances (561) 628 Increase/(decrease) in payables – current 225 - Expenditure on capital assets 134,007 350,370 Surrenders to Revenue Fund (10,678) (6,877) Own revenue included in appropriation 2,055 1,949 Net cash flow generated by operating activities 129,248 357,408

18. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2015/16 2014/15 R’000 R’000 Consolidated Paymaster General account 1,050 5,753 Cash receipts - 47 Cash on hand 14 12 Total 1,064 5,812

19. Contingent liabilities and contingent assets

19.1 Contingent liabilities

Note 2015/16 2014/15 R’000 R’000 Liable to Nature Claims against the department Annex 3B 2,907 2,300 Intergovernmental payables (unconfirmed balances) Annex 5 - 11 Total 2,907 2,311

19.2 Contingent assets

Note 2015/16 2014/15 R’000 R’000 Department vs. Martin: Application for Eviction 500 300 Total 500 300

221

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

20. Commitments

Note 2015/16 2014/15 R’000 R’000 Current expenditure 30,896 15,608 Approved and contracted 30,896 6,810 Approved but not contracted - 8,798

Capital expenditure 9,874 5,047 Approved and contracted 9,874 5,047 Approved but not yet contracted

Total Commitments 40,770 20,655

The comparative amounts for the commitments have been restated after being verified.

21. Accruals and payables not recognised

21.1 Accruals 2015/16 2014/15 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 7,046 3,961 11,007 8,205 Transfers and subsidies - - - 356 Capital assets - 8,381 8,381 1,883 Total 7,046 12,342 13,388 10,444

Note 2015/16 2014/15 R’000 R’000 Administration 8,311 6,497 Sustainable Resource Management 5,887 136 Farmer Support & Development 4,776 2,726 Veterinary Services 169 771 Technological Research & Development 138 105 Agricultural Economics 107 208 Rural Development & Farmer Settlement - 1 Total 19,388 10,444

The comparative amounts for the accruals have been restated after being verified.

222

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

2.1.2 Payables not recognised

2015/16 2014/15 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 295 1,439 1,734 - Capital assets 7 1,791 1,798 - Total 302 3,230 3,532 -

Note 2015/16 2014/15 R’000 R’000 Listed by programme level Administration 455 - Sustainable Resource Management 1,438 - Farmer Support & Development 1,022 - Veterinary Services 331 - Research & Technology Development 263 - Rural Development 23 - Total 3,532 -

Note 2015/16 2014/15 R’000 R’000 Confirmed balances with other departments Annex 5 3,093 - Confirmed balances with other government entities Annex 5 432 - Total 3,525 -

22. Employee benefits

Note 2015/16 2014/15 R’000 R’000 Leave entitlement 7,439 7,640 Service bonus (Thirteenth cheque) 5,439 5,018 Performance awards 2,476 2,338 Capped leave commitments 5,044 5,562 Other 195 169 Total 20,593 20,727 1. Included in “Other” is an amount related to Long Service awards for officials working more than 15 years. 2. Included in the leave entitlement amount is amount for negative leave credits to the total amount of R 76,025.85

223

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

23. Lease commitments

23.1 Operating leases expenditure

Buildings Specialised and other Machinery military fixed and 2015/16 equipment Land structures equipment Total Not later than 1 year - - 4,008 341 4,349 Later than 1 year and not later than 5 - - 734 - 734 years Later than five years - - - - - Total lease commitments - - 4,742 341 5,083

Buildings Specialised and other Machinery military fixed and 2014/15 equipment Land structures equipment Total Not later than 1 year - - 9,576 506 10,082 Later than 1 year and not later than 5 - - 4,742 341 5,083 years Later than five years - - - - - Total lease commitments - - 14,318 847 15,165

The department leases machinery and buildings on operating leases with no restrictions. No assets are being sub-leased. The machinery is leased for a fixed term with no option to extend for additional period with escalation in the second period.

The Operating leases commitment has been restated for 2014/15 financial year by R 1,380 million.

23.2 Finance leases expenditure

Buildings Specialised and other Machinery military fixed and 2015/16 equipment Land structures equipment Total Not later than 1 year - - - 3,557 3,557 Later than 1 year and not later than - - - 2,290 2,290 5 years Later than five years - - - - - Total lease commitments - - - 5,847 5,847

224

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

2014/15 Specialised Buildings Machinery military and other and equipment Land fixed equipment Total structures Not later than 1 year - - - 8,894 8,894 Later than 1 year and not later than - - - 3,753 3,753 5 years Later than five years - - - - - Total lease commitments - - - 12,647 12,647

The finance lease commitment includes motor vehicles that the department leases from Fleet Trading Entity.

The Finance leases commitment has been restated for 2014/15 financial year by R1, 946 million

23.3 Operating lease revenue

Buildings and Specialised other fixed Machinery military structures and 2015/16 equipment Land equipment Total Not later than 1 year - - 75 - 75 Later than 1 year and not later - - - - - than 5 years Later than five years - - - - - Total operating lease revenue - - 75 - 75 receivable

Buildings Specialised and other Machinery military fixed and 2014/15 equipment Land structures equipment Total Not later than 1 year - - 95 - 95 Later than 1 year and not later - - 75 - 75 than 5 years Later than five years - - - - - Total operating lease revenue - - 170 - 170 receivable

225

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

24. Accrued departmental revenue Note 2015/16 2014/15 R’000 R’000 Sales of capital assets 650 650 Total 650 650

24.1 Analysis of accrued departmental revenue Note 2015/16 2014/15 R’000 R’000 Opening balance 650 739 Less: amounts received - 89 Add: amounts recognised - - Closing balance 650 650

The department entered into Non-cash SWAP Agreement for veterinary mobile clinic procurement in 2013/14 financial year and that resulted in prior year period error for 2014/15 financial year as reinstated.

25. Irregular expenditure

25.1 Reconciliation of irregular expenditure

Note 2015/16 2014/15 R’000 R’000 Opening balance 22,030 13,009 Prior period error - - As restated 22,030 13,009 Add: Irregular expenditure – relating to prior year 71,141 9,021 Add: Irregular expenditure – relating to current year 37,170 - Closing balance 130,341 22,030

Analysis of awaiting condonation per age classification Current year 37,170 9,021 Prior years 93,171 13,009 Total 130,341 22,030

The R71,141 million irregular expenditure identified relates to the 2014/15 financial year and is as a result of the investigations for non-compliance that was underway as stated in the 2014/15 Annual Financial Statements. The figure disclosed under current financial year of 2015/16 is under investigation for compliance to supply chain procedures as a result of total population being investigated. The adjustments might be finalised during the audit period.

25.2 Details of irregular expenditure – current year

226

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

Incident Disciplinary steps taken/criminal proceedings 2015/16 R’000 Non-compliance with SCM procedures None 37,170 Total 37,170

26. Fruitless and wasteful expenditure

26.1 Reconciliation of fruitless and wasteful expenditure

Note 2015/16 2014/15 R’000 R’000 Opening balance 2,618 2,625 Prior period error (9) As restated 2,618 2,616 Fruitless and wasteful expenditure – relating to prior year Fruitless and wasteful expenditure – relating to current year 62 2 Closing balance 2,680 2,618

26.2 Analysis of awaiting resolution per economic classification

2015/16 2014/15 R’000 R’000 Current 665 625 Capital 1,993 1,993 Transfer and subsidies 22 - Total 2,680 2,618

26.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings 2015/16 R’000

Interest on overdue accounts None 21 Penalties 22 Accommodation no show 1 Vehicle damages 18 Total 62

227

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

26.4 Prior period error

Note 2015/16 R’000 Nature of prior period error (9) Fruitless expenditure related to interest on overdue (9) accounts, that was condoned in May 2014 and erroneously not included in the AFS for 2014/15 Total prior period errors (9)

27. Related party transactions

Payments made Note 2015/16 2014/15 R’000 R’000 Transfers 10,415 - Total 10,415 -

Kalahari Kid is a public entity of the department Nieuwoudtville Rooibos is the private company of the department

28. Key management personnel No. of 2015/16 2014/15 Individuals R’000 R’000 Political office bearers (provide detail below) 1 1,902 1,927 Officials: Level 15 1 1,458 1,362 Level 14 (incl. CFO if at a lower level) 5 5,365 5,141 Total 8,725 8,430

29. Provisions Note 2015/16 2014/15 R’000 R’000 Microsoft 164 164 Total 164 164

228

DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

29.1 Reconciliation of movement in provisions – 2015/16 Provision Total provisions Microsoft licence R’000 R’000 Opening balance 164 164 Closing balance 164 164

Reconciliation of movement in provisions – 2014/15 Provision Microsoft Total Licence provisions R’000 R’000 Opening balance 164 164 Closing balance 164 164

The provision of R164’000 is related to unpaid Microsoft licences for users in the department and outflow of economic benefits will only be established once confirmed.

30. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 103,396 - 32,931 20,636 115,561 Transport assets 37,223 - 7,975 603 44,595 Computer equipment 17,203 - 427 149 17,481 Furniture and office equipment 13,798 - 128 28 13,899 Other machinery and equipment 35,172 - 24,400 19,856 39,716

BIOLOGICAL ASSETS 3,454 - 930 1,723 2,661 Biological assets 3,454 - 930 1,723 2,661

TOTAL MOVABLE TANGIBLE 106,850 - 33,861 22,359 118,352 CAPITAL ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

Movable Tangible Capital Assets under investigation

Number Value R’000 Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: Machinery and equipment 2,693 21,531

At time of finalising the financial statements, included in the amount of R21,531 million, assets amounting to R19, 620 million could not reconciled between the old asset register and the assets found from the physical verification process. Further investigations will continue in the 2016/17 financial year. Mechanization assets amounting R 1,494 million distributed to projects have not been verified and further investigations will continue in 2016/17 financial year.

Two trucks amounting R0, 417 million are under legal investigation.

30.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Cash Non-cash (Capital Work Received Total in Progress current, not current costs paid and finance (Paid current lease year, received payments) prior year) R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 21,875 11,046 - 10 32,931 Transport assets 1,176 6,799 - - 7,975 Computer equipment 427 - - - 427 Furniture and office equipment 129 - - - 129 Other machinery and equipment 20,143 4,247 - 10 24,400

BIOLOGICAL ASSETS 930 - - - 930 Biological assets 930 - - - 930

TOTAL ADDITIONS TO MOVABLE TANGIBLE 22,805 11,046 - 10 33,861 CAPITAL ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

30.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Sold for cash Non-cash Total Cash disposal disposals Received Actual R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT - 20,636 20,636 - Transport assets - 603 603 - Computer equipment - 149 149 - Furniture and office equipment - 28 28 - Other machinery and equipment - 19,856 19,856 -

BIOLOGICAL ASSETS - - Biological assets - (1,723) (1,723) -

TOTAL DISPOSAL OF MOVABLE TANGIBLE - 22,359 22,359 - CAPITAL ASSETS

30.3 Movement for 2014/15

MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 107,478 (5,139) 16,153 15,096 103,396 Transport assets 39,012 (306) 295 1,778 37,223 Computer equipment 16,801 (824) 1,226 - 17,203 Furniture and office equipment 15,562 (2,402) 729 91 13,798 Other machinery and equipment 36,103 (1,607) 13,903 13,227 35,172

BIOLOGICAL ASSETS 3,111 (813) 1,546 390 3,454 Biological assets 3,111 (813) 1,546 390 3,454

TOTAL MOVABLE TANGIBLE 110,589 (5,952) 17,699 15,486 106,850 CAPITAL ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

30.3.1 Prior period error

Note 2015/16 R’000 Nature of prior period error Relating to 2014/15 (5,952) Other machinery and equipment (5,139) Biological Assets (813) Total prior period errors (5,952)

30.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 357 - 2,680 4,912 7,949 Value adjustments - (56) - (1,500) 2,475 919 Additions - 5 - 1,550 3,876 5,431 Disposals - - - 310 3,006 3,316 TOTAL MINOR - 306 - 2,420 8,257 10,983 ASSETS

Included in additions of R1, 550M is an amount of R0, 719M that relates to non-cash transfers into the asset register. Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment Number of R1 minor - - - 7,536 - 7,536 assets Number of minor - 306 - 8,817 7,748 16,871 assets at cost TOTAL NUMBER OF - 306 - 16,353 7,748 24,407 MINOR ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

Minor Capital Assets under investigation Number Value R’000 Included in the above total of the minor capital assets per the asset register are assets that are under investigation: Machinery and equipment 5 14

At time of finalising the financial statements these assets could not reconciled between the old asset register and the assets found from the physical verification process. Further investigations will continue in the 2016/17 financial year.

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2015

Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 348 - 1,935 4,383 6,666 Prior period error ------Additions - 9 - 745 1,383 2,137 Disposals - - - - 854 854 TOTAL MINOR - 357 - 2,680 4,912 7,949 ASSETS

Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment Number of R1 minor - - - 6,750 - 6,750 assets Number of minor - 118 - 8,563 5,041 13,722 assets at cost TOTAL NUMBER OF MINOR - 118 - 15,313 5,041 20,472 ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

30.4.1 Prior period error Note 2015/16 R’000 Nature of prior period error Relating to 2014/15 [affecting the opening balance] 919 Software and Intangible Assets (56) Biological Assets 2,475 Machinery and Equipment (1,500) Relating to 2015/16 - Total prior period errors 919

Prior error relates to 2013/14 theft of camera which was not deducted in the asset register and this is the correction thereof.

30.5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2016 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Assets written off ------TOTAL ------MOVABLE ASSETS WRITTEN OFF

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2015 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Assets written off ------TOTAL ------MOVABLE ASSETS WRITTEN OFF

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

31. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 R’000

SOFTWARE 6,368 - 1,875 5,174 3,069 TOTAL INTANGIBLE CAPITAL ASSETS 6,368 - 1,875 5,174 3,069

31.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Cash Non-Cash (Develop- Received Total ment work in current year, progress – not paid current (Paid current costs) year, received prior year) R’000 R’000 R’000 R’000 R’000

SOFTWARE 1,875 - - - 1,875

TOTAL ADDITIONS TO INTANGIBLE 1,875 - - - 1,875 CAPITAL ASSETS

31.2 Disposals

DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Sold for Non-cash Total Cash cash disposal disposals Received Actual R’000 R’000 R’000 R’000

SOFTWARE - 5,174 5,174 - TOTAL DISPOSALS OF INTANGIBLE - 5,174 5,174 - CAPITAL ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

31.3 Movement for 2014/15

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000

SOFTWARE 8,659 (2,852) 561 - 6,368 TOTAL INTANGIBLE CAPITAL ASSETS 8,659 (2,852) 561 - 6,368

31.3.1 Prior period error

Note 2014/15 R’000 Nature of prior period error Microsoft licences which expired in prior financial years (2,852) (2,852)

Total prior period errors (2,852)

32. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED 2,860 - 109,465 109,465 2,860 STRUCTURES Other fixed structures 2,860 - 109,465 109,465 2,860

TOTAL IMMOVABLE TANGIBLE 2,860 - 109,465 109,465 2,860 CAPITAL ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

32.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Cash Non-cash (Capital Work Received Total in Progress current, not current costs paid and finance (Paid current lease year, received payments) prior year) R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED 109,465 - - - 109,465 STRUCTURES Other fixed structures 109,465 - - - 109,465

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 109,465 - - - 109,465

32.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Sold for cash Non-cash Total Cash disposal disposals Received Actual R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED - 109,465 109,465 - STRUCTURES Dwellings - - - - Non-residential buildings - - - - Other fixed structures - 109,465 109,465 -

TOTAL DISPOSALS OF IMMOVABLE - 109,465 109,465 - TANGIBLE CAPITAL ASSETS

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DEPARTMENT OF AGRICULTURE,LAND REFORM AND RURAL DEVELOPMENT VOTE12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

32.3 Movement for 2014/15

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED 7,713 - 332,111 336,964 2,860 STRUCTURES Other fixed structures 7,713 - 332,111 336,964 2,860

TOTAL IMMOVABLE TANGIBLE 7,713 - 332,111 336,964 2,860 CAPITAL ASSETS

Assets subjected to transfer in terms of S42 of the PFMA – 2014/15

Number of Value of assets assets R’000

BUILDINGS AND OTHER FIXED 2 2,860 STRUCTURES Non-residential buildings 2 2,860

TOTAL 2 2,860

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

33. STATEMENT OF CONDITIONAL GRANTS RECEIVED

GRANT ALLOCATION SPENT 2014/15

% of

Division of Amount available Division Amount Revenue Act/ received Amount Under / funds of spent by NAME OF Provincial Roll DORA Other Adjust- Total by spent by (Overspending spent by Revenue departme DEPARTMENT Grants Overs Adjust-ments ments Available depart-ment depart-ment ) depart-ment Act nt R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

DAFF- CASP 135,768 - - - 135,768 135,768 134,127 1,641 99% 380,339 380,076 DAFF- Land Care 7,302 - - - 7,302 7,302 7,256 46 99% 7,462 7,451 DAFF- 69,460 - - - 69,460 69,460 69,288 172 100% 74,762 74,760 Illima/Letsema Public Works – EPWP Incentive 2,000 - - - 2,000 2,000 1,999 1 100% 2,102 2,102 Provincial Disaster ------50.000 43,212 TOTAL 214,530 - - - 214,530 214,530 212,670 1,860 - 514,665 507,605

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 1A STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

TRANSFER ALLOCATION TRANSFER 2014/15 % of Adjusted Roll Total Actual Available funds Appropriation Appro-priation Overs Adjust-ments Available Transfer Transferred Act DEPARTMENT/ AGENCY/ ACCOUNT R’000 R’000 R’000 R’000 R’000 % R’000

Kalahari Kid Corporation (KKC) 2.550 - 503 3,053 3,053 - 3,350 National Agricultural Marketing Council(NAMC) 40,000 - (12,951) 27,049 27,049 - 30,870 TOTAL 42,550 - (12,448) 30,102 30,102 - 34,220

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 1B STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

TRANSFER ALLOCATION EXPENDITURE 2014/15 Adjusted % of NAME OF PUBLIC Appro-priation Roll Total Actual Available funds Appropriation CORPORATION/PRIVATE Act Overs Adjustments Available Transfer Transferred Capital Current Act ENTERPRISE R’000 R’000 R'000 R'000 R'000 % R'000 R'000 R'000

Private Enterprises Nieuwoudtville Rooibos (Pty) Ltd 10,400 - - 10,400 10,415 100.1% 10,415 - 1,522 TOTAL 10,400 - - 10,400 10,415 100.1% 10,415 - 1,522

The transfer payment to Nieuwoudtville Rooibos (Pty) Ltd was for the extraction plant

241

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 1C STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

TRANSFER ALLOCATION EXPENDITURE 2014/15 Adjusted % of Appro-priation Total Actual Available funds Appropriation

Act Roll overs Adjust-ments Available Transfer transferred Act NON-PROFIT INSTITUTIONS R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Karoo Development Foundation 157 - - 157 157 100% 950 Nomalanga Trust ------512 Siyafunda Community Project ------100 TOTAL 157 - - 157 157 - 1,562

Transfer to Karoo Development Foundation was for the Karoo Meat of Origin initiative Transfer to the Nomalanga Trust relates to support to farmers that acquired land through the Pro–Active Land Acquisition Strategy (PLAS). Transfer to the Siyafunda Community Project was particular to support their initiatives as a public benefit organisation in supporting youth and woman in agriculture

242

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 1D STATEMENT OF TRANSFERS TO HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2014/15 Adjusted % of Appro- Appro-priation Roll Total Actual Available funds priation

Act Overs Adjust-ments Available Transfer Transferred Act HOUSEHOLDS R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Leave gratuity - - 1,069 1,069 1,069 100% 608 Bursaries to non-employees 3,000 - 3,000 2,851 95% 3,560 Assistance to communities 200 - 1,168 1,368 1,368 100% 260 Claims against the State - - 1,000 1,000 1,000 100% - TOTAL 3,200 - 3,237 6,437 6,288 - 4,428

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 2A STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITIES

State Entity’s Number of shares Net Asset value of Profit/(Loss) for the PFMA Schedule held Cost of investment investment year Losses type (state year- R’000 R’000 R’000 guarantee Name of Public end if not 31 % Held % Held Entity March) 15/16 14/15 2015/16 2014/15 2014/16 2014/15 2015/16 2014/15 215/16 2014/15 Yes/No Provincial Public Entity Kalahari Kid Corp Schedule 3C 100% 100% 7,000 7,000 ------Subtotal 100% 100% 7,000 7,000 ------

TOTAL 100% 100% 7,000 7,000 ------

The Department holds 7000 shares @ R0,01 per share in Kalahari Kid Corporation.

244

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 3A STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016 Opening Balance Liabilities incurred during Liabilities Liabilities recoverable Closing Balance the year paid/cancelled/reduced during (Provide details 1 April 2016 the year hereunder) 31 March 2016 Nature of Liability R’000 R’000 R’000 R’000 R’000 Claims against the department Blue Sands Trading 819 cc 2,000 - - - 2,000 Pemberley Investment (Pty) - 270 - - 270 Limited Dept of Roads & Public Works - 637 - - 637 TOTAL 2,000 907 - - 2,907

245

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12 ANNEXURE TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 4 CLAIMS RECOVERABLE

Cash in transit at year end Confirmed balance outstanding Unconfirmed balance outstanding Total 2015/16 * Receipt date Government Entity up to six (6) working days 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 after year end Amount R’000 R’000 R’000 R’000 R’000 R’000 R’000 Department National Dept of Agriculture, 593 - - 469 593 469 - - Fisheries & Forestry KZN Dept of Agriculture,& 61 - - 61 61 61 - - Environment Affairs NC Department of Education 487 - - - 487 - - - Dept of Internal Relations & Co 48 - - - 48 - - - operations TOTAL 1,189 - - 530 1,189 530 - -

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DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 5 INTER-GOVERNMENT PAYABLES

Unconfirmed balance Cash in transit at year end Confirmed balance outstanding outstanding TOTAL 2015/16 Payment date up to six (6) GOVERNMENT ENTITY working days before year 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 end Amount R’000 R’000 R’000 R’000 R’000 R’000 R’000 DEPARTMENTS Current Government Printing - - - 11 - 11 - - Dept of Roads & Public Works 2,986 - - 2,986 - - - Dept of Justice & Constitutional 107 - - - 107 - - Development - TOTAL 3,093 - - 11 3,093 11 - -

OTHER GOVERNMENT ENTITY Current

Municipalities 432 - - - 432 - - - TOTAL 432 - - - 432 - - -

247

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT VOTE 12

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

ANNEXURE 6 INVENTORIES

Note Quantity 2015/16 Quantity 2014/15 Inventory [Per major category] R’000 R’000 Opening balance - 34,486 - 4,918 Add/(Less): Adjustments to prior year balance - (34,486) - (4,918) Add:Additions/Purchases - Cash - 49,732 - 78,266 Add:Additions - Non-cash - - - - (Less): Disposals - - - - (Less): Issues - (48,482) - (43,780) Add/(Less): Adjustments - - - - Closing balance - 1,250 - 34,486

Quantities comprise several different units of measurement such as litres, kilograms, boxes, bags etc. and thus could not be assimilated.

248