Directorate: Communal Property Institutions, Private Bag X833, PRETORIA, 0001 Tel: (012) 312 8245, Fax: (012) 312 9441
REPORT ON RAMA COMMUNAL PROPERTY ASSOCIATION
DIRECTOR GENERAL
1. PURPOSE
To provide a report on the steps taken by various offices of the Department of Rural Development and Land Reform to resolve the problems of Rama Communal Property Association (CPA).
2. BACKGROUND
Rama community lodged a restitution claim at the Gauteng and North West Regional Land Claims Commission, which was settled in 2002. Portion 2 of the farm Wildebeeshoek 309 JR, Akasia, Pretoria North, Gauteng measuring 430,4474ha and Remaining Extent of the farm Kafferskraal 308 JR, Akasia, Pretoria North, Gauteng measuring 323,9503ha in extent were approved for acquisition, as part of that settlement. The Community opted to register a Communal Property Association to acquire, hold and manage land on behalf of its members. The community of Rama are part of Bakgatla ba Mmakau and subjects of Chief Basabasa Motsepe.
3. DISCUSSION
3.1. SETTLEMENT
The approved Section 42D memorandum required the community to register a Communal Property Association. Such an entity was duly registered on 23 May 2002. The land that was approved for transfer to the claimants is approximately 754,4003ha in extent, valued at R15 087 952.
3.2. COMPLIANCE WITH CPA ACT
Every registered CPA is required to comply with the provisions of the CPA Act, the Regulations and its Constitution. This includes the requirement for each CPA to report to the Director-General on their activities. In terms of the Rama REPORT ON RAMA COMUNAL PROPERTY ASSOCIATION
CPA constitution the Executive committee holds office for a period of five (5) years. When the CPA was registered in 2002 the following people were elected to serve as the executive committee of the Rama CPA: Ramatiyane Simon Poo, Goitsemang Poo, Lameck Pila, Kgomotso Matsomela, Jacobeth Sebati, Simon Peto, Peter Sekgothe and Berlina Kgomotso Podile. The term of office of this committee expired on 23 May 2007.
Since the inception of the first elected committee there have been no new elections as required by their CPA constitution. Similarly no reports were submitted by the committee to the Director-General, as required by the Act and Regulations.
3.3. CHALLENGES
3.3.1. An attempt by the Chairperson to remove the Treasurer caused a rift between supporters of the Chairperson and those of the Treasurer. Accusations of embezzlement of funds have been levelled against some CPA executive committee members. The executive committee was unable to fully execute its functions because of this infighting.
3.3.2. In June 2006, the Department enlisted the services of Bathupi Business Enterprises to inspect the books of the CPA. Bathupi found that the committee does not properly account to the members.
3.3.3. On 13 September 2006, Ngubane and Company audited the books of the CPA for the period 2003, 2004 and 2005 and found that there was wasteful and fruitless expenditure.
3.3.4. The CPA’s failure to submit its annual report to the Director-General hampers the department’s ability to monitor the extent to which it complies with the provisions of the CPA Act and its constitution.
3.4. INTERVENTION
3.4.1. Initially, the Department tried to mediate the dispute internally through its officials. After failing to resolve the dispute internally the Department enlisted the services of the Tokiso Dispute Settlement Organisation, a specialist mediation service provider. Their mediation efforts did not yield positive results.
3.4.2. In 2006 Mr Mans Carl Ntsoko, a member of the Rama CPA, requested the intervention of the Director-General in resolving the disputes amongst CPA members. This was followed by numerous meetings between the Rama CPA members, the Gauteng and North West Regional Land Claims Commission officials and the CPA committee.
3.4.3. In 2008, the Gauteng and North West Regional Land Claims Commission officials instituted proceedings for placing the CPA under administration. That REPORT ON RAMA COMUNAL PROPERTY ASSOCIATION
application was dismissed with costs on the grounds that the deponent to the founding affidavit did not have locus standi to bring such an application.
4. STATUS QUO
4.1. A new application was filed in 2012 seeking an order to place the CPA under judicial administration. That application was accompanied by a rule nisi requesting the court to instruct the CPA to hand over its books to the Department for auditing.
4.2. The rule nisi application was granted and the CPA books were attached by the sheriff. However the bank refused to release the CPA bank statements to Department on the basis that the rule nisi order does not require the bank to release any CPA documents.
4.3. After consultation with its lawyers on 20 April 2015, the Department is in the process of supplementing the original rule nisi order to instruct the bank to release bank statements. The order will enable Sizwe Ntsaluba Gobodo Auditors to finalize their audit of CPA books.
4.4. During the consultation with the lawyers, it was discovered that after the rule nisi application was granted, the lawyers for the CPA executive committee have obtained an order through what appears to misrepresentation of facts to court and the lawyers for the Department are also working on setting aside that order.
4.5. The main application is still pending in the Northern Gauteng High Court. It is only at the successful conclusion of the main application that the CPA will be placed under administration.
5. CONCLUSSION
5.1. After numerous attempts to resolve the disputes within the Rama CPA it has become apparent that the only way that the assets and property of the CPA can be protected from plunder is to remove the current committee and facilitate an electoral process involving all CPA members to steer the CPA back on the path of compliance.
5.2. In the event that the audit proves that the CPA executive committee has embezzled CPA funds appropriate remedial action should be taken in line with the provisions of Section 14 of the CPA Act.
Compiled by Jeff Sebape Director: Property Association Institutions 24 April 2015