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Annual Report for the Kwazulu-Natal Economic Development, Tourism and Environmental Affairs

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Annual Report for the Kwazulu-Natal Economic Development, Tourism and Environmental Affairs PROVINCE OF KWAZULU-NATAL ISIFUNDAZWE SAKWAZULU-NATALI ANNUAL INTEGRATED REPORT 2015/2016 CONTENTS PART 1: Overview 2 Features 04 Approval of the Annual Integrated Report 05 Scope and Boundary of this Report 05 Assurance 05 Approval of the Annual Integrated Report 05 Corporate Profi le and Activities 06 PART 2: Executive Reports 8 Message from the MEC 10 Board Chairman’s Report 12 Board Members 14 Audit and Risk Committee 17 Chief Executive Offi cer’s Report 18 PART 3: Achievements and Challenges 22 A. Conservation and Parks 24 Hluhluwe-iMfolozi Park 24 Maloti-Drakensberg Park World Heritage Site 28 Northern Protected Areas 52 Isimangaliso Wetland Park World Heritage Site 60 Scientifi c Services 68 Rhino Security Unit 78 People and Conservation 84 B. Commercial Operations 88 C. Human Resources 96 D. Corporate Support Services 104 E. Internal Audit 107 F. Communication Services 108 PART 4: Annual Financial Statements 112 Auditor-General Report 114 General Information 117 Accounting Authority’s Responsibilities and Approval 118 Audit and Risk Committee Report 119 Accounting Authority’s Report 120 Pre - Determined Objectives/Strategic Plan Report 123 Statement of Financial Position 131 Statement of Financial Performance 132 Statement of Changes in Net Assets 133 Cash Flow Statement 134 Accounting Policies 135 Notes to the Audited Annual Financial Statements 142 Legislation Applicable to Ezemvelo 156 KZN NATURE CONSERVATION BOARD ANNUAL INTEGRATED REPORT 2015/2016 KZN NATURE CONSERVATION BOARD ANNUAL INTEGRATED REPORT 2015/2016 PART 1: Overview Features 4 Approval of the Annual Integrated Report 5 Corporate Profi le and Activities 6 KZN NATURE CONSERVATION BOARD 2 ANNUAL INTEGRATED REPORT 2015/2016 The history of Ezemvelo is a source of considerable pride for all associated with “it. This organisation has been at the forefront of South Africa’s conservation effort for many decades and its reputation has a strong international standing. KZN NATURE CONSERVATION BOARD 3 ANNUAL INTEGRATED REPORT 2015/2016 FEATURES • Ezemvelo’s mandate is derived from the KwaZulu-Natal • Community development has been high on Ezemvelo’s Nature Conservation Management Act (Act No.9 of 1997), agenda,as conservation must create tangible benefi ts to which is to direct the management of nature conservation people, especially for those who reside in the buffer zones within the province, including Protected Areas (PAs). This i.e. adjacent to PAs. includes the development and promotion of ecotourism • Management plans continue to be implemented by Ezemvelo facilities within the PAs. to stabilise key species, many of which have been considered • Ezemvelo manages more than 114 PAs, of which 110 are vulnerable or were once on the brink of extinction. Examples terrestrial and four are coastal and marine reserves. of such species include vultures, white and black rhino, • Ezemvelo is pioneering the debate for legalising the sale loggerhead turtles and wattled cranes. of rhino horn as a means to curb poaching. • Ezemvelo is entrusted with the responsibility for managing • The fi rst valuation of the holistic ecosystems goods and the Maloti Drakensberg Park World Heritage Site as well services offered in KwaZulu-Natal (KZN) was performed as performing conservation and ecotourism activities within by our Scientifi c Services Division in conjunction with the iSimangaliso Wetlands Park World Heritage Site. The an independent resource economist. This valuation is organisation also manages a number of Ramsar sites benchmarked against published scientifi c papers such as (wetlands of international importance), such as Ndumo “the value of the world’s ecosystems’ services and natural Game Reserve, Kosi Bay and Lake Sibaya. capital”. The valuation reveals an amount of R149.7 billion • Ezemvelo is considered to be one of the leading conservation per annum. Ezemvelo’s annual provincial budget allocation authorities in South Africa by its peers. is 0.34% of the value of ecosystems’ goods and services. • Ezemvelo is forging a distinctive identity in the fi eld of • Ezemvelo, as a state-owned entity, remains committed to Community Conservation as part of its integrated approach deliver on the priorities of Government, which includes job to enable job creation, as well as environmentally sensitive creation. This is achieved by the organisation either entering land-use activities. into partnerships or implementing programmes that enable • Ezemvelo is cognisant that conservation is a land use in job creation. These programmes are also aligned with further direct competition with other land uses. conservation efforts. THE ORGANISATION MANAGES PROTECTED 114 AREAS OF WHICH 110 ARE TERRESTRIAL, 4 ARE COASTAL AND MARINE RESERVES KZN NATURE CONSERVATION BOARD 4 ANNUAL INTEGRATED REPORT 2015/2016 APPROVAL OF THE ANNUAL INTEGRATED REPORT Ezemvelo is committed to integrated reporting and disclosure. ASSURANCE This will be enhanced in subsequent years to enable stakeholders Assurance of this Annual Integrated Report is provided by to make an informed assessment of our ability to deliver services the accounting authority and management of Ezemvelo. in a sustainable manner. The Auditor-General has provided external assurance on the fi nancial and non-fi nancial performance reports and the SCOPE AND BOUNDARY report appears on page (114). OF THIS REPORT The Annual Integrated Report covers the performance, fi nancial APPROVAL OF THE ANNUAL and non-fi nancial aspects of Ezemvelo for the year ended INTEGRATED REPORT 31 March 2016. The entity operates in the province of The accounting authority acknowledges its responsibility KwaZulu-Natal within the Republic of South Africa. to ensure the integrity of the Annual Integrated Report. The members of the accounting authority are satisfi ed with the Our fi nancial reporting complies with Generally Recognised content and have approved this Annual Integrated Report. Accounting Practice (GRAP). Management has also considered the draft guidelines on integrated reporting provided by the Integrated Reporting Committee of South Africa. Z.C. NGIDI Chairman PART 1: PART Overview KZN NATURE CONSERVATION BOARD 5 ANNUAL INTEGRATED REPORT 2015/2016 CORPORATE PROFILE AND ACTIVITIES BRIEF HISTORY The amalgamation was formalised in terms of the KwaZulu-Natal Nature Conservation Management Act (Act No.9 of 1997). The history of Ezemvelo is a source of considerable pride for all The entity is a Schedule 3C public entity in terms of the Public associated with it. This organisation has been at the forefront Finance Management Act (Act No. 1 of 1999), reporting to of South Africa’s conservation effort for many decades and the KwaZulu-Natal Department of Economic Development, its reputation has a strong international standing as well. The Tourism and Environmental Affairs. success of Ezemvelo can be attributed to a pioneering history as well as an ongoing adherence to strategies and plans that are in line with international best practice. CORPORATE IDENTITY Modern day conservation is particularly challenging owing Ezemvelo is the result of a merger between two former to the dynamic economic and social environment we live in. conservation bodies following the country’s democratic elections This challenge is compounded by the escalating pressures of in 1994; the Natal Parks Board (formed in 1947); and the a developing society. Our vision, mission and values have former KwaZulu Directorate of Nature Conservation (formed in been worded to encapsulate these challenges as well as help 1972). Both contributed equally innovatively to the subsequent distinguish us in all facets of our business. formation of the KwaZulu-Natal Nature Conservation Board, with its operational body being the KwaZulu-Natal Nature We seek to fulfi l our vision, mission and core values by focusing Conservation Service. on Conservation, Ecotourism and Partnerships. KZN NATURE CONSERVATION BOARD 6 ANNUAL INTEGRATED REPORT 2015/2016 VISION • Innovation – We shall embrace a culture of learning, adaptation and creativity at all times. “To be a world-renowned leader in the fi eld of • Excellence – We shall strive to apply best practices to biodiversity conservation”. achieve the highest quality and standards at all times. MISSION AIMS OF EZEMVELO “To ensure effective conservation and sustainable use of Ezemvelo, in terms of the KZN Nature Conservation KwaZulu-Natal’s biodiversity in collaboration with stakeholders Management Act 9 of 1997, is mandated to: for the benefi t of present and future generations”. a) Direct the management of i. nature conservation within the province; CORE VALUES ii. protected areas; and • Passion – We shall be passionate in what we do. iii. the development and promotion of ecotourism facilities • Respect – We shall perform our duties in a professional, within the protected areas. ethically manner. b) Ensure the proper effi cient and effective management of the • Trust – We shall act transparently with integrity and honesty Conservation Service. in all we do. PART 1: PART Overview KZN NATURE CONSERVATION BOARD 7 ANNUAL INTEGRATED REPORT 2015/2016 PART 2: Executive Reports Message from the MEC 10 Board Chairman’s Report 12 Board Members 14 Audit and Risk Committee 17 Chief Executive Offi cer’s Report 18 KZN NATURE CONSERVATION BOARD 8 ANNUAL INTEGRATED REPORT 2015/2016 For our biodiversity conservation efforts to succeed, we need to establish and“ “maintain proper partnerships that will also benefi t the communities living adjacent to our Protected Areas. KZN NATURE CONSERVATION BOARD 9 ANNUAL INTEGRATED REPORT 2015/2016 Message from the MEC MR. SIHLE ZIKALALA, MPP “We are again humbled and delighted by the cooperation and commitment of various security agencies and departments that work tirelessly in support of our fi ght against all forms of poaching including rhino poaching. Ezemvelo KZN Wildlife works closely with various stakeholders including the private rhino owners to fi ght rhino poaching” Let me start by expressing my sincere appreciation to Ezemvelo It is from this formal structure that the strategies aimed at KZN Wildlife for a sterling work that was done in 2015/16 combating rhino crimes are coordinated and syndicates’ plans fi nancial year. We are again humbled and delighted by the thwarted.
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