COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 1 2 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 CONTENTS PART A: GENERAL INFORMATION List of Acronyms 5 Foreword by the Minister 8 Overview by the Accounting Officer 9 Letter of Transmission 10 Introduction 11 PART B: PERFORMANCE INFORMATION 2.1 Departmental Performance 14 2.2 Provincial District Forums Performance 14 2.2.1 Provincial Forums 14 2.2.2 Challenging Communal Property Associations (CPAs) 15 2.2.3 Successful Communal Property Associations (CPAs) 17 2.3 Judicial Administration 18 2.4 Legislative Mandates 18 2.5 Recapitalisation and Development 19 2.6 CPA Strategy 19 2.7 Stakeholder Involvement 21 PART C: CPA STATUS QUO PER PROVINCE Eastern Cape 26 Free State 32 Gauteng 34 KwaZulu-Natal 35 Limpopo 45 Mpumalanga 51 Northern Cape 63 North West 66 Western Cape 72 Compliance Trends 73 PART D: HUMAN RESOURCE Human Resource Capacity 76 CONCLUSION COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 3 4 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 LIST OF ABBREVIATIONS / ACROMYNS AFS Annual Financial Statement AGM Annual General Meeting CD Chief Director CPA Communal Property Association CPA Act Communal Property Associations Act, 1996 (Act No. 28 of 1996) CPI Communal Property Institution DAFF Department of Agriculture, Forestry and Fisheries DRDLR Department of Rural Development and Land Reform ESTA Extension of Security of Tenure Act, 1997 (Act No. 62 of 1997) IDC Independent Development Corporation IEC Independent Electoral Commission LAW Land Administration Web LRMF Land Rights Management Facility LTA Land Tenure and Administration NTE NTE Company (PTY) LTD PSSC Provincial Shared Services Centre RLCC Regional Land Claims Commission SEDA Small Enterprise Development Agency SEIA Socio-Economic Impact Assessment TOR Terms of Reference TSI Tenure Systems Implementation COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 5 6 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 7 Foreword by the Minister In the context of development it is important to acknowledge the central role that is played by land in the human development, both as a catalyst for economic freedom and for the social stability of a nation. In this 24th year of our democracy, we look back with pride at the many opportunities that we have created for the landless masses of our people to participate in the agricultural economy of the country through our Land Reform and Restitution Programmes. This is also a time to reflect on the many challenges that we have encountered along the way. In the sphere of land reform, we have experienced the globalization of world economies which resulted in the reduction of small enterprises and the concentration of the economic power in the hands of big agricultural enterprises. In this kind of environment, marginal enterprises have struggled to survive. The beneficiaries of the Land Reform and Restitution Programmes in general and Communal Property Associations (CPAs) in particular, have not been immune to the changes in the economic environment that brought hardships to many small scale and medium sized agri-business. While the prices of input costs went up significantly, the prices of the produce did not match the upward trend of input costs because of market factors. Many of our beneficiaries cannot afford the luxury of learning through trial and error. The economic environment does not allow for learning mistakes. We have however not relented in the face of these challenges. No effort is spared to create the necessary environment that will enable our CPAs to participate in the economy of our country. Agriculture has historically been the driver of job creation and food security in the rural areas of our country. Making our CPAs functional as intended will contribute significantly in denting unemployment while also contributing to the GDP growth of the country. Institutional partnerships are necessary to learn from those that have learnt their lessons and succeeded in what they do. We will continue to strengthen the institutions that we have established to support our land reform projects. _____________________________ Ms Maite Nkoana-Mashabane (MP) Minister for Rural Development and Land Reform Date:26/09/2018 8 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 Overview by the Accounting Officer While we have made progress with the transfers of land to deal with land hunger amongst the landless, we need to ensure that the vehicles through which we undertake the tasks are suitable for the long-term sustainability of agriculture and our economy. We have reported about the various interventions that we are making as a department in turning around the fortunes of legal entities that were registered for land reform purposes, particularly Communal Property Associations (CPAs). While the institutions that were established to support land reform, like the Communal Property Associations, District Forums, continue to play a pivotal role in providing support and peer-learning to CPAs, our intervention efforts have equally increased in building the necessary capacity both amongst the departmental officials and CPAs members. A number of capacity building workshops were conducted during the reporting period to ensure that we cultivate a good corporate culture within CPAs. Substantial resources were utilized to acquire a property portfolio worth billions of rands and it is imperative that the acquired land must not only give the communities emotional satisfaction but must contribute to the economic upliftment of the communities. We have mixed fortunes in this regard. While we have CPAs that are facing internal conflicts and other challenges, we also have those that have been successful in economically uplifting the communities. While the success stories give us comfort, we continue to give attention to CPAs that have challenges. Matters that require specialist mediation and legal services will continue to be dealt with under the auspices of the Land Rights Management Facility (LRMF). ______________________________ Rendani Sadiki Acting Director General: Rural Development and Land Reform Date: 19/09/2018 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 9 Letter of Transmission 10 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 Introduction In terms of Section 17 of the Communal Property Associations Act, 1996 (Act No. 28 of 1996), the Director General is required to compile a report on the extent to which the objectives of the Communal Property Association Act, 1996 (Act No. 28 of 1996) are being achieved. The Minister is required to table such report in Parliament in every calendar year. The Department of Rural Development and Land Reform has registered 1 566 Communal Property Associations (CPAs) since the inception of the Act. The success of these entities is measured by the level of compliance to the Act, including regulations, and their constitutions. The ability of the CPAs to function properly with sound governance will enhance their intention to participate in the economy and will subsequently reduce unemployment, increase food security, and improve the living conditions of beneficiaries of land reform programmes. There are high levels of non-compliance with the Act and the CPA constitutions. COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 11 12 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 13 2.1 Departmental Performance The Deparment on an annual basis targets a number of communal property Associations to support towards compliance with provisions of the Communal Property Associations Act, Act 28 of 1996. The support provided to CPAs refers to; facilitate update of the membership list; overseeing the Annual General Meeting; election of Committee Members; amendments to the Constitution of that specific CPA; compilation of Annual Financial Statements; formalisation of land transaction through CPA resolutions and training provided to members of the CPA. Output Performance Indicator Annual Target Annual Achievement Communal Property Associations Number of Communal Property Associations 256 304 supported towards compliance with the Act supported towards compliance with legislation EC – 46 EC – 49 FS – 10 FS – 0 GP – 12 GP – 14 KZN – 40 KZN – 41 LP – 40 LP – 48 MP – 30 MP – 78 NC – 10 NC – 20 NW - 40 NW - 37 WC - 28 WC - 17 2.2 Provincial District Forums Performance 2.2.1 Provincial Forums Performance The Minister has, after various consultations with the communities, advised the department to establish Communal Property Associations (CPA) District Forums. These forums have been performing certain functions within their abilities such as supporting other CPAs, overseeing elective annual general meetings (AGMs), etc. Eastern Cape The province has had its forums playing a vital role in mobilising individual CPAs to attend CPA Amendment Bill consultations. Gauteng The province has established District Forums however; it reported challenges relating to financial resources and the necessary expertise as a hindrance for it to function effectively. 14 COMMUNAL PROPERTY ASSOCIATIONS ANNUAL REPORT 2017/18 KwaZulu-Natal The province has echoed the challenges faced by Gauteng Province in that the Forums lack financial resources to operate optimally. Limpopo The District Forums in the Limpopo Province are operating optimally in Waterberg and Vhembe Districts. They function fairly in the Capricorn and Sekhukhune Districts while they are non-functional