commission on restitution of land rights

COMMISSION ON RESTITUTION OF

LAND RIGHTS

PRESENTATION OF ANNUAL REPORT FOR YEAR ENDED 31 MARCH 2005 TO PORFILIO COMMITTEE ON

AGRICULTURE AND LAND AFFAIRS

TEN YEARS OF PUTTING LAND RIGHTS IN THE RIGHT HANDS

Presented by:CHIEF LAND CLAIMS COMMISSIONER: MR T.T. GWANYAREGIONAL LAND CLAIMS COMMISSIONERS: MS BEVERLY JANSENMR BLESSING MPHELA

MS THABI SHANGE MR SUGAR RAMAKARANE

MS LINDA FALENI MR MASHILE MOKONO

CHIEF DIRECTOR: RESTITUTION: MS DAPHNE MATLOA Private Bag X833PRETORIASouth AfricaTel: (012) 312 9244Fax: (012) 321 0428E-mail: [email protected]: www.land.pwv.gov.za/restitution

LAND:KEY TO ECONOMIC GROWTH AND POVERTY ALLEVIATION

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Provide equitable redress to victims of racial land dispossession in terms of the restitution Act no.22 of 1994 as amended.

Provide access to rights in land, including land ownership and sustainable development.

Foster national reconciliation and stability. Improve household welfare, underpinning

economic growth, contributing to poverty alleviation.

STRATEGIC OBJECTIVE AND MANDATE OF THE

COMMISSION


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VOICE OF THE CLAIMANTS• As we endeavour to restore their dignity, claimants are

expressing their appreciation, ambitions, frustration and intensions in a language of their choice. We are listening and we are determined to help where we can.

“We are proud that through restitution we have restored dignity to hundreds of thousands of beneficiaries who were victims of racial dispossession. We have restored land rights to those who were forced to be landless by the colonial and apartheid government. We have achieved reconciliation through negotiated settlement, where we have witnessed the meeting of minds between the claimants and the landowners. The negotiations approach has enabled us to increase the number of claims settled from 41 in March 1999 to 59 345 in March 2005.” Minister Didiza.


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OUR PERFORMANCE:

FINANCIAL PERSPECTIVE Balanced Score Card. For Year ended

31/03/05

FINANCIAL PERSPECTIVE

2003/4

( 000)

2004/5

( 000 )

% Increase

Original Budget 839 054 933 225 10%

Adjusted Allocation 839 054 1182 226 29.0%

Actual Expenditure 839 054 1182 226 29.0%


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FINANCIAL PERSPECTIVE: DETAILS OF EXPENDITURE

(000) % of Budget

1.Transfer Payments•Land Acquisition•Financial Compensation•And Development Grants

489,554

505,286

23,774

41.4

42.7

2.0

2. Compensation of Employees 79 617 6.7

3. Goods and Services 80 590 6.8

4.Capital Assets 3 405 0.3

TOTAL 1,1 82, 226 100%


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FINANCIAL COMMITMENT: CLAIMS SETTLEDFOR THE FINANCIAL YEAR: 1 APRIL 2004 TO 31 MARCH 2005

PROVINCE CLAIMS RURAL URBAN HHsBENEFICIA

RIES TOTAL AWARDS

E CAPE 2981 10 2971 13681 35022 167,420,044.77

F STATE 72 4 68 772 2536 8,933,450.63

GAUTENG 3820 0 3820 3644 12728 274,473,160.00

KZN 167 164 3 4574 26882 353,147,835.35

MPLANGA 178 48 130 11472 34609 180,317,512.00

N WEST 1360 2 1358 2028 13170 107,976,830.00

N CAPE 467 0 467 464 2432 14,301,400.00

LIMPOPO 136 136 0 9323 63246 254,751,034.00

W CAPE 1453 0 1453 2482 6949 56,313,570.00

TOTAL 10634 364 10270 48440 197574 1,417,634,836.75


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TOTAL FINANCIAL COMMITMENTS FOR ALL CLAIMS SETTLED

TO DATE

Land Acquisition R 1.729 billion

Financial Compensation R 2.454 billion

Restitution Discretionary Grants R .316 billion

Settlement Planning Grant R .142 billion

Total Transfer Payments R 4.641 billion

NOTE: Land acquisition is linked to restitution grants for purposes of sustainable development. This amounts to R2.187 billion for claims settled to-date.


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FUNDING OF RESTITUTION PROGRAMME

YEAR BUDGET(000)

2000/01 265,138

2001/02 290,981

2002/03 394,265

2003/04 839,116

2004/05 1,134,831

2005/06 2,705,678

2006/07 3,369,132

2007/08 3,837,607


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FUNDING OF RESTITUTION PROGRAMME

This has demonstrated the political will to support land reform in general and restitution in particular.

President, in his SONA of 11 Feb 2005 gave a three year extension for the finalization of outstanding land claims

Minister of Finance, in his Budget Speech of 22 February,announced R6 billion increase on the restitution budget over the next three years.


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FINANCIAL PERSPECTIVE

DONOR FUNDING: BELGIAN GOVERNMENT

VALIDATION CAMPAIGN (2002/3/4) =

FAST-TRACKING OF CLAIMS (2004/5)=

POST SETTLEMENT SUPPORT(2006/7)=

EURO RAND

Appr.1m 13mAppr.50,000 0.4m

Appr.7m 40 m


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PERFORMANCE: BALANCED SCORE CARDCUSTOMER PERSPECTIVE

PROGRESS MADE ON THE STTLEMENT OF RESTITUTION CLAIMS FROM 1995 – 31 MARCH 2005

Province 1995/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 TOTAL

EC 2269 628 6324 1824 1858 2981 15995

FS 2 404 742 4 470 72 1694

NC 9 402 1 39 1049 467 1968

GP 811 2571 2115 1876 2239 3820 13132

NW 361 27 662 3 162 1360 2598

KZN 418 526 6814 1669 996 167 10570

LP 2 328 178 269 358 136 1350

MP 0 3 254 381 856 178 1604

WC 45 3815 696 807 3444 1453 10434

TOTAL 3917 8704 17786 6872 11432 10634 59345


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PROGRESS MADE ON THE SETTLEMENT OF RESTITUION CLAIMS FROM 19956 – 31 MARCH 2005

3917

12621

30407

37279

48711

59345

0

10000

20000

30000

40000

50000

60000

70000

1995/ 2000 2000/ 2001 2001/ 2002 2002/ 2003 2003/ 2004 2004/ 2005

Claims Settled


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CLAIMS SETTLED THIS YEAR INCLUDE

• Mkambati land claim, which falls under the Integrated Sustainable Rural Development Programme (ISRDP) node of O.R. Tambo District Municipality in the Eastern Cape. This project has seen 17 400 hectares transferred to the seven villages Mkambati Land Trust. The total cost for the project was R44.5 million. The district Municipality and Provicial Department of Economic Affairs Environment and Tourism will provide settlement support to the clamants.

• In the Free State, Blesbokfontein farm (2325ha) once owned by the Wittes family is one of the black-spot removals which has been reversed at the cost of just more than R3 million.

• In the Northern Cape about 269 Port Nolloth Old Location Claimants accepted the standard settlement offer (SSO) of R25 580 per claimant. This offer was based on the serviced site with a top structure as applied in the housing subsidy.


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• In the Gauteng and North West the Bakwena-ba-Molamo family of 310 households have seen the restoration of their 2596ha (Leeuwspruit 300 IQ farm), a settlement that has ccost government a sum of R2,3 million, including development grants amounting to R1,3 million.

• In Krugersdorp the 91 claimants of Munsieville, who were removed to Kagiso between 1959 and 1962, have accepted the settlement of their claim for R6 million, based on the value of the land rights lost.

• In KwaZulu Natal, near Vryheid, the Hlahlindlela community of approximately 855 households has received their land (1000ha) from a very supportive farmer, Mr. Greyling. They have undertaken to continue with maize, wheat and livestock farming on the restored land, which has water rights.


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• In Limpopo, the Mtititi community of about 430 households has accepted the restitution award involving the construction of 430 four-roomed rural houses of 51 square metres each. The Municipality has undertaken to implement and support this project. The Minister for Land Affairs has approved R39million as restitution award.

• On the Madimbo Corridor, the Gumbu/Mutele community of 909 households have accepted the restoration of their 27 830 ha, part of which is used by SANDF (Army) and the other by Matshakatini Nature Reserve.


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• In Middelburg, the Kwasibange community with 150 households has received their land (Blaauwbank 179 JS, 420ha), they want to use the farm for maize, sunflower and livestock farming.

• In Lydenburg the Tubatse community with 206 households received their land, Groothoek farm of 1337ha.

• In the Western Cape the 150 claimants of Covie received 16 residential sites and about 150 hectares of the Tsitsikama National Park. The Municipality undertook to assist with the development and implementation of the Development Plan.


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CRITICAL ISSUES: CUSTOMER PERSPECTIVE

•Financial Compensation as form of redress

Attractive to the poor to address poverty related needs

Does not offer lasting solutions to povertyDoes not contribute to resolving the

problem of skewed ownership of land ownership

Leads to family disputes and fraud


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• Land restoration 887 093 hectares have been delivered by

restitution to date More than 172 769 households have benefited Resettlement on restored land is problematic as

the establishment of human settlement is a long process involving bulk infrastructure (water, roads, electricity, housing etc)

Re-skilling of restitution beneficiaries is a long process, especially for highly commercial agriculture projects.


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Rely on Provincial Dept. of Agriculture for-capacity building and training of claimants.

Are meeting with Agric SA to discuss mentorship/Development programs but not much has come out of the general agreement.

More post settlement support needed for claimants including technical assistance, financial services, project management, entrepreneurship, business training.


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Some traditional Leaders wrongfully believe that land restored to the claimant community is their personal property. This matter still needs to be addressed with the Leadership of Traditional leaders.

We are speaking to some NGOs about their support to restitution beneficiaries so that they can make optimal use of the restored land.

There is an increasing number of people who would like the Restitution Act to be amended to allow for re-opening so that new land claims can be lodged. Minister has ruled re-opening out mainly for the following reasons:


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• Most urban claimants want financial compensation, which defeats the main aims of land redistribution.

• Restitution was intended to be a symbolic apology by the new democratic government to the victims of racial land dispossession.

• The cut-off dates were to ensure certainty and economic stability.

• The claims lodge require R17 billion to settle, re-opening would attract too many new claims, which the state find it difficult to afford.

• Those who still want land can be referred to other land reform programs of government


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BUSINESS PROCESS PERSPECTIVE: BALANCED SCORECARD

PROCESS MAP FOR SETTLEMENT OF CLAIMS INCLUDE THE FOLLOWING STAGES:

• Lodgment and registration of claims• Validation (acceptance criteria)• Claimant Verification (ID Books, Family Trees,

Affidavits etc)• Valuation of land rights lost (use of Independent

Professional Valuers)• Negotiations (landowners, claimants and other

stakeholders)


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BUSINESS PROCESS PERSPECTIVE: BALANCED SCORECARD

• Options assessment (financial compensation, restoration, feasibility studies.)

• Referral (Minister or Land Claims Court)• Implementation of Restitution Award (land

use plans, development plans etc.

All of these stages have different sub-processes. Rural land claims take much longer to process than urban claims. We have agreed to shorten the cycle for rural claims from three years to one year.


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BUSINESS PROCESS : CONTINUES

Procurement of goods and Services still takes a long time and thus delaying for example appointment of Service Providers for some of processes such as claimant verification or valuations.

It is hoped the introduction of Supply Chain Management by DLA will help to address procurement issues.

The issue of determining just and equitable compensation, in line with Constitution, is still a challenge in some cases, given the collusion between Valuers and Landowners


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BUSINESS PROCESS : CONTINUES

In Mpumalanga we have seen the over- statement of the land values in some of the Badplaas farms. Legal steps have been taken to correct this.

Landowners still continue demanding high prices for land. The booming economy and Land reform may have contributed to the increase in demand for land which may influence the increase in land prices.

Government intervention may be necessary for stabilizing land prices. This may include introducing:


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BUSINESS PROCESS : CONT…

• Ceilings on the size of land ownership,• Ceilings on land prices• Land tax based on size of land owned• Pursuit of expropriation Packaging of settlement of claims with highly

commercial agricultural projects, such as sugar-cane, forestry, citrus, banana etc. requires business modeling, hence our use of Strategic Partnerships.

We are working closely with some Municipalities such as with the housing projects of Payneville, Dzwerani, Pelcra as well as in agricultural development projects such as Nonoti and Msuluzi or Covie.


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CORPORATE GOVERNANCE PERSPECTIVE: BALANCED

SCORECARD State is our share holder hence the tabling of the

report to Parliament, Portfolio Committee and NCOP. We share the same report with Provincial Governments and Municipalities.

We have held our statutory (s5 of Restitution) Commissioners meetings this year where we discussed among others:

• Implementation Plan (High Drive 2008) which we presented to you on 18 March 2005.

• Strategic Planning for settling outstanding claims• Review progress reports from each RLCC • Budget and expenditure review


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CORPORATE GOVERNANCE PERSPECTIVE: BALANCED

SCORECARD

• Risk Management (Risk Register and Risk Management Committee)

• Stakeholder relation• Staffing of the Commission

Media briefing session to inform public about progress on claims in terms of section 6 (1) (c ) of Restitution Act.

Participating in the implementation of the Internal Audit Charter in the Department of Land Affairs.


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LEARNING AND GROWTH PERSPECTIVE: BALANCED SCORE

CARD

• We are a learning organization hence the development of effective strategies that help us to fast-track the settlement of claims.

• May have to buy the skills that we don’t have in house such as land valuation and business modeling.

• We have increased our capacity by creating 280 contract posts, which we are currently filling in. Challenge is that we are still experiencing a high staff turn-over. Extension of contracts to 31 March 2008 will help to address this.


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LAND CLAIMS COURT CASES

• Mashilane Community vs Minister(LCC No.74/2003). Aventura Blydepoort & Swadini, Court held that the Minister must take the administrative decision to finalize the claim.

• Mahlangu N vs Minister(SCA No. 572/2003). SCA decided that the LCC should adjudicate on the validity of the claim.

• Mandla C Khumalo vs Minister(LCC No.109/99) Court decided to give restitution award in favor of the claimant.


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LAND CLAIMS COURT CASES

• Richtersveld Community vs Alexkor and Government(LCC No. 151/98). Costitutional Court confirmed finding of SCA, awarding land plus mineral rights and precious stones to the community.

• JMC Prinsloo and Botha Family Trust vs Ndebele Ndzundza community decided to accept the validity of the claim and confirmed the decision of the Land Claims Commission.


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LOOKING AHEAD

PROJECTED SETTLEMENT OF CLAIMS FROM APRIL 2005-MARCH 2008

2006/2006 2006/2007 2007/2008

PROVINCE Urban Rural Rural Rural

WC 2005 368 756 282

NC/FS 1536 269 552 0

MP 215 415 817 308

KZN 3311 746 1244 568

LP 56 448 861 327

GP/NW 71 228 578 201

TOTAL 10063 2812 5526 1950

12875


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CONCLUSION• SA is doing very well in restoring land rights in

a just and equitable manner compared to Australia and New Zealand where the rights of the claimants are significantly compromised.

• In 10 years we have settled about 75% of all claims lodged whilst New Zealand are still at 6% and Australia 8%, even though they started their process much earlier than us.

• We are committed to giving the next three years our best shot so as to settle the outstanding claims.


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CONCLUSION• We sincerely appreciate the strategic leadership

and guidance that we are getting from this Portfolio Committee. Your provincial visits may be painful to us but we are definitely learning from them.

• We are inviting you to our land hand over celebrations, especially during the Land Quarter which started in April 2005, our ex - chair has attended a number of them.

• We have been participating in the land events leading to the Land Summit which is planned for the end of July 2005.

I thank you.

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