COMMUNAL PROPERTY ASSOCIATIONS ANNUAL

REPORT: 2014 – 2015

PRESENTATION TO THE PORTFOLIO COMMITTEE

ON RURAL DEVELOPMENT AND LAND REFORM

4 NOVEMBER 2015

1. Introduction

2. Distribution of CPAs

3. Challenges faced by CPAs

4. Registrations, untraceable, lost land and administration

4.1 Untraceable CPAs and those that lost land

5. Definition of Compliance

6. LRMF Referrals

7. Distribution of referrals

8. Unsuccessful Regularisation

9. Expenditure 2014-2015

10. National compliance trends

10. Interventions

11. Legislation

13. Outcomes and Impact

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1. INTRODUCTION

Communal Property Associations are formed in terms of the CommunalProperty Associations Act, 1996 (Act No. 28 of 1996) to hold, manage andown land on behalf of its members.

• In terms of Section 17 of the Act, the Department of Rural Developmentand Land Reform is required annually to submit a report to the Ministeron Communal Property Associations and Provisional Associations and howthe objects of the Act are being met, and the Minister shall table thereport in Parliament.

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2.1. DISTRIBUTION OF CPAs

1428 CPAs were registered to date.

48 CPAs registered in the financial year 2014/15.

The distribution of CPAs according to provinces reflects proportion ofregistered CPAs according to provinces.

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2.2. DISTRIBUTION OF CPAs … PER PROVINCE

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2.3. DISTRIBUTION OF CPAs … PER PROGRAMME

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3. CHALLENGES FACED BY CPAs

• Ongoing conflict amongst CPA members centred on governance issues:

accountability, financial mismanagement, transparency and lack ofadherence to the CPA constitution;

• Some CPAs are insolvent and need an injection of funds to put them ona sound business footing.

• Litigation proceedings are sometimes used to prevent members of CPAsfrom participating in the activities of the CPA.

• Alienation of immovable property in ownership of the CPA.

• Nine CPAs are under Judicial Administration for the abovementionedreasons for periods ranging from 6 months to 3 years

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4. REGISTRATIONS, UNTRACABLE, LOST LAND & ADMINISTRATION

Province Registered in 2014- 15

UntraceableCPAs

CPAs that lost Land

CPAs under Administration

Eastern Cape 2 0 2 (420 ha) 0

Free State 1 0 11 (2663 ha) 0

Gauteng 1 0 0 0

Kwazulu-Natal 7 0 0 0

Limpopo 14 0 0 2

Mpumalanga 12 22 3 (2190 ha) 1

Northern Cape 9 1 4 (5395 ha) 3

North West 2 6 0 2

Western Cape 0 0 0 1

National Summary 48 29 20 (10668 ha) 9

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4.1. UNTRACEABLE CPAS AND THOSE THAT LOST LAND

• Untraceable CPAs means those CPAs that were registered and neverowned land or whose members cannot be located

• Investigations are still ongoing .

• CPAs that lost land means those that either sold land or whose land waslost to creditors.

• Where the sale is irregular or illegal we assist communities to challengethe sales in court.

• Where the sale was regular we initiate the process of deregistration ofthose CPAs.

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5. DEFINITION OF COMPLIANCE

• Compliant CPAs:

– updated membership list,

– a valid constitution,

– hold regular AGMs

– hold elections

– submit Annual Reports to the DG.

• Not all CPAs that are not regularised are non-compliant.

• Some CPAs have used their own resources to create internal capacity inorder to establish an efficient administration which will ensure compliancewith their reporting requirements.

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6. LRMF REFERRALS

• 147 CPAs were referred to the LRMF for Regularisation

• A total of 40 CPAs have been regularised to date and 12 CPAs in 2014/15.

• 65 cases are pending

• 42 cases cannot be regularised and were referred back to the Department

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Figure 1: CPA provincial distribution

Figure 1: CPA Pending Matters - Phase 1 and 2

1 1 1 1

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6

3

2

5

3

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10 10

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PHASE 1 PHASE 2

7. DISTRIBUTION OF REFERRALS

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Province No of CPAs Total Area(ha) Total

Households Beneficiaries

Eastern Cape 13 17,340.21 5116 11727

Free State 10 27,700.83 345 910

Gauteng 9 5,453.66 2927 8641

KwaZulu-Natal 13 19,264.80 1220 6414

Limpopo 11 45,938.73 2253 8731

Mpumalanga 28 63,864.92 4412 22781

North West 23 83,943.26 7302 26302

Northern Cape 22 137,549.11 3211 11810

Western Cape 18 10,139.23 3322 7267

Grand Total 147 411,194.76 30,108 104,583

8. UNSUCCESSFUL REGULARISATION

• Regularisation is a process which mainly involves mediation and assisting aCPA to undertake processes that will make it compliant.

• Not all endeavours to regularise yield positive results. Some of the reasonsthat lead to failure of regularisation are:

– Members who insist on litigation

– Underlying problems like chieftainship contests

– Interdicts obtained by one party to prevent the Department fromintervening/regularising/assisting.

• In those instances the most feasible option becomes administration.

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9. EXPENDITURE 2014/15

Land Rights Management Facility:

Disbursements for CPAs Panel Funds between April 2014 and March 2015

Date Amount Paid

Quarter 1R2 777 949.69

Quarter 2R1 110 988.34

Quarter 3 R1 550 656.59

Quarter 4R719 068.25

TOTALR 6 158 555.86

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10. NATIONAL COMPLIANCE TRENDS

Province 2009-10 2011-12 2012-13 2013-14 2014-15

Eastern Cape 16 21 22 23 29

Free State 11 12 22 23 32

Gauteng 8 10 11 11 12

Kwazulu-Natal 27 30 30 30 33

Limpopo 10 24 34 35 53

Mpumalanga 8 16 26 27 42

Northern Cape 4 11 12 13 30

North West 10 21 39 40 33

Western Cape 6 13 13 13 20

National Summary

100 158 209 171 284

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11. INTERVENTIONS / TURN AROUND STRATEGY…1

Mediation: During the reporting period, Department mediated in 87 CPAdisputes.

Training: 56 CPAs were trained on the CPA Act and on governancematters. 147 officials have been trained on the CPA Act and disputeresolution

Regularisation: 12 CPAs were regularised through Land RightsManagement Facility and are now legally compliant.

Judicial administration: 9 CPAs have been placed under judicialadministration.

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11. INTERVENTIONS / TURN AROUND STRATEGY…2

Judicial administration: 9 CPAs have been placed under judicialadministration.

Northern Cape

o Khomani San

o Loeriesfontein

o Pniel

NorthWest

o Klein Tswaing

o Barolong Bo Maiketso

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11. INTERVENTIONS / TURN AROUND STRATEGY…3

Judicial administration: 9 CPAs have been placed under judicialadministration.

Western Cape

o Elandkloof

Limpopo

o Serala

o Letswalo

Mpumalanga

o Sisonke

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11. INTERVENTIONS / TURN AROUND STRATEGY…4

Recapitalisation: 26 CPAs are being assisted through the Recapitalisation andDevelopment Programme (RADP) ; and R166 468 012 is budgeted for thispurpose

CPAs Recapitalised in Free Stateo Bethany R9 700 000o Itekeng Chicken Abattoir R4 994 430o Mokhachane R3 052 025TOTAL R 17 746 455

CPAs Recapitalised in Limpopoo Seloane R1 080 000o Mawela R22 306 580o Seabi R8 013 730o Shigalo In progress.o TOTAL R 31 400 310

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11. INTERVENTIONS / TURN AROUND STRATEGY…5

Recapitalisation: 26 CPAs are been assisted through recapitalisation; andR166 468 012 is been invested.

CPAs Recapitalised in Mpumalangao Bunyebetfu R8 662 500o Buyelani Majabula R2 537 512o Champagne R19 603 540o Endlovini R8 033 500o Esandleni R8 381 231o Ingogo R2 985 500o Mathebula R6 555 053o Mbuyane R19 264 342o Mhlongamvula R9 808 700o Sibonelo R3 077 400

TOTAL R 88 909 278

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11. INTERVENTIONS / TURN AROUND STRATEGY…6

Recapitalisation: 26 CPAs are been assisted through recapitalisation; andR166 468 012.50 is been invested.

CPAs Recapitalised in North Westo Barokologadi R410 169

TOTAL R 410 169CPAs Recapitalised in Northern Capeo Iphemeleng R4 740 614o Batsamaya Mmogo R5 496 471o Kopano R4 570 860o Ditaung Farmers R3 681 798o Laughing Waters R1 847 583o Bonita Park R5 236 986o Richtersveld R2 368 848o Koopmansfontein R58 635.00

TOTAL R 28 001 795

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12. LEGISLATION

The draft CPA Amendment proposes amendments to the Act to

enhance the protection of members rights:

Land owned by a CPA will have to be surveyed and a diagram

drawn up to facilitate the institutionalisation of the rights of members.

Disqualification of certain people from holding CPA office.

60% quorum required for land transactions

Capacity will be strengthened through the establishment of a

dedicated CPA Office.

The Bill is currently being processed for approval.

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13. OUTCOMES AND IMPACT

Mediation 87 disputes have been resolved

Legislation Bill not yet finalised. Impact will only be determined after promulgation

and implementation.

Operational Capacity Directors and operational personnel responsible for CPAs are being

appointed in all provinces. More support is provided to CPAs .

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13. OUTCOMES AND IMPACT… 2

Training 56 CPAs and 140 officials were trained on the CPA Act and governance

matters. Some CPAs are meeting their obligations without support fromgovernment. Others are using their own resources to build internalcapacity.

Regularization 12 CPAs were regularized through Land Rights Management Facility and

are now legally compliant.

Judicial administration This action is putting CPAs on the back-foot which results in some CPAs

requesting out of court settlement.

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THANK YOU

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