DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM

PRESENTATION TO SELECT COMMITTEE ON LAND AND ENVIRONMENT

AMAKHABELA LAND CLAIM

15 OCTOBER 2013

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LAND RESTITUTIONPurpose•Land Restitution is aimed at settling land restitution claims under the Restitution of Land Rights Act (Act No. 22 of 1994). The Commission on Restitution of Land Rights (CRLR) is responsible for investigating and processing restitution claims. Strategic objective•The strategic objective of the CRLR is the restitution of rights in land or awards of alternative forms of equitable redress to claimants whose land rights were dispossessed as a result of past racially discriminatory laws or practices, after 19 June 1913 (the date on which the Natives Land Act of 1913 was promulgated).

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AMAKHABELA LAND CLAIMBackground to the Claim

The land claim for the Amakhabela Community was lodged on the 16th January 1996 with the Commission for Restitution of Land Rights.

The claim was investigated and found to be in compliance with the criteria set out in Section 2 read together with Section 11 of the Restitution of Land Rights Act (Act no 22 of 1994) as Amended. Consequently the claim was published in Government Gazette notice no. 24964 dated the 7th March 2003.

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AMAKHABELA LAND CLAIMBackground to the Claim

In 2003, the Office of the Regional Land Claims Commissioner KwaZulu-Natal (RLCC-KZN) undertook an extensive verification exercise to indentify the originally dispossessed members of the claimant community and in their absence, to find their descendant beneficiaries. The outcome of this exercise resulted into the identification of 267 households and 200 beneficiaries forming the core members of the claimant community.

In 2004, the Gayede Community Trust was established by the Claimant Community and registered with the Master’s office to receive and manage the claimed land for and on behalf of the beneficiaries of the Claimant Community.

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AMAKHABELA LAND CLAIMApproved Settlement by the Minister (2004)

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Land Cost & Grants Approved

Amount Total Approved

Expenditure to Date

Available Balance

Settlement Planning Grants (SPG)

R 1 400.00 per Household

R 384 480.00 R 0.00 R 384 480.00

Restitution Discretionary Grants (RDG)

R 3 000.00 Per Household

R 801 000.00 R 0.00 R 801 000.00

Land Cost R 42 649 914.00 R 42 649 914.00 R 32 067 604.00 R 10 582 310.00

Grand Total R 43 835 394.00 R 32 067 604.00 R 11 767 790.00

AMAKHABELA LAND CLAIMPost Settlement Arrangement

The process of identifying a suitable business partner started in earnest in 2005 when companies and individuals were invited to submit business proposals.

Companies and individuals put up their bids, but Crystal Holdings, despite putting up a bid, decided to approach the claimants representatives directly and convinced them to sign a Shareholder’s Agreement, without the knowledge and participation of the Department or RLCC-KZN.

In 2005, Crystal Holdings approached the High Court for an order declaring that Shareholder’s Agreement as valid as well as interdicting the RLCC from interfering in the relationship between the two parties. The court granted the order.

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AMAKHABELA LAND CLAIMCurrent Post Settlement Arrangement

The process of identifying a suitable business partner started in earnest in 2005 when companies and individuals were invited to submit business proposals.

Companies and individuals put up their bids, but Crystal Holdings, despite putting up a bid, decided to approach the claimants representatives directly and convinced them to sign a Shareholder’s Agreement, without the knowledge and participation of the Department or RLCC-KZN.

In 2005, Crystal Holdings approached the High Court for an order declaring that Shareholder’s Agreement as valid as well as interdicting the RLCC from interfering in the relationship between the two parties. The court granted the order.

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AMAKHABELA LAND CLAIMRecent Visit and Recommendations by NCOP

The delegation of the NCOP that visited the Project recently resolved that the matter be referred to the Select Committee on Land and Environmental Affairs so that Parliament could deal with the matter.

The delegation further agreed that Departmental officials and project members should be invited to a Committee meeting where a constructive way forward would be thrashed out.

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AMAKHABELA LAND CLAIMRecommendations

Continued involvement of the Community in the Crystal Holdings/ AFGRI Arrangement. Possible Solution: The Trust must terminate the Lease Agreement with Mkhuzangwe and recover outstanding rental money. The Trust must disinvest from Mkhuzangwe or have it liquidated

Interdict against the Department by Crystal Holdings. Possible Solution: If the Trust disinvests from Mkhuzangwe, the interdict will become academic and the Department would be able to provide support to the Community.

Recapitalization and Development. Possible Solution: Recapitalization and Development can only be provided where the environment is conducive, and where parties are willing to work together, otherwise limited state resources are wasted.

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AMAKHABELA LAND CLAIMRecapitalisation and Development Process (insert a step-by-step process)

Appointment of a Strategic Partner to develop a Business Plan Presentation of the Business Plan to the Provincial Technical

Committee Presentation of the Business Plan to National Land Allocation

Committee Approval of Recapitalization Memo by the DDG: Land Reform Release or transfer of approved recapitalization funds.

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AMAKHABELA LAND CLAIMOther Issues Requiring Attention: Gayede Community Trust

Continued involvement of the Trust in MkhuzangweRebuilding of relationship between the Trust and the

DepartmentElection of new Trustees Structured community meetings to give progress reports to

the Community

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Siyabonga