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INGONYAMA TRUST BOARD PERFORMANCE REPORTING. 4 th QUARTER PERFORMANCE AND EXPENDITURE REPORT FOR 2014-2015 BRIEFING TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 13 MAY 2015. CONTENTS. Background Mandate Financial Report 4th Quarter Performance Report 4th Quarter
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INGONYAMA TRUST BOARD PERFORMANCE REPORTING 4th QUARTER PERFORMANCE AND EXPENDITURE REPORT FOR 2014-2015 BRIEFING TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 13 MAY 2015
CONTENTS Background Mandate Financial Report 4th Quarter Performance Report 4th Quarter Projects Report Educational Awards Human Resources Accounting Authority Meetings
BACKGROUND The Ingonyama Trust was established in 1994 by an Act of Parliament – Act No 3 of 1994 with His Majesty the King as the sole Trustee. An amendment Act in 1997 among other things established a Board to administer the affairs of the Trust. The Board comprises of eight members plus Isilo or his nominee as Chairperson. The eight (8) Board members are appointed by the Minister of Rural Development and Land Reform, after considering National and Provincial interests. The Trust is the one of the largest landowners in the Province with a total extent of 2,884,994 hectares held under some 1600 individual titles. The Trust owns land in all of the District Municipalities and Metro Municipal areas in KwaZulu-Natal. The Board sees Real Estate as its major activity. The core business of the Trust is to administer the land for the “material benefit and social wellbeing of the individual members of the tribes”. However, no alienation or burdening of the land may occur without the written permission of the relevant traditional or community authority.
VISION, MISSION AND MANDATE VISION To become a leader in sustainable communal land management. MISSION To contribute to the improvement of the quality of life of the members of the traditional communities living on Ingonyama Trust land by ensuring that land management is to their benefit and in accordance with the laws of the land. To develop progressive business models for the social and economic upliftment and the empowerment of the members of traditional communities on land administered by the Trust.
MANDATE The Ingonyama Trust Board obtains its legislative mandate as follows: Ingonyama Trust Act, 1994 (Act No. 3 KZ of 1994) as amended by Act 9 of 1997 The Ingonyama Trust was established in 1994 by the KwaZulu Ingonyama Trust Act, (Act No 3 of 1994) to hold the land in title for “the benefit, material welfare and social well-being of the members of the tribes and communities” living on the land. The Act was subsequently amended by the KwaZulu - Natal Ingonyama Trust Amendment Act No 9 of 1997. The Ingonyama Trust Act places emphasis on the property clause as per section 25 of the Constitution and gives a stronger mandate for the Board to protect the land and ensure the benefit of communities from the proceeds of the land. Section 2 (2) of the Ingonyama Trust Act establishes the framework for the administration of the land for the benefit of communities. Section 2 (5) of the Ingonyama Trust Act establishes the framework in which land rights are to be granted and at the same time protecting trust land.
FUNDING MODEL The Ingonyama Trust Board obtains its funding from the following two sources. • Transfer payment received from the Department of Rural Development and Land Reform, • and income from trading and investing activities The income from trading activities consist mainly of lease income, compensation from servitudes. The ITB uses the income from trading activities as the Transfer payment received from the department is not sufficient to defray the total expenditure of the Trust.
NOTES ON EXPENDITURE • The total amount spent including provisions for the 4th quarter amounted to R 39.50m. This represents 63.04. % of the total budget for the year. • R 4.48m was spent on compensation of employees. • R 32.32m was utilisedon goods and services (including provisions) – overspending mainly due to the rates provision. • R 2.67 m was spent on capital expenditure for the quarter. • The Trust paid R 49 500.00 for one satellite office leased in Ulundi.
NOTES ON 4th QUARTER INCOME The total revenue generated for the 4th Quarter amounted to R 7.24m . This represented 11.55 % of the total budget for the year. No transfer payment was received for the 4th quarter.
REMEDIAL ACTION FOR VARIANCES The following comments are made in respect of the Key Performance Indicators for the fourth quarter 2014/2015. Number of tenure rights granted by the Board and signed by both parties There was a shortfall of 11 leases in the 4th Quarter. This was as a result of applicants not signing these leases timeously. These have since been signed. The overall shortfall for the year was 100 and these have also been signed in full. Number of HRM/legalpolicies developed/reviewed The Trust has identified key land management policies that will be developed and all existing policies will be reviewed in the new financial year. Number of workshops on land management issues The training officer was able to attend to one community per working week for the year , hence 31 communities were trained. Time is also required to prepare for the training sessions.
PROJECT NARRATIVE Purpose: The purpose of the project is to implement control mechanisms in managing land that is managed by Ingonyama Trust in the Mpophomeni area Background: The land is described as Rem of Rietvallei No. 1043 situated along P135 road to Bulwer. The land is the remnant of the process of transferring Mpophomeni Township to Umngeni Municipality in terms of Proclamation R293. The land does not fall under any Traditional Council and therefore administered directly by the Ingonyama Trust Board. Invariably the land has been invaded by the local community and legal action has been taken to discourage further land invasion. In order to effectively manage the land the following activities had to be undertaken: Land audit of the area to establish who occupies the land, what is the land used for and what type of land right is envisaged Development of a layout plan indicating current land use patterns and alignment thereof to the proposed layout Benefit: The following benefits will be derived from the project: Establishment and identification of land that is occupied and land that is not occupied. Establishment of who occupies the land so as to formalize such occupants Produce a layout plan that will provide for public infrastructure development and for organized land allocation for residential purposes. Progress to date: Desk top study concluded and preparing to conduct land audit
PROJECT NARRATIVE Project: Drycut Farm - Madadeni Purpose: The purpose of the project is to implement control mechanisms in managing land that is managed by Ingonyama Trust in Madadeni Backgound:The land is described as Rem of Dry Cut situated along Madadeni and OsizweniRoad. The land is the remnant of the process of transferring Madadeni and Osizweni Township to the Newcastle Municipality in terms of Proclamation R293. The land falls under UbuhlebomzinyathiCommunity Authority The land has been invaded by the local community and legal action has been taken to discourage further land invasion.In order to effectively manage the land the following activities had to be undertaken: Conduct land audit of the area to establish who occupies the land, what is the land used for and what type of land right is envisaged Development of a layout plan indicating current land use patterns and alignment thereof to the proposed layout Benefit: The following benefits will be derived from the project: Establishment and identification of land that is occupied and land that is not occupied. Establishment of who occupies the land so as to formalize such occupants Produce a layout plan that will provide for public infrastructure development and for organized land allocation for residential purposes
TONGAAT HULETT PARTNERSHIP –PROGRESS REPORT BACKGROUND: The Partnership Agreement concluded on 30 April 2013 with TongaatHulett , forms part of the Board’s Strategic Objective 1-Unlocking an enabling environment conducive to development on Trust land and Strategic Objective 3 – Support to Traditional Councils in capacity building programs. The Partnership Agreement is focused on 4 pillars of rural development: Sugarcane Development Initiatives Socio –Economic Development Initiatives Land Use Planning and Infrastructure Development Localisation and Capacity Building
TONGAAT HULETT PARTNERSHIP – PROGRESS REPORT Cont. PROGRESS TO DATE: SUGARCANE DEVELOPMENT INITIATIVES • Production has increased from 368 498 tons (2010/2011) to 690 640 tons (2014/2015) • Projected production for 2016/2017 is estimated to be 1 million tons • 79 Primary Agricultural Co-operatives with 6248 beneficiaries have been established • 3531 new jobs have been created earning the communities R52 million in wages from 2013 to 2014 • 16 Traditional Councils have committed 15 020ha since 2013. PROGRESS TO DATE : SOCIO-ECONOMIC DEVELOPMENT • R28.2 million has been invested since 2013 in Education and Training Projects, Infrastructure Development, Community Affairs, Sports and Recreation and Food Security
TONGAAT HULETT PARTNERSHIP – PROGRESS REPORT Cont. PROGRESS TO DATE: LAND USE PLANNING AND INFRASTRUCTURE DEVELOPMENT • Planning meetings are being held with the Ntuli Traditional Council in Mbongolwane and Umlalazi Municipality regarding the development of a concept plan and using Mbongolwane area as a pilot project. • Support is provided to Ndwedwe Municipality in evaluating the proposed Spatial Development Framework for the area. PROGRESS TO DATE: LOCALIZATION AND CAPACITY BUILDING • Partnership has been concluded with the Owen Sithole College of Agriculture with the purpose of establishing a Sugarcane Centre of Excellence. • 11 students from ITB land areas have obtained bursaries since 2014.
AGRICUTURAL SUPPORT AND INFRASTRUCTURE BUDGET – PROGRESS REPORT The Board approved the procurement of 12 x 60 Kw Tractors and 12 x 3 Furrow Mouldboard ploughs and ancillary equipment at a cost of R6m. This is for the benefit of the Traditional Communities in terms the Board’s Strategic Objective 3.1, ie to provide support to beneficiary communities to improve food security
HUMAN RESOURCES • The vacant positions are • Chief Executive officer • Manager Real Estate • Auxiliary Services Assistant – post held in abeyance pending revised organogram. • Action taken to fill in these posts • CEO – The ITB has consulted with the DG in order to fill this position. • Manager Real Estate – The post was advertised and no suitable candidates were appointed. This process to recruit for this post is on hand.
