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CONTENTS

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PART A – STRATEGIC OVERVIEWITEM PAGE

BACKGROUND 4 – 7

CONSTITUTIONAL MANDATE 8

OTHER LEGISLATIONS IMPACTING ON ITB 9

INGONYAMA TRUST BOARD MAP 10

STRATEGY OVERVIEW 11

NARRATIVE ON LAND OWNED BY TRUST 12

REGIONS EXTENT & TC’S 13

POLICIES TO BE REVISED WITHING THE MTSF 14

RELEVANT COURT RULINGS 15

PLANNED POLICY INITIATIVES 16

SITUATIONAL ANALYSIS 17

PERFORMANCE DELIVERY ENVIRONMENT 18 – 19

STRUCTURE OF ITB ENVIRONMENT 20 – 25

STRATEGIC PLANNING PROCESS 26

STRATEGIC OUTCOME ORIENTED GOAL 27

PART C – LINKS TO OTHER PLANSITEM PAGE

CONDITIONAL GRANTS 50

LINKS TO OTHER DEPARTMENT 50

PART B – STRATEGIC OBJECTIVESITEM PAGE

ITB PROGRAMMES 29 – 44

INCOME 45

OVERVIEW OF BUDGET AND MTEF ESTIMATES

46

RESOURCE CONSIDERATION 47

RISK MANAGEMENT 48

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PART ASTRATEGIC OVERVIEW

BACKGROUND TO INGONYAMA TRUST BOARD

The Ingonyama Trust was established in 1994 by the Kwa-Zulu Ingonyama Trust Act, (Act No 3 of (Act No 3 of 1994).The Trust shall be administered f1994).The Trust shall be administered for “the benefit, material welfare and social well-being of the members of communities” who live on land owned by the Trust. The Act was subsequently amended by the KwaZulu - Natal Ingonyama KwaZulu - Natal Ingonyama Trust Amendment Act No 9 of 1997Trust Amendment Act No 9 of 1997.

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• The Trust is the owner of land on which approximately 4.5 million people reside. The people who reside on Trust Land are members of approximately 255 clans who in turn are administered by Traditional Councils.

BACKGROUND TO INGONYAMA TRUST BOARD (contd)

• It is the responsibility of Traditional Councils to administer land on a day to day basis for the benefit of its members.

• The Traditional Councils are established in accordance with the Traditional Leadership & Governance Framework Act 41 of 2003.

• Prior to 1996 Trust land was outside the area of municipal administration. As a result the planning on traditional land was only in terms of indigenous law and custom and thus in large measure less formal.

• The role of the ITB which is established in terms of the Act is to administer the affairs of the Trust and Trust land.

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BACKGROUND TO INGONYAMA TRUST BOARD (contd)

• This mandate of the Board must be understood in the context above and subject to enabling Act and various legislation.

• This Act provides that among others the land shall not be encumbered or otherwise alienated or disposed off without first having obtained a prior written consent of the Traditional Council or community concerned.

• The Act further provides that Trust land shall be administered in terms of indigenous law and any other law. In practice the Traditional Councils are responsible for day to day land administration whilst the Board provides a strategic and oversight leadership.

• All land reform policies and practices apply to ITB land. Apart from indigenous tenure rights, the Board encourages leasehold and servitudes.

• Ordinarily a complete land alienation in the form of freehold right is not a tenure preferred by Board. One of the reasons is that land is communally shared by the beneficiary communities in accordance with indigenous law and custom.

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BACKGROUND TO INGONYAMA TRUST BOARD (contd)

CONSTITUTIONAL MANDATE• The Constitution imposes a number of values and

responsibilities on the Board in that practices or conduct that are inconsistent with the Constitution are invalid to the extent of inconsistency. Therefore in the allocation of tenure rights on Trust land, the Board must ensure that the constitutional values are adhered to.

• Further legislative mandates are derived from Acts of Parliament, Provincial and National legislation.

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OTHER LEGISLATIONS IMPACTING ON ITB

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INGONYAMA TRUST BOARD MAP

STRATEGY OVERVIEWVISION

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.

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NARRATIVE ON LAND OWNED BY THE TRUST

Land held by:-

•The extent of land held by the Ingonyama Trust is 2,884,873. 5538 hectares.

•There are 255 Traditional Councils on ITB Land.

•There are approximately 151 Traditional Councils in a radius of 150 km of the Ulundi Office.

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REGIONS EXTENT & TC’S

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DISTRICT MUNICIPALITIES DM - Ha ITB LAND - HaUgu 504757 216607Umgungundlovu 951459 109280Uthukela 1133121 191798Umzinyathi 858965 412190Amajuba 691186 22084Zululand 1479978 469637Umkhanyakude 1386147 617503Uthungulu 821421 474977iLembe 326931 195903Sisonke 1055202 91500eThekwini 229133 83394

POLICIES TO BE REVISED WITHIN THE MTSF

POLICY RESPONSIBILITY PLACED ON THE BOARD

REVISE HUMAN RESOURCES POLICY

Review of Human resources policy to bring it in line with current labour legislation.

REVIEW OF SUPPLY CHAIN MANAGEMENT POLICY

Review of the Supply chain policy and asset management policy to bring it in line with current treasury regulations and practice notes.

REVIEW OF ASSET MANAGEMENT POLICY

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RELEVANT COURT RULINGSeThekwini Municipality vs Ingonyama Trust 2014 (3) SA 240 (CC)

•The case deals with the ratability of property which until 1996 was outside the Municipality’s jurisdiction.

• ITB and eThekwini Municipality had different interpretation of the relevant legislation. •As a result, the eThekwini municipality took the matter to the High Court in Durban. The High Court in Durban found in favour of eThekwini Municipality and the ITB took the matter on appeal raising a number of points based on the relevant legislation. •The Supreme Court of Appeal decided the matter in favour of Ingonyama Trust and this was a unanimous decision. •Following that, eThekwini Municipality decided that finality be brought to this matter by having a pronouncement by the Constitutional Court. •The Constitutional Court pronounced on the matter once and for all. It upheld on the findings of the Supreme Court of Appeal and therefore found in favour of ITB.

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PLANNED POLICY INITIATIVES

The Ingonyama Trust Board is initiating policy development in a number of areas that impacts on its day to day activities e.g. land administration.

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SITUATIONAL ANALYSISThe main drive of Ingonyama Strategic Plan is to implement policies that will respond to the immediate needs of the rural communities residing in Ingonyama Trust land. The Board has therefore developed its 2015-2020 Strategic Plan which is aligned to the Outcome 7 Medium Term Strategic Framework priorities towards the implementation of NDP vision 2030. The Board is contributing to the following priorities of the MTSF:•Improved land administration and spatial planning for integrated development in rural areas;•Sustainable land reform (agrarian transformation)•Improved food security; •Smallholder farmer development and support (technical, financial, infrastructure) for agrarian transformation;•Increased access to quality basic infrastructure and services, particularly in education, healthcare and public transport in rural areas; and•Growth of sustainable rural enterprises and industries characterised by strong rural-urban linkages, increased investment in agro-processing, trade development and access to markets and financial services– resulting in rural job creation.

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PERFORMANCE DELIVERY ENVIRONMENT• The Board has trained 40 traditional councils on skills

development and capacity building on land administration, the constitution and other relevant legislations, conflict resolution and conflict management. In the training on the constitution the emphasis is on equity across gender. The Ingonyama Trust has also opened a satellite office in Ulundi where it is currently training traditional councils on the development of memorandum of agreements. In addition, the Board intends opening other offices throughout the ITB areas.

• To date the board has approved 2169 land tenure rights. It also intends to improve land tenure information systems by developing spatial information systems on land tenure.

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PERFORMANCE DELIVERY ENVIRONMENT

The Board has identified strategically located land to be utilized for high impact commercial ventures such as the opening of Hammarsdale Junction in Mpumalanga Township, a shopping mall under-construction at Mathonsi Traditional Council in Mandeni and the Jozini Mall under Ntsinde Traditional Council in UMkhanyakude which was opened in October 2013.

The Board has spent R3-million on community projects that include community gardens, bursaries and procurement of tools of trade for the development of the trust. Furthermore, training workshops were conducted for a number of communities covering aspects of land management and agricultural projects.

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STRUCTURE OF ITB’S PERFORMANCE ENVIRONMENT

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ORGANISATIONAL ENVIRONMENT

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THE BOARDThe Ingonyama Trust is administered by the Board comprising of nine members including His Majesty the King.

In line with its statutory mandate, the Board is responsible for:

• providing strategic leadership;

• monitoring operational performance of the organisation;

• protecting the Trust’s financial position as an Accounting Authority;

• Ensuring that the Trust adheres to high standards of ethics and corporate behavior;

• Reviewing and adopting appropriate risk management plans and policies.

The Board has put in place the following governance structures:

•Internal audit committee

•Executive committee

•Tenure committee

•Bid Adjudication committee

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THE SECRETARIAT

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THE SECRETARIATThe Secretariat is the administrative arm of the Board to execute and discharge its mandate. Currently there are 27 approved posts within the establishment. In addition to the approved establishment there are 30 contract positions.

Due to the growing demand of activities on Trust land and the need to achieve long term goals, the Board is reviewing the organogram in an effort to achieve greater operational efficiency of the Secretariat. To this end a satellite office has also been established in Ulundi. This has been done with a view to test the feasibility of establishing future offices in other parts of KwaZulu-Natal.

The Secretariat has three components which are General Administration, Real Estate Management and Finance.

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COMPONENTSThe Secretariat has three components which are General Administration, Real Estate Management and Finance.

General AdministrationGeneral Administration

The General Administration component provides administrative support services to the Board.The core functions of this component include:Supervision of logistical arrangements, registry and reception, Provision of human resources.

Real Estate ManagementReal Estate Management

The objectives of the Real Estate component are to provide property management, land tenure administration and valuation services to the Board.The core functions of this component include:Processing of tenure rights application of land,Monitoring of illegal occupation of land,Maintenance of land asset register. FinanceFinance

Financial Administration consists of providing financial accounting, budgeting, regulating compliance and risk management services to the Trust.The core functions of this component include:Safeguarding of assets,Development of financial policies and their applications,Management of internal controls,Disbursement of funds to Creditors and beneficiaries 23-04-19 25

DESCRIPTION OF THE STRATEGIC PLANNING PROCESS

This process evolved as follows:-• The Secretariat MANCO initiated the process;•The Department of Rural Development and Land Reform [Chief Directorate Corporate Services] provided guidance and support;•Workshops were held during which due regard has had to relevant Government policies.•Finally the Board itself together with its senior staff engaged with the draft Strategic Plan in a two day session, in and to finalise the Strategic Plan.

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STRATEGIC OUTCOME ORIENTED GOAL

To administer the affairs of the Trust for the benefit, the material well-being of the communities living on land under Ingonyama Trust Board.

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PART BSTRATEGIC OBJECTIVES

ITB PROGRAMMES

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PROGRAMME 1 : ADMINISTRATIONPurpose The purpose is to provide strategic leadership, corporate services, logistical support services and financial management to the Trust. Programme Structure

The administration programme comprise of the following :

Board Management

– Communication– Legal Services– Information technology (IT)

General administrationFinancial services

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STRATEGIC OBJECTIVE 1.1.STRATEGIC OBJECTIVE Efficient resource management to ensure effective internal control systems

in order to comply with legislative requirements.Objective statement

OBJECTIVE STATEMENT To ensure that resources are effectively and efficiently utilised in order to achieve the Ingonyama Trust mandate and improve corporate image.

BASELINE 9 existing policies to be renewedCommunication strategy drafted 90% Maintenance of movable asset registerLegal matters (Number of MOUs) 12% Performance agreements concluded7 % vacancy rateServer upgrades and implementation of new backup technologyPayment of invoices within 30 days of receipt in finance 85% IT compliance in respect of software licensing

JUSTIFICATION To ensure that the Board complies with good governance prescripts in its Corporate Services

LINKS Linked to PFMA, Treasury Regulations, Basic Conditions of Employment Act, Labour Relations Act, Asset Management policy on Good Governance.

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STRATEGIC OBJECTIVE 1.2.STRATEGIC OBJECTIVE Skills development for improved service delivery

OBJECTIVE STATEMENT Improve employees’ and prospective employees skills to enhance service delivery and optimize customer relations

BASELINE 40 training programmes conducted in 2013/14

JUSTIFICATION This objective aims to promote a capable and professional workforce to achieve service delivery

LINKS Outcome 7 MTSF, Chapter 13 of NDP.

STRATEGIC OBJECTIVE 1.3.STRATEGIC OBJECTIVE To enhance effective customer relationship management

OBJECTIVE STATEMENT Improve customer service relationships with municipalities and Traditional Councils

BASELINE - 100% invoices paid within 30 days of receipt by finance- Draft communication strategy

JUSTIFICATION This strategic objective will ensure that there is improved relationships with our customers from all sectors

LINKS Outcome 7 MTSF, Batho Pele principles and King III Report on Good Governance

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QUARTERLY TARGETS FOR 2015/16

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QUARTERLY TARGETS FOR 2015/16

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PROGRAMME 2 : LAND MANAGEMENT

Purpose

To provide a secure tenure right and establish a comprehensive land tenure information system. This programme on land management consist of the following:- •Provision of tenure rights•Maintenance of Land tenure information system

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STRATEGIC OBJECTIVE 2.1.STRATEGIC OBJECTIVE Provision of tenure rights to facilitate development on Ingonyama Trust

land (Security of Tenure)

OBJECTIVE STATEMENT Facilitate development on Ingonyama Trust land through provision of secured tenure rights.

BASELINE 1313 Tenure rights approved by the Board

JUSTIFICATION Facilitated development.Concluded tenure right agreements.

LINKS Chapter 6 of NDP, Outcome 7 MTSF, DRDLR strategic goal 3

STRATEGIC OBJECTIVE 2.2.STRATEGIC OBJECTIVE An integrated and comprehensive land tenure information administration

system

OBJECTIVE STATEMENT Ensure an integrated and comprehensive land tenure information administration system

BASELINE 1 quarterly update of land holdings register in 2014

JUSTIFICATION This objective will ensure the safeguarding and ease of access to information for critical decision making.

LINKS DRDLR Strategic Goal 2, Outcome 7 MTSF

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STRATEGIC OBJECTIVE 2.3.STRATEGIC OBJECTIVE Making land available for infrastructure development

OBJECTIVE STATEMENT Improve facilitation of development in rural areas by making trust land available

BASELINE 20 MOUs concluded with municipalities with regards to rural housing schemes2 Planning and development co-operation agreements.

JUSTIFICATION The strategic objective will contribute towards improved rural livelihoods by facilitating the provision of quality infrastructure.

LINKS DRDL Strategic Goal 3 and 4. Outcome 7 MTSF

STRATEGIC OBJECTIVE 2.4.STRATEGIC OBJECTIVE Prevention and monitoring of illegal land occupation

OBJECTIVE STATEMENT Effective asset management in rural areas

BASELINE New indicator

JUSTIFICATION To safeguard the assets of the trust

LINKS DRDLR Strategic Goal 3, Outcome 7 MTSF

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QUARTERLY TARGETS FOR 2015/16

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PROGRAMME 3 : RURAL DEVELOPMENTPurpose Co-ordinate, Initiate, Facilitate the implementation of Rural Development to strengthen security and agricultural productivity. The programme focuses on:•Food Security•Facilitate the establishment of industries and rural enterprises.

STRATEGIC OBJECTIVE 3.1.STRATEGIC OBJECTIVE Support to rural communities to produce their own food in all rural districts

OBJECTIVE STATEMENT Provide support to rural communities in all rural districts to enable them to improve their livelihoods.

BASELINE New indicator

JUSTIFICATION The strategic objective will contribute towards food security in rural areas.

LINKS Outcome 7 MTSF, DRDL Strategic Goal 3 23-04-19 39

STRATEGIC OBJECTIVE 3.2.

STRATEGIC OBJECTIVE Strategically located land identified and utilised for agricultural purposes.

OBJECTIVE STATEMENT Identify land that will be utilized specifically for agricultural purposes.

BASELINE New indicator

JUSTIFICATION This strategic objective will ensure that the land allocated for agricultural purposes is used productively and will contribute towards economic development and food security.

LINKS DRDLR Strategic Goal 3 & 4

STRATEGIC OBJECTIVE 3.3.

STRATEGIC OBJECTIVE Facilitate the establishment of rural enterprises

OBJECTIVE STATEMENT Facilitate the development of rural enterprises in areas with economic development potential and opportunities.

BASELINE New indicator.

JUSTIFICATION The strategic objective will contribute towards CRDP initiatives.

LINKS DRDLR Strategic Goal 6

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QUARTERLY TARGETS FOR 2015/16

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PROGRAMME 4 : TRADITIONAL COUNCIL SUPPORT

Purpose To utilise the financial resources of the Trust in advancing economic growth, creating employment and eradication of poverty. This programme includes the following:- •Providing of training to Traditional Councils•Providing educational awards to community members

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STRATEGIC OBJECTIVE 4.1.

STRATEGIC OBJECTIVE Facilitate the provision of socio-economic upliftment opportunities and improve social investment to communities living on Ingonyama Trust land.

OBJECTIVE STATEMENT To provide socio-economic opportunities to improve sustainable livelihoods of the communities living on the Ingonyama Trust land.

BASELINE 1 Community needs assessments conducted80 students awarded educational grants.

JUSTIFICATION Betterment of communities residing on Ingonyama Trust land.

LINKS DRDL Strategic Goal 1 and Chapter 9 and 13 of NDP.

STRATEGIC OBJECTIVE 4.2.

STRATEGIC OBJECTIVE Support to Traditional Councils in skills development and capacity building programs provided.

OBJECTIVE STATEMENT To provide training on land allocation processes as well as providing guidance on dispute resolution (on land matters)

BASELINE 43 of TC trainings conducted

JUSTIFICATION This objective will contribute to the up skilling of TCs

LINKS DRDL Strategic Goal 1, NDP chapter 6.

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QUARTERLY TARGETS FOR 2015/16

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INCOME

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INCOMEPER ECONOMIC CLASSIFICATION ACTUAL

2013/14BUDGET 2014/15

BUDGET 2015/16

BUDGET 2016/17

BUDGET 2017/18

BUDGET 2018/19

Rental Income / (Royalty income 2014) 16,851,422.00 15,339,617.83

17,642,621.00

18,524,267.25

19,449,995.81

20,422,010.80

Investment Income 8,939,566.00 9,735,186.58

10,647,248.00

11,179,610.40

11,738,590.92

12,325,520.47

Other Income (Servitudes) 6,278,507.00 101,052.00

352,649.65

407,834.49

455,050.69

477,803.22 Transfer Payment Funds (Dept. of RDLR) 14,500,000.00 17,294,000.00

18,069,000.00

18,788,000.00

19,727,400.00

20,713,770.58

From Reserves / Straight lining income 64,704,763.00 20,232,143.59

40,930,905.99

24,635,145.95

26,047,470.20

27,349,843.12

TOTAL INCOME 111,274,258.00 62,702,000.00

87,642,424.64

73,534,858.09

77,418,507.62

81,288,948.19

OVERVIEW OF BUDGET AND MTEF ESTIMATES

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EXPENDITURE ESTIMATESPER ECONOMIC CLASSIFICATION ACTUAL 2013/14 REVISED BUDGET

2014/15PROPOSED BUDGET 2015/16

PROPOSED BUDGET 2016/17

PROPOSED BUDGET 2017/18

PROPOSED BUDGET 2018/19

ADMINISTRATION 85,824,820.00 37,470,936.00 59,089,914.61 43,521,361.75 45,880,630.76 48,174,177.40

LAND MANAGEMENT 450,357.00 2,583,896.00 2,785,900.05 2,925,195.06 3,071,454.81 3,225,027.54

Tenure upgrade and formalisation of settlement

- 1,050,000.00 1,102,500.00 1,157,625.00 1,215,506.25 1,276,281.56

Land identification for special projects

- 562,146.00 562,146.00 590,253.30 619,765.97 650,754.26

Land tenure information system - maintenance

296,111.00 200,000.00 310,916.55 326,462.38 342,785.50 359,924.77

Workshops for Co-operation agreements

154,246.00 771,750.00 810,337.50 850,854.38 893,397.09 938,066.95

RURAL DEVELOPMENT - - 9,000,000.00 9,270,000.00 9,455,400.00 9,644,508.00

Food Security Programme - - 9,000,000.00 9,270,000.00 9,455,400.00 9,644,508.00

TRADITIONAL COUNCIL SUPPORT 28,834,923.00 22,647,168.00 16,766,609.98 17,818,301.28 19,011,022.05 20,245,235.25

Provision for Traditional Council 90%

28,834,923.00 22,647,168.00 16,766,609.98 17,818,301.28 19,011,022.05 20,245,235.25

115,110,100.00 62,702,000.00 87,642,424.64 73,534,858.09 77,418,507.62 81,288,948.19

RESOURCE CONSIDERATIONSThe Ingonyama Trust Board obtains its funding from the following two sources.Transfer payment received from the Department of Rural Development and Land Reform, and ITB self – generated funds.

The compensation of employees has increased since 2010 due to the employment of additional staff. The need for additional staff came about as a result of a rise in the demand for services of the ITB. Spending in the compensation of employees is expected to increase in line with the revision of the organogram. The goods and services budget is expected to increase in order to provide sustainable community benefits. The trust’s capital / infrastructure costs are also expected to increase due to the expansion and decentralisation of office accommodation facilities. The Board is committed to sound Human Resource Management. This includes Employment Equity, Employee Wellness, a Service Commitment Charter, and Workplace Skills Development.

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RISK MANAGEMENTRisk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues and opportunities, as well as the financing of the consequences of loss.

The trust has implemented and updated its Risk Management Strategy/profile. The trust identified the following categories of risk. Financial RiskPhysical Security RiskOperational RiskHealth and Safety Risk The trust has developed mechanisms to mitigate these risks to operate in a safer and secure environment by introducing financial and non-financial policies and compliance procedures.

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PART CLINKS TO OTHER PLANS

CONDITIONAL GRANTSNAME OF DEPARTMENT DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM

MANDATE Support the ITB in terms of the Ingonyama Trust Act, Act 3 of 1994 as amended

OUTPUTS Land management ,administration support and institutional policy development

CURRENT ANNUAL BUDGET (R’000)

18, 069

DATE OF NEXT EVALUATION Annually

LINKS TO OTHER DEPARTMENTS

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NAME OF DEPARTMENT LINK

DEPARTMENT OF COGTA Planning around Ingonyama Trust Land in terms of the PDA

National Department of Public Works Lessee for all state domestic facilities on Ingonyama Trust land

KZN Department of Human Settlements

Making Ingonyama Trust land available for low cost housing

National Treasury Financial Guidelines and policies, collection of royalties

Department of Minerals Mining licences / Permits on Ingonyama Trust land