INGONYAMA TRUST BOARD QUARTERLY NARRATIVE REPORTpmg-assets.s3-website-eu-west-1.amazonaws.com/docs/130312narr… · QUARTERLY NARRATIVE REPORT 01 APRIL - 31 DECEMBER 2012. INGONYAMA

INGONYAMA TRUST BOARD

“Unlocking Rural Land for Development, for the benefi t of the people”

QUARTERLY NARRATIVE REPORT

01 APRIL - 31 DECEMBER 2012


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QUARTERLY NARRATIVE REPORTS - 01 APRIL TO 31 DECEMBER 2012

CONTENTSEXECUTIVE SUMMARY 3

TENURE RIGHTS CONCLUDED 5

LAND HOLDING REGISTER 5

LAND MANAGEMENT RELATED PROJECTS 6

TRADITIONAL COUNCIL EMPOWERMENT IN LAND MANAGEMENT 6

HUMAN CAPITAL 6

TRADITIONAL COUNCIL SUPPORT 7

LEGAL MATTERS 7

NEW ADMINISTRATION BUILDING 7

INGONYAMA RURAL DEVELOPMENT FORUM 8

PARTNERSHIP WITH TONGAAT HULLET 8

BILLBOARDS PROJECT 9

PROVINCIAL PLANNING COMMISSION 9

CONCLUSION 10


“UNLOCKING RURAL LAND FOR DEVELOPMENT, FOR THE BENEFIT OF THE PEOPLE”

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The state is mandated by the Constitution to promulgate a legislation which will protect and strengthen the rights to land particulalry those individuals whose rights are vulnerable as a result of past practices. Furthermore, the Constitution recog-nizes customary laws and the institution of Traditional leadership as a form of governance. Ingonyama Trust Board is en-joined by its enabling Act, to administer the land in terms of Zulu indigenous law and custom law as well as any other law.

While custom evolves and adapts to changing circumstances, it is oral in many instances. Therefore, most people who have land rights on the land that is under Ingonyama Trust Board do not have documentation to evidence such rights. Hence, they remain vulnerable and open to exploitation. It is for this reason that among others the Board has undertaken a land audit exercise to verify such rights and thereafter to issue out leases which evidence such rights and document them so that they remain protected. In some instances the rights verifi ed prove to be servitudes or other forms of rights.

Hence, when in the strategic plan reference is made to tenure rights it must be understood in this context. The targets take into account budgetary constraints and human resource constraints within the Secretariat. It is hoped that a realis-tic target will have to be measured and an equal budget be appropriated to fast track this process and reach suffi cient number of benefi ciaries of this land.

In the strategic plan reference is made to land management related projects. This means in partnership with various stakeholders depending on the nature of the project, land will be identifi ed and the best use therefore be agreed upon and a project plan developed thereafter a plan implemented.

So far various projects have been identifi ed. Among others a project with eThekwini Metro, eMbo Traditional Council and private investors was identifi ed and agreed upon. The project is adjacent to Mpumalanga township and primarily is to develop a new town centre. The project as a whole has three phases, which can be referred as Phase 1, 2 and 3.

EXECUTIVE SUMMARY


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In implementing the project other role players e.g. the provincial Department of Cooperative Governance and Tradi-tional Affairs, the National Treasury and Umngeni Water.Phase one is the new shopping centre and infrastructure development with anchor tenants like Pick n Pay and Spar etc. It is anticipated that the project will be complete during 2013/2014 fi nancial year and the shops will be open for business in April 2013.

Phase two of the project entails the revamp and construction of Government and other public facilities and currently the planning of the project is at an advanced stage. Phase three consists of further mixed used facilities as well as residential development. The Board has issued out a tender for an expression of interest of a possible implementing agent. The proj-ect as a whole will benefi t the board immensely. The outcome of this tender will be notifi ed in the fi rst quarter of the new fi nancial year.

Under Jozini Local Municipality the board has signed a lease with Greater Atlantic Developers who will be developing a mall in the town of Jozini. It is anticipated that this mall will take the same model as the Mpumalanga Town Centre.

Also during the three quarters from April to December 2012 the board assisted in other projects which pertain to agricul-ture and other development. One of the major partnership projects identifi ed in the agricultural sector relates to sugar-cane growing. The formalization of the partnership agreement has taken longer than anticipated. But the agreement has now been fi nalized and will be signed in the fi rst quarter of the new fi nancial year. Thereafter various projects with different communities and traditional councils will be identifi ed and executed.

Also what has been initiated/achieved in the last three quarters on agricultural projects are the following:-1. Partnership with Zululand Anthracite Colliery (ZAC)2. Fencing for Mbatha3. Appointment of a service provider to assist on 100 hectare project under Obizo Traditional Council.

Apart from these projects the Trust has facilitated a number of housing projects in the province. These are mainly rural housing projects by Human Settlement Department. To date of 8 Development Rights Agreements have been signed between the Board, the Department, the Developers and Municipalities. Once completely executed, it should result into approximately 12000 rural houses houses built. Furthermore, the benefi ciaries therefore will be issued with leases thus pro-tecting their rights.



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During the period under review we concluded 580 tenure rights. The tenure rights comprises of the following; leases, servi-tude or development agreement signed by both parties. The last date of signature is accepted as the date of conclusion of the agreement.

The Land Holding Register, which is an immovable property asset register is maintained on quarterly basis. During this pe-riod eleven additional properties were registered in the name of the Ingonyama Trust Board in the Pietermaritzburg Deeds Registry. These properties are as follows;

TENURE RIGHTS CONCLUDED

LAND HOLDING REGISTER

Quarter 1 Quarter 2 Quarter 3

1. Remainder of Lot 5, Qudeni No 10859 in extent 20.9551 ha, Inkandla Municipality2. The Farm Ebenezer No. 3784 in ex-tent 40.4686 ha, Ezinqoleni Municipality3. Remainder of Lot 10 Thlogosi No. 5117 in extent 189.4890 ha, Ubuhlebez-we Municipality4. Ptn 195 Klip Poort no. 1162 in extent 684.3240, Indaka Municipality5. Ptn 6 of Uitval No.1244 in extent 364.3059, Indaka Municipality6. Rem of Lot 7 Qudeni No. 11061 in extent 382.7455, Inkandla Municipality7. Rem of Ptn 16 & 17 Klip River Location No. 4665 proposed consolidation farm Qamu No. 17486 in extent 575.4183 ha, Umsinga Municipality8. Ptn 1 of Asyn Kraal No. 1158 in extent 1728.3423, Indaka Municipality9. Ptn 1 of Baviaan Trap No.6000 in ex-tent 380.7663, Indaka Municipality10. Tom Fynn’s Location No. 4865 in ex-tent 2891.2121, Ezinqoleni Municipality11. Ehlanzeni Mission Reserve No. 7444 in extent 4450.8377 ha, Umsinga Mu-nicipality

1. Ptn 46 of Uitval No. 1244 in extent 110.5029, Indaka Municipality2. Langold No. 9427 in extent 141.6705, Umzumbe Municipality3. Southgate No. 9428 in extent 128.5130, Umzumbe Municipality4. Frankland No. 9598 in extent 717.0379, Umzumbe Municipality5. The farm Kromellenboog No.45 in extent 636.7456, Nquthu Municipality

1. Portion 4 of Uitvaal No.1244 in extent 256.0810 ha, Indaka Municipality2. Portion 5 of Uitvaal No.1244 in extent 220.8910 ha, Indaka Municipality3. Portion 6 of Reserve 16 No. 15836 in extent 7.7087 ha, Jozini Municipality4. Portion 64 (of 13) of Reserve 14 No. 15384 in extent -43.7095 ha, Umhlabuy-alingana Municipality


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LAND MANAGEMENT RELATED PROJECTS

HUMAN CAPITAL

TRADITIONAL COUNCIL EMPOWERMENT IN LAND MANAGEMENT

The Board identifi ed three agricultural projects during the period under review. In partnership with the Mbatha Traditional Council under Zululand Local House two community agricultural projects requiring fencing were identifi ed. The Board undertook to provide the required fencing material.

Obizo Traditional Council also identifi ed one agricultural project which the Board approved for the appointment of an agricultural specialist to assist in the planning and preparations of this 100 Ha project.

Also in partnership with Zululand Anthracite Colliery the board assisted the four traditional councils on agricultural projects that were identifi ed.

Land audits are in progress at Jozini and Manguzi. The primary objective being to; identify the types of tenure rights that residents have within the project area, to formalize the tenure rights through leases and to create a conducive environ-ment for developments and to support the Traditional Councils and the Local Municipalities in the establishment of orderly planning.

A manual has been developed for the training needs of Amakhosi/Traditional Councils and it will be upgraded. The fi rst module covers the following areas; • Role of TCs in terms of the framework act;• Role of Local Government; Role of Ingonyama Trust Board;• Various forms of tenure and • Environmental Issues and LandManagement

To date the following Traditional Councils have been trained on the above;• Nzimakwe; • Mlamuli; Nkumbanyuswa, Chube, Myeni, Zungu, Matheni, Mandlakazi and Ximba Traditional Councils. Over and above this Traditional Leaders/Amakhosi in their respective local houses were also trained.

Seven appointments were made during the period under review. These appointments were for the following posititons;• Land Administration Offi cer;• Town and Regional Planner;• Receptionist;• PA to Real Estate Manager;• Driver;• Registry Clerk;• Admin Clerk;• Media Relations Specialist.

There was one resignation during this period.

To address the gap in the middle management rank the following acting appointments were approved by the Board; acting appointments for two Real Estate Offi cers and an acting appointment for a Senior Administrative Offi cer. Four con-tract appointments were extended; the contract for the Training Offi cer, Senior Accounting Clerk, Administration Clerk and Community Liaison Offi cer.

The Human Resources Department organized an Employee Wellness Day. The event was a success and staff benefi ted from the advice from a number of health professionals including those from Discovery Medical Aid, Greys Hospital and Provincial Department of Health.

Furthermore, three contract positions were approved by the Board for two Debtors Clerks and one Administration Clerk.



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Trainings were conducted on the following areas;• First Aid• Computer Training• HIV/AIDS and Wellness• GIS

The Board approved R290 000.00 in the form of bursaries for 30 students coming from Zungu Traditional Council and an amount of R360 000.00 in the form of bursaries for 59 students from Tembe Traditional Council.

The following Traditional Councils were supported during this period; i. Mthombolwazi Comm Dev Trust (Zungu TC)An amount of R 198 538.00 was paid for the following items; catering - R13 997.00 and Bursaries - R 186 538.00.ii. Tembe Traditional CouncilA total amount of R270 000.00 was paid for bursaries for students studying at various tertiary institutions.iii. Inkosi Phumanyova Community Development Trust (Mandlakazi TC)An amount of R38 750.00 was paid to purchase two laptops and to service the vehicle for Inkosi Phumanyova Develop-ment Trust.

The board has also disbursed money for traditional councils to be used for the following;• Facilitation and training;• Construction where the need has been identifi ed;• Payment of staff working for Development Trust;• Fencing of land where agricultural projects are taking place;• Sometime the Trust contributes towards job creation during dry period where local community participate on;

It should be noted that in assisting Traditional Council’s the Board will not ordinarily help on projects that are of Govern-ment responsibility unless the request also comes from the relevant Government Department.

Furthermore the Board has made land available outside Traditional Council area of jurisdiction for the building of a school that is funded by ArcelorMittal for R60m in Newcastle under Amajuba District.

For the board to approve any request for TC support there must be a detailed motivation by the relevant traditional council.

In the light of the pending dispute between the Board and eThekwini Metro in the matter pertaining to rates, where it is alleged that the board owes approximately R500 million on rates to eThekwini Metro, the matter is currently before the constitutional court however it is important to note that this matter might have serious fi nancial repercussions. For instance is the board was to loose the case the implicaitons may mean that the board will be technically insolvent.

In light of the above therefore the board has decided to use the available funds sparingly hence most projects of substan-tial value are held in abeyance until the matter is fi nalized.

It is the Board view that as far as possible signifi cant contribution should be made towards infrastructure development like bridges, roads, development of water catchment in many places.

Due to limited capacity in certain area certain individuals illegally portray themselves as lawful representatives of the Board and facilitate money from suspecting members of the public in exchange of money for the unoccupied land be-traying to the Trust

The Construction of New Administration Building commenced on 06th July 2011, contract period was 44 weeks and at a tender value of R 22,334,689.00

The Secretariat took occupation of the building in October 2012 and the building was offi cially opened by His Majesty

TRADITIONAL COUNCIL SUPPORT

LEGAL MATTERS

NEW ADMINISTRATION BUILDING


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the King on 09th November 2012.

Moving forward with capacity expansion of the Ingonyama Trust Board we have taken a bold decision to decentralize our services in an effort to bring our services closer to the people, in the near future we will be opening offi ces in Ulundi and Mbazwana and further expand to other parts of the province.

During the Opening of the Fourth Session of the KwaZulu-Natal Legislature in 2012, His Majesty ISILO announced the launch of the Ingonyama Rural Development. A consultative meeting with all Amakhosi was held in April 2012 at Nyokeni Palace in Nongoma. The launch of the Forum was in May 2012 in Pietermaritzburg and had support of the Provincial Government.

In his State of the Province Address the Premier announced that he will transfer Rural Development from the provincial Department of Agriculture and Environmental Affairs to his own offi ce. During the launch of the forum certain resolution were adopted and are fully recorded in the monthly publication called Bayede News which is jointly produced by the Secretariat of the forum and Ingonyama Trust Board. Copies of this publication attached.

Furthermore, various District Forums have since been established, a capacity building program for Traditional Leaders has been designed and is attached to the presentation. The forum will work with all Government Departments in Districts to fast track development. Among other things it will meet with the Mayors’ Forum (coordinated by the Premier). The Con-stitution which will guide the Forum is being prepared.

Since, the forum is an off shoot of the Kings’ project there is a direct bearing to the Ingonyama Trust Board, all related costs at this stage are borne by the Trust. It is however, hoped that in the long term various sponsors and donors will come to the fore and help it to sustain itself.

Tongaat Hulett is an agricultural and agri-processing business which includes integrated components of land manage-ment and property development. It one of the biggest land owner in KZN. The Ingonyama Trust Board believes that the skills and experience of Tongaat Hulett can be further leveraged into signifi cant and sustainable opportunities for rural communities living on the Land. The Board has identifi ed this as key to its partnership with Tongaat Hullet Sugarcane cultivation is a dominant form of agriculture on the north coast of KwaZulu-Natal, where Tongaat Hulett oper-ates four sugarcane mills. The communities who reside on the land generally lack resources and have traditionally relied on subsistence farming to survive. The Tongaat Hullet is to assist these communities with inputs and training. The Board is to facilitate the processes through the provision of leases and making sure that the projects benefi t the communities, job creation, rental income, and other opportunities of socio-economic importance provided it is in accordance with all relevant legislation.

Key elements of the PGDS and the PGDP are aimed at unleashing the agricultural sector, promoting sustainable liveli-hoods and secure food production, increasing the productive use of land and advancing alternative energy generation. Tongaat Hulett and the Ingonyama Trust Board are in a position to make signifi cant contributions to a number of the goals of the PGDS and the PGDP and will continue to do so in the future.

Due to the synergy of their respective development-oriented objectives, Tongaat Hulett and the Ingonyama Trust Board have resolved to co-operate and collaborate with one another with the aim of creating vibrant, capacitated, economi-cally active and productive rural communities, which will be mutually benefi cial to Tongaat Hulett and the benefi ciaries of the Ingonyama Trust.

Purpose of Co-Operation

Ingonyama Trust Board

The Ingonyama Trust Board supports the State’s emphasis on rural development and actively promotes sustainable job creation opportunities, skills development, enhanced food security and access to basic services on the Land.

Predominantly through making Land available for rural development through agricultural production, the Ingonyama Trust Board wishes to establish strategic partners in both the private and public sectors to enable it to be more effective in implementing its rural development objectives on the Land.

INGONYAMA RURAL DEVELOPMENT FORUM

PARTNERSHIP WITH TONGAAT HULLET



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The Ingonyama Trust Board wishes to increase its outreach in rural areas and strives to enhance the quality of life of the communities living on the Land and ensure the Land is used for the benefi t and well-being of the communities and is used in accordance with all relevant legislation.

The Ingonyama Trust Board recognises the potential of synergies between its development-oriented objectives and the objectives of Tongaat Hulett.

Tongaat HulettTongaat Hulett is aware of the need for transformation and rural development in South Africa and has actively aligned its value system and operational ethos with this need.

Tongaat Hulett sees sugarcane cultivation as an important catalyst for rural development and a stimulus for direct and indirect economic activity in rural areas.

Tongaat Hulett wishes to increase the supply of sugarcane from the catchment areas surrounding its mills and recognises that the major growth potential for these supplies will be from previously disadvantaged individuals and, in particular, rural communities.

Tongaat Hulett aims to be the Ingonyama Trust Board’s partner of choice in assisting the Ingonyama Trust Board in meet-ing its development agenda, primarily through sugarcane development initiatives on the Land.

Co-OperationTongaat Hulett and the Ingonyama Trust Board wish to establish a framework and guidelines within which Tongaat Hulett and the Ingonyama Trust Board can co-operate and collaborate in the enhancement of the economic and social well-being of rural occupiers of the Land.

The co-operation and collaboration between Tongaat Hulett the Ingonyama Trust Board shall at all times be subject to all relevant legislation, including but not limited to, the Ingonyama Trust Act, the National Amendment Act and the PFMA Act.

Tongaat Hulett and the Ingonyama Trust commit to creating an environment to facilitate public and private investment for the purpose of stimulating sustainable economic activity and social upliftment of rural communities on the Land, using sugarcane cultivation as the principal mechanism of development.

The Board has only discovered recently that a number of Bill Boards on its land were erected without permission by certain individuals who entered into agreements with unsuspecting traditional leaders after promising them lucrative returns.

It was far this reason that the Board appointed an implementing agent / company to undertake an audit of all Bill Boards on Ingonyama Trust land. A preliminary report reveals that over a period of time the Board has lost a substantial amount of money as a result of this practice.

The Board is in the process of designing system, similar to this with a view to audit of all Telecommunications masts as well as the reasonableness of the current rental payable to the Board.

The Board has met with the Provincial Planning Commission – Chaired by Mr C Xaba to discuss partnership in execution of catalyst projects that are within the land that is under Ingonyama Trust Board.

The Chair of the PPC informed the Board that there are three key areas that the Commission has identifi ed as part of vi-sion 2030, which they would like the Board to participate on. The Chairperson of the PPC emphasized that these projects fall in areas that are on Ingonyama Trust Board land, therefore the participation of the Board is paramount. The three key areas of focus were identifi ed as;

• Develop Coterminous District Provincial Centres;• Formalise Rural Small Towns; Develop Community/Rural Service Centres; and• Develop District Growth and Development Plans

BILLBOARDS PROJECT

PROVINCIAL PLANNING COMMISSION


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The Board registered its willingness to work with the Commission and a meeting with the Traditional Leaders will be held soon to discuss the proposals by the Commission.With the promulgation of KZN, Planning and Development Act it has become evident that there were Towns that devel-oped organically on Trust land that need formalization. Furthermore there is a need for formalisation throughout the rural areas in the province of KwaZulu - Natal, most of these areas that need formalisation are on ITB land.

At the initial stage when the act was promulgated there was a proposal to establish or create an intergovernmental forum that will coordinate relationships between the board, relevant traditional councils and the municipalities. These agreements were referred to the Planning and Development Co operation agreements.

The agreements need to be continually upgraded and to be aligned with the PDA.This will be one of the performances indicator for the Board in terms of formalisation of the areas that are on ITBland.

Also in this context the Board was engaged with the Provincial Planning Commission and other Local Municipalities. It is hoped that ultimately the Ingonyama Rural Development Forum will be integrated into the structure that will culminate from these discussions.

CONCLUSION

Documents

INGONYAMA TRUST BOARD QUARTERLY NARRATIVE REPORTpmg-assets.s3-website-eu-west-1.amazonaws.com/docs/130312narr… · QUARTERLY NARRATIVE REPORT 01 APRIL - 31 DECEMBER 2012. INGONYAMA