PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL

DEVELOPMENT AND LAND REFORM

On Wednesday, 10th October 2012

THE 2011/2012 ANNUAL PERFORMANCE

CONTENTSCONTENTS1. Executive Overview Of The

2011/2012 Annual Report Of The Ingonyama Trust Board

2. Challenges3. Achievements4. Recommendations5. Financial Reports6. Performance In Terms Of Strategic

Plan7. Summary On The Report Of The

Auditor General And Response2

OVERVIEWOVERVIEWThe Ingonyama Trust Board is pleased to release it’s 2011/2012 Annual Report.

The year saw many positive growth nodes within the Ingonyama Trust, the Board and it’s Secretariat.

The realisation of our new headquarters will lend much credence to our position on the rural development space and allow the Board and its Secretariat to function optimally in terms of its mandate.

Additional staff recruitment allowed for the vision and critical programmes of the Board to unfold.

The acquisition of shares in mining companies has begun to address new business potential to increasingly allow communities on ITB land to participate in wealth opportunities

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OBJECTIVE optimal land management for the material benefit and social well being of the communities living on Ingonyama Trust land.

VISIONA Leader in sustainable communal land management.

MISSIONTo 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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OVERVIEW . . . . .

THE BOARDTHE BOARD His Majesty is the sole trustee of the Ingonyama Trust,

however the Board administers the day to day affairs of the Trust.

His Majesty is the Chairperson of the Board and the Board Members are appointed by the Minister of Rural Development and Land Reform.

The responsibility of the Board is to implement the objectives of the legislation, the core business being the management of land for benefit and social wellbeing of the individual members of the communities, thus the Board:-

formulates and implements policy provides an effective land administration system creates a climate which encourages development Provides extension security of tenure in accordance

with both customary and statutory law

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Justice S.J.Ngwenya

Mr. B.L. Shabalala

Advocate W.E.R Raubenheimer

Inkosi K.W. Mathaba

Ms. J BhenguDr. T. MbathaPastor N. Zitha

THE INGONYAMA TRUST BOARD

BOARD / EXCO MEETING S ATTENDED BOARD / EXCO MEETING S ATTENDED 2011/122011/12

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Member Board Exco Special Leases Exco

Judge S.J. Ngwenya 6/6 8/10 9/10

Adv. W.E.R Raubenheimer

6/6 7/10 10/10

Dr T. Mbatha 5/6 8/10 3/10

Pastor N. Zitha 6/6 9/10 9/10

Mr B. L. Shabalala 5/6 5/10 3/10

Inkosi K.W Mathaba

6/6 7/10 7/10

Ms J Bhengu 5/6 8/10 2/10

Grand Total 6 10 10

Audit committeeAudit committee

Member No. of Meetings

Prof. B. Stobie 4/4

Ms N.E Memka 4/4

Mr A. Jordan 3 /4

Grand Total 4

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CHALLENGES CHALLENGES Conflict Between Local Municipalities And

Traditional Leaders Rating Of Land By Municipalities Leading To A

Possible Financial Hardship Threats Of Land Invasion; Either As An Organized

Invasion Or By Creeping Appropriation Illegal Activities Such As Mining Payment Of Mining Royalties To The State Improper Land Use Leading To Degradation Of The

Natural Environment And Uncontrolled Urbanization Competing Land Uses Fragmented And Cumbersome Planning Legislation Operational Constraints In Resources, Staff And

Service Providers And Technical Support & Training

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FACTS AND FIGURES 2.79 Million Hectares of Land In KZN.

Translates to just over 30% of land holdings in KwaZulu-Natal.

Land held every district Municipal area.

Almost half of the population of 10 million people of KwaZulu-Natal lives on Trust land.

241 Traditional Councils have jurisdiction on Trust land.

29 000 hectares of land under formal lease

SPECIAL PROJECTSSPECIAL PROJECTS

Includes:

◦Re-development Of Small Towns◦New Towns/Smart Villages◦Municipal SDFS◦Agricultural Projects◦Conservation Projects

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NEW TOWN CENTRE RE-DEVELOPMENT PROPOSAL WITH ETHEKWINI MUNICIPALITY

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PERFORMANCE REPORT 2011/12PERFORMANCE REPORT 2011/12

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2010/2011 2011/2012

Tenure rights applications received 1220 953

Tenure rights applications approved by Traditional Councils and Ingonyama Trust Board

449 618

Leases signed 211 364

Revenue generated R460 3300 R948 729

The underlying table reflects the year on year growth of the ITB in offering secure land tenure instruments

DISTRIBUTION PER DISTRICTDISTRIBUTION PER DISTRICT

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THE SECRETARIATTHE SECRETARIATThe current staff compliment assisting the

Board in its portfolio is 36 Staff members.The Secretariat is headed by the Chief

Executive Officer and his Senior Management Team who provide technical assistance to the Board and execute the resolutions of the Board.

The Real Estate component comprised the majority of the staff and is ably supported by Finance and Administration Sections.

26 staff are on the approved establishment, all other staff are on contract. The staff structure requires review and strengthening to accommodate the Boards vision and mission

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Employment EquityEmployment Equity

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Demographics

Male Female Total

Black 11 13 24

Indian 6 0 6

White 4 1 5

Coloured 0 1 1

Total 21 15 36

Financial ReportFinancial Report

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Fin Statement 31/03/12

Notes 2012 –R-

Non Current Assets 29 673 945

Current Assets 233 705 626

Total Assets 263 379 571

Total liabilities 164 276 739

Net Assets 99 102 832

Financial ReportFinancial Report

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Fin Statement 31/03/12 2012 –R-

Rental Revenue 23 091 318

Finance Income 9 623 048

Royalty Revenue and other 5 387 409

Transfer Payment 13 034 000

Total revenue 51 135 775

Expenditure (48 849 636)

Surplus for the year 2 286 139

Financial ReportFinancial Report

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Cash flow statement 31/03/12

Notes

2012

–R-

Cash flows from operating activities

2 859 449

Net Cash Flows from inv. activities

(13 340 361)

Cash and cash equivalents at the end of the year

175 193 253

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PERFORMANCE MEASUREMENT AGAINST STRATEGIC PLAN

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PERFORMANCE MEASUREMENT AGAINST STRATEGIC PLAN

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PERFORMANCE MEASUREMENT AGAINST STRATEGIC PLAN

AUDITOR GENERAL’S REPORT AND AUDITOR GENERAL’S REPORT AND MANAGEMENT RESPONSESMANAGEMENT RESPONSES

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Non Valuation of LandNo tangible benefits to justify cost of

valuationAlternate methods are being explored

Royalty RevenueNot practical to verify every ton of

mineral removed.Most Mining Operators are now paying

directly to the State.

Disbursement of Funds Community having equity

in company and able to receive dividends.

Emphasis of Matter Issue ( Rates)

The matter is in court with the eThekwini Municipality.

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THANK YOUTHANK YOU

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CONTACT :

INGONYAMA TRUST BOARD65 TRELAWNEY ROAD, PIETERMARITZBURG3201P O BOX 601PIETERMARTIZBURG 3200TELEPHONE 033 846 9900FACSIMILE 033 34386 2528WEB www.ingonyamatrust.org.za

NOTESNOTES_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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