Land: Key to Economic Growth and Poverty Alleviation 1 COMMISSION ON RESTITUTION OF LAND RIGHTS...

Land: Key to Economic Growth and Poverty Alleviation

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COMMISSION ON RESTITUTION OF

LAND RIGHTS

PRESENTATIONAT THE BUDGET HEARINGS FOR PORTFOLIO

COMMITTEE ON AGRICULTURE AND LAND AFFAIRS03 JUNE 2004

Presented by:Mr T.T. GwanyaP.Bag X833PRETORIASouth AfricaTel: (012) 312 9244Fax: (012) 321 0428E-mail: [email protected]: www.land.pwv.gov.za/restitution


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LAND REFORM POLICY

The injustices of racially based land dispossession of the past, the need for a more equitable distribution of land ownership, the need for a land reform to reduce poverty and contribute to

economic growth, security of tenure for all, and a system of land management which will support sustainable

land use patterns and rapid land release for development,


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Elements of Land Reform Progamme

Redistribution aims to provide the disadvantaged and the poor with access to land for residential and productive purposes. Its scope includes the urban and rural very poor, labour tenants, farm workers as well as new entrants to agriculture (87:13% the White: Black land ownership ratio debate).

Land Restitution covers cases of forced removals which took place after 1913. They are being dealt with by a Land Claims Court and Commission on Restitution of Land Rights established under the Restitution of Land Rights Act, 22 of 1994 (redress).

Land Tenure reform is being addressed through a review of present land policy, administration and legislation to improve the tenure security of all South Africans and to accommodate diverse forms of land tenure, including types of communal tenure (ownership).


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Restitution (Commission)

Constitution Act 108 of 1996 Ch 2 s25 (6-9)

Restitution Act 22 of 1994 as amended

Dispossession after 19 June 1913

Claim lodged by 31 December 1998

Racially discriminatory laws and practices

Just and equitable redress

Urban and rural claimants

Land owners, tenants, Users, beneficial occupations


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OUTLINE OF THE RESTITUTION CLAIMS PROCESS

PHASE ONELodgement and Registration [closing date 31/12/98, establish database]

PHASE TWOScreening and Categorisation

[Initial screening, Preliminary option, Advanced screening, Preliminary feasibility, Batching andPrioritisation, Preliminary Field Research]

PHASE THREEDetermination of Qualification in terms of Section 2 of the Restitution Act

[Assessment of Gazette needs, Assessment of Notification needs and the Gazetting / Notification ofthe interested parties.]


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OUTLINE OF THE RESTITUTION CLAIMS PROCESS (Cont…)

PHASE FOURPreparation for Negotiations

[Project plan for claimants, Representation of claimants if required, Research in order toobtain any outstanding information, Valuations, Monetary Value of Claim [MVOC],Verification, Preliminary planning, Preliminary case report and negotiation position,

Prepare and obtain mandate.]

PHASE FIVENegotiations

[Agreement, Preparation of Memorandum for approval, Deed of Settlement, Deal withDisputes, Obtain Ministerial Approval/ Court Order]

PHASE SIXImplementation/ Settlement Support and Development Planning

[Detailed Land Planning, Transfer of Land, Development Funds, Grants, Post-awardSupport & Handover. Financial compensation or other redress is implemented in cases

where claimants are not restored to the claimed land.]

Case and File Closed : Putting Land Rights in the Right Hands


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CLAIMS SETTLED as at 31 March 2004 CUMMULATIVE up to 31/03/04

By Province

Province Claims Households Beneficiaries HectaresE CAPE 12973 26771 112838 28338F STATE 2031 2718 18460 43315GAUTENG 9312 9304 45493 3453KZN 10427 23785 146287 132379MPLANGA 1394 16306 108593 240014N WEST 1238 12399 65770 71484N CAPE 1501 5273 31936 233634LIMPOPO 1214 13822 59963 54575W CAPE 8735 11914 72967 3100TOTAL

48825 122292 662307 810292


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Settled Claims (Provincial Stats) Cumulative: 1995 to date(Finance)PROVINCE CLAIMS HH's BENEFICIARIES Ha TOTAL AWARDE CAPE 12973 26771 112838 28338 R 708,358,807.68F STATE 2031 2718 18460 43315 48,018,627.68GAUTENG 9312 9304 45493 3453 413,607,585.00KZN 10427 23785 146287 132379 832,667,800.56MPUMALANGA 1394 16306 108593 240014 425,340,016.00N WEST 1238 12399 65770 71484 169,106,344.79N CAPE 1501 5273 31936 233634 136,938,547.28LIMPOPO 1214 13822 59963 54575 230,084,829.96W CAPE 8735 11914 72967 3100 356,403,445.47

TOTAL 48825 122292 662307 810292 R 3,320,526,004.42

1. These statistics have been compiled based on the information reflected in the Database of Settled Restitution Claims.2. In order to improve the accuracy of our statistics, the Database of Settled Restitution Claims is on an ongoing basis

subjected to internal auditing.3. Please note that the number of hectares restored is currently under review, both with regard to existing data, as well as

outstanding data on state land.4. The total restitution award also include the cost of solatium that was paid out, i.e. KwaZulu Natal [R 6,367,000.00] and

Western Cape [R47,000.00].


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RURAL /URBAN CLAIMS SETTLED

CUMULATIVE STATISTICS ON SETTLED RESTITUTIONCLAIMS

1995 – 31 MARCH 2004

LAND RESTORATIONFINANCIAL COMPENSATIONALTERNATIVE REMEDYTOTAL NO. OF CLAIMS SETLEDBENEFICIARIES INVOLVEDURBAN CLAIMS 14758 25477 2477 42712 264480RURAL CLAIMS 2873 3234 6 6113 397827TOTAL 17631 28711 2483 48825 662307

1. The above statistics have been compiled based on the information reflected in theDatabase of Settled Claims.

2. In order to improve the accuracy of our statistics, the database of Settled restitutionClaims is on an ongoing basis subjected to internal auditing.

3. Project Basisa is currently being used to clean / update the Landbase system, as afurther mechanism.


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EXPENDITURE 2003/2004

RESOURCING OF THE COMMISSIONRestitution Financial Report: 2003/2004

0100000000200000000300000000400000000500000000600000000700000000800000000900000000

Transfer payments

Administrativeexpenditure

Original allocation

Adjusted Allocation

Expenditure


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EXPENDITURE 2003/2004

RESOURCING OF THE COMMISSION

Restitution Financial Report: 2003/2004

Standard ItemOriginal allocation Adjustment Adjusted Allocation Expenditure Transfer payments 701826000 25674000 727500000 727410000Professional and Special Services 44570000 -17808000 26762000 26687000Equipment 5880000 -2166000 3714000 3488000Inventory 3013000 -1717000 1296000 1241000Administrative expenditure 17811000 6776000 24587000 24116000Personnel 65954000 -9759000 56195000 56175000Total 839054000 1000000 840054000 839117000


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CLAIMS SETTLED TO DATE

Progress made as at 31 March 2004

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1995/2000 2001/2002 2003/2004

No. of claimssettled


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CLAIMS SETTLED TO DATE

Progress made on the settlement of claims as at 31 March 2004

Year 1995/2000 2000/2001 2001/2002 2002/2003 2003/2004 TotalNo. Claims settled 3 917 8 179 17 783 6 609 11 432 48 825


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EXAMPLES OF RURAL CLAIMS SETTLED

Guba, near Queenstown, involving 357 households, 6531 hectares of agricultural land.

Tshatshu, near Kingwilliamstown involving 213 hectares and 189 households.

Thaba Patchoa in the Free State, with 1550 hectares of agricultural land for 53 households as well an additional 650 hectares for the former sharecroppers.

Bucklands in the Northern Cape, involving 21 farms for 380 claimants households.


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Monamaladi in North West province, involving 60 hectares as well as an additional 100 hectares for the Nkainkela Community of 20 families.

Tigerkloof Educational Institution in North West measuring 1189 hectares.

KwaBhanye in KwaZulu Natal (KZN) measuring 3000 hectares involving 855 households.


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EXAMPLES OF RURAL CLAIMS SETTLED Hlaza in the North West of KZN measuring 1020

hectares for 150 families.Nkaseni in Mtshezi Local Municipality

measuring 11457 hectares for 1050 households.

Rooipan in Limpopo involving 1484 hectares of agricultural land for 160 households.

Marobala – O – Itsose involving 10 000 hectares for 1500 beneficiaries.


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Baphalane – Ba – Mantserre in Limpopo involving 1884,3704 hectares for 500 households.

Bjatladi (Zebediela) in Limpopo involving 5973 hectares for 250 households.

Mdluli claim in Mpumalanga involving 6046.322 hectares and 500 (+850 current occupiers) households.

Giba in Hazyview, involving 1942 hectares and 500 households.


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EXAMPLES OF LAND CLAIMS SETTLED THROUGH LAND CLAIMS COURT

Land Claims Court Cases: Restitution of Land Rights Act, No 22 of 1994

2003(Cases Settled by the Land Claims Court as well as Supreme

Court of Appeal

Richtersveld Community and others v Alexkor and another. Restitution of Land Rights Act No 22 of 1994. Richtersveld

Community entitled to restitution of customary law interest in land.

The claimants have lost their right in land and mineral rights and therefore took the matter to Court by way of direct access procedure as prescribed in the Restitution of Land Rights Act 22 of 1994.


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EXAMPLES OF LAND CLAIMS SETTLED THROUGH LAND CLAIMS COURT(Continues)

Richtersveld Community and others v Alexkor and another.

The Constitutional Court confirmed the Supreme Court of appeal finding, in ruling that the community’s rights survived annexation by the British Crown in 1847, that the community had a right in land at 1913, and further that the community was dispossessed of the land through rationally discriminatory laws or practices.


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Keppler and others v the Department of Land Affairs

The Court ordered that compensation of R43 300-00 be awarded to Nora Keppler in respect of the dispossession of Lot 87, The Highlands. This claim forms part of the larger Highlands Claim.


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Baphiring Community v Uys and others

A group of some 383 persons who describe themselves as “the Baphiring Community” brought a restitution claim directly to the Land Claims Court under Chapter III A of the Restitution of Land Rights Act.


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Baphiring Community v Uys and others(continues)

The group claimed and order restoring the common law title of certain land commonly known as “the old Mabaalstad”, to a communal property association. There were 22 defendants in this case, mostly the present owners of the land claimed, who resisted the claim.


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Baphiring Community v Uys and others(continues)

In January 2002 the Land Claims Court ruled that the Baphiring Community had the necessary locus standi to bring this claim, and that their claim met the requirements of Section 2 of the Restitution Land Rights Act. By agreement between the parties the Court now had to consider the issue of just and equitable compensation. The Court held that the compensatory land and the cash payment the Community received at time of dispossession, fell far short of being just and equitable, and as a result the Community did not receive just and equitable compensation within the meaning of Section 2(2) of the Restitution of Land Rights Act 22 of 1994.

The feasibility of the restoration of land is still ongoing in the Land Claims Court


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The Khosis Community at Lohatla, The Gatlhose Community, The Maremane Community vs. The Minister of Defence and others

The matter was taken to the Land Claims Court to request that the subject land be restored. The subject land is situated on a battlefield and claimants would be endangered in the subject land were restored to them. The Court found that it is in public interest that the land on which the Battle School is situated is not restored to any claimants.


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FUNDING OF COMMISSION STANDARD ITEM ALLOCATION

Transfer Payments 775,236,000

Goods and Services 75,212,000

Compansation of employees 81,924,000

Payment of capital amounts 1,595,000

TOTAL 933,967,000

Transfer payments are for land acquisition, financial compensation and development grants in settlement ofthe claims.

The financial allocation for the 2004/05 financial year is inadequate by an estimated R500 million.

0

20

40

60

80

100

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North


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CHALLLENGES FOR COMMISSION

Whilst we have increased the number of claims settled the processing of rural claims remains the highest challenge. It takes approximately two years to finalise a typical rural claim. Challenges encountered in processing rural claims include the following:-

Most of the land in homeland areas is unregistered and unsurveyed, which makes deeds and archival research even more difficult.


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Time delays in producing identity documents, birth/death certificates, marriage certificates, and affidavits, documenting oral evidence and construction of family trees.

Family and Community (e.g. boundary) disputes take longer to resolve. It often takes time to reach an agreement on the manner in which the claim is to be settled.


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Claimants are dispersed far and wide, following the forced removals, it takes an effort and number of meetings to get claimants together for community resolutions. We have a number of cases where those absent reject the decisions made during their absence.

The exorbitant land prices, particularly of commercial agricultural farms, game farms, golf estates and forestry land. The purchase of land by foreigners has also contributed to increased land price, thus serious distortion of our land market


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Claimants do not want any other land but the specific land from which they were removed, on which “lies the bones of our forefathers”.

Some current landowners are opposed to restitution and consequently they drag the process to protracted negotiations.


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The integrated development approach to restitution requires a further injection of capital to ensure sustainable settlement. The restitution budget for 2004/ 5 has been increased to R939 million. We however need not less than R200 million for 2004/5 to enable restitution beneficiaries to make optimal use of the restored land, which is in line with the provision of section 42C of the Restitution Act.


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The Commission has a staff compliment of 390 out of 511 funded post. We have witnessed a high staff turnover recently and this is linked to the fact that our staff have five year contracts ending December 2005. We need a staff complement of 724 to be able to meet the Presidential directive of 2005.


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FINANCIAL COMPENSATION CHALLLENGES

There are however a number of challenges related to financial compensation and these include the following:-

Non disclosure by claimants which may lead to the exclusion of the rightful descendants and which in turn leads to family disputes.

Inadequate/conflicting claimants’ personal details, which delays payment.


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FINANCIAL COMPENSATION CHALLLENGES

The value of money depreciates whilst the value of land appreciates.

Some of the claimants are using the money in non-value adding activities, which does very little.


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CONCLUSION

Indeed the tide has turned, giving land back to the people.

Our land reform programme is guided by the rule of law.The steps followed in the restitution process are necessary to ensure equity, fairness, justice,restoration of dignity, reconciliation as well as economic growth and development.


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CONCLUSION

In this process we have learned a number of lessons including:-

Land restoration is the best option as it addressed the skewed land ownership.

Financial compensation is a response to poverty but it has many related problems and thus should be discouraged.


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CONCLUSION

People opting for land restoration should be given support (development planning and facilitation).

Agricultural land demands dedicated technical support including skills development, funding and management.


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CONCLUSION

Integrated development approach to land reform is critical, commitment from Provincial Governments and Municipalities is a must.

We have challenges which are surmountable if co-operative governance is observed by all. Rural claims are proving to be quite difficult and time consuming to process.


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CONCLUSION

The Private Sector, especially commercial farmers have a critical role to play in supporting our land reform programme.

We need both financial and human resources to speed up the processing of the remaining claims. Our current budget is R1.2 billion a year to settle prioritized claims.


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CONCLUSION

We need a further R200million for development planning and facilitation.

Generally our performance in restitution has a faster pace compared to other countries such as Canada, Australia, New Zealand and Germany

I thank you

Land: Key to Economic Growth and Poverty Alleviation 1 COMMISSION ON RESTITUTION OF LAND RIGHTS...

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