Presentation to the Portfolio Committee 2005/06 Annual Report 11 October 2006 Presented by: Ms SNO Choane Chief Financial Officer

1
Department of Land Affairs Vote 29
Presentation to the Portfolio
Committee2005/06 Annual Report 11 October
2006Presented byMs SNO ChoaneChief
Financial Officer
2
PURPOSE

• The purpose of this presentation is to
• report on the Departments performance in
  respect of 2005/06
• financial year
• as well as present progress on current
  performance iro 2006/07
• financial year

3
BASIS FOR PERFORMANCE REPORTING

• The performance reporting is premised on the
  following
• 2005 2010 Strategic plan
• 2005/06 Annual Report
• 2006 2009 Strategic plan iro current
• performance

4
CONTENT OF THE PRESENTATION

1. Strategic Framework adopted in 2006
2. 2005/06 Operational performance per programme
3. 2005/06 Financial performance
4. 2006/07 Operational performance
5. 2006/07 Financial performance
6. Challenges
7. Interventions

5

• Strategic Framework adopted in 2006

6
VISION

• To be a global leader in the creation and
  maintenance of an equitable and sustainable land
  dispensation that results in social and economic
  development for all South Africans.

MISSION
To provide enhanced land rights to all South
Africans, with particular emphasis on black
people, that would result in increased income
levels and job opportunities, productive land use
and well-planned human settlements.
7
STRATEGIC CONTEXT
Acceleration of the creation of a land system
that comprehensively addresses the legacy of
socio-economic deprivation and the improvement of
the quality of life of black people
Contribution to Poverty Alleviation and Economic Development through Land Reform and Administration

Interventions and participation of the State in the land market to accelerate land redistribution

Land-based integrated and decentralised land use and development planning and Implementation

Enhanced access to and/or ownership of land by people living on commercial farms to improve their livelihoods and economic opportunities

Development of capacity building models and Programmes for Land Reform Beneficiaries, DLA employees, other Government employees and the general public
8
STRATEGIC OBJECTIVES CORE OBJECTIVES (1)
Redistribution of 30 of white-owned agricultural land by 2014 for sustainable agricultural development.

Provision of tenure security that creates socio-economic opportunities for people living and working on farms and in communal areas.

Settlement of all outstanding land claims by 2008 and implementation of awards

Provision of land for sustainable human settlements, industrial and economic development.

9
CORE OBJECTIVES (2.)
Provision of efficient land use and land administration services.

Provision of efficient state land management that supports development.

Provision of skills development framework for land and agrarian reform to all relevant stakeholders.

Development of programmes for the empowerment of women, children, people with disabilities and those living with HIV/Aids and older persons within the context of the Departments mandate.
10
2005/06 Operational Performance per programme
11
PROGRAMME 1 Administration (1)
12
PROGRAMME 1 Administration (2)
13
PROGRAMME 1 Administration (3)
14
PROGRAMME 1 Administration (4)
15
PROGRAMME 2 Surveys Mapping (1)
16
PROGRAMME 2 Surveys Mapping (2)
17
PROGRAMME 2 Surveys Mapping (3)
18
PROGRAMME 2 Surveys Mapping (4)
19
PROGRAMME 2 Surveys Mapping (5)
20
PROGRAMME 3 Cadastral Surveys (1)
21
PROGRAMME 3 Cadastral Surveys (2)
22
PROGRAMME 3 Cadastral Surveys (3)
23
PROGRAMME 3 Cadastral Surveys (4)
24
PROGRAMME 4 Restitution(1)
25
PROGRAMME 4 Restitution (2)
26
PROGRAMME 5 Land Reform (1)
27
PROGRAMME 5 Land Reform (2)
28
PROGRAMME 5 Land Reform (3)
29
PROGRAMME 5 Land Reform (4)
30
PROGRAMME 5 Land Reform (5)
31
PROGRAMME 5 Land Reform (6)
32
PROGRAMME 5 Land Reform (7)
33
LAND DELIVERED SINCE 1994

Total 3 373 246
34
PROGRAMME 6 Spatial Planning
Information (1)
35
PROGRAMME 6 Spatial Planning
Information (2)
36
PROGRAMME 6 Spatial Planning
Information (3)
37
PROGRAMME 6 Spatial Planning
Information (4)
38
PROGRAMME 7 Sub-Programme Deeds Registration
(1)
39
PROGRAMME 7 Sub-Programme Deeds Registration
(2)
40
PROGRAMME 7 Sub-Programme Deeds Registration
(3)
41
PROGRAMME 7 Sub-Programme Deeds Registration
(4)
42
PROGRAMME 7 Sub-Programme Deeds Registration
(5)
43
2005/06 FinancialPerformance per programme
44
2005/2006 FINANCIAL PERFORMANCE
PROGRAMME NAME FINAL APPROP. ACTUAL EXPENDITURE VARIANCE VARIANCE AS A OF FINAL APPROP.
Rm Rm Rm VARIANCE AS A OF FINAL APPROP.
1 Administration 288 239 49 17.16
2 Surveys and Mapping 84 73 11 13.45
3 Cadastral Surveys 85 78 7 8.10
4 Restitution 2,706 b 1,789 b 917 33.87
5 Land Reform 705 645 60 8.49
6 Spatial Planning and Information 19 17 2 11.50
7 Auxiliary and Associated Services 10 6 4 40.97
TOTAL 3,897 b 2,847 b 1,050 b 26,96
45
Although the under spending is a cause for
concern, this bar chart depicts that in real
terms year on year expenditure has actually
increased
73,04
97,98
97,19
98,66
46
2006/07 OperationalPerformance
47
2006/2007 OPERATIONAL PERFORMANCE AUGUST 2006
Output as per ENE TARGET ACHIEVED
Programme 4 RESTITUTION All lodged claims settled according to the Restitution of land Rights Urban Rural 8 651 claims 2 922 claims 5 729 claims 1 016 claims 571 claims 445 claims 12 20 8
Programme 5 LAND REFORM Land Redistribution through LRAD, Settlement, Commonages and URP ISRDP 268 167 ha 38 558 ha 14
48
2006/07 FinancialPerformance per programme
49
FINANCIAL PERFORMANCE FOR THE PERIOD APRIL
AUGUST 2006
PROGRAMME NAME ALLO-CATION EXPEN-DITURE EXP AS A OF THE ALLOCATION VARIANCE ON BENCHMARK OF 42
Rm Rm Rm
1 Administration 359 116 32.26 35
2 Surveys and Mapping 81 22 27.61 12
3 Cadastral Surveys 95 33 34.84 7
4 Restitution 3,369 b 495 14.69 920
5 Land Reform 908 194 21.34 187
6 Spatial Planning and Information 28 6 21.29 6
7 Auxiliary and Associated Services 12 0 8.22 5
TOTAL 4,852 b 866 17.87 1,171 b
50
MTEF ALLOCATIONS PER PROGRAMME 2006/07
LAND REFORM 19
RESTITUTION 69
51
Challenges facing the Department
52
CHALLENGES FOR RESTITUTION

High staff turnover Development taking longer than the settlement process High land cost based on market values in terms of the constitution Un-surveyed and unregistered land rights (no title on land), this requires detailed mapping and walking on the land with communities Protracted negotiations with landowners and claimants (Expropriation period of six months before finalization) Community disputes, Traditional authorities jurisdictional issues as well as disagreements with landowners (landowners disputing validity of claims) Incoherent land use practices and need for alignment of priorities i.e. communal and commercial land use practices
53
CHALLENGES FOR LAND REFORM

• Escalating land prices on average between 14 and
  19 in the past 10 years will have a big impact
  on the budget
• Lack of specialized skills required in the sector
  to drive
• massification programme
• Poor level of alignment in the agrarian reform
  sector (public and private)
• Willing buyer-willing seller the state becomes
  the only buyer in the market and that affects its
  bargaining power.

54
Interventions
55
INTERVENTIONS

• Pro-active land acquisition strategy
• ASGI-SA Bio-fuels strategy
• The approach of Area-based planning will
  contribute to the massification programme
• New land delivery models currently being
  developed e.g. special purpose vehicle, agency
  agreements and developer models
• Decentralization framework for fast tracking
  state land management and administration
• Completed Business re-engineering processes to
  re-position the department to fast track delivery

56
I THANK YOU