DRAFT REPORT OF THE PORTFOLIO COMMITTEE ON AGRICULTURE AND LAND AFFAIRS ON PROVINCIAL OVERSIGHT VISIT TO NORTHERN CAPE, FREE STATE AND EASTERN CAPE:


The
Portfolio Committee on Agriculture and Land Affairs, having undertaken the provincial oversight visits to Northern Cape, Free State and Eastern Cape from 09-19 August 2005, reports as follows:


1.
INTRODUCTION

1.1 The Portfolio Committee on Agriculture and Land Affairs undertook provincial oversight visits to KwaZulu-Natal, Mpumalanga and Limpopo from 1 - 13 August 2004. Subsequently to that visit the committee took a decision that the second phase of oversight work would be early in 2005. This would be to the Northern Cape, Free State and Eastern Cape.


1.2 However, the parliamentary programme in the first and second terms did not permit or have any space for such visits up to the end of July 2005. On the 14th June, the Committee took a decision that the dates should be adjusted to 09-19 August 2005, which was time set aside for oversight work in terms of the Parliamentary programme.


2.
OBJECTIVES

2.2 The purpose of the visit was two-fold. It was to oversee projects funded by the Department of Agriculture and Land Affairs, particularly on Landcare and restitution programmes;


2.3 Firstly, the Land Care is one of the key rural development programmes of the Department since 1998. It is a programme that is informed by the Integrated Sustainable Rural Development Strategy of the government. Its objective is to foster community involvement in the management of the environment and natural resources, while improving the quality of community of community life; and


2.4 Secondly, the purpose was to focus on land restitution projects that have been transferred by the Land Claims Commission. The committee focused on restitution in order to evaluate the economic impact of the restored land to beneficiaries.


3.
DELEGATION

3.1 The multi-party delegation led by the Acting-Chairperson, Ms E. Ngaleka (ANC), included Ms B.M Ntuli (ANC); Ms H.M Blose (ANC); Mr D.M Dlali (ANC); Mr S. Abram (ANC); Adv S.P Holomisa (ANC); Mr T.D.H Ramphele (ANC); Mr M.V Ngema (IFP); Mr J. Bici (UDM); Mr P.H.K Ditshetelo (UCDP). The Democratic Alliance apologized for being unable to attend due to prior commitments. In Northern Cape, at the Goodhouse MEC together with Senior Management of the provincial department welcomed the committee and in Kuruman, Member of Provincial Legislature from UCDP joined the committee.


3.2 In Free State province, Provincial Chairperson, Mr Nketu (ANC) and Mr A.J Botha (DA) from Free State Provincial Legislature joined committee On site visits the committee was accompanied by provincial Chief Director, regional managers and extension officers; and 3.3 In Eastern Cape, Aliwal North the Provincial Chairperson Mr Nkayi (ANC and Ms Buka (ANC) from the Legislature joined the committee also accompanied the provincial Head of Department, Adv Nyondo and

Regional Managers.


3.4 The following staff members accompanied the committee: the Committee Secretary, Mr J. Boltina; the Committee Assistant, Ms Z. Jara; and Mr Mthombeni, Parliamentary Officer represented the Ministry.


4.
APPROACH OF VISIT

In evaluating projects performance in all provinces visited, the committee was accompanied by the Provincial Standing Committee on Agriculture and Land. The following approach was followed in order to understand situation on the ground:


4.1 On site briefings by leadership of the Project Committee, inputs from department and municipality through a Local Councillor. The briefings were focused on the following areas:


4.2 Questions and comments emanating from presentations; and


4.3 Requested a detailed report for the project to be submitted within 14 days


NORTHERN
CAPE ( 09 - 12 AUGUST 2005)


5.
Paprika Project - Goodhouse


This project is a TRANCA land comprised of 12 farmers involved in growing paprika which kick-started in 1995 with government injecting R90 million. Farmers were allocated 10 hectares each. The money allocated was for water infrastructure and the Land Bank also came on board to assist farmers with a production loan of R57 million.


Gili Company was responsible for the management of the project. Problems started to developed between the company and the farmers. The company is now liquidated and the MEC indicated that there will be forensic investigations to be undertaken and a new company will be formed. This is as a result of the alleged financial irregularities.


Paprika plants were grown and processed in the Springbok factory but has ceased production. The land is currently idle with no production at all. The MEC also mentioned that the new company would be allocated R5 million to sort out the irrigation scheme. The first production of Lucerne should have been made in April 2005 and Cotton in October 2005. The company will have a Trust comprised of 55 owners and the Industrial Development Corporation (IDC) will be on board. The shareholders will receive dividends and workers paid salaries. The Department of Agriculture will manage the project in the interim with Agri-academy providing training.


The Project leadership stated that farmers were not sufficiently consulted during the start of the project. Land Bank loan and Land Redistribution for Agricultural Development (LRAD) Grants were deposited to Gili's company R5 million was used to buy 10 tractors. No financial reports were supplied to beneficiaries. People were promised R 500 salaries and another R 500 to groceries but the company reneged on its promises.


Findings
and comments


6. Ritchersveld Land Restitution Project


The Mayor of town indicated that the municipality is fully supports the claim though the State and Alexkor are defending the claim due to mineral rights. There are four councilors who are beneficiaries of the claim.


The CPA Chairperson indicated that there are 269 beneficiaries of the claim of about 85 000 hectares which went to the Constitutional Court as they lodged the claim post deadline. The court has ruled in favour of beneficiaries. The pillars of the claim involve land ownership, mineral rights and a percentage compensation of what is taken out of the land (R1.5 billion), environmental damage (R1 billion) and labour hardship (R 10 million).


The Beneficiaries future plans involve agricultural projects, small-scale farming and cattle farming. Beneficiaries receive benefits from their Park in which their Trust has approximately R100 million unused money REQUESTED the Portfolio Committee to follow up the matter on their behalf with the Minister and the Department of Land Affairs. The outstanding matter being on the Act 9 Land and target time by which the claim will be completed.


Findings and comments


7.
Eiland Project - Upington


This project involves two female farmers who came second on the fern farmer competition and were allocated portions of the Research Station's land to do farming with an option to buy.


The two are involved in cotton and Lucerne production on 17 hectares of land through the assistance by the Department of Agriculture. They have produced 70 tonnes of Lucerne at R700 a ton during the last season and also getR6 000 per hectare for cotton per annum. The cost of inputs and for hiring seasonal workers was R42 000.


Land Bank lent them a production loan of R50 000 (R25 000 each) at a prime rate of 17%. The challenge experienced is the short repayment period of loan (that is seasonal repayment) They have applied for CASP money for mechanization. They pay approximately R 3 000 to private people to till the land.


The first and second years have been profitable for their business and were challenged by Lucerne prices on the third year. The other constraint is a drainage system, which is blocked in the field, thereby affecting proper irrigation. The other part of the farm needs fencing so that cash crops can be cultivated.


Findings and comments


8. Tumelo Trust Project


This is a youth project that was initiated by the National Youth Commission with 6 beneficiaries. Only 2 male youths still remain in the project. One female beneficiary has since joined the police force, while the other indicated that that she was no longer interested in agriculture and left. There was another one who came during harvesting demanding share though did not work.


The project is involved in grapes and Lucerne production on 176 hectares of land divided into two portions and 38 hectares of land has been leased to a certain farmer with R2 000 monthly rental. There is also a guest-house on the premises fully operational. The youths have received start up money of about R80 000 from the Land Bank for training and have a mentor farmer from nearby who claims R 9 000 per month his service.


The Department of Agriculture was not involved during the start of the project and it is now on board providing extension services and also allocated R80 000 for implements. There will be CASP funds to support the project.


Findings and comments


Lohatla Restitution Claim- Kuruman


The Committee was welcomed by the Mayor of the area and he gave a broad overview of the restitution cases in the municipality and planning processes thereof. Delegation raised questions of clarity ranging from relationships between the municipality and other spheres of government, planning on commonages, councilors who are the members of CPA, the extent of budgetary constraints and post settlement support to beneficiaries.


The Land Claim Committee members were concerned that the Portfolio Committee was visiting them for the third time and they had received no feedback on issues raised on two previous occasions (that was 1996 and 1999 visits). Beneficiaries indicated that their claim of 62 000 hectares of land had dragged on for 14 years due to it having been occupied by the army.


Claimants have agreed to alternative land but nothing has been transferred. Claimants have heard that 5 farms have been identified by the Department of Land Affairs, people have built squatter houses at the entry of the army base to register their plight.


The Regional Land Claims Commission reported that the Minister has signed the transfer of alternative land in July 2005. The Land Claim Committee recommended to the Portfolio Committee that the Department should consider recommendations made during the presidency of former President Mandela regarding the claim. Claimants were concerned about game farming taking place on the military land, the need for permission to visit ancestral land. They required mineral and water rights, and title deeds to the land.


Findings
and comments


10.Kono
Project


The total size of the land is 10 785 hectares and was handed over to 450 families in December 1999. Beneficiaries are involved in livestock farming (sheep and goats), vegetables and broilers. The CPA has been formed and a land care fund has been allocated for infrastructure development such as for fencing, the upgrading of the fountain canal and for the construction of new camps. Two dams have been built with land care money.


The broiler enterprise has stopped due to poor management. The women group involved in the project and CPA has taken over and will be operational from 20th August 2005. However, the livestock and vegetable enterprises are up and running . The is a mentor farmer involved and the Department of Agriculture provides all the required support for the project. The project

received awards for the land care competition.


Findings
and comments


11.
Hydroponics youth project - Kimberly


The Committee was briefly taken to the youth project initiated by the National Youth Commission. The Project is on commonage land behind the fresh produce market and is involved in the production of vegetables such as tomatoes.


Findings
and comments


FREE
STATE PROVINCE (15 - 17 AUGUST 2005)


12.Timo
Agri Parys

A Hydroponics vegetables (tomatoes) project is run by 10 youth (5 women and 5 men). The beneficiaries were selected at local level by means as stipulated criteria involving matric, knowledge or interest in agriculture etc.


This is a CASP funded project together with Masikhule Project in Sasolburg to the tune of R2.5 million initiated by the former MEC for Agriculture. It is or commonage land which is leased for 10 years with an option of a further 5 years extension. There is no lease payment for the first year.


Twelve tunnels made by the company of Mr Thabang have been erected Two boreholes are used for irrigation. The Provincial Department of Agriculture provides support through the Extension Officer. Beneficiaries were trained on basic management skills except marketing skills.


Findings
and comments


13.
Masikhule Project - Sasolburg


The hydroponics vegetable (tomatoes and lettuce) project is also on the Anelia Commonage land and is funded by Comprehensive Agricultural Support Programme (CASP) money together with Timo Agri Parys. According to the business plan hydroponics tunnels will be constructed by company of Mr Thabang. Six youth are involved (4 men and 2 women). One beneficiary has since left to look for temporary work.


The beneficiaries will sign the lease agreement with the municipality within 7 days. The youth come from various townships and need to have R 14 .00 transport fee to come to the project. Initially, they were promised a monthly allowance of R1000 each for a period of 6 months but it was not allocated.


Some are not participating in the construction work of the tunnels because they reject the R35 daily rates from the constructor while they demand R50. They are involved in erecting of a fence funded by Land Care money from which they will be compensated.


Beneficiaries have no legal entity (CPA or Trust) and still have to get a name for the project for registration purposes with the Department of Trade and Industry (DTI). Extension service is provided by the provincial Department of Agriculture.


Findings
and comments


14.
Community Property Trust - Oranjeville


The project has 52 beneficiaries on 346 hectares cultivating the land for maize and sunflower. There are 6 permanent workers and most are looking for temporary work in town. Approximately 48 hectares were cultivated last season and produce 1 tonne sunflower and 5 tonnes of maize. This is a SLAG project started in 1997 and characterized by problems related to group dynamics.


Loan amounts of R145 000 for a tractor from Land Bank and R 61 000 from VKP Corporation were received. Repayments of the loans are problematic due to droughts during two successive seasons.


The tractor, implements and a bakkie were repossessed in February 2003 by the Corporation to recover the money and R 36 000 are still owning. Beneficiaries also generate money by lenting their stands to holidaymakers and also charge a daily fee for fishing. Beneficiaries envisage introducing livestock farming for the trust even though individual members have livestock.

Vaal Collery Mine has donated R100 000 for implements this season.


Findings
and comments


15.
Dikgomo Project - Wesselsbron


The Dikgomo is LRAD project started in 2002 following the combined effort of 5 families who were involved in the buying and selling of livestock in the township. There are 15 beneficiaries involved in livestock and maize production on 482 hectares. The land was purchased at a cost of R300 000 An amount of R160 000 has been borrowed from Land Bank to assist the beneficiaries in production.


The LRAD grant was used to buy two tractors and implements. The Department has currently committed R625 000 from CASP fund for infrastructure and mechanization (boreholes, fencing, harvester, compressor pipes and repair of dam ).In the current season, beneficiaries cultivated 60 hectares of grain and harvested 80 tonnes which is now stored at SENVES. The input cost for production was R26 000.


Individual beneficiaries own cattle 24 and the Department donated 10 heifers through CPF fund. Ms Puleng is the Extension Officer responsible for the project with Mr Rampulu as the Projector Manager. The beneficiaries have unused money in their bank for salaries.


Findings and comments


16.Kutlwanong Farm Trust


The project is a Settlement Land Acquisition Grant (SLAG) project where 200 beneficiaries were settled on 4 000 hectares of land in 1996. People borrowed about R1.3 million from Land Bank for production but it has beer paid up at the moment. Two Executive Committees of the CPA were formed and disbanded as a result of group conflicts. A new one has been elected The source of the problem relates to non-reporting on the financial situation of the project to fellow beneficiaries and mismanagement of funds. In the process, the title deed of the project was lost and beneficiaries paid R1 500 to obtain a new one and another R1 500 is owed.


The project was characterized by five enterprises, namely dairy cattle, bakery cash crops, broilers and maize. Only maize and bakery got off the ground There was a season where beneficiaries harvested 16 tonnes of maize and pumpkins, which were sold locally.


There are allegations that the previous Chairperson had taken R 30 000 to start his own business. A rebate of R213 000 was received from the South African Revenue Services (SARS) which was used to buy tractors. There are also proposals that the department consider subdivision to ease group conflicts


Findings
and comments


17-Mphatlalatsane
Layers Project-Hennenman


The project started in 1997 following the initiative by 15 beneficiaries to contribute R100 to buy egg layer chicks. Beneficiaries use commonage land leased for 10 years period where CPF funding was used to construct 2 layer houses and 2000 layers. The total grant was R550 000 which left a R9 000 balance, which is committed for feeds and signage.


The beneficiaries receive monthly salaries; of R350 and there is a balance of R14 000 in the bank account. They spend almost R24 000 to buy feeds monthly at no discount.


Beneficiaries received extensive training to assist them to run the enterprise. The products are sold locally at pension points and there is a high demand for it. They experienced a problem for a stable market for the products and they use traditional methods to grade the eggs thereby operating at a loss.


It was also reported that there is a study which is being conducted at departmental level to find ways of making the project sustainable by introducing other agricultural enterprises for beneficiaries.


Findings
and comments


18.
Modimo - Lerato Project - Bloemfontein


This is a SLAG project started in 1998 where beneficiaries were settled on 935 hectares of land. However, there are few active members that remained in the project as a result, most of them are seeking temporary jobs in town There is a portion of land let for R3 000 a month of which the money is used for the payment of electricity.


The project comprises livestock farming, cash crops and from poultry enterprises. Money generated from poultry enterprise was used to buy a bakkie to transport beneficiaries to work and also to sell chickens in the township. The vehicle has now broken down as it was frequently used for private purposes and is packed at the township.


The department of Agriculture has allocated an amount of R350 000 to purchase livestock and poultry. The Poultry unit was funded by the CPF. The project has 66 cattle including individual stock and it has a carrying capacity of 100livestock unit. There is assistance from the Land care programme for infrastructure such as fencing of camps, repair of windmills and for water reticulation.


The beneficiaries participate in donga rehabilitation and fencing as part of Extended Public Works programme and receive a daily compensation of R45. Beneficiaries received training on livestock farming and bookkeeping. They lack a tractor to till the land, especially on the cash crop enterprises and were promised one by the MEC.


Findings
and comments


19.1tumeleng
Project - Botshabelo


This is a SLAG project started in 1998 with 16 beneficiaries (7 women and 9 men) settled on 639 hectares of land. The farm was purchased for the amount of R235 000. The project involved livestock farming and cash crops; and have a tenant leasing grazing land for 60 livestock at a rate of R25 per livestock unit.


The project carrying capacity is 90 livestock units and they have 14 cattle for the project bought through Land bank loan and 16 for individual members The loan balance is R 28 000 with 12% interest.


The Department has injected R365 000 CASP money in the project for fencing, 2 windmills and reservoir. Beneficiaries have been trained on cattle husbandry, bookkeeping, conflict resolution and animal reproduction. There are problems of access to road, crossing bridge, farmhouses and the transport of beneficiaries as they stay in the township.


Findings
and comments


20.Tusano
Wool Association - Thaba Nchu


This is communal project started in 2003 through collaboration between Department of Agriculture and the National Wool Growers Association. There are 28 beneficiaries involved in selling of wool in Port Elizabeth market having about 450 sheep. On average, beneficiaries get R40 p/kg.


In the first year they used BKB Company to market their products and CMW Company in the second year. Beneficiaries had a good working relationship with the former. They contribute money to buy vaccines for livestock.


The Department contributed CASP money to the tune of R2 million to build shearing shed, fencing and reticulation of water in camps. The money will reach out for 218 direct beneficiaries, total of 5 shearing sheds in 12 communities.


Due to high unemployment rate in the area, the Department and Agricultural Research Council (ARC) introduced layers in the community for food security purposes. There is an existing committee for the project but do not have an account for the project.


Findings
and comments


EASTERN
CAPE (18 - 19 AUGUST 2005)


21. Sterkspruit Land Care Project-Blikana


The land retrogression and soil erosion in the area dates back to 1923. The project was launched on the 26th October 2004 with the formation of Land Care Committee and benefited about 196 people through the Extended Public- Works on R45 per day rate for fencing and donga control work. The Department is focusing on controlling water run-off, fencing, livestock farming and small irrigation through a partnership with the local community and municipality.


In 2004/5 financial year the Department allocated R1 million to kick-start the project and currently allocated R6.5 million and of which R3 million is for Blikana, R3 million to reimburse the volunteers for land care and R500 000 for social mobilization.


The Land care committee stated that they have problems related to contours in the fields, tractors though having 13 broken tractors for municipality, sales pens, dipping tanks, improvement of sharing shed, dams for livestock, school vegetable garden, plantation of forestry on mountains. They have one spinach garden and others are underway.


The municipality has endorsed the project on its IDP and budgeted R2.5 million though is not readily available.


Findings
and comments


22.
Alien Water Land Care Project

The project consists of 59 beneficiaries involved in livestock production (cattle and sheep), vegetables, maize, pumpkins beans and peas. The then Ciskei government started the project in 1983 on 1 900 hectares of land and the current government supported it since 1998 through partnership between Department of Agriculture, National Wool Growers Association and the Agricultural Research Council (ARC).


The beneficiaries started the project through their own contribution of R500 each . The allocated funds at district level is R300 000 Land Care programme, R160 000 for fence erection from provincial department of Agriculture; and R50 000 from Presidential project fund for irrigation purposes.


The Land Care project started in 2000. The Land care money was used to repair a shearing shed, construct a dipping tank and 9 km fencing. There are 18 camps, only 6 camps with water reticulation and 7 windmills out of which 3 were repaired.


On livestock production, beneficiaries produced 28 wool bales in 1998, 55 bales in the following year and currently produced 75 bales for BKB in Port Elizabeth market. For the last produce they received R153 000 which will be shared by the beneficiaries.


Beneficiaries have constraints of water in some camps and also for household purposes. The project has 300 sheep donated by Dohne Institute of ARC and individual members have their own stock. They have also received a top award for land care amounting to R10 000.


Findings
and comments


23.
RECOMMENDATIONS


a) Lack of infrastructure for emerging farmers;


b) Insufficient water supply;


c) Land Bank interest rates;


d) Group dynamics and internal conflicts among beneficiaries;


e) Lengthy procedures in projects approval and procurement;


f) Shortage of relevant skilled personnel to deal with project management and specialized skills;


g) Lack of participation by beneficiaries in decision-making in relation to financial management of the projects:


h) No sustained and regular monitoring and evaluation of projects by provincial departments and provincial legislatures;


i) Lack of participation and funding by municipalities of community projects;


j) Training of the Extension Officers;


k) Lack of legal support for beneficiaries.


24. CONCLUSION


The projects visited were chosen from different districts in the provinces and due to time constraints and vastness of provinces, the committee was not able to visit as many as possible. The selected projects included both those that were relatively successful and those that were struggling.


The visit by the committee has highlighted some of the shortcomings experienced by provincial departments. One of the fundamental challenges is the communication gap that exists between the provincial departments and beneficiaries. Again, there is no clear exit strategy to ensure that that where government withdrew, the projects will not falter. The collapse of the projects would undermine the government programme of meeting the 30% target to transfer land to black people.


The visit also indicated the lack of coordination and integrated approach by departmental units in dealing with projects and related policy issues. The committee does acknowledge that some projects can experience some measure of success if they can be provided with sufficient support. Therefore, in the opinion of the committee, what is required for sustained success of the projects, the provincial Departments must establish strong mechanisms for monitoring, evaluation and regular interaction with beneficiaries and other stakeholders should be prioritized.


The delegation is satisfied that it has achieved with limitations the objectives set out by the committee for the oversight visits and thanked all stakeholders who assisted and participated in the programme.