BACKGROUND ON NCERA FARMS PTY LTD 09 SEPT

BACKGROUND ON NCERA FARMS (PTY) LTD 09 SEPT 2014 1

PRESENTATION OUTLINE • Background • Mandate • Extent of Ncera Farms (Pty) Ltd – The Service Centre – The State Farms • The Ex-farm Workers/Dwellers • Other Stakeholders & Role Players • Challenges at Ncera • Issues from 4 th Parliament • Department Responses • Issues for Consideration 2

BACKGROUND • Ncera Farms (Pty) Ltd is a Schedule 3 B (PFMA) entity of DAFF; located in Kidds Beach area of East London in EC. • DAFF is the sole shareholder. • Originally Ncera Agricultural Development Corporation under EC Provincial Dept of Agric. Due to financial constraints, transferred to former national Department of Agric (Do. A) in 2004/05. 3

THE MANDATE • To provide extension, mechanical services, training & agricultural support services to the farmers settled on Ncera farmland as well as the neighbouring communities. • Aims to contribute to an industry-focused farm management training, farmer support services & the design of franchise-type agricultural business models for farmers & beneficiaries of land reform in the immediate catchment area of Ncera. 4

THE EXTENT OF NCERA FARMS • Ncera Farms (Pty) Ltd constitutes Welcome Home Farm, where the Service Centre Iocated, & 11 state farms. • The entity covers a total area approximately 3 700 hectares (ha). of 5

THE SERVICE CENTRE • Welcome Home Farm hosts the entity’s Service Centre, office buildings, workshop & training rooms. It is approximately 1 500 ha in size. • It was approved in October 2004 & developed in 2005 to provide extension services, contract ploughing, training & technical advice to the 10 farmers & surrounding communities. • Agricultural activities at the Farm include livestock and vegetable production. 6

THE STATE FARMS • The 11 state farms covers an area that is approximately 2 200 ha in extent. • In 2005, former Do. A issued an advert looking for interested individuals to apply for the occupation & leasing of the state farms. • After selection process, 10 of the 11 farms were allocated to 10 successful applicants in 2007/08. The 11 th farm, Rocklands, was not allocated & was reportedly reserved for settling ex-farm workers/dwellers. • The 10 successful applicants were given PTOs with intention to provide them with 3 -year leases within a year, & option to buy at end of lease. 7

THE STATE FARMS Cont… • Since occupation, no leases or any other official docs were signed by the farmers except the 12 -month PTOs. • The 10 th farmer reported that he pulled out of the process in 2008 after the Do. A failed to provide them with leases. • Farmers reported that they never received any support from the Dept and for the most part, they lived on the farms with expired PTOs. 8

STAKEHOLDERS & ROLE PLAYERS 9

THE EX-FARM WORKERS/DWELLERS • Do. A never held any consultations with the former farm workers who also lived on the farms before the farms were allocated to new occupants. • The farmers (10 successful applicants) were also never informed that the farms were occupied by former workers, who were also making use of the farm resources. • Created conflicts when the new farmers arrived to take occupation of the farms. 10

OTHER STAKEHOLDERS & ROLE PLAYERS • Surrounding communities who fall under the two Traditional Authorities, the Imidushane (Jongilanga) Chieftaincy and the Phato Chieftaincy. • Recently, other communities who are not necessarily under Traditional Authorities, who were also laying claims to some of the farm land. 11

CHALLENGES AT NCERA FARMS • Conflicts among stakeholders – farmers and ex-farm workers. • Farm invasions. • Claims against Ncera from other stakeholders. • Lack of records – establishment of entity. • Poor governance capacity at the entity. • Role of the Caretaker (DAFF) and lack of M & E. • Entity not fulfilling mandate & disregard for state farms. • Lack of response by DAFF to Parliamentary recommendations & resolutions. 12

ISSUES FROM 4 TH PARLIAMENT • Forensic investigation • Records of Ncera incl criteria used to allocate 10 farms and funds used since entity’s inception • Re-submission of Strategic Plans according to NT Guidelines & Frameworks • Turnaround Strategy • Closure of entity – deregistration • Plan expected in July 2013 – alternative proposals • Progress report on deregistration of entity expected in January 2014 13

DEPARTMENT RESPONSES • Compliance matter re: entity’s Strategic or Annual Plans never rectified • Reviewed Turnaround Strategy not submitted • The Plan (& Progress Report) with alternative proposals on how to close or deregister Ncera never submitted • Dept reported that it was having discussions with the ARC, national DRDLR, EC provincial Dept of Rural Dev & Agrarian Reform and Buffalo City Metro. • No effort made to resolve conflict among stakeholders at Ncera • No report back on actions taken against government officials implicated in Forensic Report. 14

ISSUES FOR CONSIDERATION • Progress in addressing matters highlighted in Forensic Investigation Report • Clarity & status of the 10 th farm • Status of Rocklands Farm that was meant to settle ex-farm workers • Clarity & status of the unofficial arrangement between entity and Jongilanga Chieftaincy • Verification of claims against the entity • Detailed report of operations, staff complement & responsibilities, latest asset register (incl livestock) • Dept to clarify its role as sole shareholder & caretaker 15

THANK YOU 16