RESPONSE TO THE ISSUES RAISED DURING THE PUBLIC

RESPONSE TO THE ISSUES RAISED DURING THE PUBLIC HEARINGS ON THE NATIONAL FORESTS AMENDMENT BILL ; XIV WORLD FORESTRY CONGRESS AND KABELO LAND RESTITUTION AND DEVELOPMENT TRUST DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES 28 NOVEMBER 2017 1

ACRONYMS BBBEE DAFF DRDLR DPE DWS EC FP&M Seta HA KZN NFAC PCIS PFMA PFM PIC SADC SDGs TR UNCCD XIV Broad-Based Black Economic Empowerment Department of Agriculture, Forestry and Fisheries Department of Rural Development and Land Reform Department of Public Enterprises Department of Water and Sanitation Eastern Cape Fibre Processing & Manufacturing Sector Education and Training Authority Hectares Kwa. Zulu-Natal National Forests Act National Forests Advisory Council Principles, Criteria, Indicators and Standards Public Finance Management Act Participatory Forest Management Public Investment Corporation Southern African Development Community Sustainable Development Goals Treasury Regulations United Nations Convention to Combat Desertification Fourteen 2

PRESENTATION OUTLINE Purpose Introduction Summary of issues and responses to issues raised at the Public Hearings Realisation of the 2050 vision forests and forestry adopted at the XIV World Forestry Congress Kabelo Land Restitution and Development Trust 3

PURPOSE The purpose of the presentation is to: ü Respond to the issues raised by stakeholders during the public hearings for the National Forests Amendment Bill. ü Provide a report on the Kabelo Land Restitution Trust ü Provide a progress report on the implementation of the outcomes of the XIV World Forestry Congress held in Durban in September 2015. 4

INTRODUCTION During the extended public hearings which were held on the 03 rd October to 21 st November 2017 at selected Provinces, various organisations and individuals submitted and made presentations on the National Forests Act (NFA) Bill and on other forestry related issues. The Portfolio Committee further invited communities to raise any other issues outside the Bill and committed to submitting such issues to the relevant Committees in Parliament to give them the necessary attention. The majority of the stakeholders did not refer to the National Forests Amendment Bill, however, they raised various issues outside the Bill although forestry related with some requiring the attention of other government Departments. 5

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Non-involvement of communities during the agreements signing The privatisation of State forests was driven by the of lease Department of Pubic Enterprise (as a lead department therefore the on behalf of government) – DPW, DRDLR, DAFF and communities are disadvantaged e. g. by the long lease agreements. National Treasury were involved. At the time of the signing of the leases (2001 -2005), although land was claimed, none of the claims were settled. The leases allow for recognition of the claimants once claims are settled – where government would lease the land from the claimants DRDLR is working with DAFF to finalise the settlement agreements that will deal with lease period, rentals and other commitments. These will also cover the role of government. 6 6

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Non-compliance to agreements A sustainable forest management lease of agreement exists between DAFF and 4 communities e. g. to commitments forestry companies (AFC, SQF. Singisi and of issuing bursaries to excellent MTO) relating to empowerment performers, maintenance of road infrastructures; appointment of local people versus people from far or other provinces for labour and contract work. DAFF monitors the requirement of the lease through reports, quarterly meetings and site visits. Non-compliance is dealt within the lease framework. DAFF is addressing the villages within the leased areas through discussions with municipalities In some cases, DRDLR is assisting 7

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Delayed issuance of title deeds DAFF engages with DRDLR to assist with the and compensation funds to land challenges experienced e. g. an action plan is being claimants. implemented dealing with this and other land claimant related matters – e. g. for the Singisi communities a community profile has been finalised for EC and KZN. Long turnaround time for issuing DAFF assists with the reduction of the turnaround of Water Use Licences. time (initially it was open ended – it is now at 300 days) – through the National Afforestation Task Team. DAFF assists with the application process and conducting Environmental Impact Assessments on behalf of communities to reduce the costs 8

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Dysfunctional committees forums started by and Forum, DAFF has held two discussions – the roadmap developed to address the issues raised Department e. g. Western Cape Forestry Forum and Participatory Forest Management Committees. Regarding the Western Cape Forestry Sector at the hearings. DAFF has established Forestry Development Forums in all forestry provinces – these are self sufficient and DAFF only provides limited funding to run them. DAFF due to financial constraints has not been able to run the PFM Committees as envisaged; Funding through the SADC/JICA project is being sought to resuscitate these. This is part of the SADC Protocol on Forestry that SA has ratified. 9

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED Non-involvement assisting DAFF RESPONSE in communities residing close to State forests e. g. through employment opportunities of non-skilled labour. • DAFF when issuing tenders in State forests insists on labour to be sourced locally. • Companies are also encouraged to source labour within their areas of operation. • DAFF also works closely with the Working on Fire programme in ensuring that fire fighters within the programme are sourced locally. Nationalisation of tenders Forestry is a national competency, DAFF complies with in DAFF disadvantaged the National Treasury Regulations and legislation on local communities; procurement of goods and services and all tenders are advertised in the appropriate media and where possible in Local newspapers. 10

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE DAFF to raise awareness • Department has programmes and plans in place through programmes for the to raise awareness such as Arbor week, NFA National Forests Act, 1998 foundation course, media advertisement of and also to ensure there is a protected trees at an estimated cost of R 4 million comprehensive plan per annum. promote community participation. to • The Department will continue to ensure that there is community participation in future. The intention of the Department with funding allowing is to make significant impact to all local communities. 11

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Lack of access to forest: for consumptive and consumptive uses • The National Forests Act (Principal Act) makes provision for access to State forests for non consumptive and consumptive uses. • Companies who have leased land from DAFF also provide this access as they comply with the provisions of the Act. Management of State forests by communities • DAFF encourages the management of State forests through the National Forest Act (S 29) – CFA • 26 000 ha of State plantations are currently managed by three communities in KZN and 100 ha managed by a community in Limpopo • Other requests are being addressed e. g. DAFF is 12 busy doing a business plan for two communities in EC and KZN. 12

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Transformation in the forest DAFF participates in the Forest Sector Charter sector - Communities are Council that is responsible for compliance to the concerned that they are not Charter. participating in the forestry sector in terms of Government has its commitments in the Charter and DAFF facilitates that government complies ownership, control , and To encourage compliance by industry – DAFF management and capacity engages through the Commercial Liaison Forum building (Skills development). where all sub-sector associations participate. DAFF commitments: Transfer of State plantations to communities Skills development – collaboration with the FP&M Seta Sawlog shortage – strategy developed and being implemented. 13 13

SUMMARISED ISSUES RAISED DURING PUBLIC HEARINGS ISSUE RAISED DAFF RESPONSE Poor working conditions of DAFF is not the competent authority. forestry workers in the sector The (wages, housing and sanitation, infrastructure and access roads) DAFF has facilitated the Sector Determination for remuneration of forestry wages and salaries. Collaboration with Department of Labour is underway 14

REALISATION OF THE 2050 VISION FORESTS AND FORESTRY ADOPTED AT THE XIV WORLD FORESTRY CONGRESS 15

ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FORESTS AND FORESTRY The Department submitted the Durban Declaration to the Department of International Relations and Cooperation to incorporate into the South African position paper to the United Nations General Assembly Summit held in September 2015 as part of the country’s contribution to the adoption of the 2030 Agenda for Sustainable Development. Through this declaration the country contributed to inculcate the role of forests in achieving the Sustainable Development Goals (SDGs) as stated in SDG 15 which clearly state the need to sustainably manage forests. The Department continuously ensures that all its policies and strategies are in line with the XIV World Forestry Congress resolutions and its international policy negotiations such as the recent UNCCD COP 13, United Nations Framework for Climate Change Convention COP 23 16

ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FORESTS AND FORESTRY… Encouraging the participation of the youth and women - through participation in the National Forests Advisory Council (NFAC), that advises the Minister of Agriculture, Forestry and Fisheries on all forestry related matters, the next term starting in September 2018 to September 2021; The NFAC as part of its work programme is investigating how youth and women can be encouraged to participate in the sector and how they can be best empowered. This is done in collaboration with the Department of Economic Development. The DAFF in collaboration with the sector and the FP&M Seta supported the hosting of a global Forestry Students Symposium in South Africa held in July 2017. The Department continues to support the participation of students in this annual event. 17

ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FORESTS AND FORESTRY… In terms of food security and livelihoods, DAFF has recently approved the Agroforestry Strategy, pilots are being conducted in Limpopo and Mpumalanga. Roll out to follow in Eastern Cape (EC) and Kwa. Zulu-Natal (KZN) DAFF in partnership with Municipalities is implementing the National Greening Strategy where communities are provided with fruit trees which is also in line with one of the Congress legacy projects i. e. One Tree One Child that was started in the OR Tambo District Municipality (EC). Furthermore, Rural Municipalities who are active in greening their areas of jurisdiction are recognized in the Arbor City Awards as part of their contribution to role of trees in mitigating Climate Change impacts. DAFF through the Land. Care Programme is contributing to improving practices to ensure integrated land use and minimise conflicts over land use. This is also enhanced by the Agroforestry projects that are also linked to the Land. Care projects. . 18

ACTIVITIES TOWARDS ACHIEVING THE REALIZATION OF THE 2050 VISION FORESTS AND FORESTRY… • In improving sustainable management of forests through the revised Principles, Criteria, Indicators and Standards (PCIS). These were revised in partnership with all stakeholders in the sector and recommended by the National Forests Advisory Council 19

KABELO LAND RESTITUTION AND DEVELOPMENT TRUST 20

PURPOSE OF THE TRUST The Minister of Agriculture, Forestry and Fisheries established the Kabelo Land Restitution and Development Trust in terms of the National Forest Amendment Act of 1998 (Act No. 85 of 2005) to: ü Receive rental payments from the companies who are leasing State Forestry land affected by land reform. ü Invest such money on behalf of land claimant beneficiaries as part of the Trust Property. ü Pay rentals collected and with interest earned to the beneficiaries approved by Department of Rural Development and Land Reform. ü Pay the balance of all rentals received together with interest earned to the State or the Ingonyama Trust where applicable, when it is clear that there is no land claim approved for the particular State forest or part of it. ü Pay rental money or part of that money periodically to successful claimants. 21

GOVERNANCE ISSUES The Trust has 7 Trustees (DAFF, DRDLR, DPE and Forestry South Africa). To effect the objectives of the trust, the Kabelo Trustees need to develop well documented policies, system procedures, laws and regulations that will govern the administration of the Trust; The Trustees are also expected to ensure compliance with all statutory provisions and requirements that are relevant to the Trust, and these include: o Public Finance Management Act (PFMA)-section 76(1) (C); o Treasury Regulations (TR) - all relevant chapters; o Trust Property Control Act, No. 57 of 1988; and o National Forests Act, 1998. 22

GOVERNANCE ISSUES… Status of the Trust account: o In January of every year, the forestry companies pay lease rental into the DAFF bank account. The lease rental money is then transferred and invested with the Public Investment Corporation (PIC) in an interest bearing account which is administered by DAFF. o The balance in the Trust account is R 656, 681, 122. 95 (31 October 2017). o The first disbursement was done by the President in 2011. Following this disbursement, communities had numerous challenges of managing the funds which led to some of them taking each other to court. o The Trust, after consultation with the communities, approved a disbursement model which considered two scenarios: o Option 1: If a community is receiving lease rental money for the first time, the funds would be for personal use. o Option 2: Funds will be used for community development projects. 23

PAYMENT OF RENTALS TO BENEFICIARIES No. Name Of Community Amount Paid In 2011 Amount Paid From 2015 2017 Company Name 1. Mkhwanazi (KZN) R 24, 574, 296. 89 R 0 Siya. Qhubeka 2. Ngunjini ( EC) R 8, 406, 339. 34 R 611 938. 59 Singisi 3. St. Paul ( KZN) R 9, 592, 453. 89 R 5 819 009. 00 Singisi 4. Qolombana (EC) R 1, 925, 975. 00 R 1 462 772. 67 Singisi 5. Gqogqorha ( EC) R 10, 122, 245. 00 R 0 Singisi 6. Western Shores (KZN) R 24, 574, 296. 89 R 0 Siya. Qhubeka 7. Ndzimankulu ( KZN) R 3, 645, 159. 85 R 2 569 289. 00 Singisi 8. Qelane ( EC) R 5, 465, 800. 00 R 0 Singisi 9. Mbolompo (EC) R 3 324 126. 00 Singisi R 91 985 995. 93 R 13 787 135. 26 24

PAYMENT OF RENTALS TO BENEFICIARIES As at 31 October 2017, a total amount of R 105 773 131. 19 has been disbursed to 9 communities. Out of the 9, 4 have not submitted any requests for community projects. Two of these (Phalane Trust and Western Shores Trust in KZN) have court cases pending and two (Qelane and Gqogqorha) are in a process of finalising their proposals. o Phalane (Mkhwanazi Community): another community group (Intuze community) accused the Phalane Community Trust of corruption and a case was opened against Phalane Trust. No payment has been made since the dispute. The DRDLR was tasked to resolve the matter. o Westernshores Trust: After the rentals were distributed, there were accusation that the Trustees have misappropriated the funds. A case was opened with the Master of High Court and all payments were seized pending the finalisation of the matter. 25

PROJECTS UNDERTAKEN BY CLAIMANT COMMUNITIES NAME OF COMMUNITY PROJECTS UNDERTAKEN Qolombane (u. Mthatha) • Upgrading of the existing water scheme and construction of the new water source. R 1 462 772. 67 Ndzimankulu (u. Mzimkhulu) • Vegetable garden project: Fencing of the site, hiring the tractor to plough the area, employed 30 casual workers and 24 hour security to guard the project area. Poultry project: Building the chicken coop, labour cost, material, chicks, seedlings, fertilisers, chicken feed. Brick making: procurement of the brick making machine. Transport: purchase a 6 ton truck to deliver the produce. Administrative costs for the projects. R 2, 569, 289. 00 • • AMOUNT DISBURSED 26

PROJECTS UNDERTAKEN BY CLAIMANT COMMUNITIES NAME OF COMMUNITY PROJECTs UNDERTAKEN St Paul (u. Mzimkhulu) • • AMOUNT DISBURSED R 5, 819, 009. 00 Education related: ü Bursaries for 10 students. ü Computer lab for the school, 35 computers, printer, overhead projector, installed internet connection. ü built a pre-school building with two rooms and toilet. Community upgrades: ü built a Community Hall, bought 300 chairs, ü built 2 offices, 4 toilets, fencing, paved parking, 2 generators, 3 pole community tents. ü Renovated the community church, bought chairs and tiled the church. ü Upgraded the existing mobile clinic. 27

PROJECTS UNDERTAKEN BY CLAIMANT COMMUNITIES NAME OF COMMUNITY St Paul (u. Mzimkhulu) PROJECT UNDERTAKEN AMOUNT DISBURSED ü Held a ceremony to officially open the R 5, 819, 009. 00 hall and relevant government departments were invited to witness the event. Cater for the community members and guests, ü upgraded existing water scheme, ü fencing of 25 hectares (ha) of land for agricultural projects. • Administrative costs for the projects. 28

THANK YOU 29