Presentation to the Select Committee on Communications and Public Enterprises on money held on trust by the Richtersveld Investment Trust Presenters: Johan Redelinghuys - Trustee | ALM Division | 22 November 2017

Content Investment Trust and Community Trust structures Money received in terms of the Deed of Settlement Utilisation of R50 million development grant Distributions by Trust since 2008 Investment of money held in Trust Challenges facing the Trust

Investment Trust structure REGISTERED MEMBERS OF RICHTERSVELD SIDA !HUB COMMUNAL PROPERTY ASSOCIATION beneficiaries RICHTERSVELD INVESTMENT TRUST 9 TRUSTEES 4 community trustees  1 from each town (each nominated by town he/she is representing) 1 trustee nominated by Minister of Finance as per Settlement Agreement 1 trustee nominated by Minister of Rural Development and Land Reform 3 independent trustees nominated by the CPA committee [chairperson to be elected from amongst independent trustees] 100% shareholding RICHTERSVELD INVESTMENT HOLDING COMPANY (PTY) LTD REGISTERED MEMBERS OF RICHTERSVELD SIDA !HUB COMMUNAL PROPERTY ASSOCIATION   beneficiaries RICHTERSVELD INVESTMENT TRUST 9 TRUSTEES 4 community trustees  1 from each town (each nominated by town he/she is representing) 1 trustee nominated by Minister of Finance as per Settlement Agreement 1 trustee nominated by Minister of Agriculture and Land Affairs 3 independent trustees nominated by the CPA committee [chairperson to be elected from amongst independent trustees]     100% shareholding RICHTERSVELD INVESTMENT HOLDING COMPANY (PTY) LTD 8 DIRECTORS 4 community directors  1 from each town (each nominated by town representing) 3 independent directors nominated by trustees of Richtersveld Investment Trust 1 director nominated by Minister of Finance as per Settlement agreement 8 DIRECTORS 4 community directors  1 from each town (each nominated by town representing) 3 independent directors nominated by trustees of Richtersveld Investment Trust 1 director nominated by Minister of Finance as per Settlement Agreement

Community Trust structure REGISTERED MEMBERS OF RICHTERSVELD SIDA !HUB COMMUNAL PROPERTY ASSOCIATION beneficiaries RICHTERSVELD COMMUNITY TRUST 7 TRUSTEES 4 community trustees  1 from each town (each nominated by town he/she is representing) 3 independent trustees nominated by CPA committee 100% shareholding RICHTERSVELD SELF-DEVELOPMENT CO (PTY) LTD 11 DIRECTORS 4 community directors  1 from each town (each nominated by town he/she is representing) 4 persons nominated by each of the 4 subsidiary companies below 3 independent directors to be nominated by trustees of the Richtersveld Community Trust 100% shareholding RICHTERSVELD ENVIRONMENTAL REHABILITATION COMPANY (PTY) LTD RICHTERSVELD AGRICULTURAL HOLDING COMPANY (PTY) LTD RICHTERSVELD PROPERTY HOLDING COMPANY (PTY) LTD RICHTERSVELD MINING COMPANY (PTY) LTD 6 DIRECTORS 4 community directors (1 from each town – each nominated by town representing ) 2 independent directors nominated by Self-Devco 6 DIRECTORS 4 community directors (1 from each town – each nominated by town representing ) 2 independent directors nominated by Self-Devco 6 DIRECTORS 4 community directors (1 from each town – each nominated by town representing ) 2 independent directors nominated by Self-Devco 6 DIRECTORS 4 community directors (1 from each town – each nominated by town representing ) 2 independent directors nominated by Self-Devco

Richtersveld Investment Holding Company Current directors: M Fredericks (Community Director and Chairperson - Sanddrift) R van der Merwe (Deputy Chairperson and Independent Director) K Jansen (Community Director - Eksteenfontein) W Obies (Community Director - Kuboes) E de Wee (Community Director - Lekkersing) K Grasser (Independent Director) G Terblanche (Independent Director) J Redelinghuys (Representative of the National Treasury) Community Directors elected in September 2013, term expires after 4 years Independent Directors registered in October 2014, term expires after 5 years

Richtersveld Investment Trust Current trustees: J Levendal (Acting Chairperson and Independent Trustee) D Basson (Deputy Chairperson and Community Trustee - Eksteenfontein) N Cloete (Community Trustee - Lekkersing) M Newman (Community Trustee - Sanddrift) J Swartbooi (Community Trustee - Kuboes) K Grasser (Independent Trustee) J Redelinghuys (Representative of the National Treasury) Community Trustees elected in September 2013, term expires after 4 years Independent Trustees registered in July 2015, term expires after 5 years Trust since June 2016 not fully constituted: Minister of Rural Development and Land Reform requested to nominate trustee in September 2016; and CPA to nominate independent trustee.

Money received in terms of the Deed of Settlement R50 million development grant which may, at the discretion of the Investment Holding Company, be used to recapitalise the agricultural and maricultural enterprises; and for such other purposes to the advantage of members of the CPA. R190 million settlement compensation Deed of settlement requires investment objection to be to grow and preserve capital; Received in three tranches (R63.3 million on 4 July 2008, R63.3 million on 3 September 2008 and R63.3 million on 15 June 2010); Returns to be used to cover reasonable costs of Company/Trust; and Provide income to the Trust to be distributed in terms of a distribution policy.

Utilisation of R50 million development grant Allocations made to entities from R50 million development grant since, September 2007 ENTITIES TOTALS Receipts: 59,678,930.20 Development Grant 50,000,000.00 Interest 9,678,930.20 Loans: 49,720,420.05 Richtersveld Sida !Hub Communal Property Association 9,035,316.78 Richtersveld Cultural and Botanical Association 446,000.00 Richtersveld Investment Trust - Richtersveld Investment Holding Company (Pty) Ltd 5,565,472.95 Richtersveld Community Trust 955,423.03 Richtersveld Self Development Company (Pty) Ltd 3,002,515.37 Richtersveld Mining Company (Pty) Ltd 5,000,000.00 Richtersveld Environmental Rehabilitation Company (Pty) Ltd 590,605.00 Richtersveld Property Holding Company (Pty) Ltd 1,170,172.11 Richtersveld Agricultural Holding Company (Pty) Ltd 23,954,914.81 Cash Distribution to Richtersveld Community: 9,100,000.00 Community Development Funding Balance as at 28 February 2015 858,510.15

Distribution policy in terms of the R190 million Current distribution policy approved by beneficiaries: 20% investment in entrepreneurial projects/employment creating opportunities 20% educational programmes and facilities in the Richtersveld 20% social upliftment programmes in the Richtersveld 40% distribution directly to the beneficiaries of the Richtersveld Investment Trust Trust policy for distribution of 60%; No individual allocations; Allocations must benefit broader community; and Development plan should form basis for allocations. Trust may deviate from the distribution policy with the consent of CPA if circumstances or event effecting the beneficiaries necessitates such deviation Beneficiaries requested that changes to both policies be considered

Distributions by Trust since 2008 Distribution to beneficiaries Date Source Amount per beneficiary Total amount 18 December 2008 40% returns on R190 million R1,500 R 3,361,000.00 23 December 2011 Interest on R50 million development grant R3,000 R 9,100,000.00 Total   R12,461,000.00 Amounts not yet distributed 20% entrepreneurial projects/employment creating opportunities R 1,681,000.00 20% educational programmes and facilities R 81 ,000.00 Nursery schools R -416,000.00 Primary schools R-1,166,000.00 Other R -18,000.00 20% social upliftment programmes R 1,400,000.00 General community programmes R -281,000.00 Assistance to children of beneficiaries attending high school and tertiary institutions are under consideration

R30 million dividend declared in 2016 Investment company declared dividend of R30 million for distributions by Trust on 23 January 2016 Following needs to be done before money can be paid to beneficiaries: CPA to be fully constituted; CPA needs to nominate an independent trustee; Minister of Rural Development and Land Reform needs to appoint a trustee; CPA needs to provide membership register; CPA membership register to be audited by Trust’s auditors; Bank details of beneficiaries to be provided; and CPA to provide consent for deviation from distribution policy in order to pay not 40% but 100% of dividend to beneficiaries.

Investment of money held in Trust Investment can only be made by Directors of the Investment Holding Company: in accordance with the approved investment policy; and a resolution by the Trustees. After a request for proposal a mandate was provided to ACSIS Ltd, an asset management consultant in May 2011 Current investment strategy constrained by Deed of Settlement requirement that capital need to be grown and be preserved Initiatives to increase returns: Investigate the possibility of being exempted from tax; Reviewing investment strategy to take on more risk, higher return; Restructuring of the investment structure to cut costs; and Negotiating of lower investment fees.

…Investment of money held in Trust Capital has grown from R190 million to R276 million (net returns after tax) Asset allocation

…Investment of money held in Trust Returns since inception

Challenges facing the Trust Trust is not fully constituted to make decisions; amongst others: Not being able to hold AGM’s (last AGM 22 September 2012, last attempt in April 2015, interdicted); Review investment mandate to increase return; Distribution of R30 million to beneficiaries; Consider additional distributions to beneficiaries and for education; and Review distribution policy. Distance between trustees (teleconferences no longer viable) Notwithstanding its conciliatory approach not being able to maintain good relations with CPA Not being able to finance CPA and other entities under current legal framework Infighting in community impacting on work of the Trust Independent Directors/Trustees being reluctant to serve on Board/Trust due to reputational risk Not being involved in efforts by Government and other parties in Richtersveld to address challenges The Company and Trust are ready to participate in the interventions proposed by the Commission on Restitution and Land Rights and to contribute to resolving the unrelenting conflict within the CPA structures and the community at large