Presentation to the Select Committee on Land and Mineral Resources COMMUNAL PROPERTY ASSOCIATIONS AMENDMENT BILL (As amended by the Portfolio Committee) Presentation to the Select Committee on Land and Mineral Resources 7 August 2018

BACKGROUND The Communal Property Associations Amendment Bill, 2017, seeks to amend the Communal Property Associations Act, 1996 (Act No. 28 of 1996). Act No. 28 of 1996 regulates communal property associations (CPAs). CPAs are legal entities established to hold land on behalf of beneficiary communities Since the promulgation of the Communal Property Associations Act, about 1 502 CPAs have been registered. The overwhelming majority of CPAs are facing operational as well as compliance challenges. Despite interventions by the Department over the years, challenges continue to plague CPAs.

CHALLENGES The extent of State intervention in the affairs of CPAs Communities own the land Authority of State to intervene in affairs relating to privately owned land Governance issues in CPAs Tenure of office Non-compliance Self interest Disposal of CPA properties (especially land) Requisite majority Minister’s right of first refusal Oversight and monitoring Reporting Offences

OBJECTIVES OF THE BILL Establishment of the CPA Office within the Department Creation of the post of Registrar in the CPA Office Provides for the functions of the Registrar (CPA Office) Provides for checks and balances relating to disposal of CPA land Strengthen provisions relating to dispute resolution Strengthen offences to ensure compliance Strengthen reporting mechanisms

PROPOSED AMENDMENTS (1) Definitions CPA office Registrar Application of Act Community whose land was restituted by any competent court The decision to establish a CPA must be a community’s decision Registration of property Property to be duly registered General plans to be prepared and duly approved Establishment of CPA Office Office established within Department Office headed by Registrar Registrar appointed by the Minister

PROPOSED AMENDMENTS (2) Functions of the Registrar Head of CPA Office Registration of CPAs Monitoring functions Governance functions

PROPOSED AMENDMENTS (3) A CPA acts on behalf of a beneficiary community A CPA constitution must be adopted by 60% of beneficiary community members A decision to amend the Constitution of the CPA or dispose of land held by the CPA must be approved by 60% of beneficiary community members When disposing of CPA land, such land must first be offered for sale to the Minister (to purchase for further redistribution). The Registrar appoints a person experienced in dispute resolution to assist CPA communities in resolving disputes.

PROPOSED AMENDMENTS (4) The Registrar may dissolve a CPA management structure (committee) or dismiss its member and require the CPA to elect a new committee or member. The Registrar may appoint an interim committee pending the election of a new committee. Disposal of movable property of CPAs may occur with the approval of a simple majority of members. The affairs of a CPA placed under administration may be run by the Registrar as directed by the Court or the Minister.

PROPOSED AMENDMENTS (5) Offences Contravening provisions of Constitution relating to financial matter Destruction of documents Interfering with the work of a dispute resolution person Reporting The Registrar prepares annual report and submits to Minister Minister submits report to Parliament.

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