REPORT ON RAMA COMMUNAL PROPERTY ASSOCIATION PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 29 APRIL 2015

BACKGROUND Rama CPA members lodged a Restitution claim which was settled in 2002. Portion 2 of Wildebeeshoek 309 JR and Rem of Kafferskraal 308 JR were acquired by claimants. The two farms are 754 hacters in extent and were acquired for R15 087 952. Rama CPA members are part of the Bakgatla ba Mmmakau under Chief Basabasa Motsepe. A CPA was registered in 2002 to acquire, hold and manage land on behalf of the claimants.

BACKGROUND The CPA has initiated some income generating activities on its land. They have a quarry business on one portion of the farm. On the other portion they have started a museum and an entertainment centre that features a cinema. In partnership with the Tshwane Metropolitan Municipality and private investors they are in the process of developing houses on their land.

CPA COMMITTEE When Rama was registered as a CPA in 2002 they elected the following people to sit on the committee: Ramatiyane Simon Poo; Goitsemang Poo; Lameck Pila; Kgomotso Matsomela; Jacobeth Sebati; Simon Peto; Peter Sekgothe; and Berlina Kgomotso Podile. They were elected for a term of 5 years which expired on 23 May 2007.

QUARRY ACTIVITIES When the land was acquired, there was an operational quarry on it. The quarry is still operating and it is the main income earner for the CPA. It supplies mining and crushing stone, quartzite and sand. They also supply concrete and cement brick.

RAMA MUSEUM

RAMA ENTERTAINMENT CENTRE

RAMA CPA OFFICE

CHALLENGES The CPA Committee’s term of office has expired. There are allegations of misappropriation of funds by the Committee. The committee does not submit reports to the Department as required by the CPA Act. An order instructing the CPA to hand over its books to the auditors appointed by the Department has limitations.

INTERVENTION The RLCC has tried unsuccessfully to intervene in this CPA. Due to the failure of mediation the RLCC instituted proceedings to place the CPA under administration. That application was unsuccessful on the grounds of locus standi. New proceedings by the Department to place the CPA under administration are still pending in Court. A rule nisi order was granted requiring the CPA to hand its books to the department.

STATUS QUO There is a need to approach the High Court to vary the rule nisi that was granted to ensure that the bank is instructed to hand over CPA bank statements. Since it came to light that the lawyers for the CPA Executive Committee obtained another order through the misrepresentation of facts, the Department has instructed its lawyers to bring this to the attention of the Court and Judge President. The lawyers were also instructed to expedite the main application because the CPA Committee continues to take decisions that affect the interests of the CPA members even though their term has expired.

CONCLUSION Placing this CPA under administration will neutralise the influence of the Committee members who are accused of misappropriation of funds. Their removal from office will provide an opportunity to regularise the affairs of this CPA.

THANK YOU