1. FOREST SECTOR CHARTER COUNCIL
PRESENTATION TO THE DEPARTMENT OF AGRICULTURE, FORESTRY & FISHERIES PORTFOLIO COMMITTEE
Matters raised to Companies
15 MAY 2018
DR. DE MAHANGO (FSCC CHAIRMAN)

2. PRESENTATION OUTLINE Background Matters raised Conclusion
Non involvement by communities on forestry issues
Information dissemination to Forestry located communities
Isolation of forest located communities by industry
Poor working conditions in forest farms
Lack of enforcement measures resulting in non- compliance with B-BBEE
Poor performance on Ownership, Management Control & Skill Development elements
Poor women participation
Poor living conditions of employees ( low wages, unfair treatment, dilapidated housing, evictions, tenure issues etc)
Conclusion

3. FSCC responses to Portfolio Committee
Background
Council invited to Portfolio Committee meeting in Nov 2017
Council presented latest status of Transformation
Certain Companies also invited to present on Transformation (B-BBEE)
Council informed about reactions from communities
Council mandated to react to matters raised an action plan
Aim
To present findings to the Portfolio Committee

4. Issue
Action
Findings
Non- involvement or participation of communities in forest issues
Community Outreach Programme (COP)
Visits to communities for information sharing and views with reference to involvement was divided into three phases as follows:
COP Phase 1
COP Phase 2
COP Phase 3
Currently executing Phase 2.
B-BBEE programmes implemented to enhance community involvement Enterprise and Socio- Economic programmes implemented
Lease rental monies not a value add
Challenges to B-BBEE e.g. Funding, land availability and Exit areas etc
Illegal operations e.g. pole treatment industry
CEO Visits
Interaction with CEO about the dictates of the Code (B-BBEE) and how they better stand in improving the dictates of Broad Based Black Economic Empowerment.
Company’s B-BBEE strategies undertaken
Industry and community preferences identified
Challenges of B-BBEE explained, e.g. water use licenses, illegal logging, timber theft, land reform, change of land use, rail and transport etc
Enterprise and Socio-economic development initiatives recognised
Community based initiatives implemented, e.g. agro-forestry, cattle grazing, collection of fire wood etc

5. Issue Action Findings CONFIDENTIAL
Information dissemination to forestry located communities
The matter is addressed through the Community Outreach programme and CEO visits
Findings similar to first slide.
Isolation of forest located communities by industry
Ongoing CEO visits to industry members
Lobbied industry members willingness to improve communication and interaction with communities
CONFIDENTIAL

6. Issue Action Findings Poor working conditions in forest farms
Poor working conditions in forest farms
Visits to implicated Companies have been initiated
Planned visits to other Companies
Mondi and MTO to be visited before the end of June 2018
A field visit with CEO of SAPPI revealed the opposite
(A report is attached)
Another field visit to another company (not implicated) also revealed good working conditions

8. Issue
Action
Findings
FSCC lacking enforcement powers resulting in non-compliance by industry
This is a sequel to the findings of the Annual Status report
The Status reports reflects compliant companies
Non-compliant industries are subjected to the following:
Certificate of Good Standing to be issued to compliant companies
A list of compliant companies to be given to government departments with internal levers for afforestation solicited to ensure that Business with reference B-BBEE is allocated only to compliant companies
Development and issuing of enforcement guidelines compliant with section 10 and 13A of the B-BBEE Act as Amended
Introduction of a Mandatory levy
All industry members not affiliated to the associations must be forced to pay a mandatory levy
A proposal is being finalised by the Council
None as yet as the actions are still proposals

9. Issue
Action
Findings
Poor performance with reference to ownership, Management Control & Skills Development
CEO visits being undertaken
Annual Status Report
The Council is finalising the latest status of transformation
Amended Forest Sector Code (FSC) prioritised Ownership and Skills Development elements
CEO visits revealed that industry of creating training centres to ensure upward mobility of their employees.   
Prioritising Ownership and Skills Development has subtle coerced industry to improve on these elements
Poor women participation
In-depth analysis on Amended Scorecard (as women participation is emphasized)
Prioritised Outreach Programmes targeted for women organised workshops
Improvement in ownership deals through Trusts with most beneficiaries being women
No findings yet
Conditions of employees
(dilapidated housing, low wages, unfair treatment, evictions & tenure issues etc)
Low wages
DAFF to liaise with DoL
Undertake visits to implicated companies
Company visited to date showed organised housing and ablution facilities
No reported evictions
Salaries paid above minimum wage

10. FSCC responses to Portfolio Committee
Conclusion
Status of Transformation to be issued by August 2018
More planned visits to companies
Engagement with relevant Government departments
Interaction with aggrieved communities
Consolidated report to be presented to Portfolio Committee

11. THANK YOU