Parliament of South Africa
Parliament of South Africa
11/28/2024 | Press release | Distributed by Public on 11/29/2024 01:51
Media Statement: Land Reform Committee Expresses Concern Over Ingonyama Trust Board Affairs
Parliament, Thursday, 28 November 2024 - The Portfolio Committee on Land Reform and Rural Development says its oversight visit to KwaZulu-Natal, focussing on the affairs of the Ingonyama Trust Board (ITB) and the Ingonyama Trust is more urgent. The urgency arises in the light of the observations made during the consideration of the ITB's annual report for the 2023/24 financial year.
The Minister of Land Reform and Rural Development, Mr Mzwanele Nyhontsho, together with the Department of Land Reform and Rural Development and the ITB appeared before the committee to present ITB's annual report for the 2023/24 financial year to the committee. The committee expressed its unhappiness regarding the late submission of the report.
The committee noted that whilst the Public Finance Management Act (PFMA) requires submission of reports by the end of September annually, the ITB's late submission of annual reports has become a norm. The late submission of the report can be attributed to the lack of alignment of the reporting requirements of the Ingonyama Trust which is not listed as a public entity whereas its accounting authority, the ITB, is listed.
The ITB reported that it obtained an unqualified audit opinion from the Auditor-General of South Africa whereas the Ingonyama Trust received a qualified audit opinion. The committee raised concerns about the confusion around the ITB and Ingonyama Trust and enquired why there are two separate entities. The committee also indicated that the question of funding, and the improvements in the financial status of the ITB and the Trust requires close monitoring.
One of the committee's major concerns was about the Ingonyama Holdings, a subsidiary company of the Ingonyama Trust, which is reportedly hijacked. The ITB conceded that it does not have control over the Ingonyama Holdings and the previous directors have refused to submit financial statements to the ITB. The directors have changed the address of the business and have also been transacting using the company but refuse to account to the ITB. This admission prompted the committee to seek clarity as to how reliable the report that was presented before it - if its investment company which is supposed to hand over financial records for auditing purposes is not cooperating or reporting to it.
The committee learnt that Inkosi TN Mzimela's term came to the end on 13 February 2024 and King Misizulu KaZwelithini, the sole Trustee, assumed Chairpersonship of the Board.
The committee also enquired whether the department was still compliant with the 2021 Pietermaritzburg High Court ruling against ITB. The Court directed "the Minister to ensure that the administrative capacity necessary to implement chapter XI of the KwaZulu-Natal Land Affairs Act 11 of 1992 and the KwaZulu-Natal Land Affairs (Permission to Occupy) Regulation is reinstated forthwith: and that "The Minister shall report to the court on the steps taken to comply with 5.1 of this order, within three months of the date of this order and every three months thereafter until the parties agree in writing that the steps envisages in paragraph 5.1 have been implemented and the reporting may be concluded, Or the court, on application by any party."
The Court found that the Ingonyama Trust and its board acted unlawfully and in violation of the Constitution by concluding residential lease agreements with persons living on the land held in trust by Ingonyama - who are the true and beneficial owners of Trust-held land under Zulu customary law. The Committee welcomed the allocation of R4 million, and the plans put in place to ensure that the residents were reimbursed in line with the Court Judgement.
The Committee expressed its support to the ITB and how it wanted to see the ITB and the Ingonyama Trust function effectively and efficiently. "The ITB must work, we must conduct oversight which seeks to ensure that the ITB works as envisaged in the legislation. At this stage, it is work in progress towards realisation of the intended objective for the Trust," said the Committee Chairperson, Mr Albert Mncwango.
The committee resolved that it would meet with all the parties during the upcoming oversight visit to KwaZulu-Natal for better understanding of the issues affecting ITB, including matters of concern coming from the annual report. The committee emphasised that they wanted the ITB to work and will ensure to engage all the role players in this regard.
The committee further requested to be provided with a report on material benefits to the Communities. The committee would like to see who gets to benefit from the ITB.
Mr Mncwango thanked Minister Nyhontsho for attending the meeting and for his intervention in the ITB. He also thanked ITB for its extensive presentation of the report.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON LAND REFORM AND RURAL DEVELOPMENT, MR ALBERT MNCWANGO
For media enquiries or interviews with the Chairperson, please contact the committee's Media Officer:
Name: Malentsoe Magwagwa (Ms)
Cell: 081 716 5824
Email: [email protected]
The Minister of Land Reform and Rural Development, Mr Mzwanele Nyhontsho, together with the Department of Land Reform and Rural Development and the ITB appeared before the committee to present ITB's annual report for the 2023/24 financial year to the committee. The committee expressed its unhappiness regarding the late submission of the report.
The committee noted that whilst the Public Finance Management Act (PFMA) requires submission of reports by the end of September annually, the ITB's late submission of annual reports has become a norm. The late submission of the report can be attributed to the lack of alignment of the reporting requirements of the Ingonyama Trust which is not listed as a public entity whereas its accounting authority, the ITB, is listed.
The ITB reported that it obtained an unqualified audit opinion from the Auditor-General of South Africa whereas the Ingonyama Trust received a qualified audit opinion. The committee raised concerns about the confusion around the ITB and Ingonyama Trust and enquired why there are two separate entities. The committee also indicated that the question of funding, and the improvements in the financial status of the ITB and the Trust requires close monitoring.
One of the committee's major concerns was about the Ingonyama Holdings, a subsidiary company of the Ingonyama Trust, which is reportedly hijacked. The ITB conceded that it does not have control over the Ingonyama Holdings and the previous directors have refused to submit financial statements to the ITB. The directors have changed the address of the business and have also been transacting using the company but refuse to account to the ITB. This admission prompted the committee to seek clarity as to how reliable the report that was presented before it - if its investment company which is supposed to hand over financial records for auditing purposes is not cooperating or reporting to it.
The committee learnt that Inkosi TN Mzimela's term came to the end on 13 February 2024 and King Misizulu KaZwelithini, the sole Trustee, assumed Chairpersonship of the Board.
The committee also enquired whether the department was still compliant with the 2021 Pietermaritzburg High Court ruling against ITB. The Court directed "the Minister to ensure that the administrative capacity necessary to implement chapter XI of the KwaZulu-Natal Land Affairs Act 11 of 1992 and the KwaZulu-Natal Land Affairs (Permission to Occupy) Regulation is reinstated forthwith: and that "The Minister shall report to the court on the steps taken to comply with 5.1 of this order, within three months of the date of this order and every three months thereafter until the parties agree in writing that the steps envisages in paragraph 5.1 have been implemented and the reporting may be concluded, Or the court, on application by any party."
The Court found that the Ingonyama Trust and its board acted unlawfully and in violation of the Constitution by concluding residential lease agreements with persons living on the land held in trust by Ingonyama - who are the true and beneficial owners of Trust-held land under Zulu customary law. The Committee welcomed the allocation of R4 million, and the plans put in place to ensure that the residents were reimbursed in line with the Court Judgement.
The Committee expressed its support to the ITB and how it wanted to see the ITB and the Ingonyama Trust function effectively and efficiently. "The ITB must work, we must conduct oversight which seeks to ensure that the ITB works as envisaged in the legislation. At this stage, it is work in progress towards realisation of the intended objective for the Trust," said the Committee Chairperson, Mr Albert Mncwango.
The committee resolved that it would meet with all the parties during the upcoming oversight visit to KwaZulu-Natal for better understanding of the issues affecting ITB, including matters of concern coming from the annual report. The committee emphasised that they wanted the ITB to work and will ensure to engage all the role players in this regard.
The committee further requested to be provided with a report on material benefits to the Communities. The committee would like to see who gets to benefit from the ITB.
Mr Mncwango thanked Minister Nyhontsho for attending the meeting and for his intervention in the ITB. He also thanked ITB for its extensive presentation of the report.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON LAND REFORM AND RURAL DEVELOPMENT, MR ALBERT MNCWANGO
For media enquiries or interviews with the Chairperson, please contact the committee's Media Officer:
Name: Malentsoe Magwagwa (Ms)
Cell: 081 716 5824
Email: [email protected]