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BACKGROUND ON NCERA

FARMS (PTY) LTD

09 SEPT 2014

PRESENTATION OUTLINE

• Background• Mandate• Extent of Ncera Farms (Pty) Ltd– The Service Centre– The State Farms

• The Ex-farm Workers/Dwellers• Other Stakeholders & Role Players • Challenges at Ncera• Issues from 4th Parliament• Department Responses• Issues for Consideration

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BACKGROUND

• Ncera Farms (Pty) Ltd is a Schedule 3B (PFMA) entity of DAFF; located in Kidds Beach area of East London in EC.

• DAFF is the sole shareholder.

• Originally Ncera Agricultural Development Corporation under EC Provincial Dept of Agric. Due to financial constraints, transferred to former national Department of Agric (DoA) in 2004/05.

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THE MANDATE

• To provide extension, mechanical services, training & agricultural support services to the farmers settled on Ncera farmland as well as the neighbouring communities.

• Aims to contribute to an industry-focused farm management training, farmer support services & the design of franchise-type agricultural business models for farmers & beneficiaries of land reform in the immediate catchment area of Ncera.

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THE EXTENT OF NCERA FARMS

• Ncera Farms (Pty) Ltd constitutes Welcome Home Farm, where the Service Centre Iocated, & 11 state farms.

• The entity covers a total area of approximately 3 700 hectares (ha).

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THE SERVICE CENTRE

• Welcome Home Farm hosts the entity’s Service Centre, office buildings, workshop & training rooms. It is approximately 1 500 ha in size.

• It was approved in October 2004 & developed in 2005 to provide extension services, contract ploughing, training & technical advice to the 10 farmers & surrounding communities.

• Agricultural activities at the Farm include livestock and vegetable production.

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THE STATE FARMS

• The 11 state farms covers an area that is approximately 2 200 ha in extent.

• In 2005, former DoA issued an advert looking for interested individuals to apply for the occupation & leasing of the state farms.

• After selection process, 10 of the 11 farms were allocated to 10 successful applicants in 2007/08. The 11th farm, Rocklands, was not allocated & was reportedly reserved for settling ex-farm workers/dwellers.

• The 10 successful applicants were given PTOs with intention to provide them with 3-year leases within a year, & option to buy at end of lease.

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THE STATE FARMS Cont…

• Since occupation, no leases or any other official docs were signed by the farmers except the 12-month PTOs.

• The 10th farmer reported that he pulled out of the process in 2008 after the DoA failed to provide them with leases.

• Farmers reported that they never received any support from the Dept and for the most part, they lived on the farms with expired PTOs.

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STAKEHOLDERS & ROLE PLAYERS

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THE EX-FARM WORKERS/DWELLERS

• DoA never held any consultations with the former farm workers who also lived on the farms before the farms were allocated to new occupants.

• The farmers (10 successful applicants) were also never informed that the farms were occupied by former workers, who were also making use of the farm resources.

• Created conflicts when the new farmers arrived to take occupation of the farms.

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OTHER STAKEHOLDERS & ROLE PLAYERS

• Surrounding communities who fall under the two Traditional Authorities, the Imidushane (Jongilanga) Chieftaincy and the Phato Chieftaincy.

• Recently, other communities who are not necessarily under Traditional Authorities, who were also laying claims to some of the farm land.

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CHALLENGES AT NCERA FARMS

• Conflicts among stakeholders – farmers and ex-farm workers. • Farm invasions.• Claims against Ncera from other stakeholders.• Lack of records – establishment of entity.• Poor governance capacity at the entity. • Role of the Caretaker (DAFF) and lack of M & E.• Entity not fulfilling mandate & disregard for state farms.• Lack of response by DAFF to Parliamentary recommendations &

resolutions.

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ISSUES FROM 4TH PARLIAMENT

• Forensic investigation• Records of Ncera incl criteria used to allocate 10 farms and funds

used since entity’s inception• Re-submission of Strategic Plans according to NT Guidelines &

Frameworks• Turnaround Strategy • Closure of entity – deregistration • Plan expected in July 2013 – alternative proposals • Progress report on deregistration of entity expected in January 2014

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DEPARTMENT RESPONSES

• Compliance matter re: entity’s Strategic or Annual Plans never rectified• Reviewed Turnaround Strategy not submitted• The Plan (& Progress Report) with alternative proposals on how to close or

deregister Ncera never submitted • Dept reported that it was having discussions with the ARC, national DRDLR, EC

provincial Dept of Rural Dev & Agrarian Reform and Buffalo City Metro.• No effort made to resolve conflict among stakeholders at Ncera• No report back on actions taken against government officials implicated in

Forensic Report.

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ISSUES FOR CONSIDERATION

• Progress in addressing matters highlighted in Forensic Investigation Report

• Clarity & status of the 10th farm• Status of Rocklands Farm that was meant to settle ex-farm workers• Clarity & status of the unofficial arrangement between entity and

Jongilanga Chieftaincy• Verification of claims against the entity• Detailed report of operations, staff complement & responsibilities,

latest asset register (incl livestock)• Dept to clarify its role as sole shareholder & caretaker

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THANK YOU

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