DAFF PROGRESS REPORT ON NCERA FARMS
Acting Director-General
Mr KCM Mannya
09 OCTOBER 2013
CONFIDENTIAL
1 PURPOSE
The purpose of this report is
1.1 To provide an update on the process to address issues at Ncera as requested
by the Portfolio Committee for Agriculture, Forestry and Fisheries.
1.2 To provide the operational plan that will ensure the transform Ncera
2 BACKGROUND
2.1 Discussions to close Ncera public entity have been in process as far back as
2001 whereby the then National Department of Agriculture had been financing
shortfalls of about R1.5m to R2m annually since the take over of the company
from the South African Development Trust Corporation by government.
2.2 NCERA farms is comprised of two areas, the NCERA Centre which has been
registered as NCERA FARMS (Pty) Ltd which is a national public entity
established to manage some of the state owned land in the Kidds Beach area
of the Eastern Cape and the 10 farming portions around the centre. The
farming portions had been allocated to prospective farmers through
Permission to Occupy letters that expired in September 2012.
2.3 Currently the Ncera Centre is managed by the CEO assisted by an acting
CFO and a PA. Presently there are 26 general workers employed at the
Centre, aged between 26 and 65.
2.4 Activities at the Ncera Farms (Pty) Ltd include: livestock farming, open land
and tunnel cropping and a tractor workshop.
3 ACTIVITIES UNDERTAKEN TO DATE ON NCERA FARMS
3.1 Several engagements including Portfolio Committee visits to the Ncera Farms
occurred. The Department of Agriculture, Forestry and Fisheries (DAFF)
further initiated internal processes to deal with the Ncera Farms matter. The
following were undertaken:
3.2 A submission dated 21 May 2013 was made to the Honourable Minister with
the following proposals:
3.2.1
The Ncera Farms (Pty) Ltd as a Company: be deregistered with the
National Treasury and the Department of Trade and Industry (DTI).
3.2.2
The Ncera Centre: which consists of offices, a tractor workshop,
agricultural production tunnels and an estimated area of 0.5ha should be
transferred to the Department of Public Works if there is consensus
between the parties.
3.2.3
Staff that is employed at the centre: be transferred to Eastern Cape
Department of Agriculture and Rural Development and those at retirement
age be retired. The available budget will be transferred with the staff.
3.2.4
Movable assets: all the movable assets should ideally be transferred to
Eastern Cape Department of Agriculture and Rural Development as well.
3.2.5 The farms outside the centre: should be transferred to the DRDLR if in
agreement. The option to transfer this centre to the Provincial Department
of Agriculture (PDA) was tried during the mid 1990s but the PDA was
reluctant to take over this centre at that stage.
3.3 The assets at Ncera are secure and the asset register is kept up to date.
4 PROGRESS MADE TO DATE AT NCERA FARMS
4.1 Disciplinary process has started and hearings are set for the 25-27
November 2013.
4.2 The last meeting between Departments on the transformation of Ncera was
held on the 27th September 2013 between DAFF, the Department of Public
Works (DPW) and the Eastern Cape Department of Rural Development and
Agrarian Reform (PDA) minutes are available.
4.3 The meeting confirmed 3.1 above that the PTY (Ltd) should be de-registered
by DAFF as a matter of urgency following due processes.
4.4 The Provincial Department of Rural Development and Agrarian Reform should
determine and propose the best model on how the transfer of Ncera to the
Provincial Department of Rural Development and Agrarian Reform should be
made; and to determine best options for the use of the farm and share the
options at the next meeting, this should include partnership with the ARC;
4.5 DPW should search and provide the title deeds of the farm, surveyor general
dia diagrams as well as the vesting status of the property;
4.6 DAFF must ensure attendance of DRDLR to the next meeting to ensure
partnership on addressing the issues of leasing farms and settling farmers.
5
PROPOSED OPERATIONAL PLAN
ACTION
Disciplinary process as
RESPONSIBILITY
PARTIES TARGET DATE
DAFF
Nov / Dec 2013
per Report
Establish title deeds of
DPW
the farm, surveyor
DPW and
October 2013
DRDLR
general diagrams as well
as the vesting status of
the property
Principal approval on the
DAFF
DAFF,
October 2013
transformation plan of
NT,
Ncera
DARD,
PW,
DRDRL
Deregister the PTY (Ltd)
DAFF
DAFF;
Jan 2014
National
Treasury
and
the
DTI
Resolve Farmer
settlement model.
DRDRL
DAFF;
PDA and
DRDLR
January 2014
Pre Transfer Asset
DAFF
November 2013
verification
HR Plan & Consult
DAFF
employees
Hand over Ncera centre
to the PDA -Asset, Staff
DAFF
December 2013
and PDA
DAFF
DAFF;
March 2014
DPW and
the
PDA
EC