Land Rights on Pniel Communal Property Association issues

Media statement on Pniel Land

1 November 2007

Pniel 281 is a commercial farm unit with full mining rights, measuring 25
000 hectares in the area. It is located within the Barkly West under Dikgatlong
local municipality of the Northern Cape province. The farm encompasses a large
horse shoe land track all along the southern banks of the Vaal River adjacent
to the Barkley West Township.

The claimants are former residents of Pniel and direct descendants of the
person(s) who were forcefully removed. The claimants are claiming both
financial compensation and restoration of unregistered rights in land held by
their ascendants prior their dispossession in order to engage in agricultural
activities including various farming activities like cattle farming, which is
in line with the current land use on the farm.

The Pniel Farm 281 in the Northern Cape province has become the first
property to be expropriated by the State in line with Section 42E of the
Restitution of Land Rights Act, no. 22 of 1994 as amended. The farm which was
owned by the Evangelical Lutheran Church in South Africa is now vested in the
State. An amount of R28 400 000 has been paid into the church's bank account.
The amount constitutes 80% of the total amount of R35,5 million which will be
paid to the church as compensation for the land.

During the Restitution process, claimants of the Pniel together with
Regional Land Claims Commission: Free State and Northern Cape established a
Communal Property association for the purpose of the administration of the land
and representation of the claimants.

In 2005/06, the Pniel Communal Property Association (CPA) executive entered
into contractual agreements with third parties and the so called strategic
partners. These agreements were entered into against the advice given by the
commission to the Pniel CPA. It was clear from the assessments made by the
commission that the Pniel CPA did not have capacity to undertake the
procurement responsibilities, since most of the members were senior citizens
with little knowledge in dealing with business investments. Despite all the
efforts by the commission, the CPA executive proceeded in signing agreements
that gave the so called strategic partner exclusive rights to the business
usage of the entire land for the next 25 years.

It was quite clear that the Pniel Communal Property Association executive
did not apply their minds before signing these agreements. Further, it was also
discovered that they have over stepped their mandate by not getting community
resolutions for agreements that were made. In light of all the above, the
Regional Land Claims Commissioner for the Northern Cape and Free State then
convened a special meeting with all interested parties to explain position of
the office. The Pniel CPA were given a month to get their house in order and
were cautioned that failure to do so will result in their executive authority
taken away by the Director-General of Land Affairs.

The Pniel Communal Property Association executive led by Cornelius Solomons
failed to live up to the recommendations of the meeting. Instead, they decided
to challenge the Regional Land Claims Commissioner through making an
application to the land claims court compelling the Commissioner to sign the
sale agreement before the Minister granted approval.

The office of the Regional Land Claims Commission for the Northern Cape and
Free State was able to prove to the court that the application was an abuse of
legal process and as a result the application by the Pniel Property Association
was dismissed.

Due to the incapacity and failure to comply with constitution obligations of
legal entities, Pniel CPA's administration was placed under Department of Land
Affairs ordered by the Kimberly High Court. This was further approved by the
Director General of Department of Land Affairs who eventually delegated
Regional Land Claims Commissioner for the Northern Cape and Free State to
appoint South African Farm Management for caretakership which resumed from 1
April 2007 until December 2007. The reason for the appointment of the South
African Farm Management (SAfm) was to allow the State the time to look at the
lasting solutions and other amicable means for the transfer of the Pniel to the
Beneficiaries for sustainable purposes.

The mandate of the SAfm was look after the land against vandalism and
degradation and daily management of the farm. And secondly the development of
the land through sustainable development initiatives of the commission and
clearly refine plans towards the end of the financial year. Regional Land
Claims Commissioner of the Northern Cape and Free State vehemently refused to
expose beneficiaries of the Pniel to a dominant joint venture which will
utilise approximately 20 000 hectares for mining and game farming and reserve
only about 5 000 hectares for residential purposes for the Extension of the
Security Tenure Act beneficiaries. This simple means for the forced removals
claimants cannot be restored to their original land when it is feasible. Some
of the conditions of the joint venture entered into by the CPA was a 25 years
lease agreement and a shareholding of 60% to the Investor and mere 40% to the
Pniel beneficiaries.

Furthermore, based on the above issues with reference to community conflicts
on 27 March 2007, the court issued an order in the matter between Regional Land
Claims Commissioner of the Northern Cape and Free State and Pniel Communal
Property Association to appoint the referee with a mandate to set up a
Restitution and Extension of the Security Tenure Act Committees and investigate
causes of the infighting and conflicts among communities. Also to investigate
the questions of whether the joint venture agreements concluded by the Pniel
CPA on 8 August 2006 with the strategic partner was prudent. However, referee
could not carry the fully scope of his work and therefore, there was company
appointed to conduct dispute resolutions on the Pniel.

Regional Land Claims Commission of the Northern Cape and Free State has work
parallel with some of its core-fuction like research and verification of the
beneficiaries of the Pniel while the matter is still in Court. What has been
reported in the media for the past two weeks was unfounded and untrue state of
the affairs about Pniel.

Contact:
Frank Lesenyego
Tel: 053 807 5700
Cell: 082 827 0644
Fax: 053 831 6501
E-mail: FOLesenyego@dla.gov.za

For further details:
Sidney Hlongwane
Regional Land Claims Commissioner Free State and Northern Cape
Tel: 051 403 0700
Fax: 051 430 3930

Issued by: Commission on Restitution of Land Rights
1 November 2007

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