L Xingwana: Signing ceremony

17 April 2009

The Local Mayor for the Abaquluzi Local Municipality, Mr G M Dlamini
Amakhosi akhona lapha
The Mondi Group Joint Chairman, Mr Cyril Ramaphosa
The Director-General (DG) for the Department of Land Affairs (DLA), Mr Thozi
Gwanya
The Acting Chief Land Claims Commissioner, Mr Blessing Mphela
The Manager for the Abaqulusi Local Municipality, Mr J Mathenjwa
Senior members of staff from Mondi
Senior managers from the government departments
Claimants and beneficiaries
Dignitaries
Members of the media
Ladies and gentlemen

Halala, Nhlangwini Community Trust, halala!
Halala, KwaZiqongwana Community Trust, halala!
Halala, Isikhaba Community Trust, halala!
Halala, Isihululu-Egazini Community Trust, halala!
Halala, Fakazi Community Trust, halala!
Halala, Asihlangane Community Trust, halala!
Halala, Ogwini Community Trust, halala!

Ubuyile umhlaba, ubuyile! Phambili ngo democracy, phambili! Thanks to the
promulgation of the Restitution of Land Rights Act by the African National
Congress (ANC)-led democratic government in 1994, we are gathered here today to
mark the signing of the sale agreement, in settlement of the land claim on the
land previously owned by Mondi. The restoration of land rights to the victims
of the land dispossessions that took place in South Africa under the previous
government, is a fundamental element for our democracy. It is an important
factor in the government's efforts towards reconciliation and nation building.
From the very onset, this government was clear about one thing, ukuthi umhlaba
ma wu buyele ebantwini!

The forceful removal of black people from productive land resulted in skewed
land ownership patterns in the country, where the majority of the black people
were reduced to the status of tenants and squatters in the land of their birth.
As with many of the people removed from their land as a result of the
implementation of the Native Land Act of 1913 and its related legislations, the
communities did not receive just and equitable compensation for their loss, at
the time of removal. The restitution process is therefore aimed at ensuring
that there is restorative justice for those who suffered the loss of their land
rights due to discriminatory laws and practices of the past regime.

Since its establishment in 1995, the Commission on Restitution of Land
Rights has settled approximately 95,5% of the 79 696 claims lodged by 31
December 1998 throughout the country. These include claims on conservation,
mining, agricultural, as well claims forestry land.

The forestry industry is one of the strategic economic sectors in South
Africa with a significant contribution towards economic growth and job
creation. The sector has been identified as one of the important contributors
to the government's Accelerated and Shared Growth Initiative for South Africa
(AsgiSA) programme as a result of its intensive operations which involve the
employment of people from the rural communities of our country.

In recognition of the important role of the forestry sector in the economy
of the land, and in line with the provisions of the Forestry Charter, steps
have been taken by role players to ensure that there is continued and
sustainable use of forestry land for timber production.

The Commission on Restitution of Land Rights has made an undertaking to fast
track the settlement of all claims on forest land, with a target to settle 90%
of the claims within five years of the signing of the charter.

Ladies and gentlemen, honourable guests, it is my pleasure to announce that
In line with the sale agreement concluded between the state and Mondi, a total
of 13 989 hectares of land will be restored to the Nhlangwini Community Trust
(290 hectares), the KwaZiqongwana Community Trust (5 206 hectares), the
Isikhaba Community Trust (692 hectares), the Isihululu-Egazini Community Trust
(906 hectares), the Fakazi Community Trust (3 077 hectares), the Asihlangane
Community Trust (774 hectares), as well as the Ogwini Community Trust (3 040
hectares). The land includes planted forest areas as well as open areas valued
at a total of R38,7 million.

A lease agreement has also been signed with Mondi, which makes provision for
the land to be managed by Mondi until such time that the lease agreement
expires, and the beneficiaries are in a position to take over the running of
the forestry business through the Special Purpose Vehicle (SPV) established for
that purpose. In line with the proposed model for settling claims on forest
land, it is important that there be adequate skills transfer to the
beneficiaries during the lease period.

The proposed model for settling claims on forest land makes provision for
the state to purchase the land for the beneficiaries, excluding the trees. The
community then leases the land to the forestry company for an agreed period
which is linked to the rotation of the trees, e.g. six to 10 years, 15 years,
or 25 years. The supply of trees is guaranteed for two rotations with an option
for the beneficiaries to buy the trees and do the planting themselves after the
first rotation cycle. The claimants receive financial compensation in lieu of
the fact that they will not immediately benefit from the ownership of the trees
during the lease period.

A task team comprising representatives from Government and Forestry South
Africa has been established in order to deal with the execution of the
framework for settling claims on forest land, as well as to ensure that the
interests of the beneficiaries are taken into consideration when settlement
agreements are being negotiated. Some of the milestones for the task team
include the agreement on key issues relating to the Broad Based Black Economic
Empowerment (BBBEE) codes of good practice in terms of Corporate Social
Investment and enterprise Development; the minimum skills development clause to
ensure that skills development does take place even if no profit has been
realised; as well as the minimum rate of 5% of the value of the land for the
rental of timber which is negotiable taking into consideration variables such
as the distance to the market.

Ngithanda ukuthi ngithathe lelithuba ngibonge kakhulu ku Mondi esisebenze
ngokubambisana naye kwaze kwafika kulelizinga lokuthi kwenziwe ubulungiswa
kubantu amalungelo abo ezomhlaba ahlukunyezwa uhulumeni omdala wobandlululo.
Bakhombise ngokusobala ukuthi bayakuqonda ukuthi imeleni intuthuko yomphakathi
kakhulukazi umphakathi osemaphandleni. Lokhu kuyinto encomekayo ngoba
imiphakathi yasemaphandleni isadinga kakhulu ukuthuthukiswa. Lokho ke
kuyofezeka kalula uma izinkampani ezizimele zisebenza ngokuhlanganyela
nohulumeni njengoba inkampani yakwa Mondi yenzile okumele kube yisibonelo
esihle nakwezinye izinkampani zamahlathi ezizimele.

Forestry land in KwaZulu-Natal (KZN) alone is 608 708 hectares and out of
that 486 967 hectares is planted with timber. Nationally 48% of private
forestry land owned by Mondi is under claim and a large quantum thereof
(approximately 63%) is in KwaZulu-Natal. The total value of the claimed land is
estimated to R364 000.000.00. If I may mention ladies and gentlemen: that in
KwaZulu-Natal we have successfully transferred about four thousand hectors of
forestry land to the communities in Kranskop. Today I am privileged to announce
that the settlement agreements to be signed will result in a transfer of a
total of 13 000 hectares of Mondi forestry land to the seven beneficiary
communities and I have no doubt in my mind that many more of Mondi forestry
claims are going to be successfully resolved in a not too-distant future.

The forestry settlement model that has been agreed upon with Mondi and other
key players in the industry is in line with government legislations and
policies in terms of advancing black economic objectives whilst at the same
time enhancing the sustainability of the forestry industry. Amongst the key
elements in this model is social justice that is in terms of redressing the
social imbalances of the past, sustainability of the forestry industry,
community empowerment, transformation of the sector through the Black Economic
Empowerment (BEE) Charter and skills transfer.

Lokhu kusho ukuthini kubanikazi bomhlaba abasha namhlanje? Bazothola
ukubamba iqhaza kumathuba omnotho kwibhizinisi lamahalathi, bafundiswe bahlome
ngamakhono kwezokusetshenzwa kwamahlathi ,amathuba emisebenzi bakwazi ukuba
yingxenye ekuthuthukisweni komnotho wendawo yabo neKwaZulu-Natali yonkana.

A lot of progress has been registered in the negotiation and settlement of
the cluster of Mondi claims in the KwaZulu-Natal Province in extent of
approximately 40 000 to 50 000 hectares of land. Negotiations on the cluster of
claims on land belonging to Mondi have been concluded. The two parties are now
working on a process that will ensure that claimants can have immediate access
to finance when a claim is settled so as to ensure continuity of the business
operations.

The Department of Water and Forestry (DWAF) will play a monitoring and
evaluation role regarding the implementation of the settlement agreement
concluded with Mondi regarding the settlement of this claim.

I am pleased to announce that a total amount of R9,1 million has been
approved by the state as a development grant to assist the beneficiaries with
development initiatives on the restored land. In addition, the state has
approved a total amount of R5,7 million as Restitution Resettlement Grants in
respect of the 1 199 households. The funds will be used for planning purposes
towards the development of the restored land. In total, the settlement of the
claim for the seven communities will benefit approximately 7 194
individuals.

Let me once again congratulate you on this occasion regarding the settlement
of your claim. I want to urge you to work together and avoid strife and
conflicts which can negatively affect the progress on your project. With the
settlement of this claim comes the responsibility of being land owners, and
subsequently partners in a business venture. I wish you prosperity in your
endeavours with the project.

We must not forget that what we are celebrating today was made possible by
the advent of democracy in our land, which was ushered in by the African
National Congress. It is very important that we must all exercise our hard
earned rights on 22 April 2009 by voting in large numbers. I encourage all of
us to vote, and to vote for a government that cares! Your vote on 22 April 2009
is not only important for your future, but it is a vote to ensure that future
generations will enjoy the benefits of democracy that we are now
experiencing.

We will celebrate Freedom Day on 27 April 2009, which celebrates the
country's first democratic elections in 1994. Fifteen years later, and
following on the fourth general election, the country can celebrate the
achievements that have been made in entrenching our democracy and creating a
better life for all.

As we celebrate Freedom Day, we can be very proud of the resilient and
maturing democracy that we have built together as a nation. We have come a long
way from our divided and bitter past, to a society based on equality, dignity
and respect for human rights. Our constitutional order has proven to be
strong.

Our young democracy has celebrated four successful democratic elections and
created a government that represents the will of the people, the government
therefore reaffirms its commitment to creating a South Africa united in
diversity.

Let us therefore celebrate the numerous achievements of our young democracy,
but let us also celebrate the lives of those who made the ultimate sacrifice in
order that we can today enjoy the rights and freedoms as enshrined in the
constitution! Let us also celebrate the continuing hope and resilience of our
people, working together to achieve the vision in our Constitution. It is
therefore fitting that we have present with us here today, Mr Cyril Ramaphosa,
who played a fundamental role in the drafting of the constitution which we hold
so dear, Viva Comrade Ramaphosa Viva!

I therefore, in conclusion, thank all the role-players who made the
settlement of this claim possible, it has again proven that it is through
working together, that we can do more.

I further wish the community well in their new endeavours, and again
encourage them to work together, as it is only through working together that we
will create a better life for all!

Amandla!

Ngiya bonga

Thank you.

Issued by: Department of Land Affairs
17 April 2009