ARC, NAMC, ITB & OBP 2022/23 Annual Reports

Meeting report

Agricultural Research Council (ARC) Annual Report 2022/23
Dr Litha Magingxa, CEO, informed the Committee that the entity, during the year under review, operated in an environment where, amongst other things, there has been an increased risk of poor agricultural production and productivity as a consequence of frequent, uncontrollable outbreaks of pests and diseases (e.g. FMD, Fall Armyworm (FAW), drought, locust swarms, etc.); increased risk of food insecurity, particularly malnutrition); and increased risk of failed agricultural enterprises, particularly commercial agriculture with concomitant unemployment.

He reported the ARC had registered an unqualified audit opinion. The entity continued to address property plant and equipment qualification areas that have contributed to the modified audit opinion of the Auditor-General (AG). The action plans for the 2023/24 period would be workshopped with the audit committee and AG to ensure they address the root causes.

On increased agricultural production and productivity outcome, significant achievements included seven new cultivars that were registered. These include wheat, peaches, proteas, citrus and granadilla cultivars. Four other cultivars were awaiting final registration with the registrar. In trying to address areas of underperformance, the entity has engaged the regulator to address the current backlog of PBR registrations, and improved internal coordination to ensure improved efficiencies, going forward. Concerning the number of farmers participating in each of the animal improvement schemes, aggressive marketing strategies would be to stimulate demand for the services of the entity, and efforts would be intensified to improve the quality and quantity of their value addition service offerings to make them more appealing to the livestock keepers. The entity would embark on an aggressive marketing of the animal improvement services to enhance performance in this area.

In terms of the sustainable ecosystems and natural resources outcome, international, local and government partnerships and   funding support enabled achievement of targets and the implementation of multi-year projects. For example, the Water Research Commission (WRC) funded a project to create a Knowledge Hub for Contaminants of Emerging Concern (CECs) in agriculture and their impact on water resources in South Africa, and it further funded projects to develop management and rehabilitation protocols for South African peatlands affected by peat fires from the determined peat loss.

Regarding the improved nutritional value, quality and safety of agricultural products, significant achievements were made in three new orange-fleshed sweet potato varieties that were granted plant breeders' rights. Ongoing engagements with relevant stakeholders in the deciduous fruit industry were being done to reach consensus modalities for cultivar evaluations. New products regarding the Moringa teabag prototypes that have been developed are currently being analysed. Eleven cassava cultivars were evaluated in on-farm evaluation trials for yield and yield-related traits.

Regarding the skilled and capable agriculture sector outcome, he stated 428 scientific publications were accepted compared to a target of 249. A total of 3 068 farmers were trained against a target of 1 004. A new Black-owned auction company was unveiled due to collaborative efforts between the ARC and KZN Department of Agriculture and Rural Development (KZN DARD) through the implementation of the Kaonafatso ya Dikgomo (KyD) Farmer Support Scheme. The ARC would embark on different means to attract and market its technologies. Calls for expression of interest would be published in different media platforms to reach potential partners.

Concerning enhanced resilience of agriculture, an Agricultural Drought Early Warning System (ADEWS) was developed. Four live blood vaccines for tick-borne diseases were produced by the ARC but marketed by OBP. A total of 186 481 blood vaccine doses were produced against a target of 65 000. A total of 21 573 test reports for animal health were issued to clients against a target of 14 208. The efficacy of the FMD vaccine would be assessed under various field conditions and circulating strains to strengthen the efficacy claims. This would improve the marketability of the vaccine in South Africa and beyond. Ongoing engagements with the regulator were being held to ensure timely registration of drought-resilient cultivars.

Regarding the high-performing and sustainable organisation outcome, he said that the ARC has implemented a new facilities management model to improve operational efficiency, resulting in notable improvements across various aspects of the entity's infrastructure and facilities operations. A comprehensive Land and Property Management Plan was developed to enhance the oversight of the ARC's land and property portfolio. A specific emphasis was placed on refining the leasing portfolio and ensuring that rental agreements with external parties align with market values.

On ICT, he said that three research applications (CBSA, Aquaculture production and Soy SA applications) were rolled out to assist farmers with production guidelines, management strategies, and disease control for different farming areas. The electronic document and records management system (EDRMS) and Infrastructure-as-a-Service (IaaS) were implemented to align with current technological trends.

Dr Magingxa also indicated that the ARC undertook the development of a process for the production of FMD vaccines for use in Southern Africa. These efforts have culminated in establishment of technical expertise and infrastructure to consistently produce FMD antigens at a 20-litre scale using suspension production technologies. This is sufficient to produce 20 000 doses. The FMD vaccine was registered on 20 May 2022, as a stock remedy under Act 36 of 1947. The registration certificate is valid for/renewable after three years. The ARC would be able to use the vaccine as part of the Department's FMD prevention programme. The DALRRD requested the ARC to provide FMD vaccines to be deployed on farms or feedlots affected by the current outbreaks of FMD in Free State, Mpumalanga, North West and Gauteng.

(Tables and graphs were shown to illustrate budget allocation and expenditure – see attached)

Onderstepoort Biological Products (OBP) Annual Report 2022/23
Ms Peace Mabeta, OBP Chairperson, enlightened the Committee that the revenue of the entity increased from a total of R186 million in the 2021/2022 financial year to R204 million in the 2022/2023 financial year. OBP achieved the recertification for ISO 9001:2015. The overall rate for organisational performance was 58%, which is a 10% increase compared to the 48% achieved in the 2021/2022 financial year. When the new Board started, there were two vacancies for the CEO and company secretary. The recruitment processes were underway and would be completed soon.

Mr Boitshoko Ntshabele, Acting CEO, took the Committee through the four programmes of the entity: financial stability, continuous improvement of the business processes, customer services, and governance and leadership.

Concerning financial stability, against a target of two, no new product development was finalised by R&D for submission during the reporting year. Targets were achieved 100% on the number of improved technological processes developed annually. An over-achievement of eight, against the target of two, was recorded on the number of product dossiers submitted to new markets annually. Opportunistic product registration opportunities utilised. The entity was unable to supply products as per market demand.
On continuous improvement of the business processes, all targets were achieved regarding the implementation of Board Approved Enterprise Architecture Plan to inform ICT strategy. 70% of phase one of the GMP facility has been completed. The contractor was unable to proceed. The management was currently finalising plans to restart the GMP project. About 70.14 % of the work on the Vector Protected Facility has been completed and construction would continue.

Regarding customer service, the entity was unable to supply products as per market demand regarding the number of new distribution points to be established annually. Therefore, potential distributors were discouraged. An over-achievement of 1 405 against a target of 800 was registered on the number of farmers to be trained annually. The entity attained 53% against a target of 80 regarding improvements in customer satisfaction annually. The majority of respondents complained about product unavailability. On the number of complaints resolved annually, there was an over-achievement of 81.8% against a target of 80.

Regarding governance and leadership, 18 HR policies were reviewed against the target of 16. Following a gap analysis of HR policies, nine additional policies against one target were identified for development. Quarterly targets were achieved to maintain staff turnover at five percent. Competing priorities with operational requirements and misalignment of training initiatives led to under-achievement of the training interventions. There would be improved oversight and management of skills development aspects.

Mr Ntshabele further touched on the strategic risks. He pointed out lack of research and development outputs might result in an inability to satisfy customer needs and loss of business to competitors. It was important that strategies were implemented to ensure effective succession planning and retention of critical staff to reduce the impact of disruptions in project completions. The concerted efforts of third parties to undermine the intellectual property of OBP in its own developed products and the illegal use of OBP-developed intellectual property by third parties would have a significant value-based impact and resultant loss of revenue for the entity. As a result, the Intellectual Property Audit was being conducted to establish the OBP IP footprint and identify measures to be implemented to safeguard the rights of the entity to the IP.

He stated that, when it comes to finances, the performance of the entity has improved significantly during the year under audit despite the production challenges encountered. For the current year under review ending 31 March 2023, the OBP generated gross sales of R204 million compared to the prior year’ achievement of R186 million. There is an increase in sales of R18 million. The overall performance of the entity shows significant improvement and shows that the entity is capable of achieving more in the future.

(Tables and graphs were shown to illustrate budget allocation and expenditure – see attached)

ITB Annual Report 2022/23
Mr Vela Mngwengwe, CEO, stated the performance of the entity for the year under review was focused on the confirmation of tenure rights for various beneficiaries to unlock benefits and welfare to communities and residents; to resolve audit-related issues and the improvement of audit outcomes; and to build a relationship with beneficiaries through capacitation of traditional councils. Major factors that impacted performance were internal organisational changes that included a Board term ending in November 2022; and misalignment between the mandate of Ingonyama Trust, organisational objectives and funding.

The entity has achieved an unqualified audit opinion for the year under review. The remaining audit findings require capacitation of various business units in a manner that promotes the design and implementation of adequate internal controls in SCM (supply chain management), ICT (information and communications technology) and HRM (human resource management). The Board decided to implement the Employee Performance Management Policy in phases, but the substantial delay was occasioned by the non-signing of the policy. The non-existence of the Board since December 2022 also resulted in the stagnation of decisions. The entity did not have internal audits throughout the financial year, and no audits were conducted. The stakeholder engagement strategy was drafted but could not be processed because there was no Board to consider and approve it.

Concerning land and tenure management, against a target of 800, only 253 tenure rights were approved by the Board. The entity reported a high court judgement of June 2021 that prohibited the conclusion of residential agricultural leases on the Trust land. This resulted in lease applications being put on hold and the number of applications being processed were reduced. This was further affected by the tenure meetings during the year. A total of 26 Traditional Councils were exposed to capacity building against a target of 24. Traditional Councils with close proximity and similar dynamics were grouped together. There were also no Human Settlement Plans approved because there was no Board in place to consider and approve them. Consequently, these were moved to the last quarter.

On matters related to governance, he stated that five meetings were held between the Ingonyama Trust Board and the Portfolio Committee on Agriculture, Land Reform and Rural Development during the period under review. The accounting authority submitted the quarterly financial and non-financial performance reports to the executive authority. The audit committee met only five times. The entity did not have internal audit in the year under review.

(Graphs and tables were shown to illustrate budget allocation and expenditure – see attached)

South African Veterinary Council (SAVC) Annual Report 2022/23
Mr Mongezi Menye, CEO, informed Members that the Council successfully implemented its strategic goals by achieving key milestones. The SAVC, for the first time in its history, escalated the issue of transformation into strategic level in strategic plan for the period 2022-2025. The Transformation Committee was formed to drive all transformation initiatives with a clear mandate of ensuring inclusivity in professions regulated by SAVC. The Wellness Committee was also established to look after the administration and well-being of registrees, ensuring the effective functioning of all.

He stated that the Council collaborated with the Food and Agriculture Organization of the United Nations (FAO) in the project of sustainable business in animal health service provision through training for Para-veterinary Professions. The Council approved participation in another FAO-funded project aimed at capacity building and collaboration with other Veterinary Statutory Bodies (VSBs) in the SADC Region. These agreements ensured that high standards of the veterinary profession were maintained.

The Council further approved the registration amnesty for unregistered AHTs (Animal Health Technicians), both employed and unemployed qualifying AHTs. The implementation of the project was underway. The advertisement for AHT registration amnesty was published on 20 January 2023 and placed on different media platforms such as the SAVC website, LinkedIn, and Facebook. Also, it was disseminated to relevant stakeholders like Associations, Provincial Directors and the Department of Agriculture, Land Reform and Rural Development (DALRRD).

In addition, he stated the new rules for the para-veterinary professions were reviewed to be aligned with those of the veterinary profession. These rules provide for para-veterinary professionals to perform specified services, in accordance with relevant rules, for own account. Certain services and procedures might only be performed under veterinary supervision, whether direct or indirect and would require close collaboration with veterinarians.

The Minister of Agriculture, Land Reform and Rural Development (DALRRD), Ms Thokozile Didiza, approved the new rules for the para-veterinary professions (veterinary nurses, veterinary technologists, laboratory animal technologists and animal health technicians). This meant the para-veterinary professions could now register and operate their own Primary Animal Health Care (PAHC) facilities. This was a huge milestone in transforming the veterinary sector in South Africa. These rules have been in operation since December 2022.

Mr Menye talked about challenges and mitigations as well. The joint project between the SAVC, South African Veterinary Association (SAVA) and South African Association of Animal Health Technicians (SAAAHT) to mentor CCS veterinarians continued successfully. It has been funded by the Health and Welfare Seta (HWSETA) to address perceived lack of mentoring for CCS veterinarians.

He also reported the Marketing Surveys & Statistical Analysis (MSSA), which focused on the need-analysis for veterinary and para-veterinary services in South Africa, which was initiated after SAVC established that there was no sufficient statistics regarding the supply and demand for services in communities. The research was completed and the report was disseminated to all relevant stakeholders.

Lastly, in terms of registration, a total of 6 907 veterinary and para-veterinary professionals were registered on 31 March 2023. A total of 637 persons were authorised to perform veterinary or veterinary para-professional services – where the need was motivated.

(Graphs and tables were shown to illustrate budget allocation and expenditure – see attached)

Discussion
Deliberations with ARC
Inkosi R Cebekhulu (IFP) asked what the role of the ARC was in assisting subsistence farmers in becoming commercial farmers and enquired if its community education programme was helping with food safety. He wanted to know if there was anything the ARC could do to assist with vegetation-killing livestock. He also asked if the ARC played any role in growing organic food because there were messages on the radio that all peanut butter products should be taken off the shelves.

Dr Magingxa, in linking up with communities in terms of technologies, explained all the work at ARC was done on the field with farmers. They are the majority stakeholders and are taken to the field all the time. They are part of what the ARC is doing. He said the ARC was doing applied research instead of the basic blue-sky research. Its focus is on capacity development. There is a Smallholder Development Unit within the ARC.

Regarding the specific plant or vegetation that is killing livestock, he stated that would be looked at to see its impact on livestock. The ARC always works with the Forestry and Fisheries Department to look at these issues. Also, the entity was working on growing organic food and agro-processing the indigenous plants. If there was a specific project the Member of the Committee was referring to, their scientists would look into the matter.

Ms T Mbabama (DA) wanted to understand the cause of the high vacancy rate when 70% of the budget was spent on salaries and enquired how this would affect the budget if the entity got people. She asked why R1m was spent on the postgraduate programme instead of the allocated R21m. She also wanted to find out what the plan was concerning the ageing infrastructure due to limited funds; she wanted to understand what the plan was initially on the FMD facility and when it was expected to be finalised; sought clarity about the assets that could not be located in the fixed asset register and what the reason was for that. Finally, she enquired how the entity planned to improve on the less R6m recovered.

Dr Magingxa explained the entity was not competitive regarding salaries and many people have been lost to universities because they pay better. As a result, the entity was bringing back Excellent Awards to recognise the work done by their scientists and ex-colleagues. This includes a whole range of things to incentivise their professionals. Also, the ARC has limitations in absorbing some of the required scientists. The contribution it made in developing skills was for the entire country, not for itself.

In developing infrastructure, he reported that the increased collaboration with the Department has helped the entity a lot because if the ARC did not have enough funds, then the Department would be able to assist it in getting whatever it wanted. There were many initiatives in place while there were certain things that it had to buy itself when it comes to infrastructure and many strides have been done there.

Regarding the FMD facility, he informed Members that the funding allocation first came in 2010 and it was not enough. A top-up was needed. The project has been resuscitated and work is being done to finish phase three and break the sod during 2024, depending on if enough resources were made available.

Ms T Breedt (FF+) wanted to understand how asset verification, which has been an audit finding, would be improved, what the timeframes would be, and if consequence management has been done. She wanted to find out how the ARC was going to ensure it would not lose its rollover request of R440m. Lastly, she remarked that farmers might be using less of ARC because of the decrease in technology farmer support and the use of state laboratories.

Dr Magingxa explained that increased laboratory work happens when there has been an outbreak of plant and livestock diseases. The ARC works closely with the Onderstepoort facility, and there is an MOU with OBP. He further stated that consequence management issues continued to be given attention, and there were cases that were reported to SAPS, and investigations continued. Also, he said the asset register was discussed with AG and it was no longer a finding.

Mr N Matiase (EFF) remarked that the ARC seemed not to be living up to its mission statement and suggested it should work towards developing data to develop vaccines and complement work done at Onderstepoort. As a result, the country had to source vaccines from Swaziland and Botswana, and he then asked how it was planning to deal with the matter. He enquired why there was an under-expenditure on conditional grants. Finally, he wanted to find out how the AG finding on material misstatements, which resulted in a qualified opinion, was going to be corrected.

Ms N Mahlo (ANC) sought an explanation why not all irregular expenditure was included in the financial statements. She asked for an update on the FMD facility.

Ms B Tshwete (ANC) asked for the indication of targets on the types of vaccines produced on FMD. She enquired about the types of vaccines gotten from neighbouring countries and costs. She wanted to know the reasons for the condonation of fruitless and wasteful expenditure. She asked about properties that were still in process because audit findings indicated property plants and equipment were not accounted for; she wanted to understand the cause of the delays in the FMD facility because more than R500m was allocated to this facility but only spent R57m since 2011 until date.

Ms Joyene Isaacs, Chairperson​ of the ARC Board, explained that FMD concerns were long term issues and that some of the matters were outside the control of the CEO and the Board. The entity was looking at a timeframe of ten years. The costs have escalated considerably, and they were more than projected for in 2010.

Dr Magingxa said that a new intervention has been put in place for Plants and Property Equipment (PPE) to bring improvements.

Mr N Capa (ANC) sought clarity on the following items: zero targets on vaccines. She asked for a status update on the drought-tolerant cultivar that was to be registered for use; and enquired about the number of technical reports and services rendered. He also asked if any income was generated from the entity's products or vaccines.

The Chairperson wanted to know what the ARC would be doing about repeated findings of a qualified opinion. He asked how the entity planned to address challenges around increasing labour costs, low revenue, and high vacancy rate of 12%. He also enquired how it planned to increase its revenue and not rely on the grants it received. He then asked the ARC to send a detailed report to the Committee, on the asset and fixed register; a detailed report on consequence management, and for the entity to respond in writing to all the questions that were not answered due to time constraints.

Deliberations with OBP
Mr Capa sought clarity on the employment of foreign nationals, asking if it was because they have skills not available in the country or if they applied for the jobs because they were qualified. He also asked when the dilapidated infrastructure would be rehabilitated; and enquired about the types of products/vaccines bought in Botswana, including their costs.

Mr Ntshabele said that the vaccines imported from Botswana were not OBP products, but the ARC used to produce them.

Ms Tshwete wanted to know if any mitigation plan was in place to address the repeated qualified audit opinion for the last three years. She sought clarity on the freeze dryer; wanted to understand when critical posts were going to be filled for stability within the entity; and asked what steps would be followed to address the weaknesses identified by the Board when it embarked on a skills audit process during October 2023; enquired why the entity was outsourcing on its core function by outsourcing some manufacturing because of the sharp decline in the number doses sold in the last few years, and suggested the entity should try to find new ways of correcting this idea. She asked the Committee to be furnished a detailed report about how it was planning to address some of the findings raised by the AG; commented the GMP facility has been suspended since 2021 because of ongoing legal cases and indicated this was not acceptable; and asked the Committee to be given a detailed report the on the intellectual property case.

Mr Ntshabele explained freeze dryer has made R16m profit for the OBP. Because of poor maintenance over the years, they had to rely on another freeze dryer which produces less than the operation freeze dryer. The new freeze dryer would be delivered and installed during the course of 2024. The OBP had to make sure bio-production was done in the country. The formulation of the vaccine would be done in-house. He further stated that the Capex plant is old from the 60s and has been poorly maintained. A seven-year cycle for Capex has been developed to deal with load shedding and to get a new freeze dryer. Concerning doses that have dropped, he said that they could not meet the production because of the freeze dryer that broke down.

On the GMP facility, he explained not all documents had been found regarding the GMP upgrade and there was equipment being produced in China. Pertaining to the AG finding, he indicated the AG wanted the entity to have a policy on finances whereas it has a policy on production and that was where the differences emanated from.

Ms Mabeta, on the repeated qualified audit finding, stated they had put mitigation plans in place and would continue to work with AG on this aspect.

Ms Mahlo asked how the entity was going to increase its outputs and make improvements on its core performance when it achieved 14 out of 21 targets.

Ms Breedt asked what the stance was on the current vaccines and asked the Committee to be given a breakdown of vaccines that were in and out of stock. She enquired what the timeframes were on the GM; and wanted to understand what the plan was about the 48% that were found incompetent by the skills audit while the other 52% met the requirements.

Ms Mabeta indicated those who required upskilling would go through the process while those who qualified would be matched to their skills.

Ms Mbabama asked for the breakdown of the four out of six filled executive positions. She enquired why the institutional organisation process was stopped because of competing operations and why a specialist was going to be employed now. She wanted to find out if there were plans to mitigate risks; and suggested the newly appointed Board should be introduced to the Committee, because the Members never saw it. She wanted to know where money would be gotten for the new equipment to be purchased.

Inkosi Cebekhulu enquired when the entity envisages the finalisation of getting the best equipment for the production of vaccines.

The Chairperson wanted to know what the status was of the GMP facility because the previous Board reported it was struggling to get equipment for the facility when the Committee visited OBP during 2022. He asked when the appointment of the CEO would be finalised. Lastly, he requested that the Committee be forwarded a detailed report on the entity's asset register.

Ms Mabeta said that the appointment of the CEO would be finalised during April 2024.

Mr Ntshabele stated the case of the former CEO was still with the labour court and details would be given to the Committee in writing. He further explained that the GMP upgrade was a big project for OBP. The project was changed from a green field to a brownfield, but noted he was not for the reasons behind that. There was a dispute with the building contractor who could not work with the principal engineer. That was why the OBP wanted to appoint a specialist because it does not have that skill internally so that the person could project manage the work between the principal engineer and building contractor.

Deliberations with ITB
Inkosi Cebekhulu sought clarity on the failure of the ITB to get hold of the Ingonyama Trust Holdings to pay the leases. He enquired about the Board's position on paying royalties since there has been a new prime minister.

Adv. Linda Zama, Deputy Chairperson of ITB, said that most of Amakhosi did not know why there were conversions of PTOs to leases. That has been the practice with ITB, where things just came from above. In other words, people were not thoroughly informed about these matters.

Ms Mbabama wanted to know the total amount of money the ITB has to pay back to the communities. She asked if there had been any money paid to the communities during the year under review; enquired about the communities which had benefited from the ITB so far and suggested the entity should manage its assets for the benefit of the communities; she wanted to find out when was the last time there was an internal audit for the Ingonyama Trust because there was no internal audit last year for the entity; wanted to understand what the next step would be since the stakeholder engagement strategy has been approved and how this has assisted the entity; wanted to find out how the Board was overseeing the improvement plans and what the impediments were to that; sought an explanation on what was meant by 24 traditional councils that benefited from capacity building; sought clarity on the R211m that went to disbursements; and sought an explanation on the incurred R21m for losses.

Adv. Zama stated the capacity building programme was about making Amakhosi understand what ITB was all about, including the distribution of funds. Further, she said that no money has been spent for now and ITB owes people an explanation on how this would be conducted and how much would be spent on each household/community. Pertaining to stakeholder engagement, she explained this not only covered Amakhosi and Izinduna. Information would be shared with them. Other stakeholders include COGTA (Cooperative Governance and Traditional Affairs), municipalities and traditional councils. Meaningful relations have been started to create a rapport with these stakeholders. Such an initiative did not happen in the past. So, there was a need to collaborate so everyone was on the same page.

Ms Thobeka Ndlovu, Head: Land Tenure, ITB, further enlightened Members that capacity building was about environment sensitive matters, engaging government departments, conflict resolution management, and many other things. She emphasised that it could not cover the whole spectrum, but they would collaborate with CoGTA, DALRRD, municipalities, and traditional councils. Their efforts have not covered the whole KZN province and they are currently looking at how their strategy would be implemented to achieve their objectives.

Mr N Masipa (DA) sought clarity on why the new prime minister would not want to engage with Amakhosi; and asked if the structure of the entity was in a position to fulfil the required tasks to curb irregular expenditure.

Adv. Zama informed Members the Act does not provide a portfolio for premiership. They have engaged with the provincial house of leadership in KZN. Amakhosi do not know anything about the Ingonyama Trust. The Board that was appointed end of May 2023 felt it was bad not to be known by Amakhosi and felt it had to account to them. Amakhosi also indicated all of them have to be covered by the Trust. The traditional prime minister and provincial house of traditional leaders have to do with the governance of the Trust, and the Board has to focus on its work.

Mr Mngwengwe added that an engagement had been arranged with the traditional prime minister to hear what the issues were all about.

Mr Matiase commented that the ITB has been created by a statute to fulfil a public function. It exists at the behest of the public. That ought to be borne in mind and be understood that resources generated by the Trust and allocated by Parliament have to be accounted for. This means the ITB has to be transparent in its work and expenditure. In the past, the ITB has refused to reveal the dealings and transactions of the Ingonyama Trust Holdings.

Ms Mahlo commented that it appeared that the path was going in the right direction with the new people appointed to the ITB. Internal instability within the ITB was there and it was understandable. She asked what the future plan was with vacancies and what their impact was on service delivery. She inquired about the total amount to be paid to the communities or individual households, and the court ordered the ITB to pay for the residential leases. Lastly, she wanted to know the Board's view concerning the things going on around the ITB.

Ms Tshwete wanted to find out about the amount of money collected for the leases programme, how much has been paid to the communities, and what the challenges were because the court judgement stated clearly the ITB should pay back the money to the communities. She also sought an explanation on the funds exchanged between the Trust, ITB and other parties, where ITB received R9.5m from the Trust and another R9m went to the ITB, including payments made to “other”.

The Chairperson commented the presentation raised misalignment and challenges but said nothing about interventions. He asked the entity to explain to the Committee the reasons behind the failures raised by the AG: inappropriate steps to curb irregular expenditure, failure to avoid fruitless and wasteful expenditure, use of expired contracts without National Treasury approval, lack of consequence management, and no financial statements about Ingonyama Trust Holding. He wanted to know where the money levied from the communities using ITB1 and ITB2 forms went, as the Committee never got a sense of how much money had been received and spent. He asked if there were any community programmes funded from this collected money, and sought clarity on who benefited from funds for capacity building.

Adv. Zama explained that the ITB did not have programmes but was doing developmental work. When the Tenure Committee meets, the applicant or beneficiary needs to indicate how he/she is going to give back to the community after getting assistance from the ITB. There has been a need to understand and coordinate what Amakhosi was doing, and flagship programmes should be implemented. This has started already. The ITB did not have programmes, but it was only now that developmental work was being felt by people.

Mr Mngwengwe, on misalignment, informed the Committee that the Ingonyama Trust was not listed in the Public Finance Management Act (PFMA) while the ITB has been listed and managing the Ingonyama Trust. The view was that this was one organisation – the Board belongs to the Trust. The allocation related to services sits with the ITB, not with the Trust. The allocations given to the ITB were for the personnel and fund the activities of the Trust. But in the future people would start seeing employees moving to the Trust because the employees belong to the Trust.

Further, regarding the relations between the ITB and Trust, he stated that the language used was that the powers of the Trustee were given to the Board. The Trustee then ceased to be on the Board. The Ingonyama Trust Holding was accountable to the Trustee. The Board then could not receive financial reports.

Due to time constraints, the Chairperson asked the entities to send responses to questions not answered in writing before 16 February 2024.

Deliberations with SAVC
Inkosi Cebekhulu commented people were always complaining in rural areas about the lack of veterinarians in dipping tanks.

Mr Menye said that he noted the comment.

Ms Mbabama thanked the entity for the detailed presentation.

Mr Menye noted the comment.

Mr Masipa applauded the move to allow animal health technicians to start their own practices. He asked if government was providing bursaries or financial aid to ensure they continue to start their practices. He stated his concern was about the doctors who were leaving the country after completing their community service or completing their studies, and he enquired why there was only one university training veterinarians in the country because, as a country, we could not rely on only one institution.

Mr Menye enlightened Members they were approached by the universities of Fort Hare, Sefako Makgato and Free State to open new faculties. This process has been underway, and it would be good to have the other provinces consider it instead of concentrating everything on Gauteng. He also said that many vacancies directly impact the services offered by the Department and entity. He further stated that no study has been done on the number of veterinarians and animal health practitioners, but there has been a study that highlighted the need for this service in rural areas. There was a great need for these practitioners.

Mr Matiase suggested the entity should enlighten the Committee about the programme it has in place to attract more black students to the profession and close the ratio in rural areas that do not get support from these veterinary services. He indicated the programme should be presented to the Committee next time it engages with it.

Mr Menye stated that there was a lesser number of blacks graduating from veterinary studies. There was a veterinary seta that groomed students in this space, including the Tsolo College, which trains animal health practitioners, where students were paying nothing.

Mr Capa asked what the relation was between the entity and government and what its strategy was to be accessible to the rural areas.

Mr Menye said they were working hand in glove with the Department. Things have been moving very fast between the entity and the Department regarding regulations, and the Department's veterinary service was falling under the purview of the SAVC. He stated it was difficult to get to rural areas even though the Department was trying hard to access these areas. Hence, there has been a collaboration Department and close work relations with the ARC. So, there was a need to develop a strategy for retaining the veterinary graduates. He also highlighted the fact that legislation indicated that the entity was getting a loan from government but not funding it. But things have changed in the previous years. Now, they were working towards amending the Act so that the entity could get government funding to run its programmes. If a veterinarian wants to run a mobile clinic, that clinic should be registered with the SAVC.

Ms Tshwete remarked it was a good initiative to allow para-veterinarians to operate their own practices. She wanted to know the entity's opinion on the shortage of vaccines so the country could manage FMD. She enquired if the compulsory community service impacted rural areas because smallholder farmers have been complaining in rural areas. Lastly, she asked about the reasons behind the disbandment of heritage and the transformation of the professions while opening the Transformation Committee.

Mr Menye said they moved away from heritage to focus on transformation in the sector. He asked to respond in writing concerning FMD challenges.

Mr Maoketsi Ramasodi, Director-General, Department of Agriculture, Land Reform and Rural Development, commented that SA has lots of animal health technicians, hence they have been allowed to operate their own businesses. The matter of the new faculty for veterinary studies at other universities was being handled. It was felt that the institutions should focus on areas of specialisation within the veterinary sector.

The meeting was adjourned.