Madam Deputy Speaker, the Department of Rural Development and Land Reform informed the Standing Committee on Appropriations that the previous director-general of the department had officially authorised junior officials of the department to enter into negotiations with farmers to purchase their farms in terms of the land restitution programme.
It appears that there has been some 4 000 such transactions, although the final audit is yet to be concluded. The monetary value of these transactions is also not yet known, but is estimated to be in the region of R7 billion - this for a department with an annual budget of only R6,8 billion. Already the department has had to make provision for R12 billion in respect of court cases lost against farmers for nonpayment of signed agreements.
One can only guess when the government will be able to pay the additional 4 000 contracts entered into. The additional R2 billion in terms of Maritime & Transport Business Solutions yesterday for the 7 000 additional restitution cases is welcomed, but it is only a drop in the ocean.
The previous director-general also informed the committee that market valuations by valuators were sometimes done as much as three times to get valuations satisfactory to farmers in order to reach agreements. The consultants were paid for each valuation. For the one-year period 1 April 2009 to 31 March 2010 the department paid these valuators an amount of R180 million. We are also aware of many corrupt valuators.
Complaints are often heard about the slow pace of land restitution and reform. The problem is clearly not unwillingness by the farmers to sell the land or the principle of willing-buyer, willing seller. It is simply a case of poor management and planning by the department. [Applause.]