Safcol briefed the Committee on its Annual Report for 2009/10. A new Board had been appointed on 28 September 2010 and a new Chairperson of the Board, Ms Nomfanelo Magwentshu, had been elected. Safcol had received an unqualified audit opinion in regard to its financial statements. It had made a loss of R469 million (before fair value adjustments of the plantation assets). The loss was mainly attributable to not achieving its sales targets. It had been certified as a level-3 BBBEE contributor. Seven forestry contractors had been developed and 256 jobs had been created. Safcol had signed social compacts with six communities and had spent R6.6 million to assist the development of these communities. R3.5 million of this amount was spent on infrastructure such as classrooms, science laboratories, computer centres, libraries at schools, an early childhood development centre and on a victim care centre. Safcol anticipated losses in the forthcoming year and production was still lower than capacity. The cash outflow in the last six months had been R34.6 million.