220.127.116.11 Community Uplifment Projects
Community Bursary Scheme to meet Technical requirements at LM
Three Kgatelopele Local Municipality residents
Internships with two interns per annum at the discretion of LM
One Kgatelopele resident
One John Taolo Gaetsewe resident
Upgrade of Resource Learning Centre
18.104.22.168 Poverty Eradication Projects
Granular Plant Pre-feasibility Study funded by Finsch Mine
Kgatelopele LM residents
Recycling Waste Management Project
Kgatelopele LM residents
Lucerne Cultivation Project
Kgatelopele LM residents
22.214.171.124 Infrastructure Projects
Sanitation: Erecting and connecting 142 airborne toilets in Kuilsville and Tlhalakathlou
Kgatelopele LM residents
Water supply (water pipe refurbishment)
Kgatelopele LM residents
Corporate Social Investment Spend for 2010
Subsidy to employee teachers and learning material
Bussing of high school learners to Danielskuil.
Maintenance of LA school
Ponahalo Community Trust
KSDF leadership and skills development of staff and Home Based Carers and Organic Food Garden in Kgatelopele LM.
Rally to Read
Learning materials to schools in John Taolo Kgaetsewe DM.
Local Areas Committee
Community projects egg. Skeyfontein Food Garden, Kgomotso Old Age Home and ECD support.
Community and Contractors portion of ABET cost
The Committee was informed that the Finsch Mine Housing Policy is used to govern the allocation of housing for employees. The Committee met once a week to discuss housing issues and to allocate houses to employees. In 2008, it was decided to renovate one single block to accommodate Women in Mining pilot Skills Programme employees. The old hostel accommodation was converted to family accommodation in a five year project that was completed in 2005.
8. Community Meeting in Lime Acres
The community raised a number of challenges facing them which ranged from housing; health facilities; racial segregation (whites occupying their own area and coloureds and blacks their own). The Committee was informed that discrimination and racism is still rife in Lime Acres. One community member, an ex-employee of Finch Mine raised an individual grievance relating to termination of employment on the grounds of incapacity. She alleged that the proper procedures were not followed since the termination was not recommended by the medical doctor. There were allegations that services of that employee were terminated on grounds of ill-health and that the process was procedurally flawed. It appeared that there was a disjuncture on how Finch Mine applied certain provisions of the Labour Relations Act. The employee in question approached DMR but still did not get any joy. The community alleged that DBCM is being sold in February but this was not disclosed by DBCM nor by the DMR to the Committee during their briefings. It became clear that the beautiful picture that was painted by Finsch management during their presentations was a far cry from the reality on the ground.
Exorbitant rental and rates
Education – bursaries given to learners out of the mining community
No consultation with community on issues that directly affect them
Access to health care facilities
Sick leave policy
Transformation and beneficiation
Access to amenities e.g. community hall
8.2 Responses by De Beers Finsch Mine Management
In response to the grievances, the management reported as follows:
Management is in the process of proclaiming the town. This is to be followed by turning the town into a municipality.
With regard to water and electricity, it was reported that these are fringe benefits that are subject to taxation laws of the country. The payment for these services is determined by salary bands i.e. those on the upper salary bands pay more. Excess consumption is charged according to the going rate. Workers on the upper salary band receive 6 kilolitres of free water. Where there is no water meters, tenants are charged according to the average.
The racial segregation in residences was attributed to the apartheid era dispensation.
It was reported that the hospital was downscaled into a clinic because of licensing issues. However, it was reported that access is open to everybody in cases of emergency and health care is available on call.
It was reported that bursaries were centrally administered before 2009. After that, the school bursary schemes were introduced at schools. The bursary scheme specifically for Finsch community is to be established.
On accessibility of community halls, it was reported that the community halls are owned by companies.
On the allegation that DBCM was being sold, it was explained that due to funding challenges, various options to arrest the situation were being explored which amongst others included sourcing additional funding; joint ventures or getting an additional partner, otherwise a decision had not been taken and the community and DMR will be informed as soon as it is taken.
It was also explained that Lime Acres is a private land however, a process to proclaim it as a municipality is underway. Many challenges were a result of a legacy of the past which has been inherited and carried through generations.
9. Meeting with the Trust Funds
9.1 Namaqua Diamond Fund Trust
The meeting with the Namaqua Diamond Fund Trust (NDFT) emerged from the meeting that the Committee had with the Trust on Wednesday, 03 November 2010 in Parliament. During that meeting, the committee felt that matters were not correctly handled in the NDFT as trustees did not seem to understand their duties. They were ignorant of the proper procedures to be followed with the audit report. An advice was therefore given that forensic audit would give a clear picture of the situation within the Trust. There was also a dispute that the NDFT had with Mr. Losper, one of the trustees whose nomination was subsequently withdrawn by the former Premier of the Northern Cape Province. The Committee advised the NDFT to appoint the fourth person appointed by the current Premier as a Trustee in terms of Article 10.11.1(b) of their Deed of Trust and discharge Mr. Losper as it felt that the trust deed was quite clear on the matter, and there was no need for the NDFT to be taking legal advice. In that meeting, the Committee therefore resolved to meet the NDFT in Kimberley in order to hear the report back on the issues raised.
The NDFT reported as follows:
Rumour of documents being removed and destroyed to frustrate the investigation was reported to be untrue.
On the 19th November 2010, NDFT had a meeting regarding the following-
Forensic investigation into its affairs;
Replacement of Mr. Losper; and
Corrective action-cost saving.
Resolutions of the meeting were as follows-
Forensic investigation was agreed to;
Replacement of Mr. Losper was to be fast-tracked; and
Costs saving measures were to be explored.
NDFT had community meetings in an attempt to clear the cloud that was hanging over it.
NDFT was in the process of drafting a new budget with the intention on cutting costs.
Forensic investigation was expected to cost no less than R500 000.
Procurement of audit services was to be done through open advertisement on the media. NDFT did not have any intention of using the current auditors.
Mr Losper was to be replaced with Mr Visser.
Mr. Losper would act on the post until the appointment of Mr Visser was finalised.
A meeting was scheduled for 2nd and 3rd December 2010 to resolve Mr Losper’s acting status.
9.2 Sishen Iron Ore Company Community Development Trust Fund
The meeting with Sishen Iron Ore Company Trust Fund (SIOC-CDTF) emerged from the Committee visit to the Sishen Iron Ore Company. During that visit, the Committee learnt that there exists SIOC-CDT Fund which is also the sole beneficiary of three percent of the ordinary shares of the Sishen Iron Ore Company. The Trust was established in September 2006 during the unbundling of Kumba Resources into two companies. Communities eligible for benefit and support from the Trust are the ones around Sishen, Sishen South and Thabazimbi mines.
SIOC-CDTF did a presentation that covered, inter alia, the following:
Share ownership of SIOC-DTF
Identified beneficiaries, which are:
Gamagara Development Forum: 30 percent
Kgalagadi Poverty Node Charitable Trust: 30 percent
Maphalane Disabled Children’s Trust: 10 percent
Tsantsabane Community Development Forum: 15 percent
Thabazimbi Community Development Forum: 15 percent
Distribution of Trust income
Trust Focus Areas and Benefit Activities, which included:
Welfare and humanitarian
Land and Housing
Conservation, environment and animal welfare
Education and development
General: SMME Development
Financial overview, which was reflected as follows:
Preference shares redeemed during August 2010 to settle Kumba Iron Ore loan to the Trust
Total Funds approved and allocated to Beneficiary Trusts to date
Active projects currently running
Allocated to investment portfolio
Quantum project approved for Community investment (Ostrich Farm and Abattoir)
Indicative Net Asset Value of SIOC CDT (3 % shareholding)
It was also reported that a Memorandum of Understanding was to be concluded to clarify roles of SIOC-DTF as opposed to that of KIO-SLPs.
10. Community Meeting in Schmidtsdrift
The Committee was supposed to visit the New African Mining in Schmidtsdrift. However, Mr Deon Kotze, the Chief Executive Officer of the Mine responded to the invitation and informed the Committee that the Mine was closed and therefore not operating, and that it was now being sold to the new owners. The Committee then invited Mr Kotze for a briefing as to get the full insight of the situation before meeting the Schmidtsdrift community. Mr Kotze reported as follows:
The Schmidtsdrift community had 20 percent shareholding in Schmidtdrift Mining Enterprises (SME).
SME operated the mine.
SME paid 5 percent royalties to Community Property Association (CPA).
SME had problems around 2008 and 2009.
SME was bought by New Africa Mining Company (NAM) in 2009.
Some workers were retrenched.
The mine was opened in April 2010 by NAM.
NAM employed 140 workers.
NAM was in financial distress around September or October 2010.
Department of Mineral Resources (DMR) issued a section 54 notice to the company.
NAM was approached by a company called Sign Post (SP) three weeks ago, with interest in buying the mine.
SP was prepared to take over all liabilities.
If the deal goes through, SP will do rehabilitation for the first three months.
SP have financial resources to comply with all the requirements.
The Committee then decided to go to Schmidtdrift and have a meeting with the community in order to understand issues from their perspective. The meeting was very robust due to the divisions amongst the community. This manifested itself in the manner in which the community members carried themselves during deliberations.
10.2 Challenges raised by the community
Lonhro did not rehabilitate the land.
Schmidtdrift is a farming community and due to Lonhro failing to rehabilitate the land, their stock has no grazing land.
Royalties have not been paid to the community.
There is no funding for youth development programmes.
Community does not benefit from the wealth of their land.
Community Property Association is not negotiating in good faith on behalf of the community.
DMR officials were regarded as corrupt.
Community objects section II.
The mine had been operating until recently when DMR did inspection and closed the mine due to its condition.
The mine was issued with a prospecting permit not a mining one, but it was conducting mining activities.