COMMUNAL PROPERTY ASSOCIATIONS
UpeRR
UpeRR
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6.4. Regularization<br />
Regularization is a process in terms of which the<br />
Department through the LRMF, which is managed by CTH,<br />
assists CPIs that are none compliant with the Act,<br />
Regulations and their constitutions to be compliant. The<br />
intervention process is divided into two phases.<br />
The first phase is Fact Finding. In this phase a panelist is<br />
appointed to investigate the issues in a CPA and after<br />
concluding his investigations provides a Fact Finding Report<br />
which gives the status quo of that CPA.<br />
In the Second Phase the panelist is given specific<br />
instructions to solve the deficiencies that have been<br />
identified in the Fact Finding Report. The intervention<br />
strategy is designed to address challenges presented by<br />
each CPA. In this phase the panelist deals with possible<br />
amendments to the constitution, resolution of internal<br />
disputes, updating beneficiary/membership list, compilation<br />
of financial statements, adoption of CPA resolutions and<br />
facilitation of AGM.<br />
At the end of this phase a panelist is required to prepare<br />
and submit a Close Out Report which will deal with issues of<br />
sustainability.<br />
Should there be issues that makes it impossible for a panelist<br />
to make a CPA compliant those issues will be reflected in the<br />
Close Out Report together with recommendations on how to<br />
deal with them.<br />
Most of the difficult cases were handled by the LRMF. A total<br />
of 147 were referred to the facility since its inception. There<br />
are 65 pending cases in the current reporting period and 12<br />
have been regularized. 15 matters have been referred back<br />
because they cannot be regularized.<br />
The pending CPA matters that are handled by CTH are spread<br />
throughout the country. The highest number is in North<br />
West and the least number is Gauteng and Free State.<br />
In total an amount of R 6 million was spent on the process of<br />
regularization during the reporting period. (refer to page 12)<br />
Where land is lost contrary to the provisions of the CPA<br />
constitution and Act, the Department appoints panelists to<br />
apply for the review of irregular sales of land. Following the<br />
investigations into the circumstances around the loss of land<br />
two cases were referred to the LRMF to appoint lawyers to<br />
challenge the transaction.<br />
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