COMMUNAL PROPERTY ASSOCIATIONS

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