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					m p u m a l a n g a

     parks board




     a n n u a l       r e p o r t
              2002-03



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    mpumalanga parks board                        annual report • 2002-03




  able of                          CONTENTS
Message from the MEC............................................................3

Chairperson’s Statement..........................................................4

Overview by theCEO ...............................................................6

General Information .................................................................8

Conservation............................................................................10

Scientific Services ....................................................................17

Wildlife Protection Services...................................................18

Wildlife Management Services .............................................19

Protected Management ..........................................................12

Commercial Services ..............................................................21

Communication Services .......................................................22

Legal Services ..........................................................................25

Human Resources ...................................................................26

Finance and administration...................................................35

Annual Financial Statements ................................................41

         Report of the Independent Auditors ........................42

         Report from the Members of the Board ...................43

         Financial Statements....................................................46




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                 mpumalanga parks board             annual report • 2002-03




                  essage from the                                             MEC
                                 he year under review has been yet another tumultuous and
                                 challenging one. The Mpumalanga Parks Board wrapped up
                                 its restructuring process by appointing a new Chief Executive
                         Officer and Board of Directors. During the year under review a new
                         strategic plan was developed to map up the new challenges that face the
                         revamped Mpumalanga Parks Board.

                             In the previous annual report, more emphasis was on the restructuring
                         and most of the activities could not be performed because of uncertainty
                         and lack of a strategic plan. There was however a huge contrast and
                         improvement during the year under review. There were more activities
                         and highlights that were geared towards conservation which is core
                         business of the Mpumalanga Parks Board. The various division inputs in
                         this annual report will attest to that.

                            Certainly, despite budgetary constraints, the Mpumalanga Parks Board
                         managed a credible performance in all its activities. There are however
                         more challenges that will have to be addressed in the forth coming
                         years. One of the challenges is to make a meaningful contribution in
Mrs CK Mashego-Dlamini   the economic development and social upliftment of the communities
  MEC for Agriculture,   surrounding the reserves and the Province at large. The MPB will have
   Conservation and
 Environmental Affairs   to put efforts in educating millions of our people in the Province who
                         are still grappling with conservation issues. Projects and programmes
                         will have to be initiated and implemented to strive and interpret our
                         conservation legislations such that our communities play a meaningful
                         and participatory role in conservation issues.

                             The amalgamation of the Northern Highveld reserves which are
                         currently administered by the Provincial Department of Agriculture,
                         Conservation and Environment is another but immediate challenge that
                         the Mpumalanga Parks Board and all stakeholders will have to double
                         efforts in finding a lasting solution.

                            The Mpumalanga Parks Board was established in terms of the
                         Mpumalanga Parks Board Act (Act No. 6 of 1995) as amended, with the
                         mandate of effective nature conservation management in the Province,
                         and to as far as possible, commercialize its operations whilst ensuring
                         the implementation of reconstruction and development initiatives. The
                         mandate will be incomplete whilst some reserves are still administered
                         and managed by the department.

                             In conclusion, I wish to express my appreciation and thank the
                         Premier, my colleagues in the Executive Council, Members of the Portfolio
                         Committee, Board of Directors, Management and all those who have
                         joined in this must-be won battle for the support and tireless contributions
                         towards the new revamped Mpumalanga Parks Board.




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                   mpumalanga parks board                 annual report • 2002-03




            hairperson’s statement
T
        his report is an instalment of the activities of the MPB over
        the past year. A re-aligned structure, and a strategic plan
        document were developed. The Mpumalanga Parks Board’s
main focus was on developing new policies and legislative framework
that would adequately respond to the expectations of the new and
revived institution. Therefore, during the period under review, MPB
reviewed its Corporate Strategic Plan, initiated processes of developing
policies such as Human Resources, Community Relations, Information
Technology, Procurement, etc.

   The Mpumalanga Parks Board can look back on a year of significant
achievements that marks its first year of operation after undergoing
through a demanding restructuring process. Restructuring is not an event,             Meshack Nkosi
but a process that will be continuously monitored and polished. It is            Chairperson: Mpumalanga
                                                                                       Parks Board
encouraging to read the reports of various divisions as they give accounts
on the achievements of the year. It is of note that most of their efforts were
dedicated to the deliverables of the mandate of Mpumalanga Parks Board.
In time the Mpumalanga Parks Board’s vision of becoming the leading
Nature Conservation Agency in Southern Africa will not be far fetched.

Challenges for the future
   The challenge is now with all the employees of the Mpumalanga Parks
Board to interpret these strategic objectives into projects that will benefit
the people of the Province on whose behalf we conserve the bio-diversity.

    Generation of revenue for the Mpumalanga Parks Board is another
                                                                                      Mr Mike Mphela
challenge that will have to be prioritised. The forgone dream of becoming            Deputy Chairperson
self-sustainable will not be realised with the current pace of our revenue
generation. Our infrastructure and facilities will need expansion and
revamping in order to match the competing standards in the tourism
industry.

   It is encouraging to note, however that the Commercial Services
Department has gone past the planning stage of the commercial
development and development plans have been finalised. We will
endeavour to interpret these development plans into tangible projects that
will generate the much needed revenue for the MPB and thereby make a
contribution to the economic growth of the Province.
                                                                                     Dr Philemon Mamoepa
   The Dolphin Agreement remains an impasse. There are however
serious efforts that are being made to find an amicable solution to the
agreement.

   The possible loss of management of Blyde River Canyon Reserve, whilst
a positive development in conservation circles as it will contribute to the
conservation of biodiversity, will however have a phenomenally negative




                                                                                     Mr Justice Mbenyane
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                mpumalanga parks board           annual report • 2002-03




                                    chairperson’s statement
                         impact. The Blyde River Canyon is one of the jewels of the Mpumalanga
                         Parks Board, and its loss to the National Department will have serious
                         economic setback for the MPB.

                             The land claims in our reserves pose another challenge that the MPB
                         will have to deal with vigorously during the following years. Consultation
                         processes will have to be expedited with all stakeholders in order to find
                         lasting solutions to the land claims. The land issue is one of the most
Ms Ponkee Mtsweni        contentious issues, and if not properly handled could delay some of our
                         viable development and eco-tourism plans.

                            Indeed, these challenges spell correctly the daunting tasks that the
                         Mpumalanga Parks Board faces ahead. Some of the tasks will have to be
                         re-prioritised because of either lack of sufficient capital, financial or human
                         resources as the divisions attest in their various reports. The continued
                         cut in our budget and our deteriorating infrastructure will leave the
                         Mpumalanga Parks Board to grapple with some of the challenges for the
                         next few years. Surely some of the projects will require intervention from
Mr Lemon Mahlangu        government in form the of conditional grants and private / public sector
                         investment.

                            Despite these challenges, Mpumalanga Parks Board remains committed
                         and confident that we will maintain a high level of service standards.
                         Our delivery machinery is in motion, and pledge our commitment in
                         conserving the bio-diversity for the people of Mpumalanga with Pride
                         and Professionalism.

                            On behalf of the Board of Directors and staff, I wish to convey our sincere
                         thanks to the MEC for the Department of Agriculture, Conservation and
 Ms Grace Castle         Environment, Mrs Candith Mashego-Dlamini, Members of the Portfolio
                         Committee, Premier Mr Ndaweni Mahlangu and his Executive Council,
                         for taking us through in trying times. Your endowed support has given
                         the Mpumalanga Parks Board hope to face the challenges of the future
                         with enthusiasm.




 Mr Juda Tsotetsi




Mr Allister Charles
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                   mpumalanga parks board                 annual report • 2002-03




             verview by the                                   CEO
T
       he crowning moment during
       the period under review was the
       finalisation of the restructuring
process that ushered a new Management and
the appointment of a new Board of Directors
to guide the Mpumalanga Parks Board
(MPB) back to its position as the leading
conservation body in South Africa. The
new Board was also exposed to the mandate,
nature and the principal functions of the
organisation as outlined in the Mpumalanga
Parks Board Act 1995, as amended.

    Beginning a process of reviewing the
non-compliant policies and in addition,
drafting of new policies was a significant step
                                                          Dr Delani Tiba
towards full compliance with labour laws and          Chief Executive Officer
improved employer-employee relations. The
re-alignment of the Corporate Strategy of the
organisation was a significant achievement
since it is expected to give a clear direction that the organisation has taken
after the restructuring assignment.

   The MPB is in tune with the new societal and continental imperatives,
new economic realities and challenges, which are being conceptualised
and given coherence and political muscle through the visions of our
continental leaders, manifest in NEPAD, the African Union and the
African Renaissance in general. This is evidenced, though in a small
scale, by our concerted efforts to maximise benefits, whether in job
creation, entrepreneurial opportunities and any other form of community
participation in conservation. The Songimvelo-Malolotja Trans-Frontier
Conservation Area (TFCA) is a case in point.

    The restructuring of the organisation in support of the government’s
imperatives will be continuously sustained with the strategic intent of
fulfilment of the mandate. All this will be done with the prime objective
of serving the customers. The MPB will continue to strive for a meaningful
contribution to the economic development and social upliftment of
communities surrounding its reserves. During the year under review, the
community representative structures were involved in redefining their
composition and the role they ought to play in ensuring maximum benefit
to these communities.

    The amalgamation with the Northern Highveld will provide numerous
opportunities for the Province. The MPB will now produce one
conservation strategy for the whole Province whilst the commercialisation
strategy will take into consideration the potential of all the protected areas.




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mpumalanga parks board          annual report • 2002-03




                       overview by the CEO
        This development will go a long way in increasing revenue generation.

            Though realities such as infrastructure backlog, land claims and the
        Dolphin Agreement remain serious challenges in the achievement of its
        strategic objectives, the MPB is determined to reclaim its leading role in
        the conservation industry.

           The Communication Division is currently understaffed and as a result
        more emphasis was put on media liaison. The other communications
        facets such as public relations and internal communication were affected.
        The division had to scale down its activities due to financial constraints.
        The division will have to expedite the processes of designing and
        developing a website for the Mpumalanga Parks Board as there was no
        budget provision in the year under review.

           I wish to express my profound appreciation and gratitude to Members
        of the Board, Management and staff for their selfless contribution and
        dedication to the new Mpumalanga Parks Board.




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                   mpumalanga parks board                annual report • 2002-03




                   eneral information
Vision
The Mpumalanga Parks Board sets out to become the most efficient,
business like and internationally competitive Nature Conservation
Agency in Southern Africa.


Mission
Our mission is to manage bio-diversity and eco-systems throughout the
Mpumalanga Province, for the socio-economic benefit of present and
future generations.


Motto
With pride and professionalism we care and conserve

Mandate
The Mpumalanga Parks Board was established in terms of the Mpumalanga
Parks Board Act (Act No. 6 of 1995) as amended, with the mandate of
effective nature conservation management in the Province, and to as far as
possible, commercialize its operations whilst ensuring the implementation
of reconstruction and development initiatives.

The Mandate is further derived from:

    • The Constitution of the Republic of South Africa

    • National legislation

    • National policy

    • Provincial legislation

    • Provincial policy

    • Directives from Provincial Government

    • International Treaties


Legislative objects and functions of
the Board
In terms of section 14 of the Mpumalanga Parks Board Act (Act 6 of 1995,
as amended), the MPB’s objects are to provide effective conservation
management of the natural resources of the Province, and to promote the
sustainable utilisation thereof.

   Section 14(2) of the Act referred to above, provides for the following




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                                            mpumalanga parks board                 annual report • 2002-03




                                                            vision, mission, mandate
                                                       policy goals to be fulfilled:

                                                            • Providing economic and employment opportunities, especially for
                                                              local disadvantaged communities;

                                                            • promoting participation by urban and rural local government
                                                              structures, private sector, civil society and communities in policy
                                                              making, strategic planning and project implementation, including
                                                              the establishment of appropriate structures and process for
                                                              consultation, co-ordination and negotiations;

                                                            • promoting the employment of local human resources, especially the
                                                              previously disadvantaged, without unfair discrimination;

                                                            • achieving transparency and accountability in public administration;

                                                            • promoting public awareness regarding conservation management of
                                                              natural resources;

                                                            • ensuring equitable access, by all people, to the Province’s
                                                              conservation areas;

                                                            • maintaining environmentally sustainable development practices
                                                              and promoting bio-diversity in conservation areas;

                                                            • endeavouring to make, as far as possible, the Board’ operations self-
                                                              financing

                                                            • promoting the earning of foreign exchange, particularly through
                                                              eco-tourism

                                                            • implement Provincial policy declared by the responsible Member in
                                                               respect of conservation management.



    MPUMALANGA PARKS BOARD OVERALL ORGANISATIONAL STRUCTURE
                                                                  Chief Executive Officer

                                                LEGAL ADVISER                   EXECUTIVE SECRETARY


                                                COMMUNICATIONS                     BOARD SECRETARY



CONSERVATION                                COMMERICAL SERVICES                        FINANCE             CORPORATE SERVICES


    PROTECTED AREAS                                     SALES                                ACCOUNTS              HUMAN RESOURCES
      MANAGEMENT                                                                            ANAGEMENT               ADMINISTRATION

  WILDLIFE MANAGEMENT                                 MARKETINGS                      ASSETS MANAGEMENT          HUMAN RESOURCES
        SERVICES                                                                                                   DEVELOPMENT
             WILDLIFE PROTECTION SERVICES




WILDLIFE PROTECTION SERVICES
                                                        RETAILS                             PROCUREMENT         LOGISTICAL SERVICES


    SCIENTIFIC SERVICES                         PROJECT AND MAINTENANCE                        IT



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                   mpumalanga parks board                annual report • 2002-03




       onservation
 T
        he Conservation Department is responsible for the core business
        of the MPB, namely nature conservation. The department
        comprises four divisions, namely, Protected Area Management,
 Wildlife Management Services, Wildlife Protection Services and
 Scientific Services. Conservation is administered at 23 localities (nature
 reserves and stations/offices) spread across the Province.

     The main objectives of the Conservation Department is the
 management, maintenance and expansion of formally protected areas, the
 maintenance of bio-diversity, breeding of viable species, the management
 of conservation legislation and conducting of scientific research.


 Achievements
 Considerable upgrading was done through the Operation Mkhombo
 grant at reserves such as Mdala, Mkhombo Dam, SS Skhosana, Mabusa,
 Zandspruit, Blyde, Mahushe Shongwe, Loskop Dam and Songimvelo.

    Progress has been made with the proposed transfer of some 14 different
 protected areas currently managed by the Department of Water Affairs
 and Forestry, to the MPB. Negotiations with various stakeholders such as
 DACE, DWAF, Komatiland Forests, DEAT, Public Works and other role
 players are in process. If negotiations are successful, Mpumalanga Parks
 Board’s protected areas could expand by a further 16 000 hectares.

    The proposed Trans-frontier Conservation Area between South Africa
 (Songimvelo Nature Reserve), and Swaziland (Malolotja) made excellent
 progress. Five major documents required for the establishment of this
 TFCA were produced. This included a Draft document on Memorandum
 Of Understanding between South Africa and Swaziland, a Conceptual
 Plan, a Management Protocol, an Action Plan and a digitised Map of
 the proposed TFCA. This multi-faceted project involves the MPB’s
 Songimvelo Nature Reserve, Swaziland’s Malolotja Nature Reserve, the
 Barberton Local Council, the Barberton Mountainlands project, the Msauli
 and Havelock mines and several private landowners. The process has
 reached the stage where national departments such as DEAT has now
 been enabled to take the groundwork done by the MPB and the Swaziland
 National Trust Commission, to a higher level.

     The co-operative project between the MPB’s Scientific Services Division
 and the USA’s Fish and Wildlife Service for the Rhino genetics (database)
 project, continued. The project is being conducted in collaboration with
 staff of the Agricultural Research Council’s genetics laboratory at Irene
 near Pretoria.

    The long awaited Ramsar Certificate was awarded by Minister Valli




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mpumalanga parks board          annual report • 2002-03




                                            conservation
         Moosa at the ceremony held in the Verloren Valei Nature Reserve on the
         1st of February 2003. This unique achievement is a first for Mpumalanga.
         The event coincided with the celebration of the World Wetlands Day and
         was accorded a national status.

            The Scientific Services Division showcased a selection of research
         projects during a scientific symposium in February, where some 17 papers
         were presented to scientists from as far a field as KZN Natal, SAN Parks
         and other stakeholders.

            The official opening of the hilltop section of the Barberton Nature
         Reserve, 20 kilometres from Nelspruit, on the Barberton road, took place
         on 24 August 2002.

            The first comprehensive aerial game census in four years of most of
         the MPB nature reserves, including those for the Northern Highveld
         (Nkangala) region, took place. This allowed Conservation to establish a
         new set of baseline data on game numbers and the value of game in MPB
         reserves.

             The first game introductions into Verloren Valei since its inception
         in 1983 took place. The game that was donated from the Athol research
         station of DACE included 4 Zebra, 18 Black Wildebeest, and 80 Blesbok.

            The Blyde Community Forum (Motlatse) took part in the Johannesburg
         World Summit on Sustainable Development and won accolades for a
         successful community project in arts and culture.

             The Game Management Services division managed to design and build
         state of the art game crates for the newly acquired game transport trailer.
         This asset is worth more than R 250 000-00.

            Two hundred Zebra were received from SANParks and 100 other
         animal species from Athol and were distributed in various reserves for re-
         stocking and introduction.




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                   mpumalanga parks board                 annual report • 2002-03




                 rotected area management

P
       rotected Area Management (PAM) is responsible for the
       management and the maintenance of biodiversity. The division
       is responsible for preservation and sustainable utilisation of
large diversity of life forms in protected areas, parks and reserves. The
division is also actively involved in the socio-economic development
of communities neighbouring reserves. Following re-alignment of
functions, the Community Division which was previously part of
Corporate Services was transferred to this division. The Division
is also responsible for conservation awareness, wood gathering and
conservation importance of medicinal plants.

   This division manages 20 protected areas totalling to 161,239 hectares
on behalf of the Mpumalanga Province. The new strategic planning was
taken down to reserve level and should see the development of new
management plans for each reserve during the coming year.


Songimvelo Nature Reserve
This 49 000 hectare reserve situated near Barberton in South Eastern
Mpumalanga is the biggest in the province. The area is well known
internationally for its geological importance. The reserve hosts 4 of the big
5 animals (excluding lion). Some challenges faced by Songimvelo include
22 families that reside inside the reserve, as well as some 941 cattle and 295
goats that are in the reserve.



   With regard to veld and game (conservation) operations the normal
tasks such as erosion control, fire management, alien plant control, anti
poaching etc. took place. Game numbers total about 4 000 with a value of
R 12 million.




Mthethomusha Nature Reserve
This community-owned reserve of 7 200 hectares is located adjacent to the
south-western corner of the Kruger National Park. It is a “big five” reserve
(lion, elephant, leopard, rhino and buffalo). Negotiations are continuing to
transfer management back to the Mpakeni community. Some 60 temporary
jobs costing R120 000 were created during the year for tasks such as bush
clearing and maintenance.

    The conservation tasks of veld and game management, erosion control,
fire management, alien plant control, anti poaching etc. continued. Water
supply and road networks have been upgraded. This year poaching




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mpumalanga parks board          annual report • 2002-03




         escalated but joint operations between MPB and the KNP resulted in the
         arrest of several poaching syndicates. Game numbers total about 1 200
         with a value of R 2,5 M.


         Barberton Nature Reserve
         The 2 500-hectare Barberton Nature Reserve was officially opened on 24
         August 2002. The reserve lies on the South Eastern side of Hilltop pass,
         adjacent to the Noordkaap River. The development of the day visitor
         facility, the temporary entrance gate and Field Ranger accommodation
         was completed.

            The aerial census conducted counted 636 head of game worth about R
         1 Million. Certain conservation tasks such as fire management and anti
         poaching were carried out.


         Barberton Mountainlands Nature
         Reserve
         This reserve of 18 000 hectares lies to the north and east of Barberton. A
         lot of time was spent this year further upgrading fences, communicating
         to neighbouring landowners, communities and other stakeholders and
         negotiating provision of facilities such as accommodation and buildings
         from the Sheba and Fairview mines.

             Current work includes mapping the area, planning for road networks
         etc. The area holds great potential as it incorporates indigenous forests,
         mountain grasslands and Lowveld bush. There were fifty (50) head of
         zebra, donated by Kruger National Park introduced into the area.


         Mahushe Shongwe Nature Reserve
         (including Mawewe & Mananga
         which are managed from Mahushe
         Shongwe)

            The 1 200-hectare Mahushe Shongwe reserve is located some 70 km
         south-east of Malelane, in the Nkomazi area. Seventeen (17) temporary
         job opportunities were created for the making of firebreaks and general
         maintenance of the reserve. This injected more than R 50 000 into the local
         community in the form of job opportunities. The community development
         division trained 91 people from surrounding areas in various skills ranging
         from gardening to sewing.




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                   mpumalanga parks board               annual report • 2002-03




   Cycad poaching occurred at Mananga and was addressed by the
Wildlife Protection Division through intensive anti-poaching patrols.
Biological tasks such as veld and game management, erosion control, fire
management, alien plant control, anti poaching etc. continued. More than
1 500 local community members visited the reserve during the financial
year. Game numbers at Mahushe Shongwe totalled 392, worth R500 000.

   At Mawewe Cattle / Game Project, the influx of cattle continued, with
the resultant overgrazing of the entire area. Permanent cattle numbers now
total more than 4 000, with numbers a high as 9 000 on this 9 200 ha cattle/
game project. Game numbers total 814 animals worth about R 500 000. The
Mpumalanga Parks Board is reviewing its involvement in that reserve and
negotiations with the local communities will be initiated during the new
financial year.


Blyde River Canyon Nature Reserve
(including Swadini)
The reserve covers 28 000 hectares, and is one of the most popular protected
areas that attracts over 300 000 tourists each year. It is situated on the
northern border of the province (with Limpopo) on the great escarpment.
The Motlatse forum continued its involvement in projects such as curio
sales, African cuisine, cultural dances, wetland rehabilitation and other
projects. They also took part under the MPB umbrella at World Summit
on Sustainable Development and won several accolades for the province,
the MPB and for Blyde in particular.

   With regards to veld and game (conservation) operations the normal
tasks such as erosion control, fire management, alien plant control,
anti poaching etc. took place. About 300 hectares of alien plants were
cleared with the assistance of the Working For Water program. Wetland
rehabilitation received a lot of attention. Several research projects on
baboon, rare bird species, baobab trees etc. received attention. Blyde is
more known for its natural splendour than for game. The game is found in
the Swadini section and numbers counted came to 286 worth R 250 000.


Ohrigstad Dam Nature Reserve
The reserve covers an area of 2 564 hectares around the dam. It lies between
the town of Ohrigstad and the historic village of Pilgrim’s Rest, on the
main tourist route over the escarpment to the Blyde Canyon area and the
Lowveld. The reserve consists of Northeastern Mountain Sourveld that is
threatened by forestry activities.

   Game on the reserve is in good condition and adds up to 257. The




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mpumalanga parks board           annual report • 2002-03




         conservation tasks of veld and game management, erosion control, fire
         management, alien plant control, anti poaching continued.


         Sterkspruit Nature Reserve
         The 2 500-hectare reserve situated about 10 kilometres east of Lydenburg,
         incorporates the proclaimed mountain catchment of the Sterkspruit River,
         which provides water to about 60 000 people in the Lydenburg area.

            The entire reserve remains clear of any alien vegetation. The conservation
         tasks of veld management, erosion control, and fire management continued.
         The reserve is unfenced and therefore not suitable for the introduction
                                                          of large numbers of
                                                          game. The reserve’s main
                                                          objective is to manage
                                                          water catchment.


                                                         Former DWAF
                                                         managed
                                                         Nature
                                                         Reserves
                                                        These nature conservation
                                                        areas include about 14 areas
                                                        totaling 16 000 hectares,
                                                        formerly    managed       by
                                                        DWAF and other forestry
                                                        companies.       They are
         situated all along the escarpment just south of Blyde, stretching to the
         south up to Barberton. It includes places like Hartebeestvlakte, Mac Mac,
         Morgenzon, Kaapse Hoop, Blouswaelvlakte and others.

            Mpumalanga Parks Board will be engaged in discussions with the
         Department of Water Affairs and Forestry with an intention to take over
         the management of these indigenous forest and grassland areas.


         Verloren Valei Nature Reserve
         The reserve which is 6 055 hectares is one of the very important reserves
         as it was declared a Ramsar site. The reserve is the first Ramsar Site in
         Mpumalanga and is the seventeenth (17) site in South Africa to be accorded
         such an international status.

            Rehabilitation of wetlands continued with the assistance of Working




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                   mpumalanga parks board                 annual report • 2002-03




For Water. The propagation of special rare and medicinal plants was
initiated. The reserve also successfully hosted the first official bird hunts
(wing shooting) for the MPB. This exciting concept will be expanded upon
on other suitable reserves in time.

   The first 500 hectares of Verloren Valei was successfully fenced as a
game camp during this financial year. This allowed the MPB to introduce
species such as oribi, blesbuck, reedbuck and wildebeest. Total game
numbers are at 302, worth more than R 300 000.


Nooitgedacht Dam Nature Reserve
This 3 420-hectare reserve including 756 hectares of water surface when
the dam is full, is situated 10 km north-west of the town of Carolina. It
consists of grassland around the dam and is one of very few grassland
reserves in the MPB portfolio. Twenty-four zebra were introduced from
KNP during May 2002.

    The conservation tasks of veld and game management, erosion control,
fire management, alien plant control, anti poaching etc. continued. Fencing
has been upgraded. Game numbers total 1 068, worth some R 750 000.


Wakkerstroom Wetland (including
Ossewakop)
This wetland reserve is located in Wakkerstroom and world-renowned
for its abundant bird life. There are no staff based at Wakkerstroom, but
the MPB often visits the area. The MPB is currently involved in extensive
consultations with several local stakeholders, including the Seme
Municipality, on future involvement in the area. New projects such as
the propagation of medicinal bulb plants were initiated between the MPB,
Ekangala Grassland Trust and local communities.


Paardeplaats Grassland Biosphere
Reserve
This is a pristine grassland reserve which is 1 800 hectares. It is located in
the southwestern corner of the province, near the predominantly German
settlement of Luneburg. This veld-type reserve represents the threatened
grasslands, of which very little is under formal conservation. The reserve
will be extended and will form an important nucleus of a huge grassland
biosphere that could potentially grow to 100 000 hectares.


Northern Highveld Region (Nkangala)



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mpumalanga parks board           annual report • 2002-03




            This area includes the SS Skhosana, Mdala, Mkhombo Dam, Mabusa
         and Moutse nature reserves managed by the DACE. Negotiations
         continued during the year for the amalgamation of these areas together
         with their staff, infrastructure and assets into the MPB. Consultations and
         discussions on the amalgamation were still in progress during the year
         under review.

            As part of the amalgamation initiative the MPB became involved
         in reserve management. An aerial game census was conducted on the
         reserves. This will enable the Conservation Department to plan future
         game management and manipulation in the areas.

            Mpumalanga Parks Board will be engaged in discussions with the
         Department of Water Affairs and Forestry with an intention to take over
         the management of these indigenous forest and grassland areas.


         Loskop Dam Nature Reserve
         The reserve consist of 23 000 hectares, includes the dam, as well as the new
         areas of Rietfontein and Hondekraal. Through the Operation Mkhombo
         project, upgrading of the fence was done, water supply pipelines and




     S
         other infrastructure was also done in Rietfontein. Community relations
         continued through the Mmatoti forum and through the Friends Of Loskop.




                  cientific Services
         Scientific Services formerly Technical Services includes         scientific
         research and development, data gathering and capturing, ecological
         systems monitoring, scientific liaison, terrestrial, aquatic services and
         herpetofauna, policy formulation, development assessments and the
         provision of conservation management advice.

              The Division was instrumental in planning and executing this
         year’s aerial game census, which was the first census in four years. The
         division compiled species lists for all reserves and assisted management
         in the planning of the annual game removal and relocation program.
         The division assisted the task team involved with the planning of the
         Songimvelo – Malolotja Trans Frontier Conservation Area planning. A
         survey of the Northern Highveld (Nkangala) reserves was done by the
         division and preliminary management plans and reserve reports were
         produced for those reserves.




                            17
                 mpumalanga parks board                  annual report • 2002-03




   The US Fish & Wildlife Service’s involvement with the rhino program
continued. This consisted of a partial sponsoring of high tech equipment
such as cyber trackers to monitor the movements of the rhino.

   The division was involved in a number of research projects such as the
lion project at Ligwalagwala, Enkosini and Mthethomusha, the leopard
project in the Lydenburg district, the blue swallow in the mountainous
areas of the province, the bald ibis at certain localities, the bats in several
cave systems, and several other rare and endangered plants. The division
also did research on areas of plant endemism, and updated data in the
bio-base report.

   The      division    also
concentrated on wetlands
and their rehabilitation
in the Dullstroom, Blyde
(Kadishi), Wakkerstroom,
Lake Chrissie and other
important areas. Research
on the frog atlas continued
and several new localities
were reported for some
important frog species.
The staff involved in
rivers concentrated on
the efficacy of fish ladder
design, and continued their
research on important fish
species such as yellow fish
and tiger fish. The division
also organised the Annual Scientific Services Bio-diversity Symposium,
which was very successfully hosted by the MPB during February 2003.




W
The collaborative work with the Department of Water Affairs and Forestry
(DWAF), the Water Research Commission and the Council for Scientific
and Industrial Research with regard to the National River Health and Bio-
monitoring programs, continued.




                   ildlife Protection Services
These projects culminated in the establishment of an outdoor classroom on
the reserve for the training of disadvantaged learners in aspects of nature
conservation.




                                                    18
mpumalanga parks board            annual report • 2002-03




        administration and special conservation investigations. They operate
        mostly all over the province and form the physical contact point between
        landowners, the public and the MPB, due to their field offices being located
        at strategic locations in the province.

            With the assistance of HR the Division dedicated a lot of its time to
        training and skills development of its staff. Twenty officers attended
        courses such as computer skills, firearm competency, first aid, natural
        resource management, legislative guidelines.

            The division is responsible for ensuring the implementation of
        proactive programs and the reactive investigation of crimes regarding rare
        and endangered species in the province. The division was involved in a
        total of 116 investigations relating to poaching of game in reserves such
        as Mthethomusha and Songimvelo, the illegal poaching of cycads from
        Blyde, Mananga and Starvation Creek. The division was also involved in
        the micro chipping of rhino and cycads. The intelligence and port control
        office implemented a new user-friendly law enforcement database and
        initiated the processes of setting up a new office at the Kruger Mpumalanga
        International Airport.

           The division is also tasked with the amendment of all nature
        conservation policies, the facilitation of new conservation areas such as
        conservancies and nature reserves, and the proclamation and maintenance
        of conservation status for all provincial nature reserves. The division
        managed to update several conservation policies, including the policy for
        big cats (in line with national policy) as well as the policy for the keeping,
        breeding and holding of wild animals in captivity.




W
            The division is also tasked with law enforcement, and handling
        complaints about damage caused by wild animals in the nine (9) district
        offices.




    ildlife Management Services
         The Wildlife Protection Services formerly Regulatory Services is responsible
         for all aspects of conservation legislation, the running of field offices in the
         regions, anti poaching operations, permit issues, hunting

         Wildlife Management Services includes mammal production, the captive
         buffalo breeding project, fish production, plant propagation, game capture,
         management of large meta-populations of game and sustainable product
         utilisation. The division operates specific stations such as Lydenburg, a




                             19
                   mpumalanga parks board                 annual report • 2002-03




buffalo project at three different stations, and 17 plant propagation projects
at specific localities.

    The division continued with the production of yellow fish, mosquito
fish and trout. The yellow fish season was considerably better than the
previous year, but trout production suffered due to high water temperatures
and poor water quality. Upgrading of the fisheries station at Lydenburg
continued. The access road was re-tarred, fences were upgraded and some
dams were repaired.

    The division is involved in 15 medicinal and rare plant propagation
projects across the province. The projects range from small scale poverty
alleviation projects where communities plant their own medicinal plants
at the Mananga cycad nursery. This particular project was entered into the
Green Trust Competition of the Mail and Guardian in 2002 and received
a “runner up” award for the MPB. The division trained 40 people in the
Loskop area in plant propagation and nursery management. A total of 1
229 plants were donated to 27 schools from the Lydenburg nursery, during
greening and Arbor Day projects. A total of 53 confiscated cycads were
donated to the Wits National Botanical Gardens. A total of 3 000 seedlings
of a rare Dioscorea spp. was propagated at the Ebutsini medicinal plant
nursery near Ekulindeni. The division initiated processes of establishing
Tinjojela medicinal plant project at Barberton. The Phindulwandle
medicinal plant nursery is doing very well.

   The Lydenburg Water Focus Centre sponsored an environmental
program “HOPE” (Hospital Outreach Programme) for the Lydenburg
Hospital, in collaboration with the Lydenburg EE Centre from DACE. A
working scale model of a functioning wetland and a working replica of a
water wheel were added to the displays of the centre.

   The buffalo breeding project at Mthethomusha, and the buffalo calf
rearing stations at Mthethomusha, Mahushe Shongwe and Loskop Dam
were progressing well There were 46 calves produced during the year,
bringing the currently available total to 105 calves. The calves are in various
stages of test protocols. Some of the new bred calves will be introduced
to Songimvelo, Loskop Dam. The division is currently evaluating the
production of other high cost species such as sable and roan antelope.

   The division has acquired a state of the art game transport trailer and
capture / transport crates for use during the movement or relocation of
game in the province. The division is currently in the process of acquiring
truck for the trailer. The division was involved in various in-house capture
operations of hippo, oribi, reedbuck, blesbuck, zebra and other species
during the year. Game was captured at Jericho Dam and at Athol and
relocated to Nooitgedacht and Verloren Valei.




                                                     20
mpumalanga parks board          annual report • 2002-03




         Challenges
            • Establishing and revamping the GIS section at Scientific Services.

            • To expedite the transfer of the areas that belonged to the Department
              of Water Affairs and Forestry to the Mpumalanga Parks Board.

            • The transfer of Schuinsdraai Nature reserve from Limpopo to
              Mpumalanga.




       C
            • Improving conservation management in the Northern Highveld
              (Nkangala region).




                        ommercial services
         The Commercial Services Department was established towards the end
         of August 2002. The purpose of this portfolio is to operationalise the
         commercial philosophy and strategy of the MPB.

             According to the MPB philosophy, commercialisation is a conservation
         strategy, aimed at optimally commercialising operations of the MPB in
         order to generate more revenue to contribute to the sustenance of the
         conservation function. Coupled to this, is the need to ensure maximum
         efficiency in the use of available resources.

            The initial challenges faced by this portfolio were as follows:

            • Setting-up the relevant structures and reporting lines;

            • Consolidating all existing commercial activities under relevant
              management structures;

            • Identifying new tourism development opportunities;

            • Creating control mechanisms for revenue generating streams;

            • Capacity-building and skilling of hospitality management staff.

           The Department has successfully consolidated all existing activities,
         management structures and reporting lines.




                           21
                   mpumalanga parks board               annual report • 2002-03




commercial services
   The compilation of strategic eco-tourism development plans was
completed, a process which identified possible commercial opportunities
on nine (9) protected areas. These opportunities will be put out to private
sector investors, in line with the revised legislative requirements, during
the next financial year. Preparations are currently underway to initiate the
investment procurement process.

   In order to create appropriate controls for revenue generating streams,
we are exploring the possibility of establishing a central reservations,
permit and day visitor control system.

    Facility managers received training in the operation and handling of
off-road game viewing vehicles, as well as computer courses to enhance
their administrative capacity.

   Challenges for the coming financial year include the following :

    • Investment procurement for the identified eco-tourism development
       opportunities.

    • The resolution of land claims on potential commercial development
      sites.

    • The disposal of identified non-core assets

    • The development of hospitality standards on existing MPB managed
      eco-tourism facilities.

    • The development of a marketing plan for the MPB.

    • Capacity building and skills development of hospitality personnel

    • The development of a financial model for infrastructure




C
     development.




                 ommunications services
The Communications Division has been on constant media monitoring
and compiled clippings daily. The Division also responded to media
enquiries from time to time. The Division has also co-ordinated and
placed advertisements in the Newspapers.

   The Division assisted with the media launch of the Black Leopard
Project at Lydenburg Hoerskool. The local media covered the event and the




                                                   22
mpumalanga parks board           annual report • 2002-03




                 communications services
         Mpumalanga Parks Board received positive coverage. The Division further
         conducted a Communications Audit of the Mpumalanga Parks Board. The
         aim of the audit was to streamline communications requirements of the
         Mpumalanga Parks Board in order to devise appropriate communications
         strategies.

            Hosted the SABC TV crew at Barberton Mountainlands Nature
         Reserve for the release of 7 Zebras obtained from the Kruger National
         Park. Mpumalanga Parks Board received positive media coverage from
         print and electronic media. The event was covered by TV news SABC1,2,3,
         Mopani and Ligwalagwala FM.

            A media briefing was held at MPB Block A. The briefing was
         necessitated as a result of media interest in the Enkosini Wildlife Sanctuary
         versus Mpumalanga Parks Board case. A media visit to the sanctuary was
         organised and positive coverage was also received from local and national
         media.

            Media publicity for the sod-turning ceremony held at Mkhombo Dam
         Nature Reserve was organised. The ceremony also got positive media
         coverage from print and electronic media. Formulated a Public Relations
         Plan for the Mkhombo Project.

            Organised media coverage for the MPB’s Mlambo Cycad Nursery
         Project, which became a finalist in the Annual Green Awards. The Mail &
         Guardian, Lowvelder and The Beeld gave the Mpumalanga Parks Board
         positive coverage with regards to the Cycad project.

            A pro-active media release was issued after a section of the Komati
         River Lodge was burnt down. Positive coverage was received from the
         Citizen, Beeld, Lowvelder and African Eye News Services.

            Media coverage was organised for the release of disease free buffalo
         on the Loskop Dam Nature Reserve. The event was reported positively on
         SABC 2 news, Lowvelder and Ligwalagwala current affairs.

            The Division also played a leading role in organising the MPB’s
         exhibition at the Lowveld Show. Mpumalanga Parks Board’s stall was
         awarded a Gold Award as the best stall in the education category.

            The Division also assisted Rainbow Communications, a consulting
         company contracted to design a communications strategy for the
         Mpumalanga Parks Board. The Division further played a significant role
         in organising and publicising the ribbon cutting function at the Barberton
         Nature Reserve. The event captured positive publicity from the local and
         national media.

            The Division compiled, printed and distributed copies of the MPB’s




                            23
                  mpumalanga parks board                annual report • 2002-03




communications services
annual report. Copies of the annual report were distributed to relevant
stakeholders including members of the Provincial Legislature as per
requirements of the Public Finance Management Act.

   The Division further contributed in organising the exhibition during the
Provincial Government Outreach Programme in Leandra. The Division
also participated and played a major role in Agriculture and Conservation
month organised by the Department of Agriculture, Conservation and
Environment in November 2002. Exhibition material was organised for
the event by the Division and commercial service.

   The Communications Division played an event management role
during the re-opening of the Mkholwane Lodge in the Northern Highveld
in November 2002. The function was also positively published in the
media.

   During December the Division together with the Marketing Division
produced advertisements for the Mpumalanga Parks Board. The
advertisements were in form of jingles and were flighted on Ligwalagwala
FM and Ikwekwezi. The adverts were marketing all the facilities of
Mpumalanga Parks Board and encouraged people to visit those facilities.
The Division also produced and distributed Christmas cards, calendars
and diaries to stakeholders of Mpumalanga Parks Board as part of its
public relations activity.

    The division initiated processes of producing a New Corporate Manual
for the Mpumalanga Parks Board as one of the communication strategy.




                                                   24
      L
mpumalanga parks board          annual report • 2002-03




                        egal services
         The main objective of the Division is to provide an effective legal support
         service. During the year under review, the following objectives were
         achieved:

             • Labour matters were referred to the Division for legal advice and
               assistance.

             • The Division further facilitated the appointment of the panel of
               attorneys.

             • The Division assisted in resolving 13 court cases

             • The Division facilitated a number of workshops on the compliance
               with the Promotion of Access To Information Act and the
               development of the Procurement Policy and the Delegation of
               Authority.


         Challenges
         The division will have to focus on resolving outstanding disputes and
         cases and improving contract management.




                           25
H
                  mpumalanga parks board                annual report • 2002-03




                       human resources

T
       he Human Resources department is responsible for the effective
       and efficient administration of all Human Resources related
       matters, e.g. Recruitment and Selection, management of the
organogram in terms of staff movements, remuneration and related
administration, leave management, labour relations, occupational health
and safety and employee wellbeing.

  Our Strategic objective is “To provide an effective human resource
management service to the MPB”.

    The main objectives of the Human Resources department is to ensure
that all personnel records are accurate and correctly kept, reviewing and
aligning of all HR related policies and procedures with organisational
changes and legislation, promoting sound and healthy employer-employee
relations and compliance with the Occupational Health and Safety Act.

    The Human Resources division was understaffed for the greater
portion of the year as a result of the restructuring process. Employees
were only re-deployed to this division during October 2002. As a result
of skeleton staff this division has experienced some problems. However,
with the placement of staff since October 2002 most of the issues have been
addressed.

   This division currently operates without the expertise of a Labour
Relations Officer. There are quite a number of labour disputes. The
division is in consultation with Labour to address the disputes.


Achievements
Salaries were paid on time even though this division had to operate with
skeleton staff

   Procedures have been developed to address certain problems, i.e.
safe keeping of records, deductions from salaries, payroll verifications,
reconciliation’s of benefits, etc.

   Completion of the restructuring process

   Ensuring that all transfers and appointments take place in accordance
with the approved organogram

   Awareness programmes such as HIV/AIDS and TB

   Developed draft HR policies in line with organisational changes and
new legislation on-the-job training, mentoring and coaching of staff
redeployed to this division.




                                                   26
                        mpumalanga parks board                         annual report • 2002-03




                                                                       human resources
ORGANISATION
Organizational Structure

 DEPARTMENT               DIVISIONS                MAIN FUNCTIONS                                                  A P P R O V E D
                                                                                                                   ESTABLISHMENT
 Office of the CEO        C o r p o r a t e        To provide effective institutional governance systems 10
                          Governance               throughout the MPB
                          Communication
                          Legal
 Commercialization        Marketing                To optimally commercialize the operations of the MPB
                          Sales                                                                                    60
                          Facilities
 Operations               Protected        Areas   To achieve a representative protected area network in the       355
                          Management               province.
                          Regulatory Services      To implement nature conservation legislation and policies.
                          Wildlife Services        To achieve ecologically viable wildlife populations in the
                          Technical Services       province.
                                                   To provide a monitoring and scientific advice system for bio-
                                                   diversity management in the province
 Corporate Services       Human Resources     To provide an effective human resource management service
                          Training          & To enhance community relations and participation in nature           36
                          Development         conservation management
                          Community Relations


 Finance              & Finance                    To provide good financial management and logistical
 Administration         Administration             support services                                    22
 TOTAL APPROVED ESTABLISHMENT                                                                                      483

 TOTAL POSTS                              VACANT POSTS                             FROZEN POSTS
 651                                      17                                       168


Employment numbers
 PATERSON         LEVEL    DESCRIPTION                           AFRICAN     AFRICAN       WHITE      WHITE        INDIAN   TOTAL
 GRADE                                                           MALE        FEMALE        MALE       FEMALE       FEMALE
 F-BAND           1        Top Management                        1           0             0          0            0        1
 E-BAND           2        Senior Management                     2           1             1          0            0        4
 D-BAND           3        Middle              Management, 15                5             15         1            0        36
                           Professionally    qualified  &
                           experienced specialist
 C-BAND           4        Skilled,     Technical      and 38                16            24         12           1        91
                           Academically qualified, junior
                           management,         supervisors,
                           foreman and superintendents
 B-BAND           5        Semi-skilled                          105         28            0          4            0        137

 A-BAND           6        Unskilled                             138         59            0          0            0        197
 TOTAL                                                           299         109           40         17           1        466


 SUMMARY RACE AND GENDER
 AFRICANS      WHITES      INDIANS                               MALE        FEMALE        TOTAL
 408           57          1                                     339         126           466


EMPLOYEES ADDITIONAL TO THE
APPROVED ESTABLISHMENT:
58 employees seconded from the Department of Agriculture, Conservation
and Environment.
                                                                 27
                   mpumalanga parks board                   annual report • 2002-03




  human resources
JOB EVALUATION
Posts Evaluated
The MPB went through a restructuring process, which was finalized
in October 2002. A new organogram was developed and approved by
the Board of Directors in June 2002. An independent grader graded all
positions, a total of 651 posts and the MPB moved from the Peromnes
grading system to the Paterson grading system.

   Employees were re-deployed as part of the restructuring process into
the new approved organogram and Paterson grading system.


Number of employees promoted as a result of the restructuring process:


African Male      African Female   White Male      White Female     Indian Female    Total
38                15               12              4                1                70

Number of employees whose remuneration exceeds the grade as
determined by the job evaluation:


Number         of Reason for deviation
Employees
283               The deviation is as a result of the restructuring process where positions were graded
                  according to the Paterson evaluation system. Salaries of employees who were paid above
                  the grading according to the Paterson system could not unilaterally be changed and
                  negotiations were entered with labour and individual employees to address the problem.


AFFIRMATIVE ACTION,
RECRUITMENT, PROMOTIONS AND
TERMINATION OF SERVICE

Policy statement
The MPB is an employment equity employer and preference is given
to previously disadvantaged groups in the recruitment processes of the
MPB.


Targets
Currently the MPB is in the process of developing an Employment Equity
plan where targets will be set to address Affirmative Action.




                                                       28
                         mpumalanga parks board                      annual report • 2002-03




                                                                          human resources
ANNUAL STATISTICS
Recruitment Statistics
Recruitment statistics for the year are as follows:
 PAT E R S O N   LEVEL   DESCRIPTION               AFRICAN       AFRICAN       W H I T E W H I T E I N D I A N TOTAL
 GRADE                                             MALE          FEMALE        MALE      FEMALE    FEMALE
 F-BAND          1       Top Management            1             0             0            0         0            1

 E-BAND          2       Senior Management         0             0             0            0         0            0
 D-BAND          3       Middle Management,        2             0             0            0         0            2
                         Professionally
                         qualified &
                         experienced specialist
 C-BAND          4       Skilled, Technical        3             5             0            1         0            9
                         and Academically
                         qualified, junior
                         management,
                         supervisors, foreman
                         and superintendents
 B-BAND          5       Semi-skilled              0             1             0            0         0            1
 A-BAND          6       Unskilled                 0             0             0            0         0            0
 TOTAL                                             6             6             0            1         0            13

Promotion statistics for the year were as follows:
 PAT E R S O N   LEVEL    DESCRIPTION              AFRICAN           AFRICAN       W H I T E W H I T E I N D I A N TOTAL
 GRADE                                             MALE              FEMALE        MALE      FEMALE    FEMALE
 F-BAND          1        Top Management           0                 0             0           0          0        0
 E-BAND          2        Senior Management        0                 0             0           0          0        0
 D-BAND          3        Middle Management,       9                 2             6           0          0        17
                          Professionally
                          qualified &
                          experienced specialist
 C-BAND          4        Skilled, Technical       25                9             4           4          1        43
                          and Academically
                          qualified, junior
                          management,
                          supervisors, foreman
                          and superintendents
 B-BAND          5        Semi-skilled             4                 5             0           0          0        9
 A-BAND          6        Unskilled                1                 0             0           0          0        1
 TOTAL                                             39                16            10          4          1        70

Termination of service
 PAT E R S O N   LEVEL    DESCRIPTION                  AFRICAN   AFRICAN       W H I T E W H I T E INDIAN TOTAL
 GRADE                                                 MALE      FEMALE        MALE      FEMALE    FEMALE
 F-BAND          1        Top Management               0         0             0           0          0        0
 E-BAND          2        Senior Management            0         0             3           0          0        3

 D-BAND          3        Middle Management,           0         0             0           1          0        1
                          Professionally
                          qualified &
                          experienced specialist




                                                             29
                      mpumalanga parks board                annual report • 2002-03




     human resources
 C-BAND        4         Skilled, Technical     1          0          5           1          0         7
                         and Academically
                         qualified, junior
                         management,
                         supervisors, foreman
                         and superintendents

 B-BAND        5         Semi-skilled           6          1          0           2          0         9

 A-BAND        6         Unskilled              9          1          0           0          0         10

 TOTAL                                          16         2          8           4          0         30



Foreign Appointees
No foreign employees were appointed.


PERFORMANCE MANAGEMENT AND SKILLS
DEVELOPMENT

Performance Management
As a result of the restructuring process there is currently no performance appraisals. However, the MPB is in the
process of developing a performance management model to be in line with the new organogram, job descriptions
and Paterson grading.




SKILLS DEVELOPMENT

Training Plan
Due to the restructuring process and the redeployment of staff, it was very difficult for the training division to do
job profiling and a skills audit in the organization.

   The above-mentioned processes made it impossible for the training division to compile a training plan for this
year. Training that took place in the organization for this period was on an ad-hoc basis.

Training Budget
The total amount for training budgeted for this year was R400 000-00. As a result of the restructuring processes,
the division underspent its budget. The actual amounts spend on training was R92 000 which is 23% of the
approved budget.

Training programs
The following training programs were conducted:




                                                       30
                     mpumalanga parks board                     annual report • 2002-03




                                                                    human resources
The following training programs were conducted:
           Training Program                           Institution                    Number of employees
 Assessor training                        SA Wildlife College                                 5
 Protected Areas Management               SA Wildlife College                                 3
 Course
 VIP Salary system course                 VIP                                                 3
 Employment Equity                        VIP                                                 1
 Bookkeeping                              Damelin                                             1
 Fire-arm Training                        Proman                                              1
 Conflict Management                      SAMDI                                              28
 Landscape Management                     SA Wildlife College                                 3
 Cites & Port Control                                                                         3
 Nature Conservation Diploma              SA Wildlife College                                 3
 Nature Conservation Certificate          SA Wildlife College                                 4
 SA Host                                                                                      6
 Public Relations                         Rainbow Communication                               4
 Skills Development Facilitator           Edutel                                              3
 Basic Fire Fighting                      In-house                                           103
 First Aid Level 1                        Red Cross                                          52
 Computer Management Course               Pretoria Technikon                                 21
 Office Administration Course             Pretoria Technikon                                 29
 Law Enforcement Course                   SA Wildlife College                                 4
 Field rangers – N. highveld              20th century development                           58
 Total                                                                                       335


 PATERSON       LEVEL       DESCRIPTION                AFRICAN       AFRICAN   WHITE     WHITE     INDIAN   TOTAL
 GRADE                                                 MALE          FEMALE    MALE      FEMALE    FEMALE
   F-BAND              1    Top Management                  0           0        0           0         0      0
   E-BAND              2    Senior Management               3           1        1           0         0      5

  D-BAND               3    Middle Management,             11           4        2           0         0      17
                            Professionally
                            qualified &
                            experienced specialist
   C-BAND              4    Skilled, Technical             52          17        5           5         0      79
                            and Academically
                            qualified, junior
                            management,
                            supervisors, foreman
                            and superintendents
   B-BAND              5    Semi-skille                    68          56        0           0         0     124
  A-BAND               6    Unskilled                      99          11        0           0         0     110
   TOTAL                                                  223          89        8           5         0     335




                                                          31
                   mpumalanga parks board                 annual report • 2002-03




  human resources
COMMUNITY RELATIONS
WORLD SUMMIT ON SUSTAINABLE
DEVELOPMENT
During the World Summit on Sustainable Development in Johannesburg
during August 2002, this division was represented at a number of events.
Eveta Crafts Exhibition (sponsored by FNB), Imbizo crafts hall as well as
at Gallagher Estates showcasing crafts with the support of Eskom. During
this event the crafts project Badirammogo won R 25 000.00 for the project




POLICY DEVELOPMENT
A number of workshops have been held so as to assist with the creation
of a policy document for community relations and development. Top
management, reserve managers and community forums have been
workshoped in this regard. The draft policy document should be ready
for comments and finalisation during the new financial year.

FRIENDS OF LOSKOP
The friends of Loskop which also includes representatives from the
community representative structure, developed a interpretation / visitor
centre on the reserve which costs about ±R250 000.

RE-EVALUATION OF PROJECTS
Combined with the action plans are the evaluations of all existing Parks
Board projects. The aim is to evaluate projects so as to see if projects
could be more in line with conservation and or tourism related markets
and opportunities. Craft development to international standards has
also started around Loskop and Mahushe Shongwe. Projects who were
identified not to be viable are being phased out and new Tourism related
projects are being introduced e.g. Mahushe Shongwe a wire craft project
is being undertaken and there is already export market for it through
Siyazisiza and Khumbulani trust in which we believe poverty will be
minimised in that community.

INTACT PROGRAM
The National INTAC training program, operating under THETA, in terms
of conservation and tourism opportunities at Blyde has started. The
project is one of the nine pilot projects initiated by Seta. This program will
focus on, Forum capacity building, community tour guides, community
guesthouses. More than 400 community members will be trained on the




                                                     32
                mpumalanga parks board                      annual report • 2002-03




                                                             human resources
above mentioned fields for three years at no cost to them.

INJURY, ILLNESS AND DEATH
A total of 13 minor injuries on duty were reported during the year. One fatal injury took place when an
employee died in a motor vehicle accident after a meeting at Head Office. No occupational illness was
reported.

Summary of minor injuries on duty:
Number of injuries       Body part injured        Nature of injuries
                                                  Right hand index finger while working
                                                  Injured hand with a bow saw while cutting branches
                                                  Burning wounds when washing engine with petrol
5                        Hands                    Hand injury when employee fell while fighting a veldt fire
                                                  Cut open left hand ring finger when hooking a heavy mower
                                                  to a tractor

                                                  Neck injury during a motor vehicle accident
2                        Head                     Head injuries during a motor vehicle accident
                                                  Injured left ankle during big game control
                                                  Injured foot while cleaning the workshop, wearing sandals
3                        Leg/Foot                 Broken leg during a motor vehicle accident
                                                  Cutting back with a heavy-duty slasher while clearing tree
                                                  branches
3                        Back                     Injured back when loading a heavy tent onto a vehicle
                                                  Back injury during a motor vehicle accident
1                        Fatal                    Killed in a motor vehicle accident after a meeting at Head
                                                  Office.


SICK LEAVE

Department           Average number of Total number            of Estimated cost         Number            of
                     days sick leave   days sick leave                                   employees       who
                                                                                         took more than 15
                                                                                         days     consecutive
                                                                                         sick leave
Office of the CEO
A-BAND               0                       0                     0
B-BAND               4                       8                     1301.21
C-BAND               1                       1                     502.55
D-BAND               0                       0                     0
E-BAND               0                       0                     0
F-BAND               1                       1                     824.87
TOTAL                6                       10                    2628.63
Commercialization
A-BAND               1                       3                     335.40                1
B-BAND               1                       2                     226.30
C-BAND               1                       8                     4020.43




                                                       33
                 mpumalanga parks board              annual report • 2002-03




human resources
D-BAND               0                  0                 0
E-BAND               0                  0                 0
TOTAL                3                  13                4582.13
Corporate Services
A-BAND               4                  17                1900.58        1
B-BAND               1                  14                2319.55
C-BAND               1                  7                 3517.87
D-BAND               2                  4                 4420.77
E-BAND               8                  8                 13745.64       1
TOTAL                16                 50                25904.41
Finance & Administration
A-BAND               1                  3                 298.13
B-BAND               1                  5                 820.33
C-BAND               1                  2                 1172.62
D-BAND               3                  9                 9521.67
E-BAND               1                  1                 572.73
TOTAL                7                  20                12385.48
Operations
A-BAND               2                  177               19713.86       1
B-BAND               1                  72                12220.06
C-BAND               1                  30                15244.12
D-BAND               1                  15                15472.71
E-BAND               0                  0                 0
TOTAL                5                  294               62650.75
GRAND TOTAL          37                 387               108151.40      4


COLLECTIVE AGREEMENTS
No new collective agreements were entered into during this year.

DISCIPLINARY STEPS
No disciplinary steps were taken against any employee, however three verbal warnings were
issued for late arrival at work and one disciplinary inquiry took place for a motor vehicle
accident.

CHALLENGES
Challenges for the coming financial year include the following:

    • The finalization and implementation of the draft HR policies

    • The development and implementation of the Employment Equity plan

    • The development of career paths

    • Limiting the number of disputes




                                                34
mpumalanga parks board          annual report • 2002-03




   F     AIM
              inance and administration
         To provide good financial management and logistical support services

         POLICY DEVELOPMENTS
         The Finance programme consists of the following five sub-programmes:

            • Asset Management

            • Procurement System development and maintenance

            • Financial management

            • Information technology management

            • Financial payroll management




         Asset Management:

            • A new fixed asset register was completed during the year, after a
              verification exercise was done by KPMG on all of Mpumalanga
              Parks Board’s assets.

            • The vacant post of the fixed assets administrator was filled towards
              the end of the year to boost the asset management section.

            • The general security of assets was good throughout the whole year,
              with a few incidences of theft being reported.

            • Komati River Lodge, one of the tented camps in the Songimvelo
              Nature Reserve was destroyed by fire earlier in the year, but we
              received the insurance claim for the replacement cost.

            • A fleet audit was done during year resulting in a new fleet being
              recommended for the board. About 95% of the board’s fleet is due for
              replacement. However, the board is currently experiencing financial
              constraints in relation to capital infrastructure development.




                           35
                 mpumalanga parks board               annual report • 2002-03




 finance and administration
Procurement system development and
maintenance

  • A new procurement department has been recommended by
    management to the Board, with the appointment of a procurement
    officer eminent.

  • A draft procurement policy was developed during the year detailing
    the processes to be followed for normal purchasing and tender
    procedures.




Financial Management

  • The finance department focused on the implementation of a new
    accounting system (Pastel V6), with effect from the 1st of April 2002.
    Some teething problems were encountered in terms of integrating
    the inventory system and the payroll system to the accounting
    system. However, phase 1 of the implementation phase has been
    successfully completed, with phase 2 focused to be completed by
    the end of August 2003.

  • Revenue collection was a significant achievement in this financial
    year. A total of R5.9m was collected from long outstanding debt.
    There are no significant outstanding debts arising from this current
    financial year, which shows that the systems put in place by
    management are yielding positive results.




Information technology management

  • The department in its infancy stage managed to develop a strategic
    policy for IT and focused on the mapping out of a centralised
    reservations system and wide area network.

  • It also embarked on a computer upgrading programme from
    Windows 95 to Windows 2000. This programme resulted in a large
    number of new computers being bought to replace the old ones to
    ensure compatibility with the new proposed network system.

  • An internal IT audit was done and the results of the audit indicated
    that there was a need to beef up the department with qualified




                                                 36
mpumalanga parks board          annual report • 2002-03




             finance and administration
               personnel who will ensure the integrity and security of the board’s
               data is preserved and monitored on a regular basis. This resulted in
               a new proposed structure for the IT department to try and address
               the controls in lack.

         Financial payroll management

             • A shift from manual cheque payment to new electronic funds
               transfer system was purchased and implemented successfully
               during the year under review.

             • A Payroll Verification exercise was conducted both on the VIP
               Payroll system and by physical employee counts to establish the
               authenticity of our payroll bill. Reported differences were followed
               up by management and cleared out.

             • We can proudly say that our VIP Payroll system is now functioning
               as intended and producing reliable reports in terms of accuracy and
               completeness.




         Corporate governance

         The Board of Directors is the accounting authority of the MPB in terms of
         the Public Finance Management Act, 1 of 1999, as amended (PFMA).

            The MPB complies with the requirements of the (PFMA), and the
         Mpumalanga Parks Board Act, 6 of 1995, as amended. In addition, the
         MPB is in the process of implementing the recommendations of the King
         Report on Corporate Governance for South Africa 2002 (King II) including
         the Code of Corporate Practices and Conduct contained therein, as well as
         the Protocol on Corporate Governance in the Public Sector 2002.




         Board of Directors
         Corporate governance practices are continually evolving. The Directors
         remained fully committed to the promotion and furtherance of Corporate
         Governance, in terms of managing its financial, human and other resources,
         as well as the management of its business activities and corporate risks. A
         structured approach is followed delegation, reporting and accountability.
         The chairperson guides the Board.




                           37
                    mpumalanga parks board              annual report • 2002-03




 finance and administration
The Board is responsible for providing strategic direction and leadership,
determining policy, ensuring good corporate governance, agreeing
on performance criteria and delegating the detailed planning and
implementation of policy to the Executive Management Committee
(EXCO).

    The Board is required to meet at least quarterly. The implementation
of the restructuring exercise however compelled the Board to be hands-on
at the beginning of the year.

    In the course of the year under review the Board of Directors comprised
of eight directors two ex officio directors:

    Dr J.H. de Loor (Chairperson)

    Mr. M.M. Mphela (Deputy Chairperson)

    Dr J. Hanks

    Mr. MS Nkosi

    Ms L. Greyling

    Mr. J. Mbenyane

    Ms P. Mtsweni

    Mr A. Charles

    Mr D.J.L. Mahlangu

   Ms Greyling resigned in June 2002. The Board remained indebted to
her selfless contribution and informed leadership.

    In November 2002 the Mpumalanga Government appointed a new
Board. In line with King II the new directors were taken through a
tailor-made induction programme which allowed them an opportunity
to understand the MPB and its nature and operations. The following
directors were appointed:

      Mr M.S. Nkosi (Chairperson)

      Mr M.M. Mphela (Deputy Chairperson)

      Mr J. Mbenyane

      Mr J. Tsotetsi

      Dr M. Mamoepa

      Ms S.G.S. Castle




                                                   38
mpumalanga parks board            annual report • 2002-03




           finance and administration
               Mr D.J.L. Mahlangu

               Ms P. Mtsweni

               Mr A. Charles



           Dr D.S. Tiba (Chief Executive Officer) and Ms M. Sithole (HOD:
         Agriculture, Conservation & Environment) were ex officio members.




         Board Committees

         A number of Board committees exist in order to assist the Board in
         discharging its responsibility. Each committee operates within the ambit
         of its defined terms of reference. The committees were comprised as
         follows:

         Audit Committee
               Mrs N. Fakude-Nkuna (Chairperson)

               Mr A.C. Keyser

               Mr S. Cousin

               Mr G. Dladla

               Dr M. Mamoepa

            The Audit Committee also serves as the Budget Committee as well as
         the Risk Management Committee of the MPB.



         HR Committee
               Mr A. Charles (Chairperson)

               Mr S.G.S. Castle

               Mr D.J.L. Mahlangu

               Mr M.M. Mphela

               Mr J. Tsotetsi

            This Committee also serves as the Remuneration Committee




                            39
                    mpumalanga parks board              annual report • 2002-03




  finance and administration
Tender Committee
      Mr M. Mdluli (Chairperson)

      Mr W. du Plessis

      Mr J. Mashabane

      Mr I. Mayet

      Ms M. Letsoale

      Mr C. Mofolo

      Mr J. Mbenyane

      Ms P. Mtsweni



Conservation Committee
      Ms P. Mtsweni

      Mr J.J. Mbenyane

      Mr D. Mabunda



Executive Management Committee


EXCO comprises the Chief Executive Officer, the Chief Financial Officer,
the General Manager of Commercialisation department, General Manager
of Conservation department, General Manager of Corporate Affairs, Legal
Advisor, Communications Manager and the Corporate Secretary. The
committee is chaired by the Chief Executive Officer and meets at least
twice monthly.

   Detailed Minute Books are available for inspection




                                                 40
                    mpumalanga parks board           annual report • 2002-03




       A                         nnual financial statements
                             MPUMALANGA PARKS BOARD
                            ANNUAL FINANCIAL STATEMENTS
                              for the year ended 31 March 2003
COMPANY INFORMATION
                                                                        Halls Gateway
Registered address:                                                  N4 National Road
                                                                             Nelspruit


Postal address:                                                     Private Bag X11338
                                                                             Nelspruit
                                                                                  1200


External auditors:                                     KPMG Inc. and J.K. Sithole & Co.
                                                                             Nelspruit


Internal auditors                                          PricewaterhouseCoopers Inc.
                                                                             Nelspruit


Bankers:                                                  Standard Bank of South Africa
                                                                             Nelspruit

CONTENTS                                                                          Page


Report of the independent auditors                                                  42
Report from the Members of the Board                                            43 - 45
Balance sheet                                                                       46
Income statement                                                                    47
Statement of changes in equity                                                      48
Cash flow statement                                                                 49
Notes to the financial statements                                               50 - 63
Additional information
Detailed income statement                                                           64




                                                41
                           mpumalanga parks board                          annual report • 2002-03

                                       REPORT OF THE INDEPENDENT AUDITORS
                                            for the year ended 31 March 2003
                  To the MEC Department of Agriculture, Conservation and Environment
We have audited the annual financial statements of the Mpumalanga Parks Board set out on pages 3 to 25 for the year ended 31 March 2003.
These financial statements are the responsibility of the Members of the Board. Our responsibility is to express an opinion on these financial
statements based on our audit.



Scope
We conducted our audit in accordance with statements of South African Auditing Standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance that the financial statements are free of material misstatement. The audit was also planned and performed
to obtain reasonable assurance that our duties in terms of section 60 and 61 of the Public Finance Management Act of South Africa have been
complied with. An audit includes:



�         examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,

�         assessing the accounting principles used and significant estimates made by management, and

�         evaluating the overall financial statement presentation.


We believe that our audit provides a reasonable basis for our opinion.
Audit opinion
In our opinion these financial statements fairly present, in all material respects, the financial position of the Mpumalanga Parks Board at 31
March 2003 and the results of its operations and cash flows for the year then ended in accordance with generally accepted accounting practice,
and in the manner required by the Mpumalanga Parks Board Act of South Africa and Public Finance Management Act of South Africa.




Without qualifying our opinion above, we draw attention to the following:


Non-compliance with Public Finance Management Act


The Public Finance Management Act, section 56(1)(a), requires the accounting authority of the public entity to delegate in writing any powers
entrusted or delegated to the accounting authority to an official in the public entity. There were no approved delegations of authority in place by
year end. The Board however, on 27 June 2003, approved a structure of delegation.

Special investigation

As disclosed in the report from the Members of the Board during 1998 resulting in reports issued to Provincial Government by the Heath Special
Investigation Unit and Gobodo Inc. The outcome of this investigation is unknown.


Supplementary information


The supplementary schedule set out on page 26 does not form part of the annual financial statements and are presented as additional information.
We have not audited this schedule and accordingly we do not express an opinion thereon.




Per: H Mans                                                                        Per: J Sithole
Partner                                                                            Partner
KPMG Inc.                                                                          J.K. Sithole & Co.
Registered Accountant and Auditors                                                 Registered Accountant and Auditors


Nelspruit                                                                          Nelspruit
27 June 2003                                                                       27 June 2003



                                                                     42
                       mpumalanga parks board                     annual report • 2002-03


                                            MPUMALANGA PARKS BOARD
                                   REPORT FROM THE MEMBERS OF THE BOARD
                                             for the year ended 31 March 2003


The Members of the Board take pleasure in presenting their annual report, which forms part of the audited financial state-
ments of the Mpumalanga Parks Board for the year ended 31 March 2003.



Basis of preperation

               The Mpumalanga Park Board is dependant mainly on the Mpumalanga Government for grants to meet its
               expenditure and enable it to realise its assets and settle its liabilities in the normal course of business. The
               members of the board expect the Mpumalanga Government to continue providing financial support by way
               of grants to the Mpumalanga Parks Board and accordingly have adopted accounting policies applicable to a
               going concern in the preparation of the financial statements.


Nature of business
               Mpumalanga Parks Board provides conservation management of the natural resources and promotes the
               optimal/ecological sustainable utilisation thereof, for the benefit of all the people of the Mpumalanga Prov-


               Mpumalanga Parks Board applies the following strategies to achieve these objectives:


               - Developing and managing protected areas;
               - Optimally developing commercialisation opportunities within the conservation areas;
               - Ensuring the control of and compliance with conservation legislation;
               - Broadening and strengthening the knowledge base for managing bio-diversity;
               - Propagation and re-introduction of priority species; and
               - Creating and strengthening the general conservation awareness among the people of the Province.


Review of operations and financial position
               General
               Nature conservation continued within the legal mandate. No significant issues were identified which had a
               negative impact on operations.


               Revenue and other operating income
               Revenue and other operating income generated by own operations, increased by 1% from the previous year
               due to the revision of entrance fees to the reserves


               Government transfers increased from R77 631 201 in 2002 to R84 300 000 in 2003 for which we are extremely
               grateful.


               Expenditure
               Total expenditure decreased from R78 704 361 in 2002 to R75 419 192 (4%) in 2003. The decrease was mainly
               due to our efforts to save money for the repayment of R10 million INCA loan due on 30 June 2003.


               Net Profit
               The net profit increased from R10 261 740 in 2002 to R22 705 622 in 2003. The surplus has been applied or
               reserved for the repayment of long term loans and accounts payable.


Promissory notes
               Refer to note 19 Contingent Liabilities in the financial statements.




                                                             43
                         mpumalanga parks board                      annual report • 2002-03


                                            MPUMALANGA PARKS BOARD


                                   REPORT FROM THE MEMBERS OF THE BOARD
                                             for the year ended 31 March 2003


Statement of Responsibility
The Members of the Board are responsible for the preparation, integrity and fair presentation of the annual financial state-
ments of Mpumalanga Parks Board. The financial statements presented on pages 4 to 25 have been prepared in accordance
with generally accepted accounting practice and include amounts based on judgements and estimates made by manage-
ment. The Members of the Board also prepared the other information included in the annual report and are responsible for
both the accuracy and its consistency with the financial statements.


The financial statements have been audited by the independent auditing firms, KPMG Inc. and J.K. Sithole & Co., which was
given unrestricted access to all financial records and related data, including minutes of all meetings of Members of the Board
and committees of the Board. The Members of the Board believe that all representations made to the independent auditors
during their audit are valid and appropriate.


Members of the Board
               During the year under review the Members of the Board comprised of eight directors and two ex officio
               directors:



               Dr JH de Loor (Chairperson)
               Mr MM Mphela (Deputy Chairperson)
               Dr J Hanks
               Mr MS Nkosi
               Mr J Mbenyane
               Ms P Mtsweni
               Mr A Charles
               Mr DJL Mahlangu
               Ms L Greyling (resigned 30 June 2002)

               During November 2002 the Mpumalanga Government appointed a new Board. The following directors were
               appointed:

               Mr MS Nkosi (Chairperson)
               Mr MM Mphela (Deputy Chairperson)
               Mr J Mbenyane
               Mr J Tsotetsi
               Dr M Mamoepa
               Ms SGS Castle
               Mr DJL Mahlangu
               Ms P Mtsweni
               Mr A Charles


               Dr DS Tiba (Chief Executive Officer and Accounting Officer) and Ms M Sithole (Head of Department: Agri-
               culture, Conservation and Environment) were ex officio members.


               Audit committee

               An audit committee comprising of 4 appointed Members and 1 non-executive Member of the Board meets
               regularly with senior management, internal auditors and the external auditors to consider the nature and
               scope of audit reviews and the effectiveness of the Mpumalanga Parks Board’s risk and control systems.




                                                                44
                          mpumalanga parks board                     annual report • 2002-03


                                           MPUMALANGA PARKS BOARD


                                   REPORT FROM THE MEMBERS OF THE BOARD
                                         for the year ended 31 March 2003




Investments in subsidiaries
                Mpumalanga Parks Board has an interest in the following dormant subsidiaries:

                                                                        2003               2002

                                                                        % Holding          % Holding

                Somalanga (Pty) Ltd                                     100                100
                Mpumalanga Ethno Safaris (Pty) Ltd                      100                100
                Paradise Loop (Pty) Ltd                                 100                100


Group financial statements

                Group financial statements have not been prepared as the subsidiaries are all dormant and a decision was
                taken by the Members of the Board to deregister the companies. The companies are in the process of dereg-
                istration. The subsidiaries are immaterial to the results of the Mpumalanga Parks Board.


Special Investigations

                Members of the Board of the Mpumalanga Parks Board are aware that in 1998 reports were submitted to the
                Provincial Government by the Heath Special Investigation Unit and Gobodo Incorporated, but these were
                not discussed with, or disclosed to the Board. The outcome of the investigations is unknown.


Restructuring
                The process of restructuring was completed during the year whereby staff members assumed new positions
                in the new structure and some staff members took Voluntary Severance Packages.


Litigation
                Enkosini case: Mpumalanga Parks Board won a case against a private lodge owner on 25 June 2002 who
                illegally and forcefully brought lions into the province. Mpumalanga Parks Board confiscated the lions and
                the owner applied for a court interdict, which was granted. The matter was taken to the High Court and the
                Mpumalanga Parks Board won the case. The legal fees are approximately R340 000 and 90% of the fees are
                still to be recovered from the owner of the lions.



Internal auditors
                The internal audit work was outsourced by the Board to PricewaterhouseCoopers for the full duration of
                the financial year.


External auditors
                KPMG Inc. and J.K. Sithole & Co. continued in office in accordance with section 36 of the Mpumalanga Parks
                Board Act.




                Date 27/06/2003                                                            Date 27/06/2003




                                                                45
                    mpumalanga parks board     annual report • 2002-03


                                MPUMALANGA PARKS BOARD

                                     BALANCE SHEET
                                    as at 31 March 2003



                                                            2003          2002
                                             Notes           R             R


ASSETS
Non-current assets
Property, plant and equipment                 5            36,551,906    37,676,666
Unlisted investments                          6            46,456,315    36,685,193
Biological assets                             7             7,816,552     7,570,000
                                                           90,824,773    81,931,859
Current assets
Inventories                                   8              616,713       615,123
Receivables and prepayments                   9              788,114      4,112,173
Cash and cash equivalents                     10           28,024,724    14,318,878
                                                           29,429,551    19,046,174


Total assets                                              120,254,324   100,978,033




EQUITY AND LIABILITIES
Capital and reserves
Retained earnings                                          51,368,353    28,880,927
                                                           51,368,353    28,880,927


Non-current liabilities
Interest bearing borrowings                   11            5,459,902    16,284,941
Other borrowings                              12           34,055,412    30,794,196
                                                           39,515,314    47,079,137


Current liabilities
Trade and other payables                      13            6,732,134    10,840,081
Deferred income                               14            9,077,159    11,397,975
Current portion of borrowings                 11           10,151,871      400,029
Provisions                                    15            3,409,493     2,379,884
                                                           29,370,657    25,017,969


Total equity and liabilities                              120,254,324   100,978,033



                                          46
                  mpumalanga parks board    annual report • 2002-03


MPUMALANGA PARKS BOARD


INCOME STATEMENT
for the year ended 31 March 2003



                                                                 2003           2002
                                                    Notes          R              R


Grants received                                       2         84,300,000     77,631,201


Revenue                                                          9,324,943      9,671,786


Total revenue                                                   93,624,943     87,302,987


Other operating income                                             845,483        394,350


Operating expenses                                             (75,419,192)   (78,704,361)


Operating surplus                                     2         19,051,234      8,992,976



Investment income                                     4          6,254,371      4,085,028


Finance costs                                         4         (2,599,983)    (2,816,264)


Net surplus for the year                                        22,705,622     10,261,740




                                       47
                        mpumalanga parks board               annual report • 2002-03


                                   MPUMALANGA PARKS BOARD
                                STATEMENT OF CHANGES IN EQUITY
                                   for the year ended 31 March 2003



                                                                                2003           2002
                                                                                  R             R


Retained Earnings
At beginning of year                                                            28,662,731    18,619,187
As previously reported                                                          28,880,927    29,402,080
Prior year adjustment                                                            (218,196)              -
Change in accounting policy on Property, Plant & Equipment                               -   (10,782,893)
Net surplus for the year                                                        22,705,622    10,261,740
At end of year                                                                  51,368,353    28,880,927




                                                      48
           mpumalanga parks board                     annual report • 2002-03


                                   MPUMALANGA PARKS BOARD
                                     CASH FLOW STATEMENT
                                   for the year ended 31 March 2003



                                                                          2003           2002
                                                               Note        R              R


Cash flow from operating activities


Grants received - Mpumalanga Provincial Government                       84,300,000     77,631,201
Cash receipts from customers                                             11,975,178     11,348,993
Cash paid to suppliers and employees                                    (76,854,999)   (70,878,766)
Cash generated from operations                                  17       19,420,179     18,101,428


Investment income                                                         6,254,371      4,085,028
Finance cost                                                             (2,599,983)    (2,816,264)


Net cash inflow from operating activities                                23,074,567     19,370,192




Cash flow from investing activities
Additions to property, plant and equipment                               (3,530,049)     (188,156)
Proceeds from disposal of property, plant and equipment                     747,399               -
Proceeds from sale of biological assets                                     997,033               -
Increase in investments                                                  (9,771,122)    (9,366,637)
Net cash outflow from investing activities                              (11,556,739)    (9,554,793)




Cash flow from financing activities
(Decrease)/increase in long term borrowings                              (7,563,824)     4,371,131
Movement in short term portion of long term borrowings                    9,751,842     (2,864,124)
Net cash inflow from financing activities                                 2,188,018      1,507,007




Net increase in cash and cash equivalents                                13,705,846     11,322,406
Cash and cash equivalents at beginning of year                           14,318,878      2,996,472


Cash and cash equivalents at end of year                                 28,024,724     14,318,878




                                                 49
                    mpumalanga parks board                    annual report • 2002-03
                                MPUMALANGA PARKS BOARD
                            NOTES TO THE FINANCIAL STATEMENTS
                                for the year ended 31 March 2003



1 Basis of preparation


  The annual financial statements are prepared on the historical cost basis. These annual financial statements com-
  ply with generally accepted accounting practice. The following are the principal accounting policies used by the
  Mpumalanga Parks Board, which are consistent with those of the previous year.


   1.1     Property, plant and equipment


           Land is not brought to account as it is not the property of the Mpumalanga Parks Board, but is govern-
           ment owned and only managed by Mpumalanga Parks Board on behalf of the government.


           Depreciation is recorded by a charge to income computed on a straight-line basis so as to write off the
           cost of the assets over their expected useful lives. The depreciation rates are as follows:


           - Buildings                                                                 5%
           - Large capital equipment                                                 25%
           - Motor vehicles                                                          33%
           - Furniture and fittings                                              20 - 25%
           - Technical furniture and equipment                                       20%
           - Small capital equipment                                                 25%
           - Computer equipment                                                      33%


           Fixed Assets - Conservation Areas


           Fixed assets taken over from previous government services other than the KaNgwane Parks Corporation
           are included at the directors’ valuation less accumulated depreciation. This valuation placed standard
           values on buildings, vehicles and firearms and approximate market values were attributed to significant
           items of equipment, furniture and fittings. Small items of equipment were attributed a conservative ag-
           gregate value. Fixed assets taken over from the KaNgwane Parks Corporation are stated at historical cost
           less accumulated depreciation.


   1.2     Leases


           Finance leases


           Leases that transfer substantially all the risks and rewards of ownership of the underlying assets to the
           group are classified as finance leases . Assets acquired in terms of finance leases are capitalised at their
           cash cost equivalent and corresponding liabilities raised. These assets are depreciated on the straight-line
           basis over their estimated useful lives. Finance charges are amortised over the duration of the leases by
           the effective interest rate method.




                                                         50
             mpumalanga parks board                 annual report • 2002-03


                           MPUMALANGA PARKS BOARD
                       NOTES TO THE FINANCIAL STATEMENTS
                           for the year ended 31 March 2003

      Operating leases


      Leases where the lessor retains the risks and rewards of ownership of the underlying asset are classified
      as operating leases. Payments made under operating leases are charged against income on a straight-
      line basis over the period of the lease.

      When an operating lease is terminated before the lease period has expired, any payment required to be
      made to the lessor by way of penalty is recognised in the period in which the termination takes place.


1.3   Inventories


      Inventories are stated at the lower of cost or net realisable value. The cost is determined on the follow-
      ing basis:


      Inventory category                                             Basis of valuation


      Consumable stores                                              First-in, First-out
      Stock-in-trade                                                 At estimated realisable value
      Fuel                                                           First-in, First-out
      Uniforms                                                       First-in, First-out


1.4   Unlisted investments


      Investments are stated at cost and are written down only where there is a permanent impairment in
      value. Dividends are brought to account when declared in respect of unlisted shares.


      The directors’ valuation of unlisted investments and subsidiaries is calculated on a basis of return or net
      asset value as deemed appropriate in each case.


1.5   Trade receivables


      Trade receivables are carried at anticipated realisable value. An estimate is made for doubtful receivables
      based on a review of all outstanding amounts at the year-end. Bad debts are written off during the year
      in which they are identified.



1.6   Cash and cash equivalents


      For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits

      held on call with banks, and investments in money market instruments, net of bank overdrafts.




                                               51
            mpumalanga parks board                     annual report • 2002-03


                             MPUMALANGA PARKS BOARD
                         NOTES TO THE FINANCIAL STATEMENTS
                             for the year ended 31 March 2003

1.7    Biological assets
       Biological assets are recognised at fair value less estimated point-of-sale costs. Gains and losses on initial
       recognition and subsequent change in fair value are recognised in the income statement in the period in
       which they arise. The following assumptions were used in determining the fair value of the biological
       assets:

       Immature buffalos
       - 30% of the calves born during the project will be handed over to the donor - Kruger National Park.
       - 25% of the calves will be reintroduced to the reserves
       - 15% mortality rate
       - 30% of the calves will be capitalised

       Mature buffalos
       - Estimated value of each cow at end of project is R40
       000.
       - Estimated value of each bull at end of project is R50
       000.

1.8    Provisions

       Provisions are recognised when the company has a present legal or constructive obligation as a result of
       past events, it is probable that an outflow of resources embodying economic benefits will be required to
       settle the obligation, and a reliable estimate of the amount of the obligation can be made.

       Employee entitlements to annual leave and long service leave is recognised when they accrue to employ-
       ees. A provision is made for the estimated liability for annual leave and long-service leave as a result of
       services rendered by employees up to the balance sheet date.

1.9    Financial instruments

       Investments in financial assets are initially recognised at cost. Subsequently, financial assets are re-mea-
       sured at fair value, except for held-to-maturity investments such as debts and loans, which are carried
       at amortised cost. Financial liabilities are recognised at the original debt less principal repayments and
       amortisation.

1.10   Revenue recognition

       Sales are recognised upon delivery of products and customer acceptance, if any, or performance of ser-
       vices, net of Value Added Tax and discounts.


       Other revenues earned by the board are recognised on the following basis:
       - Interest income - as it is accrued (taking into account the effective yield on the asset) unless recover-
       ability is in doubt.


1.11   Government Grants
       Government transfers are recognised in the period received and credited to the income statement. Funds
       received for capital development as conditional grants are credited directly to equity.


                                                  52
           mpumalanga parks board                    annual report • 2002-03


   MPUMALANGA PARKS BOARD NOTES TO THE FINANCIAL STATEMENTS
                  for the year ended 31 March 2003



1.12   Employee benefits


       Short term employee benefits


       The cost of all short-term employee benefits is recognised during the period in which the employee ren-
       ders the related service.


       The provisions for employee entitlements to wages, salaries, annual and sick leave represent the amount
       which the board has a present obligation to pay as a result of employees’ services provided to the balance
       sheet date. The provision has been calculated at undiscounted amounts based on current wages and sal-
       ary rates.


       Retirement benefits


       The policy of the Mpumalanga Parks Board is to provide retirement benefits for all its employees. Cur-
       rent contributions to Pension, Provident and Retirement Plan Funds operated for employees are charged
       against income as incurred. The Pension, Provident and Retirement Plans are defined contribution plans.
       The costs of improved pension fund benefits are funded by the board through lump sum payments or
       through increased future contributions. The costs to the board are charged against income as and when
       funded.


1.13   Game purchases and sales


       Game purchased or sold is expensed or credited in the
       year of acquisition or sale.




                                                53
                mpumalanga parks board                    annual report • 2002-03

                                MPUMALANGA PARKS BOARD
                            NOTES TO THE FINANCIAL STATEMENTS
                                for the year ended 31 March 2003


                                                                             2003                    2002
                                                                               R                       R
2 Operating surplus


  The following items have been charged/credited to the income statement in arriving at operating surplus:


  Grants received                                                          84,300,000                  77,631,201
           Operational Budget                                              84,300,000                  58,470,101
           Voluntary Severance Package Grant                                           -                8,700,000
           Conditional Grant for creditors payment                                     -               10,461,100


  Movement of biological assets due to births and deaths                     (843,793)                (1,833,103)


  Depreciation on property, plant and equipment                              4,104,632                  3,635,899
           Land and Buildings                                                2,811,093                  2,804,437
           Large capital equipment                                              85,136                        54,401
           Motor vehicles                                                      584,191                       540,281
           Furniture and fittings                                               28,751                        10,528
           Technical furniture and equipment                                    86,874                        94,959
           Small capital equipment                                             104,773                        65,108
           Computer equipment                                                  403,814                        66,185


  Operating lease rentals
           Land and buildings and other equipment                          7,535,096                    7,587,269


  Profit on disposal of property, plant and equipment                       197,222                                -


  Auditors’ remuneration                                                    300,000                 255,166
           Audit fees - current year                                        215,000                          215,000
           Other services                                                   85,000                            40,166


  Board members’ emoluments                                                 458,659                          372,358
           Fees for services as directors                                   490,955                          214,421
           Fees for other services                                          160,244                           27,845
           Expense allowances                                               264,118                          130,092
                                                                            915,317                          372,358
           Less: recovery for restructuring expenses from MEEC             (456,658)                               -


  Staff costs (see note 3)                                                44,708,287                   51,800,482
  Implementation team and individual contractors payments and               28,937                      4,043,644
  expenditure


                                                     54
                mpumalanga parks board               annual report • 2002-03

                                 MPUMALANGA PARKS BOARD
                             NOTES TO THE FINANCIAL STATEMENTS
                                 for the year ended 31 March 2003



                                                                     2003            2002
                                                                       R              R
3 Staff costs


  Salaries                                                         41,214,952         45,092,402
  Wages                                                            1,401,335           1,272,492
  Increase in provision for leave pay                                1,041,192            237,016
  Decrease in provision for bonus pay                                 (11,584)            (62,913)
  Voluntary severance packages                                     1,062,392           5,261,485
                                                                    44,708,287        51,800,482


  Number of employees:
  Full time                                                                 473                562
  Part time                                                                   91               131


4 Finance costs


  Interest paid
              Interest bearing borrowings
               INCA                                                2,360,000           2,360,000
               Non-finance leases                                   239,983               456,264
                                                                   2,599,983       2,816,264


  Investment income - accrued to
              Nelspruit Financing Partnership                      6,254,371           4,085,028




                                                55
                           mpumalanga parks board                            annual report • 2002-03

                                                     MPUMALANGA PARKS BOARD
                                            NOTES TO THE FINANCIAL STATEMENTS
                                                for the year ended 31 March 2003




5   Property, plant and equipment


                             Buildings    Large capital     Motor           Furniture       Technical       Small capital    Computer        TOTAL
                                                                                            furniture
                                           equipment        vehicles       and fittings       and            equipment       equipment
                                                                                            equipment


                                R               R              R                R              R                 R               R              R


    Year ended 31 March
    2003


    Opening net carrying
    amount                  36,817,417           81,307      454,349                9,071       83,567            83,528        147,427     37,676,666
    Additions                  347,362          278,969      563,282           497,539         135,612           243,634      1,463,651      3,530,049
    Disposals                 (420,863)                 -   (129,314)                   -               -                -              -    (550,177)
    Depreciation            (2,811,093)         (85,136)    (584,191)          (28,751)        (86,874)         (104,773)      (403,814)    (4,104,632)


    Closing carrying
    amount                  33,932,823          275,140      304,126           477,859         132,305           222,389      1,207,264     36,551,906




                                                   MPUMALANGA PARKS BOARD
                                                NOTES TO THE FINANCIAL STATEMENTS
                                                    for the year ended 31 March 2003


5   Property, plant and equipment (continued)


                             Buildings    Large capital     Motor           Furniture       Technical       Small capital    Computer        TOTAL
                                           equipment        vehicles       and fittings     furniture        equipment       equipment
                                                                                              and
                                                                                            equipment


                                R               R              R                R              R                 R               R              R


    Year ended 31 March
    2002


    Opening net carrying
    amount                   39,563,119         129,708      994,630            14,924         178,526           138,938        104,564     41,124,409
    Additions                   58,735              6,000              -            4,675               -            9,698      109,048        188,156
    Depreciation            (2,804,437)         (54,401)    (540,281)          (10,528)        (94,959)          (65,108)       (66,185)    (3,635,899)


    Closing carrying
    amount                  36,817,417           81,307      454,349                9,071       83,567            83,528        147,427     37,676,666




                                                                       56
                     mpumalanga parks board                   annual report • 2002-03



                                 MPUMALANGA PARKS BOARD
                              NOTES TO THE FINANCIAL STATEMENTS
                                  for the year ended 31 March 2003


    Property, Plant and Equipment
5   (continued)
                                        Depreciation          Cost or      Accumulated      Carrying
                                            rate          Valuation        Depreciation     Amount


                                             %                  R               R              R


    Year ended 31 March 2003


    Buildings                                      5%         55,706,006     (21,773,183)    33,932,823
    Large capital equipment                        25%         1,635,070      (1,359,930)       275,140
    Motor vehicles                                 33%         5,538,765      (5,234,639)       304,126
    Furniture and fittings                  20 - 25%           3,152,632      (2,674,773)       477,859
    Technical furniture and equipment              20%         1,273,970      (1,141,665)       132,305
    Small capital equipment                        25%         3,679,365      (3,456,976)       222,389
    Computer equipment                             33%         1,977,867       (770,603)      1,207,264
                                                              72,963,675     (36,411,769)    36,551,906




    Year ended 31 March 2002


    Buildings                                      5%         56,141,645     (19,324,228)    36,817,417
    Large capital equipment                        25%         1,356,101      (1,274,794)          81,307
    Motor vehicles                                 33%         5,414,853      (4,960,504)       454,349
    Furniture and fittings                  20 - 25%           2,655,092      (2,646,021)           9,071
    Technical furniture and equipment              20%         1,138,358      (1,054,791)          83,567
    Small capital equipment                        25%         3,435,731      (3,352,203)          83,528
    Computer equipment                             33%          514,259        (366,832)        147,427
                                                              70,656,039     (32,979,373)    37,676,666




                                                         57
                 mpumalanga parks board                     annual report • 2002-03

                                MPUMALANGA PARKS BOARD
                            NOTES TO THE FINANCIAL STATEMENTS
                                for the year ended 31 March 2003


                                                                           2003         2002
                                                                             R           R
6 Unlisted investments


   Nelspruit Financing Partnership                                       46,456,315      36,685,193


   This investment arises from the Deposit Agreements between
   the Mpumalanga Parks Board and the Nelspruit Financing
   Partnership. The Deposit Agreements form part of the financing
   structure used to acquire the Head Office premises and 7 other
   properties and earn interest at 14.18% and 12.78% per annum.
   The agreements would end in September 2007 and February
   2009 respectively.


7 Biological assets


   Immature
   Buffalo calves - total number in 2003 :103 / 2002 : 58                3,376,552        1,920,000


   Mature
   Buffalo cows - total number in 2003 :101/ 2002 : 125                  4,040,000        5,000,000
   Buffalo bulls - total number in 2003 :8 / 2002 : 13                    400,000            650,000
                                                                         7,816,552    7,570,000


   Reconciliation of changes in opening balances and closing
   balances:
   Opening balance                                                       7,570,000        5,736,897
   New births                                                            1,953,104                 -
   Died                                                                 (1,109,311)                -
   (Sold)/Purchases                                                      (597,241)        1,833,103
   Closing balance                                                       7,816,552    7,570,000




                                                     58
                    mpumalanga parks board                annual report • 2002-03


                                     MPUMALANGA PARKS BOARD
                                 NOTES TO THE FINANCIAL STATEMENTS
                                     for the year ended 31 March 2003



                                                                          2003         2002
                                                                           R             R
       Inven-
     8 tories


       Consumable stores                                                138,433              130,610
       Stock in trade                                                   268,795              209,318
       Fuel                                                             127,895               94,566
       Uni-
       forms                                                             81,590              180,629
                                                                        616,713       615,123


     9 Receivables and prepayments
       Trade receivables
                Total trade receivables                                1,771,161          2,126,287
                Less: Provision for doubtful debts                     (1,699,706)      (1,778,207)
                                                                         71,455       348,080
       Other receivables
                Sundry debtors                                           35,391                    -
                Staff debtors                                           116,288               87,018
                Value Added Tax                                         564,980           3,677,075
                                                                        716,659      3,764,093


       Receivables and prepayments                                      788,114      4,112,173


10     Cash and cash equivalents
       Bank balances                                                   28,003,574       14,296,908
       Cash on hand                                                      21,150               21,970
                                                                       28,024,724    14,318,878


       Included in bank balances are the following amounts that have
       been committed to:
                Project Mkhombo (infrastructure development)           9,077,159     11,397,975
                VSP packages to be paid                                     -        3,438,515
                                                                       9,077,159     14,836,490




                                                     59
                    mpumalanga parks board                    annual report • 2002-03

                                  MPUMALANGA PARKS BOARD
                              NOTES TO THE FINANCIAL STATEMENTS
                                  for the year ended 31 March 2003


                                                                             2003         2002
                                                                              R            R
11   Interest bearing borrowings
     Development Bank of South Africa
              Total amount outstanding                                     611,773             836,079
              Less: Current portion transferred to current liabilities    (151,871)         (210,452)
                                                                           459,902       625,627
              The loans bear interest at rates of between 4% and
              7% and are repayable in bi-annual instalments and the
              redemption date for these loans is 30 September 2003
              and 30 September 2006.


     Stannic - Instalment sale agreements
              Total amount outstanding                                         -               848,891
              Less: Current portion transferred to current liabilities         -            (189,577)
                                                                              0                659,314


              Secured by certain vehicles and small capital equip-
              ment, repayable in monthly instalments of ap-
              proximately R18 620 bearing interest at rates varying
              between 14.5% and 19.5% per annum.


     Infrastructure Financing Corporation Limited
              Loan 1 (Less than 1 year)                                     5,000,000       5,000,000
              Loan 2 (Less than 1 year)                                     5,000,000       5,000,000
              Loan 3 (Later than 1 year and not later than 5 years)         5,000,000       5,000,000
                                                                           15,000,000      15,000,000
              Less: Current portion transferred to current liabilities    (10,000,000)               -
                                                                            5,000,000      15,000,000
              These 5-year loans are held under loan certificates.
              Loan 1 and 2 bear interest at 15.35% per annum and
              loan 3 at 16.5% per annum, payable on 31 December
              and 30 June each year. The capital in respect of loans
              1 and 2 is to be repaid on 30 June 2003. The capital in
              respect of loan 3 is to be repaid on 30 June 2006.


     Total interest bearing borrowings                                      5,459,902      16,284,941


     Maturity of non-current borrowings
              Between 1 and 2 years                                        10,151,871          400,029
              Between 2 and 5 years                                         5,459,902      16,284,941
                                                                           15,611,773      16,684,970




                                                         60
                     mpumalanga parks board                     annual report • 2002-03

                                      MPUMALANGA PARKS BOARD
                                  NOTES TO THE FINANCIAL STATEMENTS
                                      for the year ended 31 March 2003
                                                                                 2003          2002
                                                                                   R             R
12      Other borrowings


        Nelspruit Development Trust                                            31,371,408        28,110,192
        This liability arises from distributions received from the Nelspruit
        Development Trust in terms of a Capital Distribution Agreement.
        The amount bears no interest and is repayable in September
        2007. A second agreement is repayable in February 2009.


        Loan from subsidiary:
                 Paradise Loop (Pty) Ltd                                       2,684,004          2,684,004
                 Bears no interest and repayment terms have not been
                 negotiated.
                                                                               34,055,412    30,794,196


     13 Trade and other payables


        Trade payables                                                         1,189,026          1,209,532


        Other payables
                 Accruals                                                      5,090,018          7,321,888
                 Provision for audit fees                                       215,000              215,000
                 Project accounts                                               238,090           2,093,661
                                                                               5,543,108     9,630,549


        Total trade and other payables                                         6,732,134     10,840,081


     14 Deferred income (Capital Development Fund)
        At beginning of year                                                    11,397,975       11,546,945
        Funds utilised during the year                                         (2,320,816)        (148,970)
        At end of year                                                           9,077,159       11,397,975


     15 Provisions


        Provision for leave pay                                                  2,927,828        1,886,636
        Provision for bonuses                                                     481,665            493,248
                                                                                 3,409,493        2,379,884
16      Tax status


        The board is exempt from South African Normal Taxation in terms of
        section 10(1) of the Income Tax Act, 1962.


                                                           61
                     mpumalanga parks board                     annual report • 2002-03
                                  MPUMALANGA PARKS BOARD
                              NOTES TO THE FINANCIAL STATEMENTS
                                  for the year ended 31 March 2003

                                                                              2003          2002
                                                                               R              R


17 Notes to the cash flow statement
    Cash generated by operations


    Operating surplus before interest                                      19,051,234          8,992,976
    Adjustments for:
             Increase in fair value of biological assets                   (843,793)         (1,833,103)
             Depreciation (note 5)                                         4,104,632           3,635,899
             Profit on disposal of property, plant and equipment
             (note 2)                                                      (197,222)                     -
             Profit on sale of biological assets                           (399,792)                     -
    Operating income before working capital changes                        21,715,059        10,795,772


    Increase in inventories                                                  (1,590)              (92,552)
    Decrease in trade and other receivables                                3,324,059           1,677,207
    Decrease in trade and other payables                                   (4,107,947)       (5,854,062)
    (Decrease)/increase in deferred income                                 (2,320,816)        11,397,975
    Increase in provisions                                                 1,029,609              177,088
    Prior year adjustment                                                  (218,195)                     -


                                                                           19,420,179     18,101,428


    Cash and cash equivalents
    Cash and cash equivalents consist of cash on hand and balances
    with banks. Cash and cash equivalents included in the cash flow
    statement comprise the following balance sheet amounts:
             Cash and cash equivalents                                     28,024,724        14,318,878


18 Subsequent events


    Mthomeni camp was burnt down by a fire on the 8 April 2003 and the
    estimated damage amounts to an excess of R400 000. Damage claims
    have been lodged with the insurance company.




                                                           62
                    mpumalanga parks board                   annual report • 2002-03
                                   MPUMALANGA PARKS BOARD
                               NOTES TO THE FINANCIAL STATEMENTS
                                   for the year ended 31 March 2003



19 Contingent Liabilities


    Promissory notes issued to foreign parties relating to the Dolphin Agreement


    At 31 March 1998 three known promissory notes were in issue with a total value of R1 500 million, which may have
    exposed the Mpumalanga Parks Board to a payment to a foreign party without having received value. An attempt
    to negotiate one of these notes had been made by the holder. No funds had been received thus none were owing.
    Accordingly, no financial assets or financial liabilities were recorded in the balance sheet. These notes were subse-
    quently withdrawn and cancelled during the 1999 financial year without being negotiated and thus no exposure or
    liability, exists at the current financial year end date.
    The issue of the Promissory Notes contravened the Exchange Control Regulations, the matter was investigated by
    the South African Reserve Bank

    The possibility exists that additional promissory notes may be in issue. Although no further promissory notes have
    been presented, the existence of such promissory notes cannot be disregarded.


    Guarantees in respect of third party liabilities


    At the 31 March 1999 financial year end three known Guarantees were in issue with a total value of US$50 million
    which may have exposed the Mpumalanga Parks Board to a foreign exchange liability to a foreign party without
    having received value. No funds had been received and thus none were owing. These guarantees were subsequently
    declared null and void by the Special Court, Eastern Cape Division, on 23 June 1999 without being negotiated and
    thus no exposure or liability exists at the date of the issue of the financial statements.
    The issue of the Guarantees contravened the Exchange Control Regulations, the matter was investigated by the South
    African Reserve Bank.
    The possibility however exists that additional Guarantees may be in issue, which are unknown to the Mpumalanga
    Parks Board.


    Potential Liability in terms of the Dolphin agreement


    It is alleged that the Mpumalanga Parks Board has entered into an agreement with the Dolphin Group. The Mpuma-
    langa Parks Board may be exposed to potential liability if the terms of the alleged agreements were to be enforced.



    Potential public liability
    During the prior year a member of the public was accidentally shot and killed on 21 September 2001 by a Ranger on
    the Loskop Dam Nature Reserve. The Mpumalanga Parks Board may be exposed to potential liability. The amount
    and likelihood of the potential liability is unknown. Mpumalanga Parks Board is insured to the amount of R10 mil-
    lion in the event of death of a third party or damage to third party property.




                                                        63
                             mpumalanga parks board              annual report • 2002-03

                                               MPUMALANGA PARKS BOARD
                                              DETAILED INCOME STATEMENT
                                               for the year ended 31 March 2003
                                                                              2003                  2002
                                                                                  R                  R
Grants received                                                                       84,300,000           77,631,201
Revenue                                                                                9,324,943            9,671,786
Total Revenue                                                                         93,624,943           87,302,987


Other operating income                                                                   845,483              394,350
Expenditure
Advertising                                                                              690,725               86,313
Auditors’ remuneration                                                                   300,000              255,166
Bad debts                                                                                       -           1,349,521
Bank charges                                                                             278,691              199,307
Board members’ emoluments                                                                458,659              372,358
Consulting fees                                                                        1,695,796            1,364,953
Consumables                                                                              280,835              162,580
Depreciation on property, plant & equipment                                            4,104,632            3,635,899
Educational courses                                                                      490,789                     -
Entertainment                                                                                   -              39,314
Environmental management                                                               1,122,395               74,781
First aid and medical services                                                             8,435                     -
Forum                                                                                     28,937               10,172
Game costs                                                                             1,620,738            1,381,653
Implementation team fees                                                                        -           4,043,644
Insurance                                                                                604,544              731,250
Legal fees                                                                               392,230              461,332
Levies                                                                                   155,850               84,261
Licenses                                                                                  74,640               25,220
Maintenance                                                                            1,266,948              671,379
Managerial services                                                                       27,057                4,386
Operating lease rentals                                                                  981,933            1,730,462
Property rentals                                                                       6,553,163            5,856,807
Rations                                                                                  473,034                     -
Security costs                                                                           901,785              654,216
Staff costs                                                                           44,708,287           51,800,482
Stale cheques written-off                                                              (683,800)                     -
Stationery                                                                               465,310              217,395
Subscriptions                                                                             50,164               29,762
Subsistence allowances and travelling                                                  2,155,395                     -
Technical services                                                                              -              25,159
Telephone and fax                                                                      1,670,786            1,224,174
Training staff                                                                                  -              10,494
Transport for staff                                                                       98,156                     -
Travel and accommodation                                                                 266,953              109,335
Uniforms                                                                                 109,068                     -
Vehicle running expenses                                                               1,937,447            1,188,107
Water and electricity                                                                    775,935              904,479
Workmen’s compensation                                                                 1,353,675                     -
Operating expenses                                                                    75,419,192           78,704,361


Operating surplus                                                                     19,051,234            8,992,976
Investment income                                                                      6,254,371            4,085,028
Finance cost                                                                          (2,599,983)          (2,816,264)

Net surplus                                                                       22,705,622        10,261,740

                                                            64
mpumalanga parks board    annual report • 2002-03




                     65
mpumalanga parks board         annual report • 2002-03




            Mpumalanga Parks
                Board
                  PRODUCED BY:
                  Communication Services
        E-mail: david.muziomuhle@pboard1.agric.za

                Mpumalanga Parks Board
                    Halls Gateway
                   N4 National Road
                        Nelspruit
                  Tel: +27 13 759 5300
                 Fax: + 27 13 755 4014

                   Private Bag X 11338
                        Nelspruit
                           1200

                          ISBN:
                           PR:

       The material in this publication may be freely
        reproduced on condition that the source is
        acknowledged and it is not used for profit
                     or personal gain.
mpumalanga parks board    annual report • 2002-03




                     67

				
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