Annual Report. South African National Parks Annual Report 2004

Transcription

1 2004 Annual Report South African National Parks Annual Report 2004

2 South African National Parks Annual Report 2004 Table of Contents Map 1 Executive Management 2 Chairperson s Report 3 Chief Executive s Report 5 Conservation Services Report Land Acquisition 7 Managing Biodiversity 8 Laws and Policies 9 Land Claims in National Parks 9 Transfrontier Conservation Update 10 People and Conservation Report 12 Human Resources Report 14 Tourism Development Report 16 Corporate Communications Report 19 Special Projects Vth World Parks Congress 22 Poverty Relief Programme 24 Invasive Alien Species Control Report 25 The Wild Card 26 Commercial Development 27 The My Acre of Africa Initiative 28 Park Access for People with Disabilities 29 Honorary Rangers 30 National Parks Report Parks Report Kruger National Park Report 31 Southern Parks Report Cape Parks Cluster 35 Garden Route Parks Cluster 43 The Frontier Parks Cluster 48 The Arid Parks Cluster 53 The Grassland/Northern Parks Cluster 58 Materiality Framework 64 Annual Financial Statements 65

3 1 2 NATIONAL PARKS REPORT PARKS REPORT The Management of South African National Parks Kruger National Park Report SOUTHERN PARKS REPORT Cape Parks Cluster Table Mountain National Park (previously known as Cape Peninsula National Park) Agulhas National Park Bontebok National Park West Coast National Park Tankwa-Karoo National Park Garden Route Parks Cluster Tsitsikamma National Park Wilderness National Park Knysna National Lake Area The Frontier Parks Cluster Addo Elephant National Park Karoo National Park Mountain Zebra National Park The Arid Parks Cluster Kgalagadi Transfrontier Park Augrabies Falls National Park Namaqua National Park Ai- Ais/Richtersveld Transfrontier Park The Grassland/Northern Parks Cluster Golden Gate Highlands National Park Marakele National Park Vaalbos National Park Vhembe/Dongola National Park National Parks Map Executive Management Directors manage the 20 national parks under SANParks. In this period under review these were: Dr David Mabunda Chief Executive Mr Aniel Soma Chief Financial Officer Dr Bandile Mkhize Executive Director: Kruger National Park Mr Hector Magome Executive Director: Conservation Services Mr Paul Daphne Executive Director: Parks Mr Glenn Phillips Executive Director: Tourism Development Dr Razeena Wagiet Executive Director: People and Conservation Ms Wanda Mkutshulwa Head: Communications Mr Josias Chabane Head: Human Resources Ms Pauline van der Spuy Executive Manager: CE s office The Board The South African National Parks Board is the highest Executive decision-making body of SANParks and consists of 18 members appointed by Government. For the period 1 January 2003 to 1 January 2005, they are: General Provincial Representatives Dr Tanya Abrahamse Mr Gabriel Mokgoko - (North West) Ms Phindile Nzimande Ms Sheila Vrahimis - (Free State) Dr Zarina Patel Ms Charmaine Klein - (Western Cape) Mr John Samuel Mr Meshack Nkosi - (Mpumalanga) Mr Murphy Morobe (Chairperson) Mr Mduduzi Mchunu - (KwaZulu-Natal) Mr Thami Sokutu Mr Zakhele Sithole - (Gauteng) Prof. Willem van Riet Mr Clive Walker - (Limpopo) Ms Vuyokazi Mbelani Mr Edward Mokgatlhe - (Northern Cape) Ms T Khumbane (resigned) Mr Bernard Kwaaiman - (Eastern Cape) Board Secretary Acting: Ms Zorro Nyathi Administration Head Office: Postal Address: 643 Leyds Street PO Box 787 Muckleneuk Pretoria Pretoria 0001 Tel: +27 (12) Fax: +27 (12) Website:

4 CHAIRPERSON S REPORT It gives me immense pleasure to be presenting this year s annual report which shows that South African National Parks (SANParks) is indeed on the path to greater things. Much progress has been achieved in the past financial year. The current Board has done a sterling job in monitoring the processes of the organisation and in working with the Executive Management, as our Directorate has come to be called, in ensuring that SANParks is steered in the right direction. In the last year we have seen the resignation of one Board member, Ms T Khumbane, due to other commitments. Her contributions were much appreciated and it was a pity that we had to lose her valuable inputs. areas. We were pleased to be asked by DEAT to organise this event on their behalf, though we were not aware of the challenges that would be posed by this exercise. I would like to pay particular thanks to the previous Chief Executive, Mr Msimang, for the sterling work he did in organising this event. His sacrifices will not be forgotten. He and his team made sure that the event was of world class standards and we believe, in our bias, that this is probably the best well run congress that the IUCN has ever seen. However, the financial report will reflect that this congress cost the organisation a sizeable amount, which I might add does not particularly disturb us as we realise that the political gains for this country far outweigh the financial implications for ourselves. organisation. The name of the Cape Peninsula National Park was changed to that of Table Mountain National Park through a public participation process which saw an overwhelming majority voting for the name change. The name change was mostly informed by SANParks bid to improve the performance and marketability of some of its products and recognition of the wide appeal and international status of the new name. The Board continues to be encouraged by the progress shown in the expansion of the conservation estate through initiatives like the purchase of land, formation of Chairperson s Report This past year also saw us losing the Chief Executive, Mavuso Msimang, who has joined the State Information Technology Agency (SITA). His contributions will also be sorely missed. At this stage I would like to introduce the new Chief Executive, David Mabunda. Mr Mabunda is no stranger to SANParks, having been the Director of Kruger National Parks for a period of almost five years before this latest appointment. I am sure that with the support of his Executive Management team Mr Mabunda will make a success of his tenure. The last year saw SANParks hosting the Vth World Parks Congress on behalf of the Department of Environmental Affairs and Tourism (DEAT), a premier conservation gathering under the auspices of the IUCN-World Conservation Union. The request from the IUCN for South Africa to host this event showed once again the confidence of the world in S. Africa s contributions and successes in an array of issues that are of particular concern to the rest of the world, including protected In the last financial year s report I mentioned the formation of the Directorate: People and Conservation. I am happy to announce that this directorate was eventually formed in July 2003 with the appointment of Dr Razeena Wagiet, Executive Director: People and Conservation. Dr Wagiet has outlined the broad focus for this directorate, which ranges from environmental education, interpretation and awareness to capacity building. The old social ecology unit has been absorbed into this department and much work is being done to ensure the success of this initiative.the resolutions made at the Vth World Parks Congress, with its theme Benefits Beyond Boundaries, saw this initiative gaining more political support locally and globally. It speaks of the calibre of leadership at SANParks to show that when the issue of lack of PDI visitor numbers was brought to its attention, much was done about it before being forced to do so through initiatives like those of the IUCN. The last financial year also saw a number of changes in the contractual park arrangements and the formation of Trans-boundary Parks as is displayed in the report. The contractual park arrangement is becoming a more viable option as we see most land targeted for purchase by SANParks being priced out of the market. Thus far, these arrangements seem to be working well. It is with confidence and pride that I present to you this annual report. National parks are our natural heritage and should be enjoyed and cherished by all. Let us all take the time to visit them and continue to respect their value to the nation for generations to come. To the Chief Executive, Executive Management and staff, I would like to express the Board s sincere thanks for a job well done during the past financial year. Mr Murphy Morobe CHAIRPERSON 3 4

5 CHIEF EXECUTIVE REPORT As in recent years, the past financial year has seen the South African National Parks (SANParks) amassing noteworthy achievements and attaining hoards of impressive milestones and growth within a multitude of areas. In the year under review SANParks saw the inclusion of three new members at Executive Management level. With the departure of the previous Executive Director: Parks, Mr Paul Daphne, previously Chief Executive of North-West Parks, was appointed. We were also able to fill the new position of Executive Director: People and Conservation with the appointment of Dr Razeena Wagiet, former Adviser to then Education Minister, Prof. Kader Asmal. Dr Bandile Mkhize joined SANParks as Executive Director: KNP after I moved to assume my current position. Dr Makhize was previously CEO of Trade and Investment in KwaZulu-Natal. The Kruger National Park (KNP), which recorded 1.3 million visitors last year, continues to be our flagship as it carries on attracting impressive numbers of visitors. Over and above its impressive scenic views and abundant wildlife, the KNP now boasts several upgrades to its infrastructure and facilities including the recently refurbished Pafuri Gate in the far Northern region of the park. The recently established directorate, People and Conservation, still affirms and displays SANParks commitment to ensuring that national parks provide benefits beyond boundaries in terms of implementing community-based capacity building programmes with the aim of developing mutually beneficial relations with the education sectors while ensuring better access to disadvantaged communities to our parks as well as building a strong stakeholder liaison network for SANParks. SANParks still strives to explore ways in which communities within close proximity of the national parks can derive usage and benefits from national parks resources and at present systems and programmes have been put in place. Some of the innovative methods which have been employed include the harvesting of alien and indigenous fauna and flora in accordance with the sustainable use policy of the Board. While land claims remain a challenging ongoing issue, SANParks, as a state organ and an agent (organ) of transformation, recognises the value of redressing past injustices and as such we are working very closely with the Land Claims Commission. However, thinking has to be applied towards a win-win situation for both biodiversity management the maintenance of our natural and cultural heritage and the resolution of land claims on protected areas. The creative solutions need to be sustainable and beneficial to our communities. To this end, SANParks prides itself in having played an active role in assisting the Riemvasmaak community in de-proclaiming a large section of the Augrabies Falls National Park and, negotiations to have the de-proclaimed land used as a contractual park for the benefit of both biodiversity and people are still underway. Alien biota remains one of the greatest threats to biodiversity and, we are Chief Executive s Report 5 pleased to be continuing our partnership with Working for Water, an initiative of the Department of Water Affairs and Forestry, in empowering poverty stricken communities through the clearing of alien flora in our endeavours to create a healthy and sustainable ecosystem. However, one of the notable challenges for SANParks in the coming few months would be to develop a lasting solution to the escalating problem of elephant over population in a number of national parks under our management. We are starting to see tell tale signs of over usage and elephant damage of trees in a number of national parks that are host to elephants and if we are to avoid permanent species loss in some areas we will need to deal with the situation. We will be going through a public review process in order to ensure that the solution to the issues is as representative as can be possible. Small, Medium and Micro Enterprises (SMME s) have also continued to flourish and benefit from construction projects currently taking place in some of the parks, notably Addo National Park and KNP. These include repair and maintenance of buildings as well as the construction of new roads and structures such as the newly constructed Mapungubwe National Park gate and road trail. Working relations with various communities have also reached a new level with several joint management projects being negotiated and undertaken. In the same token, the commercialisation programme is settling well into the parks system, while creating much needed private sector investment and empowerment opportunities, as well as employment opportunities for communities close to the national parks. The 8% target for land under protection by 2010 which was announced by the previous Minister of Environmental Affairs & Tourism at the Vth World Parks Congress poses a serious challenge to SANParks and other conservation agencies. In simple terms it means creating a system of protected areas equal to the present size of national parks under SANParks to double the estate, almost 3 million ha. However, it is also encouraging to report that the size of land under protection is being constantly expanded through several innovative initiatives, including contract parks and public-private initiatives. Many thanks should be given to the Minister,Vallie Moosen, and the Department of Environmental Affairs for playing a crucial role in assisting us to achieve this goal. The other initiative that we are still pursuing vigorously, with help from the DEAT and the Peace Parks Foundation, is that of establishing transfrontier conservation areas. Although this initiative does not necessarily increase the land under conservation in South Africa, it however makes it much easier to manage wildlife through the expansion of management areas and can only be to the benefit of biodiversity management in southern Africa. In the report on this initiative there is mention of the latest national park to join in this escalating list of established transfrontier parks, the Ai Ais/Richtersveld Transfrontier Park. Last year, we reported on SANParks Tourism and Marketing Department s plans to develop a system that would draw and retain more South African visitors to our parks and we are happy to announce that the Wild Card system has in a short space of time, managed to attract well over card holders, a far cry from the projected sales. Although the Wild Card loyalty programme aims at increasing access to national parks as well retaining and increasing our current tourism business, simultaneously it contributes much needed revenue for the support of conservation initiatives. With this system in place, no longer do visitors have to pay a once-off entrance fee into our national parks regardless of their stay s duration. Designed mainly for the South African and SADC country visitors, the (ditto) Wild Loyalty Card affords visitors free access to our national parks and is available for a period of 6 and or/12 months. The International Wild Pass was also introduced in order to give discounted benefits to our loyal international visitors. The tourism aspect of our business has received a tremendous boost from the DEAT Poverty Relief Programme, termed the Parks Empowering People, which has seen SANParks not only developing new tourism infrastructure and refurbishing old ones but also positively contributing to the economic upliftment of surrounding communities. It is with pride that I present to you this year a total different report about the progress on this programme - depicting a story of success -, as opposed to last financial year s report. Our staff members are one of the most important assets that we have and as such we have made it a point to invest in their development. More funds have been committed to staff training and development and we are happy to report that we are starting to see the returns from this exercise through improving service levels to visitors. The main aim for the next financial year will be to attract as many previously excluded members of our society to our national parks as possible, all in an attempt to share South Africa s heritage with all who live in it. Dr. David Mabunda CHIEF EXECUTIVE 6

6 CONSERVATION SERVICES REPORT LAND ACQUISITION The objective of increasing state protected area from 6% to 8% by 2010 (see 2003 Annual Report), is still being pursued. However, the "Property Rates Bill" proposes to impose a land tax on all non-state land including privately owned land currently used for wildlife conservation. If this Bill is passed as proposed, the private sector will lack the incentive to contribute their land to state protected areas because doing so is likely to restrict their commercial use options. Without the support of privately-owned land, it is unlikely that the state will reach the target of adding 3 million hectares to its conservation estate. This poses an even bigger challenge for SANParks as we have in recent years made use of the from government. It is hoped that in the new financial year much progress will be attained in this initiative. The Highveld National Park is important in that it will be one of the few grassland parks under the management of SANParks. The grassland biome is a largely under-protected area in South Africa and this park offers us yet another opportunity to rectify this omission. The proposed Pondoland and Blyde River Canyon national parks are still being negotiated by the Department of Environmental Affairs and Tourism (DEAT) and it is hoped that an amicable solution to the challenges posed by the different interests in these entities will be reached. Despite this, these have received greater attention from the Minister and the Department of Environmental Affairs and Tourism (DEAT). In February 2004, Minister Valli Moosa announced the consolidation of MPAs, namely Aliwal Shoal, Pondoland, the Bird Island Group, and Table Mountain National Park, and if this is achieved MPAs will cover 19% of the country s marine area. MANAGING BIODIVERSITY The ecosystems programme approach outlined in the 2003 Annual Report is used broadly to focus the efforts of our scientists. It follows from the mission statement of SANParks that biodiversity, broadly defined as levels of scale in terms of composition, structure, and function (including the totality of fauna, flora, landscapes, ecosystem processes and patterns) is the key driving force or imperative for managing national parks. Thus, the previous reference to Managing Fauna and Flora (see 2003 Annual Report) might create a wrong impression that SANParks is only concerned with Conservation Services Report opportunities provided by contractual park arrangements with private owners whose land is utilised in a similar manner as ours. It is hoped that amendments to this Bill will take into consideration these challenges and a solution can be reached. Various methods continue to be used in a bid to acquire more land under protection. These include the contractual arrangements which have been mentioned above, the government land acquisition grant, donations from numerous organisations and companies with a serious interest in protected areas. The Peace Parks Foundation continues to assist us in developing Trans-frontier park arrangements, which, though they might not contribute to the extension of land under conservation in South Africa, do contribute to an improved regional biodiversity management system. Plans to establish the Highveld National Park near Potchefstroom were held back because of delays in funding unique areas will not be lost to conservation regardless of who manages them, be it SANParks or provincial conservation agencies. On the other hand, the state Protected Area of the QwaQwa Reserve will be incorporated into the Golden Gate Highlands National Park and will be under the management authority of SANParks as from 1 May It is hoped that the added land will contribute immensely to a better biodiversity management of the area and may have some possible tourism spin-offs which are expected to also benefit the surrounding communities. Addo Elephant National Park has once again received a World Bank grant amounting to US$5.5 million (about R35 million) for expansion. This money is to be used towards the further expansion of the national park and development of the Greater Addo National Park project. We are happy to report that Marine Protected Areas (MPAs) animals and plants as opposed to its broad mandate of biodiversity conservation. Though species are important, they are but just a component of biodiversity conservation. To consolidate its biodiversity custodianship goals, SANParks has designed a framework to ensure a common understanding of baseline data, benchmarks and objectives for managing national parks. Once there is a broad-shared goal depicting what SANParks wants to achieve, then there is assurance that a common scoring system can be used to ascertain if indeed all the national parks are managed in line with agreed goals. The key elements of the draft biodiversity policy are briefly outlined below. Key elements of a biodiversity conservation policy The biodiversity conservation policy must ensure that: Representative examples of the country s biodiversity pattern (composition and structure) and process are sustained over time. An adaptive ecosystems approach to biodiversity conservation recognises the uncertainty inherent in managing complex and dynamic adaptive ecosystem in the face of potentially overwhelming anthropogenic influences. Biodiversity conservation in a developing African socio-economic context recognises the benefits of ecosystem services to people. 7 8

7 Principles guiding biodiversity conservation The following are guiding principles: Dynamism/flux, complexity and uncertainty characterise both natural ecosystems and the goals of adaptive bio-diversity management. A network of parks conserves the integrity of representative examples of biodiversity, in space and time, along with the associated cultural resources. Adaptive conservation management focuses on complementing natural processes in achieving explicit biodiversity outcomes.this implies a "minimum interference" philosophy except where anthropogenic influences warrant direct, even severe, interference to achieve our biodiversity custodianship mandate. Biodiversity forms the basis of the ecosystem services that sustain the benefits humans derive from conservation. Act 57 of 2003, the National Environmental Management Act: Protected Areas Act. This Act governs all state Protected Areas in the country. It therefore repeals the National Parks Act (57 of 1976). The third Act, the National Environmental Management Act: Biodiversity Conservation Act, is still before parliament and awaits the signature of the State President. In the context of biodiversity the Biodiversity Act when passed, will complement the Protected Areas Act. These Acts will have a profound influence on the management of national parks from here onwards. LAND CLAIMS IN NATIONAL PARKS SANParks is an organ of state; therefore, its policy approach is to support the Restitution of Land Rights Act (Act 22 of 1994 followed, current claims revisited and their success or failure reviewed. Thereafter, a coordinated approach should be followed on how to settle outstanding claims without compromising the nature conservation mandate. TRANSFRONTIER CONSERVATION UPDATE Considerable progress was made in the planning and development of transfrontier conservation areas in South Africa during As reported in the last annual report, the development of transfrontier conservation areas is not only in line with the objectives of NEPAD, but also featured as one of the key recommendations of the Vth World Parks Congress (WPC). SANParks is the South African implementing agent for four of these areas, namely the Great Limpopo Transfrontier Park, the Ai- Ais/Richtersveld Transfrontier Conservation Area, the Kgalagadi Transfrontier Park, and the proposed Limpopo/Shashe Transfrontier Conservation Area. In addition to these, SANParks is also involved through Golden Gate Highlands National Park in the establishment of the Maloti/Drakensberg Transfrontier Conservation Area. In developing transfrontier conservation areas, SANParks works closely with the Department of Environmental Affairs and Tourism (DEAT) in maintaining the momentum needed for the successful planning and implementation of transfrontier projects. Support from other partners and role players including relevant governments and implementing agencies, donors and NGOs such as the Peace Parks Foundation, has been tremendous. Great Limpopo Transfrontier Park South Africa continued with the translocation of animals from the Kruger National Park to the Wildlife Sanctuary in Limpopo National Park (LNP) in The Wildlife Translocation Programme is an important component of the development process of the GLTP in order to facilitate the establishment of wildlife in the recently proclaimed LNP in Mozambique. The integration of social, technical, ecological, economic and political (STEEP) issues of biodiversity management needed to achieve institutional health and sustainability is guided by explicit values. SANParks, as per its Constitutional obligations, is committed to transparent and accountable co-operative governance with stakeholders aimed at achieving the "sufficient consensus" needed to effectively meet its biodiversity custodianship mandate. NEW LAWS AND POLICIES National Parks, like all South African state Protected Areas, fall under the new laws governing environmental management in the country. Two key laws have been passed by Parliament, and these are: Act 46 of 2003, the National Environmental Management Act (NEMA). This is the overall Act that governs all environmental management in the country; it is the umbrella Act. as amended). Equally, the stated objective of government is to manage protected areas without detracting from the original objectives for which they were established. While government has not settled new claims against SANParks for the 2003 Annual Review, there are several claims pending, and not all are yet gazetted. It would appear that recent land claims against national parks might have unintended consequences of undermining this objective in that some national icons like The Kruger National Park may be reduced to so many different owners that in reality its status becomes reduced to a conservancy. There are hard and uncomfortable decisions which may have to be made in regard to this possibility and it is the hope of SANParks that the best possible solution will be attained. In order to balance the constitutional demands of the Restitution of Land Rights Act and those of Nature Conservation, SANParks is of the opinion that a holistic approach to land claims against protected areas must be The Peace Parks Foundation made R8 million available for the elephant translocation project and a further R10 million has been earmarked for future wildlife relocation. SANParks as the implementing agent, render all the professional and logistical support towards this project. In 2003, 878 wild animals, which included blue wildebeest, giraffe, impala, warthog, waterbuck and zebra, were translocated to the LNP. Also included were 38 elephants (5 family groups) that were released into the LNP in June and September 2003, coinciding with the African Union Summit held in Maputo Mozambique, and the WPC. This programme will be continuing into the new financial year with the further translocation of animals from the Kruger National Park (KNP) to the LNP. As part of the R40 million tourism infrastructure development programme in the KNP, South Africa is in the process of constructing a new border post with its partner country, Mozambique. The proposed border post is being constructed at Giriyondo, which is located north of Letaba on the eastern boundary of the KNP. Construction activities on the South African component of the proposed Giriyondo border post commenced in July 2003, and it is estimated that the border post structure would be completed towards the end of May Funding has also been secured for the Mozambican component of the border post. Mozambique is in the process of finalising the design of their component of the Border Post, and construction activities should commence in June The estimated construction period would be 5 to 6 months. 9 10

8 Ai- Ais/Richtersveld Transfrontier Park The planning and development process for the establishment of the Ai- Ais/Richtersveld Transfrontier Park made excellent progress over the last year, following the signing of the Memorandum of Understanding in August The International Treaty for the proclamation of the transfrontier park was signed by President Thabo Mbeki of South Africa and President Sam Nujoma of Namibia on 1 August 2003 in Windhoek, Namibia. The Inaugural Ministerial Committee meeting for the Ai- Ais/Richtersveld Transfrontier Park was held on 28 February 2004 at Sendelingsdrift in the Richtersveld National Park. In line with the objectives of the International Treaty, the Joint Management Board (JMB) responsible for the management of joint issues relating to the further development and management of the Ai- Ais/Richtersveld Transfrontier Park was established at the meeting. Understanding (MoU) in 2004, setting in motion the necessary actions towards the formal establishment of the transfrontier conservation area. Combined efforts by DEAT, Limpopo Province and SANParks resulted in the Mapungubwe Cultural Landscape being declared a World Heritage Site by UNESCO on 3 July This will add significant value to the proposed Limpopo/Shashe TFCA. Maloti-Drakensberg Transfrontier Project Good progress has been made in activities relating to the planning and establishment of the Maloti/Drakensberg Transfrontier Conservation and Development Area between Lesotho and South Africa. The project was officially launched on 22 August 2003 at Mokhotlong, Lesotho. Apart from the proposed incorporation of the Qwa-Qwa land PEOPLE AND CONSERVATION REPORT A core focus for South African National Parks is to build constituencies on international, national and local levels, in support of the conservation of our natural and cultural heritage through the People and Conservation directorate. Established in July 2003, this directorate draws on environmental education, capacity building, interpretation and awareness, to foster strong relationships with the broader public and communities in-and-around the national parks. The long-term goal for the directorate is to build constituencies amongst the South African population, through environmental education, training, interpretation, and awareness, for people to support the conservation of SANParks national heritage efforts, while also contributing towards socio-economic upliftment of communities in-and-around the SA national parks. The key challenges for the department are to develop a strategy around, specifically, People and Conservation Report Kgalagadi Transfrontier Park The Kgalagadi Transfrontier Park went into operation in 1999 with the Heads of State of the two countries signing the Agreement for the establishment of the Park. As Southern Africa's first transfrontier park, the Kgalagadi Transfrontier Park was formally opened on 12 May 2000 by the Heads of State of Botswana and South Africa. The overall development and management of the Park is going well, with the South African side diversifying its tourism products on offer through the further development of small wilderness camps. Limpopo/Shashe Transfrontier Conservation Area After some initial delays, the Limpopo/Shashe Transfrontier Conservation Area initiative has picked up momentum. Indications are that the three governments involved in the project will be looking at signing the Memorandum of as part of Golden Gate Highlands National Park, SANParks is also adding value to the project with the development of Poverty Relief funded tourism facilities in the Park. a cultural resource management and indigenous knowledge programme, as well as a community-based conservation programme. In addition, a social science research unit has been established with the overall objective being to coordinate an effective research programme to complement and enhance the core functions of the People and Conservation directorate at corporate and park levels. To date, the directorate headed the establishment of joint ventures with several government departments, such as Education, Water Affairs and Forestry, Arts and Culture and Environmental Affairs and Tourism. In support of Curriculum 2005, through the parks educational programmes, the directorate established a partnership with the National and Provincial Departments of Education to further environmental learning, while linkages with the Department of Water Affairs and Forestry involve a capacity-building programme on water resource management strategies for communities in-and-around the Arid Parks Cluster. The other linkage was with the Participatory Forest Management programme, in anticipation of the hand-over of indigenous state forests to SANParks

9 The rapid loss of our natural and cultural heritage necessitates urgent responses that address both environment and development issues and as such one of the key tools to be used is environmental education, a process which is widely recognised as being crucial in addressing such challenges. The directorate prioritised educating the youth, through the curriculum, and the development of outcomes-based aligned learning support materials focusing on the conservation of our natural and cultural heritage, whilst developing greater access programmes for previously disadvantaged learners. To ensure that the youth get more exposure to biodiversity management, SANParks partnered with the Wilderness Foundation, a partnership that resulted in the creation of the Imbewu Youth Project. This project is aimed at selecting youths during December The aim was to raise awareness of the needs of disabled people, accessibility and how they experience their world. For SANParks, this highlighted the need to be sensitive when infra-structure is developed, as well as the need for the development of programmes that include a multitude of senses. Initiatives to accommodate this aspect had already been implemented through the Tourism Development directorate. SANParks recognises that the survival, protection and effective management of our biodiversity is dependent on the relationship between our national parks and the communities. In as much as the national parks rely heavily on the communities surrounding the parks, the livelihood of the communities themselves is heavily dependent on the parks as well. Notwithstanding notable progress made, equitable community conservation initiatives remain a challenge globally, as was highlighted at the Vth World Parks Human Resources Report displaying interest, leadership qualities and responsibility. It endeavours to develop in them an emotional link between themselves, their culture and nature. Two Junior Honorary Rangers from this youth outreach project participated in the Opening Session of the Vth World Parks Congress, demonstrating the gains made by this project. To also cater for the even younger generation, the Morula Kids Competition, aimed at primary school children, is designed specifically to enhance conservation awareness, while also encouraging our youth to participate in conservation through employing their creative skills to interpret natural and cultural conservation issues. The theme for the 2003 Morula Kids Competition was "People and Parks", demonstrating the important role played by people in our conservation efforts. Over 500 quality entries were received, an improvement on the 2002 statistics. A partnership between the Department of Environmental Affairs, Eco-Access and SANParks enabled celebrating the International Day for the Disabled, in the Kruger National Park Congress in September To strengthen positive relationships between SANParks and local communities, the directorate is overseeing the establishment of park forums as representative and legitimate platforms for consultation on park related issues. These forums serve to enhance open and transparent communication between the parks and communities. To enhance economic empowerment of neighbouring park communities, a craft exhibition provided people adjacent to Kruger, Addo, Tsitsikamma and Golden Gate Highlands national parks the opportunity to showcase and sell their products at the Vth World Parks Congress. These crafters earned a total of R , a total that is impossible to achieve in 10 days in their own areas. The directorate also participated in the development of the Community Based Natural Resource Management (CBNRM) guidelines.the implementation of these guidelines will further enhance the community conservation work that the Directorate is involved in. HUMAN RESOURCES REPORT The role of the Human Resources Department is to partner line management and to enable employees to add value in its services to SANParks and to support the business processes. Developing the capacity of employees requires enhancing skills in recruitment and selection procedures, counselling, communication and human resources best practices such as job evaluation and performance management, facilitation and internal consultation. The key focus is in ensuring that the level of investment in SANParks human resources as a proportion of its total expenditure is in line with organisational best practice. The total human resources expenditure as at the end of March 2004 was R million compared to R million at the end of March 2003, an increase of 9,2%. The increase in expenditure can be attributed to an average salary increase of 9% and a slight increase in the number of employees by 23 compared to last year. SANParks total staff compliment at the end of this annual review period was compared to at the end of March During the year under review 180 new appointments were made and 157 employees left the employ of SANParks. Of the 157, 8 went on retirement, 32 were dismissed and 117 resigned. It is expected that this figure will increase as the consultation with the Department of Water Affairs and Forestry (DWAF) for the incorporation and transfer of staff from the Knysna Forest is at an advanced stage. The affected staff will be transferred to SANParks on the same terms and conditions of employment that they currently enjoy. Key employee status observations include the following: Appointments and Terminations Race Black Coloured Indian White Total Male (18 at (6 at supervisory/ supervisory/ management management level) level) Female (11 at (5 at (1 at (4 at supervisory/ supervisory/ supervisory/ supervisory/ management level) level) level) Total Terminations Grand Total 23 14

10 SANParks Workforce Male Profile Female as at 31 March Total2004 Total Level A I C W A I C W Male Female Employees F E D C B A Total SANParks Management Race and Gender Profile as at 31 March 2004 White (Paterson % African Bands D % to Coloured F) % Indian % Male Female Total % 67 32% 14 7% 5 2% Employment equity During the past year, SANParks set the agenda for change. In total Environmental Managers. Added to this a Learnership programme in Conservation and Tourism was successfully implemented in the Kruger National Park (KNP). The first 47 learners were registered and will complete their studies in June The Learnership programme will be rolled out to the other national parks during In order to meet the challenges posed by the HIV & Aids pandemic,a full time Occupational Health Manager was appointed to spearhead the HIV & Aids programme as well as to monitor the effectiveness of clinics within SANParks.The HIV & Aids Management Programme was launched on World Aids Day,1 December The programme is called "Khanyisa" (let there be light). The programme consists of the following: Surveillance programme to measure the extent of the epidemic Anonymous Prevalence Survey Test Prevention Programme Treatment Programme Healthcare provision. SANParks HIV/Aids strategy has as one Occupational Health and Safety Act 85 of TOURISM DEVELOPMENT REPORT In an attempt to rationalise the operations of tourism development and to ensure better efficiency, the structure of the Tourism and Marketing directorate was reviewed and the result was a focus on four key areas: Sales, Marketing, Operations and the Business Development Unit.At time of reporting the new structure was performing well with the different sections being fully aware of their individual responsibilities. As a result of this focus, two forums were established to create better synergy with the national parks and these were the Marketing and Tourism forums.these structures were also formed to ensure that a participative approach was adopted when dealing with marketing and operations issues respectively. Through this cooperation marketing plans were developed by parks, clusters and regions for the first time in a long period and at time of reporting a collective plan for SANParks was in the process of completion. SANParks embarked on a new pricing structure on 2 June 2003 on the recommendation Tourism Development Report 10 Employment Equity and Skills Development forums were established in national parks with representatives from each forum constituting the Central Employment Equity and Skills Development Forum. The role and function of the forums are to monitor and ensure that all forms of discrimination are eliminated from the workplace and employment practices and development of staff are in compliance with the applicable labour legislation. In a bid to ensure that this legislation is properly implemented, SANParks objective is to develop the skills of its workforce, increase the levels of investment in education and training, and encourage employees to participate in learnerships, thus rendering employees competent, effective and more productive in the workplace. We concentrated on the development of skills of employees in various fields during the year. A total of employees received and/or attended skills training programmes. Added to this a total of 92 managers were trained in Project Management, Integrated Coastal Management, Fire Management, Finance for Non-financial Managers, Sustainable Environmental Management and Environmental Law for of its priorities to improve health services to its employees, not only for HIV/Aids but for sexually transmitted infection and tuberculosis prophylaxis. The programme will be fully implemented during In the meantime 12 volunteers in the KNP formed a home base care group. The purpose of the care group is to feed any sick person in the living quarters in the Kruger National Park. A Malaria Action Group was also formed and it formulated a Malaria Policy. The Department of Health transferred the responsibility of spraying insecticide and larvicidal control to the Kruger National Park. All buildings and as many breeding sites as possible were sprayed to control malaria incidents. During the period under review a total of 16 malaria cases were reported in the KNP and 23 injuries on duty were reported which resulted in 392 working hours lost. As a precautionary measure, a number of safety representatives in all national parks were trained in compliance with the of the McKinsey Business Consultants. The changes included the following (see more detail under Special Projects): Replacing the once-off admission fees with a daily conservation fee. Tourist vehicle fees were dropped. Fees were altered to be market related. Differential fees were implemented to benefit South African residents and SADC nationals. A loyalty system using the Wild Card was implemented for South African residents and SADC nationals. Due to the high risk of losing long staying and loyal foreign guests, a 10 day International Wild Pass was implemented on 1 August Sales of the Wild Card for the 12 months from the introduction of the card were predicted at around , but the number of cards sold at time of reporting (for the period May 2003 to March 2004) was Intensive research into a more efficient property management system resulted in the development of the Room Seeker system as the replacement for Reservations and Front Office System, which at time of reporting was still being implemented, and expected to be completed by mid A front office module was included in the system as well as 15 16

11 integration with the financial accounting system Great Plains. The "Go Wild" marketing campaign, informing the public of the activities available in the parks, was launched, aimed specifically at the South African domestic market, particularly the black domestic market on which more focus will be directed during the coming few year. The current customer base is to be nurtured and plans are in place for utilising billboards in the "Go Wild" campaign. Strategies for the department for the coming year include: Tourism management training, Grading of all tourism facilities by the South African Grading Council, A five-year refurbishment plan to revitalise the tourism plant, Restructure of the call centre at the Corporate Offices in Pretoria, Implementation of Tourism Standards and Policies. Please see below tourism statistics for the whole organisation. Abbreviated statistics have also been provided under the TOURISM STATISTICS FOR ALL NATIONAL PARKS Summary of Visitor Statistics for the year ended March 2004 for Parks (excl. KNP) UNIT NIGHTS SOLD ACCOMMODATION (EXCL CAMPING) BED % OF UNIT NIGHTS TOTAL OCCUPANCY SOLD % OF TOTAL BED OCCUPANCY CAMPING - PERSON NIGHTS SOLD ADDO Previous year % 3.1% 89.4% 92.2% % 3.0% 64.2% 52.9% % 2.7% AGULHAS Previous year AUGRABIES Previous year % 2.4% % % 2.2% 28.6% 30.8% % 3.0% BONTEBOK Previous year % 0.1% 48.5% 43.2% % 0.1% 24.2% 20.6% % 1.0% GOLDEN GATE Previous year % 0.7% 66.3% 68.0% % 1.0% 38.4% 42.6% % 3.1% KAROO Previous year % 1.8% 70.4% 80.1% % 1.8% 51.2% 53.5% % 2.3% KGALAGADI Previous year % 3.8% 66.4% 67.0% % 4.0% 49.4% 52.8% % 8.6% KRUGER Previous year % 78.5% 72.0% 74.8% % 77.0% 58.1% 59.9% % 60.9% MARAKELE Previous year % 0.5% 49.8% 55.2% % 0.5% 29.1% 30.2% % 0.5% MAPUNGUBWE Previous year % 14.2% 22.0% % 11.6% 18.2% MOUNTAIN ZEBRA Previous year % 1.0% 60.6% 64.4% % 1.0% 37.6% 40.1% % 0.9% NAMAQUA Previous year RICHTERSVELD Previous year % 23.8% % 12.9% % 2.9% TABLE MOUNTAIN Previous year % % 22.5% TANKWA KAROO Previous year TSITSIKAMMA Previous year % 5.3% 74.3% 76.9% % 6.4% 60.4% 60.6% % VAALBOS Previous year % 0.1% 50.2% 35.1% % 0.1% 36.8% 22.9% % 0.1% WEST COAST Previous year % 0.1% 32.1% 38.9% % 0.2% 20.5% 25.1% WILDERNESS Previous year % 2.7% 47.7% % 2.6% 27.8% 31.3% % 4.3% SANPARKS TOTAL 2003/ % % SANPARKS TOTAL 2002/ % % DIFFERENCE -1.6% -2.9% -1.2% 1.2% -6.7% % OF TOTAL GUESTS TO PARK % OF TOTAL GAME DRIVE SEATS SOLD % OF TOTAL DAY WALKS (PERSONS) SOLD % OF TOTAL PERSONS ON WILDERNES S TRAILS % OF TOTAL % 4.0% % 0.9% % 2.3% % 0.6% % 1.3% % 5.1% % 0.5% % 0.9% % 0.6% % % 1.0% % 1.3% % % 0.8% % 4.7% % 3.0% % % 35.1% % 92.8% % 94.8% % 52.6% % 0.4% % 0.5% % 0.3% % 0.3% % % 0.1% % 42.7% % 6.7% % 42.3% % 0.1% % 0.3% % % 3.0% % 0.8% % -4.0% 0.9% 8.7%

12 national parks reports. CORPORATE COMMUNICATIONS REPORT The main aim of the Communications department is to create and maintain a positive image for SANParks - ensuring that the organisation becomes a major public player through an effective and vigorous awareness drive. In recent years the initiatives of this department had been undermined by a lack of leadership at head office level, resulting in uncoordinated promotional efforts. Since the last financial year a Head of Communications was appointed and much more cooperation integration was achieved. In the past financial year the department has not only attempted to integrate communication efforts across the 20 national parks and corporate departments, but has also society, and lack of crucial information. However, it is believed that with the cooperation that has been built within the organisation will see less of such incidents. As a result of the rising status SANParks has been enjoying for a number of years, we saw ourselves organising the Vth World Parks Congress (WPC) which was hosted by South Africa and was coming to Africa for the first time. The Congress was, as a conservation gathering and a social event, an unprecedented success. SANParks had yet another opportunity to not only shine in the eyes of the country but in the eyes of the world as well. Several events preceded this momentous event, but the The launch of the Wild Card at the beginning of the financial year and the subsequent launch of the International Wild Pass was very successful, resulting in widespread knowledge of this new system and probably assisting somehow in the unexpected success of the system. There was widespread misunderstanding of the new system, which was mostly fuelled by fear of change and a tendency to run to the media when one does not know what is happening, a constant practice in South Africa, but with repeated reports in the media we were able to get through to people. In a bid to further the process started by the implementation of the Wild Card, that of increasing access to national parks, SANParks has embarked on a marketing drive to attract more black people to national parks. This is one of the main objectives of the organisation for the next few years. A campaign, named the Wilderness Bush Bash (WBB), kicked off in Kruger National Park (KNP) between 18 and 21 March The aim of the campaign was to target black media personalities and school-going youth and expose them to the national parks system. This would be in an attempt Corporate Communications Report managed to develop the trust and respect of colleagues as professionals in the field. In the last year alone we have managed to convince colleagues of the necessity for communication processes and policies in not only safe-guarding the interests of the organisation but in also safeguarding their individual interests. As a result two crucial policies were developed and approved by the Board and Executive Management: the Communication Protocol and Crisis Communication Strategy. SANParks, fortunately, did not experience notable disasters in the year under review, which has meant that we have not had to make use of the Crisis Communication Strategy. However, the decision by management to remove Statues and busts in the Kruegr which have no relevance to conservation or cultural heritage and which have linking to the painful era in our history of apartheid nearly resulted in disaster because of the unprecedented reactions from some sectors of most notable of all was the launch of the book, "South African National Parks: a celebration", which was in commemoration of the Vth WPC, held in August The event was attended by politicians, a range of private contributors to conservation in SANParks, a number of personalities and members of the media. This event set the scene for the WPC. The book itself was indeed a celebration of achievements made by SANParks in the last 10, not of course ignoring the years preceding that. This event was then preceded by the launch of yet another book, "The Kruger Experience: ecology & management of savannah heterogeneity", on 1 March This was a much more scientific book, looking at research done on the savannah biome, using Kruger National Park as an example. The uniqueness of the book lies in the wide collaboration of leading scientists from different parts of the world. to spread the word in black communities and to start creating a profile for national parks in these communities. The WBB was a success and now the challenge for SANParks is to take this initiative to all other parks which do not enjoy the iconic status and fame of KNP. However, the KNP continues to appreciate both positive and negative publicity. The positive publicity comes mostly from the initiatives taken by the team to keep the public informed of changes in the national park. In a month KNP makes a minimum of three announcements of new and exciting changes within the park. This has kept the national park in the public eye, assisted even by the fame and stratus it enjoys locally and internationally. However, the flip side to this coin is the negative publicity that national park seems to have on a continuous basis which seems to be mostly driven by fears from certain sectors of community of the new management in the park. It seems that more than five years of successful black management in the park have not allayed some of these fears and prejudices. The other key driver in this is the ignorance of international citizens of the geographical boundaries in South Africa. If there is any tragic incident that happens within 200 km of KNP, the point of reference in international media would be KNP, a point which has resulted in some unfortunate correspondence with patrons 19 20

13 of the national park who have been led to believe that they are no longer safe in the national parks. Other national parks also received a number of favourable and less favourable coverage in the media. The challenge for some parks is that there is a lack of communications competence within the park to ensure that certain issues are dealt with in the media before they get out of hand. The Communications department is in a process of putting creative measures in place to ensure effective management and dissemination of information. However, the publicity that the media coverage has generated has been enormous, estimated at a value of over R3 million for three quarters of the period under review. This is considered to be a good sign as it sets SANParks as one of the notable exhibition area, attracting a number of people who had a great interest in national parks. The department is also tasked with the enormous task of developing a healthy stakeholder liaison strategy. The department has been closely involved in successfully hosting a number of international and national delegations to national parks, as well as making inroads into previously unattended areas. This has seen SANParks interacting more and more with stakeholders who had in the past considered themselves to be unimportant and therefore non-existent in the eyes of the organisation. The new financial year should see even better and more meaningful cooperation between SANParks and all its stakeholders. SPECIAL PROJECTS Vth WORLD PARKS CONGRESS The Vth World Parks Congress (WPC) was hosted by South Africa, and thus the report was consolidated under the supervision of the DEAT s Deputy Director-General: Biodiversity Management. Briefly, WPC officially opened at the Durban International Convention Centre on 8 September The congress brought some delegates from 273 countries worldwide representing diverse interests and experience in protected areas, comprising of politicians, civil servants, scientists, resource managers, non-governmental organisations, international bodies, various community groups, and their representatives. The opening ceremony was attended by, among others, the President of South Africa, the patrons of the congress, Queen Noor of Jordan and the former president of South Africa, Nelson Mandela, King Goodwill Zwelithini and the Mayor of Durban, Obed Mlaba. Congress substance Pre-congress substance preparations culminated in the appointment of stream leaders who Special Projects players in the public eye and even a major player in the conservation sector. Moreover, the improvements in the internal communications division have meant that there is more interaction between head office and national parks, which has resulted in more assistance being given where necessary. It is envisaged that with more improvements in this area the organisation could be able to tackle more of its communication challenges resulting in an even better profile for the organisation. Other avenues which have been employed by the department in ensuring that SANParks becomes a household name have been participations in several corporate exhibitions at national park and national level. The national parks, especially, have become such an integral part of the regional exhibitions as to ensure that there is a constant flow of visitors to national parks. The most notable was the participation at the WPC exhibition. SANParks got a fair share of the visitors that made it to the prepared substance papers based on the congress topics. Both the South African Steering committee and the Protected Areas forum provided strategic guidance in the development of the input to the congress. This led to the development of a publication titled "Strategic Innovation Biodiversity Conservation - the SA experience". During WPC, a substance committee, comprising mostly of people from conservation departments and agencies in South Africa, was formed to ensure that the country s input is integrated into the overall Congress substance. Delegates reviewed achievements since the IVth WPC in 1992, exchanged information and experience on a wide variety of topics, and charted a course for the global protected areas community for the coming decade. The congress looked at ways of ensuring the survival of protected areas through an integration of what has in the past been considered as conflicting interests and priorities communities and business. Recognition was given to the need for a fresh approach to protected areas in this changing world, and their role in broader conservation and development agendas. A number of topics were discussed at the congress, which were informed by the congress theme "Benefits Beyond Boundaries". The topics included: Linkages in the land and sea dealt with balancing the full range of terrestrial, marine and freshwater ecosystems in light of other overriding priorities; 21 22

14 Evaluating management effectiveness reviewed how protected areas managed to cope with escalating challenges and implementing management systems that can cope with these challenges now and in the future; Governance - looked at basic principles of good governance, how protected area managers are held accountable for ensuring sound conservation, building good business sense and improving decision-making processes; Developing the capacity to manage - aimed at building the capacity for communities and managers to manage protected areas. This includes developing sufficient knowledge, capabilities and resources to ensure that protected areas are managed efficiently and effectively; Building a secure financial future - explored how protected areas can come up with effective fund-raising initiatives in the light of cuts in government subsidies. The role of protected areas as drivers and contributors to economic development, as well as the areas. The Durban Accord mobilises political will to support the role of protected areas in biodiversity conservation and sustainable development. It celebrates the tripling of the world s protected areas over the past 20 years and salutes the conservation successes of actors. It recognises the challenge posed by global change, including the advancement of poverty in many regions. It stresses the need to formulate a new paradigm for protected areas to address these challenges. The numerous concerns facing protected areas were also identified in the Accord. Among the most important calls for commitments in the Accord is the one to expand and strengthen worldwide systems of protected areas, prioritised on the basis of threats. Finally, the Accord calls for action on protected areas in the development of the Millennium Development Goals, the WSSD targets, and the Convention on Biological Diversity. POVERTY RELIEF PROGRAMME Contrary to the report given last financial year, the implementation of the Parks Empowering People Poverty Relief projects reached a peak during the year under review, with most of the projects experiencing a rapid escalation of implementation. By the end of March 2004, expenditure stood at R193 million, which represented 76% of the total planned expenditure, as opposed to the 18% achievement of the last financial year. Status of the programme in terms of the most important deliverables: Deliverable Total planned Achieved Percentage March 2004 achieved Expenditure R R % Expenditure: Community wages R R % People employed % Person days % Training days % SMME s created % SMME s used % The implementation progressed well during 2003/4 and it is projected that, excepting three, all projects will have been completed by the end of May The three projects which had been delayed are: Klein Skrij Pan Lodge in the San & Mier contractual parks in the Kgalagadi TFCA, where protracted negotiations with communities caused a substantial delay. The construction of the Agulhas restcamp, which was delayed by a lengthy environmental impact assessment process. The Richtersveld projects at Sendelingsdrift, which were also the subject of exhaustive discussions with the community. Most of the "softer" projects, such as fencing and maintenance work on facilities, had been completed in the past year, while good progress was made on the "harder" projects, such as the construction of roads and restcamps. role of the private sector and the donor community in mobilising funding were also discussed; Building a comprehensive protected area system - looked at alternative innovative ways of establishing protected areas where none would have been possible under the current thinking; Building broader support for protected areas - looked at strategies of identifying and building constituencies and encouraging a broad enthusiasm for protected areas in communities. Outcomes of the Congress The official outcomes of the congress are embodied in four documents: the recommendations, the Durban Accord, the Durban Action Plan and the Message to the Convention on Biological Diversity (CBD). The Durban Accord The Durban Accord is the umbrella document of the Congress and the principal message from the meeting to the world. It is intended to inspire and influence positive action for protected The Durban Action Plan The Durban Action Plan provides a succinct summary of key challenges facing protected areas, and framework of the detailed actions needed to achieve commitments. It is structured around 10 outcomes with 14 key targets. It makes recommendations at various levels: international, regional, national, local and protected area agency levels. It consists of an array of both strategic and technical actions to be undertaken. It requires effective implementation; otherwise the efforts of the WPC would be wasted. It is important that dialogue be continued to ensure implementation of action. Congress Recommendations The 32 recommendations adopted by the congress form an annex to the Durban Action Plan and cross-references are made as in the Plan. The recommendations provide the most detailed level of analysis of the actions necessary to achieve the objectives of the Durban Accord and Action Plan. The labour-intensive Parks Empowering People programme represents a major infrastructure development initiative in national parks, with the following milestones having been achieved to date: 785 km of new and upgraded fences were constructed 519 km of old fences were removed 244 km of new and upgraded roads were constructed 627 km of existing roads were maintained and repaired 490 redundant structures were removed ha in Addo Elephant National Park was cleared of jointed cactus Construction of two restcamps (30 beds) was completed in Vhembe/Dongola National Park, with new accommodation facilities nearing completion in Golden Gate, Kgalagadi and Addo national parks. Where projects could not be completed by March 2004, extension of time was requested, and approval for this was received from DEAT. Delays in implementation were mainly caused by availability of construction material, transport of materials to remote parks and sites, and the use of emerging contractors and SMME s that in general prolongs the completion of projects. All projects will, however, be completed by December New Projects SANParks embarked on an intensive and integrated process to determine the priority projects for the new cycle of poverty relief funding for the period. Projects to the value of R346 million were submitted to DEAT for consideration. While final adjudication of projects was 23 24

15 still pending at the end of March 2004, the following three projects have been fast-tracked and are due to commence on 1 April 2004: Park Project value Table Mountain National Park R Kruger National Park R Bontebok National Park R Total R INVASIVE ALIEN SPECIES CONTROL REPORT Emerging out of the partnership between SANParks and the Working for Water, Coast Care and Working for Wetlands programmes, the Invasive Species Control Unit (ISCU) was established in the financial year under review. This consolidated alien clearing as a core function under the direct management of SANParks. A major focus in the financial year was to resolve outstanding problems relating to the previous implementing agent, and to build a secure base from which to tackle the considerable challenges of alien clearing and related activities in future. Establishment of ISCU and Implementation of projects: The establishment of the ISCU and the positioning of the Unit in SANParks posed a number of challenges, as clear communication and implementation lines needed to be established and clarified. The implementation of projects through the inherited management team and in the style of the previous implementing agents also posed a challenge in certain areas. A major challenge facing SANParks remains the adequate funding of alien clearing programmes. Although a decision has been made in principle to establish a core budget for this function, the scarcity of resources has made this difficult and the function still depends on the accessing of funds from agencies such as the DWAF Working for Water Programme. Working for Water Constant changes were made to the Annual Plans of Operations for 2003/4 due to the process of reconciling the SANParks exposure Institute, approval for the projects was only received in January Changes were subsequently made to the business plans to implement projects in a very short period. Extension until 30 April 2004 for all the wetlands projects was requested from DEAT. THE WILD CARD The WILD Card was launched in May Over of the cards had been sold by the end of March 2004, earning revenue of nearly R17-million.The WILD Card contributed some R9-million to the net profit for the 2003/2004 financial year. The WILD Card has its origins in two developments. Firstly, there was the immensely popular "Go Green" card, a season ticket cum consumer loyalty programme run by the Cape Peninsula National Park (now the Table Mountain National Park) between 1999 and In 2003 the park was commended by the SA Institute of Marketing Management for the successful marketing of the Go Green card. Secondly, in 2003 SANParks was planning to introduce its new and much more focused conservation fees, aimed at ensuring that tourism in national parks does not have negative impacts on the integrity of the biodiversity estate. Through negotiations it was proposed that rather than introducing a two-tier entrance fee structure, the organisation should introduce a system similar to the Go Green card on a national level in a bid to create more sustainable access to national parks. The name was changed to "WILD Card" after the corporate advertising campaign which encouraged South Africans to "Go Wild". The WILD Card became a combination of a season ticket, where the cardholder pays a once-off annual fee and thereafter enjoys free access to our national parks, and a consumer loyalty programme.this also created an opportunity for the organisation to accurately track the goings and comings of its visitors and thus creating a reliable statistical and information base for future planning on visitor interests. Despite a number of problems experienced in the establishment of the Unit, the Working for Water projects were completed and the entire budget was spent by March The Coast Care and Wetlands projects received extension of their termination dates, and had been scheduled to be completed by the end of April Progress with regard to project deliverables: Projects Budgets (R) Deliverables Budget Deliverables % Spent 2003/2004 Person days Hectares Cubic metres Training Training Person days Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual WfW * Total: % Follow up: Initial: Coast Care % Wetlands % * The over-expenditure was allowed, because VAT on salaries was claimed to the value of R This amount was therefore claimed against the VAT account WfW. ** Reconciliation between Great Plains - the news SANParks financial system- and claimed expenditure is still in process. derived from the prior over-expenditure by the implementing agents in the 2002/3 financial year. Regardless of this, the WfW budgets were spent by 31 March The normal SANParks financial systems could not be used for the implementation of the WfW projects, and therefore separate financial and administration systems had to be established. However we are happy to report that only one park, Golden Gate Highlands National Park, experienced major implementation problems due to a lack of management capacity. Coast Care All Coast Care projects started late due to a delay in approval of funds by the Department of Environmental Affairs and Tourism (DEAT). This necessitated a request for extension of the delivery date for projects up to 30 April Working for Wetlands Due to the transfer of all wetlands projects to the National Botanical A lot of different variants of the WILD Card were launched.an individual WILD Card to just one national park was priced at R95, a couple s card at R175 and a family card, covering two adults and any number of school-going children, at R195. Variants that allow free access to all of our national parks were priced at R120, R225 and R245 for the individual, couple and family cards. There was also a range of cards issued together with the Western Cape Nature Conservation Board, that allow free access to either a single reserve, to all CNC reserves, to all CNC reserves plus those national parks in the Western Cape, or finally to all CNC reserves plus all national parks countrywide. The most expensive WILD Card available sold for R680. The WILD Card was developed with Infinity, a loyalty smart card developer and manager, thus enabling cardholders to participate in a great deal of benefits beyond free access to national parks, through the partnerships with other Infinity partners. Some businesses across South Africa, ranging from cinemas to coffee shops to restaurants to hotels to airlines, offer cardholders a range of special deals, or "Cash Back Rewards". The information contained in the WILD Card database can also be used as a basis for effective communication with clients via SMS or the exact figures are 68% and 32% respectively to inform them of special deals or information, such as when the Kruger s Afsaal braai facility was damaged by fire last year.the public s general response to the WILD Card was overwhelmingly positive. With the high interest in the Wild card SANParks realised that we need a loyalty card for 25 26

16 international visitors as well, in order to reward long and repeated stays in national parks. The International WILD Pass was launched soon after the WILD Card, at the Vth World Parks Congress. The International WILD Pass allowed ten free 24-hour accesses to any combination of national parks within a 15-day "window" period that begins when the card is first used at a rate which was 50% or less than the daily rate for the same period. The international WILD Pass operated as a standard Infinity card, earning the visitor hundreds of Rands in Cash Back Rewards that he or she can redeem at any time during his or her stay, even including the duty-free shops at our international airports. Having introduced the initial WILD Card, SANParks started a process of ensuring that previously disadvantaged people living around parks had an opportunity to participate in this program at a rate that is accessible to them. The aim was to ensure this by we will be able to see the project running smoothly. The focus is currently on the refinement of contracts and improving relationships between SANParks and the operators. Towards the end of the financial year only one of the targeted facility had not yet been outsourced, that at the Karoo National Park. This facility was, however, running at an operational loss, and a suitable partner was therefore identified and the contract awarded. We are happy to report that there has been a significant increase income from the retail and restaurant operations. At time of reporting eight of the twelve concessions were operational. Of the remaining four, one concessionaire withdrew from one site with the second bidder taking over the contract causing further delays, while two are still in the EIA process. The fourth is The current focus is on ensuring that the monitoring mechanisms are implemented as intended, that the environmental impacts of such facilities are mitigated and entrenching the relationships with the concessionaires. THE MY ACRE OF AFRICA INITIATIVE My Acre of Africa is a conservation and environmental education funding initiative, led by former South African president, Dr Nelson Mandela, as Patron-in-Chief. Over a ten year period, the project is intended to raise an Endowment Fund to assist SANParks and other Southern African conservation agencies. Endowment Fund To create the Endowment Fund, My Acre of Africa is calling for sponsorships through Buying a Brick. Each brick represents one acre of the Kruger National Park. Since Kruger measures acres, nearly five million bricks are available for sponsorship. As at 30 March 2004, the My Acre of Africa Trust had raised a total of nearly R8.4 million. Sales of individual bricks are proceeding steadily, with bricks now having been sold in 36 countries worldwide. The bricks bear personal inscriptions chosen by each individual donor, and will be laid in an Environmental Education Facility that is being constructed in the Kruger National Park. Donations are paid directly into the My Acre of Africa Trust. The Trust is a registered nonprofit organisation, managed under South African law by eight formally appointed Trustees including the Chairman of the SANParks Board, the CE of SANParks, and six non-sanparks Trustees. The Environmental Education Facility (EEF) will be the premier environmental education centre for children in the region. The 330-acre site will include a 110-acre scale model recreation of the Kruger Park - a "living map" representing vegetation, ecozones, topography, and places of historical and archeological significance. Funding for First Phase infrastructural construction costs of the Environmental Education Facility has been addressed through applications to both local and international development funding organisations. Full Phase 1 construction is expected to commence in the second half of encouraging purchases of a WILD card at an entry-level. The most important aim for developing the WILD Card system was to make national parks accessible to all South Africans, hence the need to look at a strategy to address access for poorer communities surrounding national parks.this new card will be introduced through a pilot programme where conservation fees will be discounted by 50% and Cash Back Rewards will be earned by the cardholders. The WILD Card programme is not only more than paying its way commercially, but will also make major contributions to the SANParks revenue generation, while ensuring access and sustainable use of our national parks. COMMERCIAL DEVELOPMENT SANParks is in the third year of post-outsourcing of the shops and restaurants. Many challenges have been faced during the implementation of this strategy but SANParks has been able to overcome most of them and with time and experience we believe busy with construction, but with the IDC Loan Agreement not being finalised, this project remains a relatively high risk project. The relevant post-transaction details of the various concessions are as follows: Concession Area Income 2004 Income Total Tinga Private Game Lodge - Kruger R R Jock Safari Lodge - Kruger R R Lukimbi Safari Lodge - Kruger R R Imbali Safari Lodge - Kruger R R Rhino Walking Safaris - Kruger R R Singita Lebombo - Kruger R R Brandwag Hotel - Golden Gate R R Gorah Elephant Camp - Addo R R Mpanamana Concession - Kruger R R Addo Nyati Concession - Addo R R The Roundhouse Precinct - Table Mountain R R Koeel Bay Concession - Table Mountain - - Total R R For all the concessions other than Gorah Elephant Camp, the rental payments are based on the guaranteed minimum rentals set during the bidding process, rather than on actual turnovers. In 2002, the My Acre of Africa Trust received a R5,7 million grant from the National Lotteries Distribution Trust Fund. A portion of this grant was allocated to the development of the Environmental Educational Facility s permanent outdoor classroom. ABE contractors from the communities surrounding the site of the EEF were invited to tender. Construction commenced at the end of January 2004, and the expected completion date is mid-june The Environmental Education Facility in the Kruger National Park forms the heart of My Acre of Africa s strategy. In addition, a comprehensive distance education strategy to communicate its educational themes beyond the Facility is being developing. Several projects have been implemented already and below are some of them: 1. Kids in Kruger The Kids in Kruger pilot environmental education project, conducted in association with the Kruger National Park s People and Conservation department, brings children from local communities around Kruger s Phabeni Gate into the Park on educational day-trips that integrate history, culture, tourism and the environment.the project runs within the revised National Curriculum framework to align with school syllabus, and incorporates a detailed support programme provided to the teachers and communities of those children visiting the Parks

17 Over children and 70 educators have already participated in Phase 1 of Kids in Kruger (Sept-Dec 2003). In 2004, with the Phase 2 rollout, the project is to be extended to the greater Kruger National Park area, as well as to other selected national parks throughout South Africa (to be called the Kids in Parks project). 2. Kids in Parks This is an initiative between SANParks directorate of People & Conservation and My Acre of Africa. The new targeted national parks, i.e. Kgalagadi, Addo,Table Mountain,Tsitsikamma, and Marakele national parks, have provided assistance through their People and Conservation personnel. A joint fundraising proposal to begin formal extension of the Kids concept nationally has been developed. accommodation and general facilities accessible to people with mobility impairment added to SA National Parks. Catering for physical access has become an accepted and constant consideration during design and roll-out of new SANParks developments. In June 2003, SANParks was awarded the prestigious Filmer Award for its contribution to creating an accessible natural environment for people with disabilities. Adjudicated by Eco-Access, this was in recognition for the seminal work in providing accessible accommodation, park facilities and general infrastructure for people with disabilities. Groenkloof s Chris Patton, himself a paraplegic, also received an individual award at the ceremony, for the sterling work he did in ensuring that SANParks takes care of this very crucial constituency. Despite many successes, SANParks acknowledges it still has many challenges in making the parks universally accessible to all people, It was also a chance for the Kruger staff to get a small insight into the challenges facing people with disabilities.the children were treated to game drives, visits to the game bomas, tours around camp, bush braais, stories from village elders and took part in an Eco-Access initiated Diversity Challenge with selected SANParks staff. They were each individually rewarded at DEAT s ceremony in honour of the day. The disabilities of the children who participated included partial and complete blindness, deafness, severe learning disability, intellectual challenge and physical disabilities. An additional number of children with disabilities from the communities surrounding the park were brought in for the day. A similar event run by Eco-Access and sponsored by Telkom was held at Berg-en-dal restcamp, in Kruger National Park during February This event twinned deaf children with hearing children. Both schools involved were situated on the southern border of the park. HONORARY RANGERS The Honorary Rangers Corps continues to be an essential part of the organisation through their contribution via fundraising, voluntary manpower, training courses, promotion of SANParks and lobbying of new members, particularly the youth. As public volunteers they are both contributors to SANParks, but also a barometer of public perception towards the organisation. While many Honorary Rangers perform duties in the parks in an individual capacity, the hub of the Corps is held in the regions and national projects. During the period under review the number of operational regions was boosted to 24 with the establishment of the Overberg Region. This region will be most active in the Bontebok and Agulhas national parks. The regions make a variety of significant contributions through their various projects. Special mention should be made of the birding breakaway weekends in Kruger and Marakele national parks, not only for their census and fundraising value, but for the extensive public awareness and involvement they bring. 3. Resource Development & Technology My Acre of Africa Education has begun assisting in a process to establish a national, multi-cultural network of TLSM developers, specifically relating to environmental learning. Partnerships have been formed with certain key organisations, such as SANParks Directorate of People & Conservation, Share-Net, and Ministry of Education. regardless of their physical, sensory or intellectual capabilities. September 2003 saw the launch of the Silvermine Accessible Boardwalk in Table Mountain National Park. The boardwalk is some 650 million long and was officially unveiled by Maxwell Moss, a wheelchair-bound member of the Parliamentary Portfolio Committee on Environmental Affairs & Tourism. The reconstruction of the Addo Bird Hide was another noteworthy contribution. This and the birding weekends were both subject to external funding, the main source of which was SASOL, who have made sustainable contributions to conservation. The national projects of alien invader task group; game rangers support (counter-poaching); game reengineering and transformation; and Trunk Call (communications) all made significant contributions to the good of SANParks. My Acre of Africa is also developing a National Education Portal for the Department of Education. This project aims to create a series of databases on the Internet for freely accessible knowledge and educational content. One of the initial databases that will be linked to the Portal is the My Acre of Africa EnviroLearn environmental learning website and resource database, which will provide open access to distance-based environmental learning for educators and learners alike. PARK ACCESS FOR PEOPLE WITH DISABILITIES The period under review saw the introduction of many The 3rd of December was declared the United Nations International Day for People with Disabilities and the Dept of Environmental Affairs and Tourism (DEAT), through their capacity-building wing, initiated a national art competition for children with disabilities. Through a partnership with SANParks, Eco-Access, Birdlife SA, the national council for PWD and various sponsors, an event was hosted in Skukuza restcamp, in Kruger National Park, that saw selected children with disabilities from all over South Africa enjoy a unique experience in an environment that was a first for all of them. The Corps has embraced the spirit of re-engineering and transformation as a central focus. Targeting of the youth through exposure to the importance of the parks and conservation is seen as the most viable way to ensure balanced demographic representation and that the youth of today become the custodians of our national parks in the future. South Africa s and SANParks socio-political history has meant that the HR Corps is predominantly white in its make-up. Factors such as time, financial security, science-based courses and exposure to the parks over many years has meant that at an adult level attracting white members has been easier than attracting black members. Nevertheless at youth level, 56% of male and 52% of female junior Honorary Rangers are people of colour

18 KRUGER NATIONAL PARK Overview In the period under review the Executive Director of the Kruger National Park, Dr David Mabunda, went on a year s study leave leaving Mr Josias Chabani acting on his behalf. This period was also characterised by an increase in visitor numbers. Tourism activities soared as the number of people who entered the KNP gates rose to 1,3 million, contributing to much needed revenue for SANParks. In the period under review Conservation Services started with the revision of the management plan including the elephant management plan. The process is still continuing. On the other hand, the new policy on fire management was also implemented as the Chief Executive of SANParks at the beginning of November Tourism Report The national park effected some improvements to the Southern region of the KNP, which included works on the Berg-en-dal Hospitality manager s office, the Lower Sabie restaurant kitchen (which was converted to a Linen Room/ Public Laundry) and additional staff ablutions. Further to that, more work was done on the access gate at Lower Sabie, additional PRP housing erected, as well as the extension of Crocodile Bridge. While additional housing facilities were In a bid to offer tourists to the park more activities to embark on four new 4x4 adventure trails were added, one in each of the four regions of the national park. To also make tourists stay more enjoyable and easier, new road signage and signage blocks were erected for: Tinga Safari Lodge,Tinga Narina, Imbali, Hoyo-Hoyo, Hamilton Tented Camp, Singita and Rhino Safari walks. Conservation in the Park Apart from the rare roan and tsessebe in the breeding enclosures and the disease-free buffalo breeding animals, very small numbers of animals have been captured for sale in order to augment the Park Development Fund. However, a total of 47 white rhino were relocated to other protected areas while 37 were sold at an average price of R , and as part of the GLTP initiative, the KNP moved 38 elephant, 349 zebra, 232 blue wildebeest, 237 impala, 9 waterbuck and 13 giraffe into the sanctuary in the southern part of the Limpopo National Park in Mozambique. NATIONAL PARKS REPORT Kruger National Park for the first time during this financial year.we are expecting further completed at Nwaswitshaka Research Camp in Skukuza, upgrades improvements to the policy with more input and insight. on the steel shed, and boma facilities, and the improvements on the Olifants camp Sewage Pump station and pipe sections, In a bid to improve the housing situation at various camps while amongst other numerous improvements and refurbishments. creating much-needed job opportunities for neighbouring communities the Technical Services division continued Some work was done to improve the conditions of both tourist implementing the Contractor Development Project. This is a facilities and staff working conditions in the other regions as well, project that is run through the implementation of the Parks which included the conversion of store rooms to office space Empowering People Poverty Relief projects in national parks. for the Phalaborwa ranger, the upgrading of Shingwedzi sewage ponds, improvements to Punda tented camp, the relocation of With the implementation of the R40 million Great Limpopo Pafuri and Punda gates and the construction of staff housing at Transfrontier Park projects in July 2003, some projects have Shingwedzi, Letaba and Phalaborwa, as well as the completion of been completed while major projects like the Giriyondo plans for the TFCA program that included Makhadzi Picnic Site Border Post are nearing completion. and Interpretive Centre. Both the Pafuri and Punda main entrance gates were upgraded as part of the (R40 million During this same period the Board of SANParks appointed worth) TFCA program currently under implementation. The Dr Bandile Mkhize as the new Executive Director of the KNP, project is aimed at enhancing tourism activities and products in taking over the reins from Dr Mabunda, who had been appointed the Northern and Far Northern regions. Except for the removal of dense growths of plants on the shoulders of roads where they create a "curtain effect" due to the higher run-off from roads and cooler fires next to roads, no active clearing of vegetation occurred in the KNP. Artificial water points are in the process of being phased out in the KNP and the first phase of this process was partly completed during the period under review. At the same time the KNP River Management provided significant inputs to projects being undertaken by researchers on the role of the KNP in the Catchment Management Areas. A significant fish kill occurred in the Olifants River downstream from the Phalaborwa Barrage from which fine sediments were scoured out accidentally. Meetings were held with Lepelle Northern Water and Department of Water Affairs and Forestry (DWAF) to map the way forward for the proper management and operations of the Barrage. The first Catchment Management Agency for the Lowveld got underway with the establishment of the Inkomati CMA Advisory Board. On the other hand, successful negotiations with DWAF and irrigation boards resulted in provisions of water for the KNP s needs, but the flow in the rivers was generally much lower than the minimum Drought In-stream Flow Requirements (IFR s). KNP River Management has participated effectively in water-related EIAs/EMPs and projects, as well as the Olifants River Water Resource Development and Gondwana Sappi Projects - comments and contributions to such meetings have been documented. Also in the period under review a total of 96 research projects were completed, with 87 projects still in the process, while a total of 75 research reports, 49 scientific publications and 10 theses were received. Wildlife Census Type of animal 2003/ /2003 % Difference Impala % Giraffe % Wildebeest % Kudu % White rhino % Waterbuck % Zebra % Elephant % 31 32

19 State of the Park Report Although maintenance efforts by the Department of Animal Health (DAH) on the western boundary fence improved during the period under review, certain sections still need attention. However, the Parks Empowering People Poverty Relief fencing project along two sections of the western boundary fence got underway during October 2003 and the fence maintenance on the eastern border with Mozambique continued as required. A total of ha of the KNP burnt during the reporting period and, the annual grading of the firebreaks was conducted between May and August 2003 while all firebreaks along the eastern and western borders were graded. During the same period a draft constitution was completed and submitted to DWAF as part of the registration process to Post, including the rehabilitation of the gravel pits. Further to this, maintenance on the landing surfaces of landing strips and airfields at Skukuza, Satara, Olifants, Letaba, Mopani, Shingwedzi, and Maritenga was done. Fish ladders at Piet Grobler dam in the Timbavati River and Engelhardt dam in the Letaba River were cleared from debris and concrete repair work was carried out. Public Relations The Public Relations Section (PR) was entrusted with an additional function of manning the information office which was opened at the new Kruger/Mpumalanga International Airport and started with operations on 30 May Amongst a number of very topical issues which received much 129 Lesedi copies issued during the period under review. A number of staff-related functions and events were organised and the highlights were the Management Tour of the national park in July 2003 and the annual Achievement Awards function on the 21 November The division continues to facilitate numerous external events, meetings, conferences and workshops as well as VIP visits to the national park. A total of eight regional exhibition shows were attended, resulting in prizes being received for being the best exhibitor basically at all the shows. The Letaba show and Durban Getaway were the highlights as the KNP stand won prizes for being the best overall stand at both shows. People and conservation In collaboration with INTAC (empowerment training company), communities from neighbouring areas have been trained in: Tour guiding, Field rangers (game ranging), Hospitality (Receptionists) and basic literacy training. As part of the programme to assist communities with Economic Empowerment, R worth of art and crafts from KNP s community curio projects were sold at the SANParks stall during the Vth World Parks Congress. The art and craft that are sold at Paul Kruger, Numbi and Phalaborwa gates generated a total of R ,46 during the period under review, while the car washes, operated by members of the community, raised R The Thulamela Environmental Education Centre/Museum - the DEAT-NORAD funded project - is still underway. It was started in September 2003 and is to be completed in June A total of people (both foreign and local) visited the two cultural sites Masorini and Thulamela. Through the assistance of an intern, 20 cultural and archeological sites have been identified and GPS recorded, resulting in desk-top information about the sites being gathered, with the aim of producing a cultural map for the Park. establish the Greater Kruger Fire Protection Association (GKFPA) as a legal entity as provided for under the Veld & Forest Fire Act. No roads were re-gravelled during this period, however, a total of km of roads were graded because of excessive rainfall and flood damage. Resealing of tar road was executed on 79,45 km of roads at various locations in the KNP while repairs on the road shoulder, gravel loss and tar edge gravelling were executed on 19 km of roads in various locations. Further construction of the extensions to the sewage reed bed systems at Letaba restcamp and Olifants restcamp also took place, while construction of the brick paving parking areas near the entrance of the Skukuza Living Quarters, to ease traffic congestion, continued as well as the construction of a section of the Giriyondo excess road to the new Border attention in the media in the period under review, the question of elephant population escalation was the most prominent. The establishment of the GLTP was another significant topic which was also constantly in the news throughout the year. The unfortunate incidents of animal attacks on human beings, such as the two leopard incidents that the park experienced during this financial year. Even so, generally the national park had a very good year with regard to the media coverage in that the bulk of the media coverage was very positive and most of it was generated by the PR division, through being proactive on releasing information on many issues. In a bid to improve internal communications and staff interaction the Lesedi news bulletin continued to be the primary source of information, especially to staff members who do not have access to computers with a total of This period saw some school children being brought into all of the KNP s four regions as part of the People and Conservation project and the Kids in Kruger projects which are targeting kids for purposes of environmental/conservation education. The Mdluli Tribal community has an approved Land Claim on approximately ha located within the Southern part of the KNP and, working in collaboration with DAI and Info-link, the division has facilitated workshops in the six forum areas. A separate workshop was also held with Sabie River Artists Association with a view of encouraging them to minimise the over-harvesting of the indigenous trees. As part of the bid to encourage skills development amongst the neighbouring communities the second phase of the emerging contractor development programme training was embarked on. Twelve contractors are currently being trained; the ripple effects of this project are that whilst they are going through their experiential learning they are already employing other members

20 CAPE PARKS CLUSTER TABLE MOUNTAIN NATIONAL PARK Tourism Report A visitor survey has shown that the park receives about 4,2 Overview million visitors per year. However, since the largest part of the Through a comprehensive public consultation process, the park is open access, the tourism statistics can only reflect name changing of Cape Peninsula National Park to Table visitors that pass through official pay points. Mountain National Park (TMNP) was officially endorsed by the Minister of Environmental Affairs and Tourism, Valli Moosa, on Despite predictions of a levelling off in tourist numbers, the 23 February Park continued to experience significant growth in visitor numbers with over 1,4 million visitors to the Park in 2003/2004, TMNP is completely bound within the limits of the city of Cape representing an increase of 11,5% over the previous year. Town. The population of 3, 5 million people have free access (Tourism statistics found under Tourism Report) to the park and impact on it. As a result city funding was employed to initiate several projects that emphasise this Conservation in the Park inextricable relationship. Although the season s rainfall, at 531 mm, was below average, this SOUTHERN PARKS REPORT Cape Parks Cluster as a result of constant risk of fires on the urban fringe; all fire breaks between the park and the urban fringe have been cut for the fire season. Within the past season, 53 fires were responded to and required 31 hours of helicopter flying time. As a precaution, fire fighting teams and helicopters remain on standby during the entire fire risk season and, the vegetation is recovering well after the 2000 fires. Wildlife Census Type of animal 2003/ /2003 % Difference Bontebok % Ostrich % Red hartebeest % Mountain zebra 6 6 0% Quagga project zebra % Klipspringer % Eland % Black wildebeest % Penguins % Public Relations Changing the name from Cape Peninsula National Park to Table Mountain National Park was the first and major campaign in The process involved public notices in the press, a phone-in poll, street surveys, and canvassing the opinions of identified organisations and interest groups. While support for the name change was overwhelming at 68%, a number of conservation agencies/organisations received it negatively, and changing this perception will be an ongoing public relations exercise. The Poverty Relief Project was launched on 26 February 2004 at the Masiphumelele Two Oceans Craft and Culture Centre. Press coverage of the event was considerable, and the three year implementation programme will be supported by ongoing media coverage of the project s progress. Following Minister Valli Moosa s announcement of the intention to proclaim a continuous Marine Protected Area (MPA) around the peninsula, the Park actively invited public comment during the window period.the campaign consisted of posters to make the public aware of the proposed MPA and that brochures are available from libraries and municipal offices the deadline for comment is 19 May. Since 1 April 2004, the Park received R35m from Poverty Relief to be spent over three years to upgrade the hiking trails and other infrastructures. These projects will enable the park to employ labour sourced from six townships around the peninsula and will provide a concrete platform for the realisation of the "Benefits beyond Boundaries" theme of the Vth World Parks Congress. The consolidation of the Table Mountain National Park is continuing, with an additional 200 ha being added in the past year to bring the Park to ha of terrestrial protected area. The proposed proclamation of the species-rich Marine Protected Area awaits public comment. The visitor centre at Boulders was completed as well as the universal access boardwalk at Silvermine. The popular Newlands braai site was re-opened and although not managed by the park, the re-opening of Chapman s Peak drive will have a positive effect on tourism. had no adverse effect on vegetation or distribution of animals. Planning around the removal of exotic fauna, the Himalayan tahr, Fallow deer and Sambar deer, remains a priority and the park continues to face a significant challenge from animal rights groups in this regard. The removal of these species will allow the re-introduction of species like klipspringer and grey rhebok. However, the greatest drive towards improvement of biodiversity is still the removal of alien plants and to date, more that 80% of adult woody invasive species have been cleared. The seed collection project has cultivated about trees from materials indigenous to the Afro-montane forests along the slopes of Table Mountain. These are intended for the rehabilitation of forest gaps following commercial timber harvesting. As has been presented in previous reports, fire management remains one of the prime challenges facing the park and to this end People and Conservation The former Park Committee was dissolved during 2003 and processes were put in place for the establishment of a Park Forum. The third and final meeting of the Park Forum Steering Committee will result in the nomination of 17 portfolio representatives. The Steering Committee will serve as both an advisory board to the TMNP and a communications link between the public and the park. Relations with surrounding communities are an ongoing process, and remain one of the key activities of the TMNP. A land invasion was averted on a newly acquired property comprising the Noordhoek wetlands by a joint task team, the City of Cape Town and SANParks. The parties involved and the local community managed to resolve the sensitive problem amicably. In a bid to develop and attract the large portion of previously disadvantaged communities, which had no previous relationship to the park, or had their interactions with the mountain severed, the national park has developed a strategy encompassing environmental experience, volunteer management and communications

21 AGULHAS NATIONAL PARK Overview The Agulhas National Park experienced a very dynamic period on a wide front during period under review and is beginning to become a well-established entity. The development phase of the World Bank funded Agulhas Biodiversity Initiative (ABI) was successfully completed, and implementation commenced towards the end of The approval of the ABI project was signed at the Vth World Parks Congress. Over the next five years the ABI project will provide a major boost to the expansion of the Agulhas National Park in a context of working within a broader framework of stakeholder involvement. The development of a new restcamp at Pietie-se-Punt in the coming financial year is expected to give tourism to the area a considerable boost. This facility, which is part of the Parks Empowering People Poverty Relief Programme, has been the subject of an extended EIA process. While a positive Record of Decision was issued in September 2003, there has been an appeal, and the outcome of this is awaited from the Department of Environmental Affairs and Tourism. (Tourism statistics found under Tourism Report) Conservation in the Park A slightly abnormal year was experienced regarding precipitation and rainfall was much later and lower than normal, with a total are becoming more frequent in the area. The fynbos vegetation in the area, in general, reflected the drier climatic conditions and the abundant flower displays of previous years did not occur during the period under review. However, it was noticeable that the areas cleared of alien vegetation showed noticeable benefits from the alien clearing programme. Management activities around conservation focussed mainly on alien vegetation clearing (WfW Project), removal of redundant farm infrastructure like fences and farm buildings, removal of rubble (Coast Care Project), and the establishment and maintenance of fire breaks. Reasonable success was achieved through law enforcement and several fines issued in the coastal sector with smaller contraventions like bag limits of both fish and bait being the main trend. Public Relations The national park was remarkably successful in building and dealing with general relations within the sphere of the Agulhas area. In this regard, some good work has been done by the ABI Project Coordinator in formalising contacts with both national, provincial and local government structures, as well as numerous NGO s. Interaction with local stakeholders, communities and other groupings have been established and developed. Input on both the regional and local municipalities IDP s have been provided and accepted, as well as on the SDF s of both authorities. The national park is also represented on various organisations; including tourism, conservation, agriculture and economic development forums. The important land expansion programme for the park progressed well with the crucial inclusion of two properties, Rietfontein and Ratel River, which boosted the total national park surface area from ha to the current ha. The national park currently covers the area from Cape Agulhas westwards to the Quoin Point area some 40 km distant. Crucial land acquisition on certain properties at the Southern-Most Tip remains one of the national park s most important objectives in order to consolidate and protect both culture and biodiversity in this area. Tourism Report Agulhas National Park does not have any controlled access points (gates) nor any other tourism facilities at present and the only visitor records are those of the public visiting the Lighthouse Museum and Tower. The downward trend experienced in visitor numbers reflects the general trend experienced in the area, according to information from the local Tourism Bureau. of 382 mm for the year compared to the long-term average of 453 mm (84%). The ambient temperatures experienced in winter were also lower than normal. There have been no formal game counts or any re-introductions into the national park due to the developing nature of the national park. However, the experienced trend of smaller wildlife gravitating back to the areas under national park control, continued and staff made more regular sightings of wildlife. Birdlife also showed signs of well-being and was reflected in more frequent sightings of species and in increasing numbers. Marine wildlife also showed no real abnormalities although a large number of Cape fur seal pup carcasses were found during late winter and early spring in the area. Exceptional sightings of Southern right whales were made off the coast in the Brandfontein area, and in general it seems that the whales People and Conservation The Agulhas National Park does not have a formal People and Conservation structure yet, but it should be recognised that the entire management and development of this national park is within a framework of consultation and interaction with surrounding communities and interest groups. The design of the ABI project is such that a high premium is placed on processes towards this end. The main vehicle for this is the Agulhas Biodiversity Initiative Oversight Committee (ABIOC) which was formed in November Students and volunteers have dealt with various organised groups, mainly on an environmental education basis, with the national park as main venue and facilitator. The environmental education function will be further developed in the course of the new financial year. BONTEBOK NATIONAL PARK Overview Bontebok National Park is a small and relatively undeveloped national park. As such there has been a tendency over the years for this national park to be under-resourced

22 A new park manager was appointed during the financial year under review, and a decision was made by SANParks to focus more strongly on the transformation and development needs of Bontebok, and to position this national park more appropriately within the overall parks system. A prime focus within this drive to re-position the national park is to provide more adequately for the national park s infrastructure needs. Accommodation currently consists of only three chalavans and twenty-one camping sites.the condition of the chalavans is also far from acceptable SANParks standards, and a programme has been put in place to establish a new restcamp within the footprint of the existing facility. Rainfall throughout the year was well distributed, although the total of 475 mm for the year was below the long-term average of 562 mm. Conditions contributed to a fine flower season in spring, and early lambing of bontebok, from mid-august. The sarcoid virus in the Cape mountain zebra continues to be evident: a sub-adult (non-breeding) male carries a fairly large tumour on the inside of his left upper foreleg. The University of Pretoria will be conducting a research study to find genetic markers for the disease and to see if a specific yet unrecognised, Major Histocompatibility Complex (MHC) gene or separate susceptibility gene(s) is involved in the pathogenesis of equine sarcoid. No game translocation and/or reintroduction operations had been conducted in the Park in Public Relations The R11 million Poverty Relief programme will be of huge benefit to the core business of biodiversity conservation while also helping us to live the vision of Benefits beyond Boundaries for the park. Local communities will benefit through job creation via tourism and infrastructure development and maintenance, while the national Park will benefit from a desperately needed upgrade. On 9 March 2004, key internal and external stakeholders of the park assembled to review the draft Strategic Management Plan and subsequently kick-started the process towards a Conservation Development Framework. The engagement of local stakeholders in this process, together with the new initiatives to revamp the national park, are contributing to giving the national park a new standing and profile within the local community. This is part of an R11 million Parks Empowering People Poverty Relief project, commencing on 1 April 2004, which will see the The alien-clearing programme in this national park was dormant from July 2003 until January 2004 due to equipment People and Conservation The national park has thus far not employed People and Conservation personnel. Most of the key functions have been incorporated in the day-to-day activities of the national park and have been handled by the Park Manager and International Volunteers in a relatively reactive manner. A provisional budget allocation has however been developed for the coming financial year to formalise this function within the national park. Processes have been started towards the establishment of a new Park Forum. WEST COAST NATIONAL PARK Overview The year saw some exciting new activities aimed at expanding the tourism potential of the park. The Geelbek Restaurant was outsourced and has succeeded in exploiting a niche in the market for traditional West Coast cuisine, adding a special attraction to the park. The management of the houseboat at Kraalbaai was outsourced and is to be supplemented with a second houseboat. construction of a new entrance gate and access road and the construction of the new restcamp. Furthermore, an 8.7 km fencing project was undertaken in period under review to maintain the integrity of land donated by the Swellendam Municipality. This will formally incorporate this land into the national park. Bontebok National Park has also agreed in principle with the Swellengrebel Flying Club to incorporate a further 450 ha into the national park. This will ensure that there is sustained environmental management of the area for biodiversity conservation and will further provide additional grazing for the bontebok. Tourism Report (Tourism statistics found under Tourism Report) Conservation in the Park The winter of 2003 was cold and wet, with snow on the mountains. and capacity problems. The former GVI volunteer acted as Project Supervisor, training a local person to take over in April The need for an alien-clearing strategy for the national park, that includes areas outside the national park boundary, has been identified as an absolute priority. It should be noted that there is an increasing recognition that the significance of the Bontebok National Park lies increasingly less in the history of the conservation of the bontebok, and more in the importance of the conservation of the mixed renosterveld within a completely transformed agricultural landscape. Wildlife Census Type of animal 2003/2004 Bontebok 231 Hartebeest 18 Zebra 22 Rhebok 41 Grysbok 4 Steenbok 0 Ostrich 6 Capital works included the resealing of the tarred road and completion of the park s game fence west of the R27. This allowed for the introduction of 34 red hartebeest and 2 eland bulls into the park and our ongoing restocking programme will ensure more game viewing possibilities for visitors. The Park s Management Plan was approved by the Executive Management in June 2003 and the Conservation Development Framework was approved by the Park Committee and is awaiting adoption. The poor rainfall dramatically affected the tourism figures over the flower season, resulting in a drop of 26,7% in visitor numbers for the period under review. Tourism Report The effect of the new tariff structure and introduction of the Wild Card has not been sufficiently researched to assess its impact on visitor numbers. (Tourism statistics found under Tourism Report). Conservation in the Park Rainfall for the period under review was 206 mm as opposed to a long-term average of 408 mm. The poor rainfall had negative effects on both game and vegetation in Postberg 39 40

23 while the vegetation in the rest of the park remains fair. Measures to release the game pressure in Postberg have been taken by removing part of the fence to promote the movement of animals. The exact numbers of animals that have moved out will be known after the aerial census at the end of April Wildlife Census Type of animal 2003/ /2003 % Difference (Ground) (Aerial) Eland % Gemsbok % Bontebok Springbok Blue wildebeest % Kudu Mountain zebra % Red hartebeest % Grey rhebok 1 1 Ostrich % Duiker % Steenbok % Grysbok % Bat-eared fox 4 4 Other: Caracal, Cape porcupine, snakes, tortoises from a local donor for the purchase of multi-media conference facilities for the Centre. This will be hired out as a conference venue when not used by school groups. The following programs were presented at Geelbek Environmental Education Centre: 2003/ /2003 Educational programmes Non educational programme Day programmes Total Of the school groups that attended for educational purposes, 85% were from the Cape area while only 15% came from West Coast schools. An initiative with curriculum advisors to promote the use of the national park as an open outdoor classroom to local schools is expected to expand the centre s usage. Currently seven tertiary institutions in the Western Cape are also regular users. The succulent biome is still under-conserved with only about 2% under formal conservation. The national park concentrates on the communities bordering the park by getting them to realise the need for conservation in this area. A working relationship was established with the Greater Cederberg Biodiversity Corridor management unit, and the park manager is involved in its project management unit. Tourism Report A notable interest in the park is increasing, however, due to limited tourism facilities, tourists can only be accommodated in small numbers. It is hoped that through the Parks Empowering People Poverty Relief programme funds will be secured to develop more tourism infrastructure. With assistance of the marketing division at head office, proper signage for the park is in the process of being put up. In the meantime, planning of a succulent tourist route from Sutherland, through the park, and back to Sutherland is in process. The route is expected to open in July/August This initiative is funded by the Critical Ecosystem Partnership Fund (CEPF). (Tourism statistics found under Tourism Report) Conservation in the Park With only 35 mm of rain recorded in the period under review, the lowest in 65 years, it is expected that the dry period currently being experienced could have disastrous effects on the newly developed plant communities in the national park. However, at present there is no reason to fear, but if it does not rain soon, the effect can be catastrophic as the previous year s seedlings will be under much pressure. More so, observations show that there is a change in the rainfall pattern, from winter to summer, which can have an impact on the plant communities. There has also been an increase in the grass cover and although it is believed to be a cyclic change, possibilities are that it could be indicative of a distinct climate change. The discrepancies in the statistics are attributed to ground census inaccuracies and unreliable statistics received from the Donkergat (military) area linked to Postberg. An oral history project with the local old age group was initiated which regularly takes community members to places in the park where many of them grew up. Fortunately, the drought has not had any impact on the fauna. There are approximately 130 springbok and other species endemic to the park. We are happy to report that poaching in the national park is on the decline; however the explosion in the blackbacked jackal population has put some strain on the springbok population. Through the Working for Water Project, ha of follow-up and ha of initial invasive alien clearing was done at a cost of R and at an estimated person days. Public Relations The launch of the Geelbek Restaurant and the opening of the revamped Environmental Education centre were attended by one hundred guests from across the West Coast and Cape Town ranging from tourism, corporate, conservation and local authority structures. People and Conservation The occupancy rate of the Geelbek Environmental Education Centre remains high. The park secured a 10,000 donation TANKWA-KAROO NATIONAL PARK Overview Although Tankwa-Karoo is still a developing park with no infrastructure, the park is now approximately ha in size, of which ha was added during the financial year under review. According to guidelines set by Conservation International and Jan Vlok the national park should eventually cover ha. The farms Boezak, Kleinfontein and De Zyfer were offered to SANParks and it is envisaged that this piece of land will offer the much-needed corridor with the Roggeveld. Grazing will play an important role in the decision to introduce gemsbok, springbok and mountain zebra during August People and Conservation There have been no significant initiatives made under the People and Conservation programme, other than talking to schools trying to find out their needs and telling them about the national park

24 THE GARDEN ROUTE PARKS CLUSTER TSITSIKAMMA NATIONAL PARK Overview Tsitsikamma continued to be one of SANParks leading tourism icons, and a number of infrastructure maintenance and development projects were put in place in 2003/4 to retain this status. A new reception complex has been built at the national park entrance, and occupation took place during October Visitors to the national park have responded to this positively and its use has alleviated the parking problems which were previously experienced in the area of the restaurant during peak periods. Twelve two-bedroom family log chalets were also renovated to ensure that the standard of accommodation offered in the park Provincial Departments, and the Covie land claimants in the vicinity of Nature s Valley.This includes the restoration of full title for claimants of 16 allotments and the commonage in the Covie area. In terms of the MOU alternative land will be granted in respect of the land that had been claimed inside the current national park boundaries. Tourism Report While there was a small decline in the number of day visitors to the Park during the year under review, the number of overnight visitors grew by 13,5%. The Storms River Mouth restcamp essentially reached near saturation point in respect of visitor numbers over peak periods and further growth cannot be expected unless visitors can be re-directed to off peak periods. (Tourism statistics found under Tourism Report) work was also done in disturbed (including burnt) areas. The bio-diversity factor is, therefore, very good. Survey work on the flora and avi-fauna of Soetkraal was completed and submitted to scientific services. The eastern sector of the park has, in spite of slightly less rain, shown a resilience to the drought currently being experienced. This includes both forest and fynbos areas. The forest on the sea cliffs, does however exhibit "burning" as a result of the sea spray salt not being washed off by rain. People and Conservation A total of pupils and 128 adults participated in the Park s Environmental Interpretation programmes. This included 24 guided excursions, 14 environmental camps and 13 Imbewu camps. Environmental awareness programmes, including campaigns celebrating 8 of the Environmental Calendar days, were conducted for 10 local communities, the staff, Working for Water and Coast Care personnel. A series of 10 new information pamphlets were developed, two of which double up as a guide to the two new self-guided trails from the Storms River Mouth Restcamp. SOUTHERN PARKS REPORT Various interpretive signs and displays were renewed and a new marine aquarium installed as part of the upgrade to the old information hall which is now known as the "Enviro Centre". Garden Route Parks Cluster A three-year partnership with THETA and Stormsriver Adventures, involving the development of Eco-guides, came to an end resulting in accreditation of 24 local community guides. In a bid to assist in local economic empowerment, services were procured from local contractors which included maintenance work on buildings and vehicles as well as adventure and recreational activities. Support was also provided to local arts and crafts projects, with the inclusion of an exhibition at the Vth World Parks Congress. and within the organisation is maintained. An incinerator was built at our dumpsite with sponsorship from the park s Honorary Rangers. A further portion of the boardwalk leading to the suspension bridge was also replaced with polywood (recycled plastic). A priority project for 2004/5 is the suspension bridge, which is badly corroded and requires a considerable upgrade. As of the end of the financial year discussions were far advanced in respect of SANParks taking over the management of the indigenous forests and mountain catchments areas inland of the park. It is anticipated that an agreement on the delegation of authority from the Department of Water Affairs and Forestry to SANParks for the management of these areas will be concluded early in the new financial year. In addition, steps have been taken to acquire the Soetkraal group of farms in the mountain catchment areas, which are currently the subject of a contractual agreement. In terms of land claims, on 22 March 2004 a memorandum of understanding was signed between a number of National and Conservation in the Park Rainfall for the period under review for the Bloukrans weather station was 905 mm as opposed to a long-term average of 999 mm. However, good growth was noted among the following forest species: bietou, Chrysanthemoides monolifera; assegaai, Curtisia dentata; hard pear, Olinia ventosa and red elder, Cunonia capensis. The following plant families flowered exceptionally well during November - January: Oxalidaceae, Asteraceae, Liliaceae, Geraniaceae, Fabaceae, Proteaceae and Orchidaceae. Veld is generally in very good condition with a large number of fynbos species flowering throughout the year. A fairly rare orchid, Satyrium princeps, was found in the dunes at Nature's Valley.This orchid is presently in flower and provides an impressive picture. At the time of writing Erica fourcadii was flowering profusely. This particular erica is found in a quite narrow band along the coast and has bright brick red flowers. Previously burnt areas have recovered well, while alien eradication People and Conservation personnel continued to network with various NGO's and CBO's. These included environmental projects, cultural heritage initiatives, recycling projects, participatory forest management and the sharing of resources and skills. A database of available resources was compiled. These include lists of artifacts and relics, historical information and publications, contact lists, management resources and a photo log. This process was undertaken in collaboration with local community members who contributed to a series of workshops and site visits and to an evening of remembrance. Audio and video recordings of the favourite stories told by the Imbewu Elders have been made and transcribed for future use through information and interpretive resources. Public Relations People and Conservation personnel represented the park in various forums in the region, including: Tourism Forum, Conservation Forum, DWAF-Participatory Management Forum, Community Policing Forum, Working for Water Committee, Coast Care Committee and Koukamma Cultural Heritage Committee. Regular articles were submitted to magazines such as Caravan and Outdoor life, and Getaway, as well as local newspapers such as the Koukamma Kourant and the Go Wild newsletter. The People and Conservation division facilitated various radio and television inserts to promote Tsitsikamma National Park and the region as a whole. These included magazine and travel programmes such as Pasella, 50/50, Groen, and Nou of Nooit

25 WILDERNESS NATIONAL PARK Overview The first quarter saw the national park fixing damage sustained to infrastructure during the floods that happened in March Several of the footpaths were also upgraded as part of this program. The national park is still discussing with the Sedgefield community (who sustained damage during the floods) on issues pertaining to flood mitigation measures and the management of the Swartvlei estuary to reduce the risk of a repeat of the March 2003 floods. The paving of the access road from the N2 to the reception and the refurbishment of the boardwalks along the Touw River dog-walking in the Sedgefield area of the national park, as well as for the paragliding and hanggliding activities that impact on the Park. The decision will be made through a public participation process. A submission for the registration of Swartvlei Beach as a boat-launching site has been submitted to Department of Environmental Affairs and Tourism. All other tidal slipways and jetties are in the process of being registered once all the leases and agreements have been finalised between SANParks and the owners. People and Conservation The national park implemented an environmental education programme targeting youth, expanding the number of schools reached to 37, with learners being exposed. Cape Recycling Centre which collects the materials from the schools remunerates the schools for the recycled material. In return for their participation and hard work each learner was rewarded with a present, which was organised, by the Parks GVI volunteers. KNYSNA NATIONAL LAKE AREA Overview Knysna is facing increasing development pressure with no end in sight. The estuary has to cope with bigger volumes of water extracted from the rivers feeding the estuary, while the amounts of sewerage effluent leaking from municipal networks steadily increases. Siltation from soil preparation for construction has increased in several places, with the Salt river estuary showing the biggest impacts. Bigger and faster boats are becoming an everyday sight as the upmarket developments near completion. These vessels may have to be controlled if they have an impact on the shoreline and the traffic in channels. Updating the Lagoon management plan and putting a tighter regulatory framework in place is seen as a priority for the coming year. As part of the overall Garden Route Initiative, SANParks will be attempting to expand capacity for the management of the Knysna Lake area, within the context of budgetary constraints that are being faced currently. Tourism Report SANParks does not at present derive any tourism income from its functions in the Knysna area, although 122 Wild Cards were sold to members of public. A major initiative will be implemented in 2004/5 to introduce a fee structure for use of the lake and to consolidate agreements with concessionaires where appropriate. were completed as part of the Parks Empowering People Poverty Relief programme.the Canoe Hire on the Touw River was outsourced to Eden Adventures in September Tourism Report (Tourism statistics found under Tourism Report) Conservation in the Park While the rainfall for the year, at 583 mm, is lower than the long-term average of 648 mm, distribution has been fair and no drought stress has been experienced. No flooding occurred during the period under review. The Touws River mouth was opened on 9 November 2003 to facilitate the installation of the new sewage reticulation system for Wilderness. Environmental Management Plans have been drafted for The national park in conjunction with various sponsors and other local organisations organised a number of programmes around the various national environmental theme days for the schools and the communities surrounding the national park. A joint initiative between SANParks, Southern Cape Herbarium and the Saasveld Technikon resulted in an expo attended by a total of learners visiting the exhibitions. Added to this the national park together with the Saasveld Technikon and 9 primary schools organised an environmental expo on energy and sustainability in the George suburb of Conville. The national park also initiated a recycling project at local schools, as there is no refuse removal service performed by the local municipality. Information sessions on recycling were held at Rondevlei Primary, Lancewood Primary, Oakhurst Primary and Ruigtevlei Primary. The Southern The decline in numbers can be linked to the bad weather experienced during the season. Far less people went out on the Lagoon due to unfavourable weather conditions. (Tourism statistics found under Tourism Report) Conservation in the Park Rainfall for the year was 617 mm as opposed to the long-term average of 712 mm. Although rainfall has been adequate, increased water demand has now exceeded the delivery capacity of the municipal water works, resulting in water restrictions being implemented. Due to illegal bait digging activities intertidal Zostera (eelgrass) beds are being subjected to severe stress. Our observations have indicated that large areas are under threat, and it is clear SANParks staff will not be able to deal adequately with the problem due to limited capacity. However, various forms of day and night patrols were conducted within the Knysna Lake Area, using vehicles, boat, bicycles and on foot. During the reporting period a total of 173 J534 admission of guilt fines were issued under the Marine Living Resource Act and the Lake Areas Development Act. The national lakes area worked on two rehabilitation sites, one at the storm water 45 46

26 outlet at Brenton-on-Sea and the second site at Braamekraal. At time of reporting the rehabilitation of the old airfield was progressing to satisfaction. Mdala High School (63 learners) were visited on World Wetland Day and during Water Week, respectively. Added to that, the Knysna Cubs were visited periodically. THE FRONTIER PARKS CLUSTER ADDO ELEPHANT NATIONAL PARK During the period under review the Coast Care team and field rangers were responsible for clearing invasive alien plants along the edge of the Lagoon, using both mechanical and chemical control. These invasive plants include rooikranz, Acacia cyclops, and blackwood, Acacia melanoxylon. We are happy to report that during the period under review whales once again entered the Knysna Lagoon on three occasions. WESSA, with the assistance of our Field Rangers, conduct monthly bird counts on Thesen Island, while the national lakes People and Conservation In a bid to create ownership and pride in the national park the Adopt a Beach programme was been extended to Percy Mdala High School and Knysna Primary School that monitored the following areas: Brenton-on-Sea, Leisure Island and Coney Glen. Cooperation between SANParks and the local municipality led to a joint effort resulting in 10 temporary jobs being created to construct a footpath from the main road to Old Fort. SANParks provided expertise while the funding was done through municipal sources. Overview The Addo Elephant National Park continued to expand with the purchase of the farms Olievenfontein, Wapadspoort, Middelfontein, Brakvlei, Volkersrivier, Christiana, Kruidfontein, Wortelkuil and Schoemanskroon totalling an increase of ha. A contract arrangement was reached with Kuzuko, a private landowner, which increased the park by another ha. Currently the park is ha in size.a final draft contractual agreement for Riverbend was received. This contract will hopefully be finalised in the new financial year. Continued negotiations took place over the farm Toekoms. The issue of grazing rights is to be contested in court. Minister Valli Moosa set in motion the process to proclaim a Marine Protected Area (MPA) around the Bird Island group. When proclaimed, the MPA will extend approximately one nautical mile around the island. SOUTHERN PARKS REPORT The Frontier Parks Cluster area conducted a bi-annual water bird count. Wildlife (birdlife) census 2002/ /2004 % Difference Season Spp spp total spp total winter Palearctic % Resident % summer Palearctic % Resident % Public Relations Due to limited staff capacity and changes within the local government structures, established relations with the local communities and the government structures have been hampered. As part of our public relations exercise the Knysna Christian School (25 learners) was visited on a weekly basis and the topics covered with the learners were curriculum based, while the Chris Nissen Primary School (40 learners) and Percy Currently 10 individuals are employed by Coast Care, who are involved in various activities in and around the lagoon area. These included alien clearing, clean-ups, saltmarsh rehabilitation and footpath maintenance. The Rastafarian community took it upon themselves to rehabilitate a section of the Bongani River close to their residence. Knysna SANParks staff assisted in planning, training and supervision. A footpath constructed along the river bank as part of the project was opened to the public in February The rainfall for the year was poor, with the average of 300,3 mm being well below the longterm average of 500,4 mm. Surface water bodies in general are in a poor state, especially in the Zuurberg Mountain range. However, grass cover was relatively good throughout the year and adequate for the maintenance of good health amongst the fauna of the park. Several tourism infrastructure developments took place during the period under review, of which some of them were the construction of fourteen new accommodation units using an IDC loan, a new reception building and the public ablution block upgraded to double its size. The camping area was resurfaced, helping us to receive a 3-star grading for the site, and feedback received from visitors was positive. On top, a new birdhide, sponsored by SASOL and arranged by the Honorary Rangers, was constructed. The national park saw a tourism income increase of about 76% from last financial year. The main reasons for this are believed to be the 14 new accommodation units, a tariff increase of 10% and possibly the introduction of lions. However, the decrease in unit occupancy was expected due to the addition of 14 new accommodation units. The Parks Empowering People Poverty Relief programme tackled various projects such as 47 48

27 fences, roads, infrastructure, jointed cactus and construction of the new restcamp.all these projects have been completed except for the roads and new restcamp that will be completed by June Tourism Report (Tourism statistics found under Tourism Report) Conservation in the Park This past year saw numerous exciting events taking place in the park, including the introduction of six lion from Kgalagadi Transfrontier Park into the main section of the park as well as five spotted hyena from Madikwe Game Reserve. A very successful operation was launched to chase 55 elephant across the public road and railway line north of Addo into the Nyathi Concession area. Four elephant bulls from Kruger were successfully introduced into the Nyathi Concession area. Four black rhino (bicornis subspecies) from the Etosha National Park in Namibia were released into the park. One of these rhino gave birth to a calf while in the bomas. The last of the East African black rhino (michaeli subspecies) were taken to Thaba Tholo Game Reserve. Numerous Three special projects were continued in the national park in the period under review: Coast Care; which had limited funding although meeting all Annual Plan Operations (APOs), Working for Water and Parks Empowering People. The Working for Water projects in Zuurberg and Woody Cape continued good work with ha of initial work done, as well as ha of follow-up. Wildlife Census Type of animal 2003/ /2003 Buffalo Bushbuck Bat-eared fox 11 N/A Common duiker Eland Red hartebeest Black-backed jackal 21 N/A Kudu Ostrich Black rhino Steenbok 23 2 Warthog Bushpig 9 4 Elephant Burchell s zebra Mountain zebra 7 N/A Hippo 4 N/A Black wildebeest 61 N/A Springbok 556 N/A Lion 6 N/A Spotted hyena 5 N/A Staff and community members were trained through Theta s INTAC programme in ABET, tour guiding, hospitality and SMME fields. A workshop on capacity-building and skills development for engaging with local government and other stakeholders proved very fruitful. Various SMMEs were created in the local communities as part of the various Poverty Relief projects that took place in the past year. Public Relations The national park has enjoyed good media coverage in the past year, largely due to the exciting developments in terms of expansion and the introduction of predators and other game. KAROO NATIONAL PARK Overview No new properties were acquired during the reporting period, but negotiations with the owners of the two farms critical for consolidation is ongoing. A draft proposal for the farm, Paardefontein, was submitted and approved by the Executive Management. The Strategic Management Policy and Management Plan of the national park are in final draft format.these documents have been circulated for public comment and a workshop was arranged with key stakeholders. The drafting of the Conservation Development Framework is high on the agenda for the next reporting period. The ten new IDC-financed cottages became operational in April 2003 and are proving popular, contributing to the tourism income increase from R3.13 million to R3.76 million,an increase of 20.12%. The shop and restaurant were successfully outsourced to a private operator in December The national park, with its limited game-viewing infrastructure, does not promote itself towards two- or three-day overnight stays.this situation could be remedied by fencing the park, extending the road network system for greater access, introducing predators and diversifying activities. Tourism Report This increase in overnight visitor numbers, to 53.18%, could be attributed to the fact that 10 new chalets were added.there was a decline of 11.53% in camping which could be explained by the cost of towing over long distances. (Tourism statistics found under Tourism Report) species such as buffalo, eland, Burchell s zebra and ostrich were released into the Nyathi Concession area. Darlington Dam section was stocked with numerous species such as buffalo, mountain zebra, black wildebeest, red hartebeest, springbok and gemsbok. Animals sold at the Kirkwood auction fetched high prices, with the buffalo bulls selling at over R60 000, breeding-herd buffalo R each, eland bulls averaging R7 000 and kudu bulls R3 000 each. No new record prices were reached as was the case in the previous year. Continued snaring and abalone poaching continued throughout the year, posing serious challenges. Very few arrests were made during the year and continued efforts are being made to train rangers to improve on success rates. People and Conservation A total of learners from 97 schools all over South Africa visited the park. Slide shows were presented at local schools and libraries and local schools participated in the Morula Kids competition. The Imbewu camps a partnership with the Wilderness Foundation involved 101 learners from local community schools in 12 wilderness camps. The national park sponsored the attendance of two local arts & craft entrepreneurs at the Vth World Parks Congress, where they enjoyed success in selling their merchandise. Local crafters were also given the opportunity to participate in local exhibitions and shows. The national park is involved in helping to set up two Arts & Crafts initiatives in the local towns of Addo and Paterson, along with other role-players. Conservation in the Park Rainfall for the year was below average at mm compared to the long-term (21-year) average of mm. Despite this, surface water remained adequate for game throughout the year, virtually eliminating the need to supply extra water at waterholes. The veld, although dry, remained good enough to adequately support the animals. Population growth occurred as expected and the capture recommendations were approved for April The maximum summer temperature was 40.9 ºC and the minimum winter temperature was -7.1 ºC. Vegetation surveys have indicated an improvement in veld condition and vegetation cover over the long-term.the veld is currently fairly dry but a serious drought has not been experienced during the reporting period. Lightning caused a fire that burned approximately ha at Puttersvlei/Mountain View, however re-growth of grass is already visible. Two species were added to the park species list: 1. A bat species, Myotis lesueuri, originally thought to occur only in the Western Cape between 49 50

28 Cape Town and Citrusdal and in Lesotho,was found in the Gamka River area of the national park. 2. A rare small snail last recorded in the Karoo more than 70 years ago was found at Rooivalle in the national park. Wildlife statistics Species 2003/ /2003 % Difference Springbok % Gemsbok % Red hartebeest % Mountain zebra % Kudu % Klipspringer % Eland % Steenbok % Common duiker % Mountain reedbuck % Grey rhebok % Baboon % Ostrich % Black rhino % Quagga zebra % Blesbok % Buffalo % region to determine the strategic direction of the national park. The establishment of a Park Forum will be high on the agenda for the new reporting period. A total of participants in 43 groups visited the national park for environmental education programmes. MOUNTAIN ZEBRA NATIONAL PARK Overview Mountain Zebra National Park is performing well within standards in biodiversity management and tourism development. Rainfall received for the first three-quarters of the year was sporadic while above-average rainfall was received in the last quarter. The total rainfall for the year measured 417,4 mm, 19,4 Conservation in the Park The monitoring of the black rhino in the national park continued. The rhinos adapted well to the area although a black rhino bull, Maleka, was transferred back to the Addo Elephant National Park, after it was discovered that he was responsible for injuries to a female during several interactions between them. A total of 402 animals were removed during the annual capture operations and sold or transferred to other national parks and landowners. 76 animals were culled as part of large herbivore control.the gemsbok population was supplemented with 26 animals from the Karoo National Park and the population now totals 57 animals. A flock of 15 Stanley s bustards was reported in February 2004 in the Doornhoek farm area. Prior to this, the largest flock size recorded in the national park were only 10 individuals. Vegetation analysis of all the newly acquired farms (excluding the satellite farms to the west) was completed during the reporting period. Vegetation maps were drafted for the different sections; as such a new complete vegetation map will be available in the new financial year. Surveys to determine carrying capacity by means of the ecological index method were also completed. New carrying capacities based on ecological factors will be available for the next financial year and will be calculated each year thereafter. This will solve the problem of making use of the unreliable stocking rates of the Department of Agriculture for different regions in the Karoo. It will also contribute to more precise veld condition indices on an annual basis. People and Conservation New links between the national park, the local and district authorities have already been established with the appointment of a social ecologist. Partnerships were formed with the following institutions: Western Cape Education Department, South African Police Services - formal agreement to transport learners to the park twice per week for environmental education purposes, GCIS - distribution of information to communities, Health department - awareness campaigns for staff on health issues as well as monthly visits by the mobile clinic. A database of local SMME s was established with the assistance of the local authority. This database will assist management in awarding maintenance contracts within the national park. A strategic session was held with all major stakeholders in the mm above the long-term average of 398 mm. Snowfalls occurred in the Bankberg and Kranskop areas. The national park s scenic Karoo landscapes and abundance of wildlife are a great attraction to visitors. A total of visitors visited the park, an increase of 7.7%. Tourism income increased from R1.42 million to R1.67 million, an increase of 17.5%. The conservation levy generated R as opposed to the R income from entrance fees in the previous year, an increase of 76.2 %. There was a decrease in the use of the conference facilities, although some high profile clients made use of this facility during the year. Tourism Report Tourism accommodation is in a satisfactory condition but plans are in place to upgrade the standard of the chalets in the next financial year. The camping site kitchen was upgraded and site management executed to the stands. (Tourism statistics found under Tourism Report). Wildlife statistics Type of animal 2003/ /2003 % Difference Mountain zebra % Blesbok % Springbok % Red hartebeest % Black wildebeest % Mountain reedbuck % Ostrich % Kudu % Eland % Grey rhebok % Buffalo % Klipspringer % Burchell s zebra % Gemsbok % People and Conservation There was a good response from local schools to the national park s outreach initiatives resulting in 683 pupils from 14 schools visiting the national park. In addition, 28 schools were visited by national park staff, reaching a total of pupils. Visitor programmes offered included bird watching, guided and unguided trails, game drives, viewing of San-paintings, slide shows and environmental-related video shows. The national park established a close professional relationship with the local Chris Hani Municipality.This resulted in the national park receiving an amount of R1 million from the municipality for the tarring of 4.1 km of the entrance road to the national park. This allocation may be extended in the future to cover the whole entrance road. One contractor, previously trained and employed by the WfW programme, was employed for veld management jobs in the park. Focus on marketing was directed towards representing the national park at local shows, tourism exhibitions and media coverage by means of local newspaper adverts

29 THE ARID PARKS CLUSTER KGALAGADI TRANSFRONTIER PARK Overview Infrastructure development and maintenance presents a major challenge at the Kgalagadi Transfrontier Park, particularly in respect of the road network, both within the national park and in respect of the access road outside the national park. Funds have, though, been allocated by national government for the tarring of the Askam/Twee Rivieren access road in new financial year which should provide a boost to tourism to the national park. Tourism infrastructure upgrading and development through the Parks Empowering People Poverty Relief Programme proceeded well in 2003/4. Chalets and associated facilities were upgraded at Conservation in the Park Due to good late rains throughout the national park, veld conditions have improved dramatically. An annual rainfall of 170 mm was measured at Twee Rivieren, 137 mm at Mata Mata, and 166 mm at Nossob. The annual grasses have flourished and the animals were overall in good condition, while depressions in the riverbeds and certain pans had surface water for short periods. The giraffe numbers have increased to 33, while a herd of eland was sighted near Jan-se-Draai. Sightings of terrapins were common in the park during the rainy season. Public Relations Relations with the local authority structures continued to An assistant coordinator was appointed by Head Office for the Khomani San on a year contract. The Joint Management Board for the Khomani San and Mier communities meets every two months to provide a platform for liaison on the management of the contractual park area owned by these communities. Progress was made towards the establishment of the Cooperation Lodge, with the identification by the communities of a site at Klein Skrij Pan, and with the awarding of a concession agreement and a tender for the construction of the lodge. As at the end of March funding shortfalls were being addressed, and it is anticipated that the lodge will be completed by the end of AUGRABIES FALLS NATIONAL PARK Overview The national park received money from the Department of Environmental Affairs and Tourism for Parks Empowering People Poverty Relief projects, leading to the following infrastructure improvements having being done: erecting a 117 km fence (including stone SOUTHERN PARKS REPORT The Arid Parks Cluster both Twee Rivieren and Mata Mata restcamps, while three new 8-bed wilderness camps were nearing completion at Gharagab, Urikaruus and Kieliekrankie by the end of the financial year. In addition, the restoration of the old farmhouse at Auchterlonie has been completed as an information centre and five picnic spots and ablution facilities were added. During this period two male lions and four lionesses were captured and transferred to the Addo Elephant National Park in order to re-introduce the new lion population in that national park. Tourism Report The number of visitors to the national park showed a drop of 2,2% in period under review. This could be attributed partly to the state of the access road, and it is anticipated that the new facilities and the upgraded access road will provide a stimulus for an increase in tourism in the coming years. (Tourism statistics found under Tourism Report) improve with a joint workshop being held at Augrabies on cooperation between SANParks and local government. An open day featuring educational and other activities was held for seven schools from the surrounding area. The Department of Education arranged for the transport, providing for 200 children attendants. The Parks Empowering People Poverty Relief projects were the subject of a public launch, while the translocation of the lions to Addo Elephant National Park was well covered on 50/50. People and Conservation 297 children from ten schools visited the park in 2003/4 on environmental education programmes. Other interpretative activities in the national park were conducted through night/day drives, day walks and slide shows and talks. A display on snakes has been completed at Nossob. pitching and electrical strands); upgrading eight chalets; re-painting 59 chalets; building stormwater channels and sloping road surfaces in the camp; as well as gravelling of 56 km of a new road. A new entrance gate is nearing completion. Tourism Report (Tourism statistics found under Tourism Report) Conservation in the Park The national park had 95 mm of rain, which was very low in comparison with the long-term average of 150,5 mm. Notwithstanding the low rainfall, the veld has recovered well and expected further showers will benefit the veld greatly during the dry winter months. Due to the low rainfall the Orange River has been flowing at a lower than average level for the period under review. Minor flooding occurred during the year ranging from 18 m 3-60 m 3. The flooding had implications on the quality and safety of the water and steps were taken to attend to the problem. The game on the northern bank of the park is in good condition and numbers are increasing well towards the carrying capacity of the area

30 However, 104 springbok were released in the Zeekoesteek section of the park during July 2003 and eight Hartmann s zebra from the Cederberg Conservancy were released during October 2003 in the Augrabies section. All seem to have adapted well to their new areas. Wildlife Census Type of animal 2003/ /2003 % Difference Springbok % Gemsbok % Hartmann s zebra % Kudu % Klipspringer % Eland % Giraffe % Baboon (troops) % People and Conservation The national park has an ongoing relationship with all the surrounding communities and schools. We are currently in a process of publicising the formation of the Park Forum. Land acquisition included areas recognised as being of global biodiversity significance including unique Riethuis quartz fields and unstabilised dunes. Some of the properties currently included in the national park are showing signs of recovery in the vegetation cover following five years rest from livestock grazing. The grass cover in particular is also more prominent despite the below average rainfall during the period under review. Because of the considerable low rainfall figures visitor numbers during the spring flower season were very low. Infrastructural improvements that took place included an upgraded tourist route, predator-proof fencing, offices and storerooms and a new building with a visitor reception area. The process of establishing a Park Forum was undertaken, resulting Conservation in the Park Below average rainfall figures (129.3 mm less than annual average) resulted in extremely dry veld conditions. Germination levels of the annual floral component were reduced resulting in poor spring flower displays. Isolated faunal mortalities were recorded towards the end of 2003 and included springbok, duiker and steenbok.these could be attributed to the drought conditions. During the same period 29 springbok were introduced to the skilpad section. The herd settled down well and are resident within the section. In a bid to counter the drought conditions six new wildlife friendly water points were constructed and are supplied by submersible pumps. Wildlife Census (Note: no official census took place. Figures are from roadside counts) Type of animal 2003/ /2003 % Difference Gemsbok % Red hartebeest % Springbok % Duiker??? Steenbok??? Public Relations The national park presented a paper at the Vth World Park Congress on "Linkages in the landscape stream.the paper showcased best practice in engaging with communities in an arid biodiversity hotspot. The Namaqua Imbewu Wilderness Trails were launched in September The primary school situated within the national park was made available to the Northern Cape Department of Education for use by the Soebatsfontein community. The official handover function was held on Heritage day.the African Dream Kamiesberg Route was launched at a function in December The MEC of Agriculture and Conservation of the Northern Cape once again emphasised the importance of Melkbosrant as a conservation area in partnership with SANParks. He recommended that a task team be established, which should include all the arious role players (DEAT, Siyanda District Municipality, Riemvasmaak Task Team and SANParks), to take this matter forward. NAMAQUA NATIONAL PARK Overview The Namaqua National Park continues to make an important contribution to the conservation of the Succulent Karoo Biome, the world s only arid biodiversity hotspot. Land consolidation has expanded the national park to ha. Plans for a corridor, linking the Namaqua National Park and the proposed Coastal National Park, are far advanced. The intention to proclaim a new Marine Protected Area for the Namaqualand coast, (9 700 km 2 ), was gazetted. This will be included into the existing national park network when proclaimed. in the formation of a fully representative body. Regional tourism and economic development in the region was advanced through the establishment of the Kamiesberg Route/African Dream partnership. Environmental Education activities were highlighted with the completion of an EIE strategy for the national park. On the ground activities included the launch of Imbewu Wilderness Trails that exposes local schoolchildren to the natural environment. The circular drive in the Skilpad flower-viewing area was upgraded along with a scenic route from the Skilpad section through the national park to the Soebatsfontein exit gate. Improvements were also made to visitor information facilities. Tourism Report Infrastructural improvements that took place during the period under review included an upgraded tourist road network of over 37 kilometres, 100 kilometres of predator-proof fencing, a new building with a visitor reception area, as well as offices for People and Conservation staff and conservation storerooms. People and Conservation The challenges of involving people in developing national parks were addressed at a number of levels including community facilitation, (Park Forum, tourism awareness workshops, open days, newsletters, public meetings), economic empowerment, (creation of the web-based Kamiesberg visitor route, tourism business training, facilitated donor-funded projects, Financial Life Skills training), and environmental education and interpretation (Imbewu Wilderness Trails, special day programmes, including Marine Week etc., interacting with 22 local schools). A total of members of local communities took part in educational activities within the national park and included children and 613 adults.the establishment of the Park Forum was an important step towards better regional cooperation amongst stakeholders and constituencies. Specific attention has been given to capacity building amongst the staff of the national park to ensure long-term sustainability and effective management. Human resource development is considered vital to maintaining the momentum and growth achieved since the national park was established. AI- AIS/RICHTERSVELD TRANSFRONTIER PARK Overview On 31 August 2003 a contractual agreement was entered into and signed by presidents 55 56

31 Sam Nujoma of Namibia and Thabo Mbeki of SA, establishing the Ai- Ais/Richtersveld Transfrontier Park (ARTP). The current size of the national park is ha inclusive of the km 2 Ai- Ais Hot Springs Game Park in Namibia. Rainfall is measured at five different sites throughout the national park. Rainfall was significantly lower this year with the only rain measured during August 2003 (average of 35,85 mm) and was the first since October Average maximum temperatures were fluctuating between 28ºC and 46ºC. Absolute maximum of 46ºC was measured in December The average minimum temperatures were between 5º and 12º with the lowest temperature of 5º in July reporting period the desert vegetation has been in a poor state. The incoming mist from the sea remains the largest life-giving moisture contributor to most plants, especially in the mountain regions. Heavy grazing and the associated trampling effect from livestock remains a concern. The carrying capacity of the vegetation for the last part of the year was lower than the previous year due to the low rainfall. It is suspected that a new species of Dinteria, endemic to the Richtersveld National Park, has been found. Further research through an already established project will do a thorough survey of the area. The largest portion of fauna is the domestic livestock consisting largely of goats and sheep. Livestock numbers vary between and 700 depending on the lambing season. Game species THE GRASSLANDS PARK CLUSTER GOLDEN GATE HIGHLANDS NATIONAL PARK Overview On 18 March 2004 the Minister of Environmental Affairs and Tourism,Valli Moosa, and the MEC of Tourism, Environmental and Economic Affairs, Free State, Sakhiwo Belot, signed a Memorandum of Understanding for the incorporation of the QwaQwa Nature Reserve to Golden Gate Highlands National Park. This enlarged the Golden Gate Highlands National Park to ha. At the same event, the District Mayor of Thabo Mofutsanyana, Her Royal Majesty Queen Mathokoana Mopeli, officially handed over assets for facilities of the national park to SANParks. These facilities include a clinic, media centre, nursery school and recreation facilities for the national park s staff. R1,45 million was made available to the park to improve services, for the establishment of the eastern entrance gate, the restoration of a national monument building, living conditions, and to promote tourism. The district council focuses on tourism as an industry to alleviate poverty. SOUTHERN PARKS REPORT The Grasslands Park Cluster The implementation of Parks Empowering People Poverty Relief projects ensured major developments and improvements in the Park. These projects created work for 458 people. The funds were for the upgrading of roads, the Nama hut project, construction of three restcamps, upgrading of three camping sites, construction of an entrance gate and four communityowned guest houses. The Joint Management Board (JMB) is in the process of editing the management plan, drawing up a business plan and developing plans to re-negotiate the contractual agreement with the community. Tourism Report (Tourism statistics found under Tourism Report) Conservation in the Park The plant species list for the park exceeds 700, with about 30% being endemic to the area. Due to the low rainfall during the include kudu, grey rhebok, klipspringer and Hartmann s mountain zebra. A leopard was spotted twice at De Hoop. People and Conservation This national park is a community-owned park managed jointly, through a contractual arrangement, by SANParks and community representatives. Through the Parks Empowering People Poverty Relief programme the community gains more job creation and BEE opportunities. The national park visited various schools in the area and also played host to schools visiting. The communities in and around the national park are becoming more aware of the value of conservation, tourism and eco-tourism with positive results in relations and management. Golden Gate Highlands National Park is part of the ambitious Maloti-Drakensberg Transfrontier Conservation and Development Project that extends from the Eastern Cape, along the Drakensberg through KwaZulu Natal and into the Free State and includes an equally sizeable portion on the Lesotho side.the Cultural Resource Specialist of the MDTP Project Unit is currently setting up a data base of all Cultural Heritage Resources across the transfrontier project area. The national park received R37,3 million from DEAT for Parks Empowering People Poverty Relief projects. These projects include the upgrading of the old Glen Reenen restcamp, building of the new Highlands Mountain Retreat and the QwaQwa restcamp, construction of entrance gates, various adventure activities, roads, indigenous nursery, an upgrade of the environmental education centre, removal of unwanted structures and fencing. All these projects, except for the three restcamp developments, have been completed. During this financial year 943 previously disadvantaged individuals (PDIs) were employed on these projects. The national park received R2 million from Rand Water and R from the DWAF for Working for Water projects. The vulture conservation programme progressed well after last year s installation of a freezer room that 57 58

32 enables regular feeding of vultures. R was raised by the Honorary Rangers, in partnership with OFM Radio, to construct a hide from where to view, study and photograph the bearded vulture and Cape vulture. Tourism Report The statistics are inclusive of tourism facilities managed by SANParks and the concession partner. (Tourism statistics found under Tourism Report). Conservation in the Park The highest temperature for the year was 32.5 C, recorded on 18 December 2003 and the lowest temperature -11 C on 21 August 2003, and contrary to expectations it did not snow during the past winter season. The rainfall for the period under review was well below the longterm average of mm. The winter months were especially dry with no rain during July Extremely low water levels were Statistical information on fauna Type of animal 2002/ /2004 % Difference Burchell s zebra N/A Black wildebeest N/A Red hartebeest N/A Blesbok N/A Oribi 17 9 N/A Mountain reedbuck N/A Grey rhebok N/A Eland N/A Springbok N/A The past financial year data covers only the former smaller national park, whereas the data for the period under review includes the newly enlarged national park. People and Conservation The new environmental interpretation and education programme "Lenses on a Highland Environment" with its five sub-themes was implemented during the past year. The centre was forced to withdraw programmes for eight weeks due to the shortage of personnel. The An Advisory Forum was established for the Parks Empowering People Poverty Relief project, consisting of representatives from all the role players in the project and surrounding areas, and has been functioning very successfully. Staff and community members were trained by Theta s INTAC programme. The park enjoyed good local and national media coverage the past year. MARAKELE NATIONAL PARK Overview The launch of the Greater Marakele National Park on 28 August 2003 was the highlight of the year with guests such as Mr. Nelson Mandela and Prince Bernard of the Netherlands attending. The event publicly marked the launch of the national park and the contractual agreement between Marakele National Park and Marakele Pty Ltd, which has been in operation since At the same event the signing of a contract with the Welgevonden Conservancy took place providing for the dropping of fences between Marakele National Park and Welgevonden. Once these fences are dropped the consolidated area will be in excess of ha. Tourism Report Marakele offers a unique combination of scenic beauty and high fauna and flora diversity and is ideally situated close to Gauteng. Limitations at present are the lack of sufficient accommodation facilities and the limited nature of the tourist roads in the Park. A project to upgrade the main tourist road to the top of the mountain was initiated in the financial year under review and submission has also been made of a Poverty Relief project which would see the development of new tourist roads in the Park. (Tourism statistics found under Tourism Report). experienced throughout the year. Natural springs were active for only a very short period and even the Little Caledon River stopped flowing for most of the winter. Despite this, there has been a sufficient supply of water for consumption by game. Veld conditions stayed relatively good despite the low rainfall. Game concentrations in certain areas of the new enlarged national park were very high resulting in heavy grazing pressure being observed. Free movement of game in the larger national park, effective fire management and wise game capture will reduce the pressure on these areas. The 2003/2004 fire season went well. Only three incidents occurred inside the firebreaks; twice as a result of lightning and once where a fire was started outside the national park on private land and was wind driven into the national park through QwaQwa Nature Reserve. The burned area of some ha had not burnt in recent years, with resultant benefits to the composition and structure of the vegetation community. The whole of the old QwaQwa Nature Reserve was burnt as a result of runaway fires during the past fire season. Basotho Cultural Village and the Lesotho Highlands Water Project were utilised as additional EIE experiences. EIE Activity Apr-Mar Target (9 months) (12 months) Guided group tours Imbewu camps 0 0 Other PAC events Number of participants Person Education EE Centre people participated in the holiday programmes during the April and December holidays. As part of the Parks Empowering People programme adventure guides from the community were trained. 20 primary schools have been identified in the Phuthaditjhaba area to participate in the outreach programme to schools and continued relations were kept with the National Environmental Education Project General Education and Training Band of the Free State during the past year. The national park sponsored five local arts & crafts entrepreneurs to attend the Vth World Parks Congress, where they were very successful in selling their merchandise. Conservation in the Park The park received mm of rain compared to 483 mm during the previous year which allowed the veld to recover. Excessive rain later in the season caused fences and roads to be severely damaged during the numerous flash floods that occurred after every rain storm. Sixteen wild dogs, Lycaon pictus, and 7 Spotted Hyena, Crocuta crocuta, were successfully reintroduced to fill the niche which was left vacant for many years. Ground hornbills, Bucorvus leadbeateri, were also reintroduced, but the project was unfortunately not successful due to a number of problems. Other introductions to increase numbers and genetic diversity in the Park included 76 buffalo, Syncerus caffer, 2 black rhino bulls, Diceros bicornis minor, from Swaziland and an elephant bull, Loxodonta africana. Wildlife Census Type of animal 2003/ /2003 % Difference African hawk eagle % Baboon troops % Black-breasted snake eagle % Black rhino % Blesbok % Blue wildebeest % Buffalo % Bushbuck % Bush pig % Cape vulture 30 N/A 100% Cheetah 0 N/A 100% Crocodile % Duiker % Donkey 6 6 0% Eland % 59 60

33 Type of animal 2003/ /2003 % Difference Elephant % Gemsbok % Giraffe % Hippopotamus % Impala % Jackal % Klipspringer 18 N/A 100% Kudu % Mountain reedbuck % Nyala % Ostrich % Porcupine 1 1 0% Red hartebeest % Reedbuck % Sable % Steenbok % Tsessebe % Vervet monkey troop % Warthog % Waterbuck % White rhino % Zebra % Public Relations The media coverage around the launch of the Park in August 2003 gave the national park a boost in relation to its national profile.there is still however a public perception that access to the national park has not been expanded despite the significant increase in the area. While this relates partly to the nature of the contractual arrangements with Marakele Pty Ltd, it is intended that the opening of new tourist roads will address this issue. People and Conservation Marakele National Park s first People and Conservation personnel only started operating in the period under review, however liaison has been initiated with local government structures (Thabazimbi and Waterberg District Municipality), SAPD through Sector Policing, SAHRA, EEASA, FGASA,THETA, local primary and the local secondary schools. In addition, NGO s such as Kumba Resources, the Itireleng community development centre, SASOL and Philips Lighting have also been communicated with, to try and secure their involvement, especially in environmental education. The Honorary Rangers of the Marakele region are also very active in the national park in implementing several projects, but are also very keen to get involved in environmental education on a continuous basis. The national park does not currently have a Park Forum, but processes are being initiated to put one in place. VAALBOS NATIONAL PARK Overview Overall, in respect of tourism and conservation, this was once again a good year for Vaalbos National Park. Due to the healthy cooperation between the Land Claims Commission and SANParks we have started a process de-proclaiming and eventually handing over the Than, Mozib and Droogeveld sections of Vaalbos National Park to the Sidney-on-Vaal land claimants. The Graspan, Holpan section have not been affected by the land claim. The expected next step in the de-proclamation process will be the evaluation by an independent evaluator appointed by the Regional Land Claims Commissioners office. Negotiations on the settlement will be conducted after the evaluation has been finalised. The handover of these lands poses a challenge for SANParks as funding will have to be sourced to purchase more land in an environment of escalating property prices. However,suitable land has already been identified for the establishment of the new Vaalbos National Park. The personnel component is 20 members strong.as such three new staff houses are being built at the Graspan section to accommodate all. Despite the proposed closure of the park, the staff members are very positive. Even though tourism development was hampered as a result of the proposed closure, the national park saw an increase in tourism figures, resulting in a 52% increase from last financial year. Tourism Report (Tourism statistics found under Tourism Report) Conservation in the Park In the period under review the national park saw a slight increase in the average rainfall from mm in the previous financial year to mm. Despite this increase the buffalo and roan had to be fed in the respective camps during the dry winter months. It is believed this is also due in part to the region experiencing a very cold and dry season, with temperatures going as low as -9.6 C. On the other hand, the veld recovered very quickly after the first rain in September and as a result of the low carrying capacity all animals in the park are in very good condition. Wildlife Census VAALBOS (Than- Mozib- Droogeveld camp) Type of animal 2003/ /2003 % Difference Black rhino % White rhino % Buffalo % Red hartebeest % Springbok % Kudu % Giraffe % Eland * % Gemsbok % Zebra % Steenbok % Duiker % Warthog % Ostrich % Blue wildebeest * % Tsessebe * % Roan % *Indications are that there was an undercount of these species in the previous census. No game capture took place at national park during the period under review, except for the translocation of two giraffe bulls to Kgalagadi Transfrontier Park. Kudu frequently move in and out the park. The roan total includes 32 animals moved from Graspan to Vaalbos. GRASPAN (Graspan / Holpan camps) Type of animal 2003/ /2003 % Difference Springbok % Pale-rumped zebra % Roan % White rhino 1 N/A 100% Buffalo % Sable 12 *Indications are that there was an undercount of the Natal buffalo in the previous census. 264 x springbok relocated to other parks. 18 x zebra were relocated to Addo. Back to Africa project: - Feb 2002 received one rhino bull and three cows from the Netherlands. - Sept 2002 received one bull and two female from the Czech Republic. - Sept 2002 moved one SANParks bull from Marakele National Park to Graspan camp. - June 2003 received one bull and three cows from Marwell Zoo. - To date five calves have been born at Graspan. One calf died after birth (predation), one bull calf was moved to Lichtenburg and the remaining three calves are still at Graspan. - At present there are 12 animals at Graspan and three bulls and seven calves were donated as founder population. People and Conservation Environmental education statistics Groups Totals Children (including school groups) 921 Adults 270 As a result of the proposed closure of the park, no other People & Conservation projects were launched. VHEMBE/DONGOLA NATIONAL PARK Overview The period under review was an exciting phase in the park s development. To name but a few of the exciting events, the park was declared a World Heritage Site on 03 July 2003 and through the Parks Empowering People Poverty Relief programme there were some major improvements and developments to the tourism infrastructure as well as the roads and fences within the national park. This created work for more than 700 people from the surrounding communities. With these funds the archeological sites were rehabilitated and made accessible; the national park was fenced; a basic road network was completed; an entrance gate was at time of reporting still under construction; new tourism facilities that included a restcamp, tented camp and trails camp were constructed as well as numerous other tourism facilities such as hides and picnic sites. After consultation with stakeholders the new tourism facilities were given names, and at time of reporting the name of the national park was still being discussed. The possible new name is Mapungubwe National Park in line with the name of the World Heritage site within the national park. Various VIP s visited the park during the year under review which included the Limpopo Province Premier, numerous MEC s and Mayors. It is clear that Mapungubwe will become one of the icons of the Province, and indeed the country. No new land was acquired, but negotiations with the Samaria trust are at an advanced stage, and the Weipe farm is also under discussion

34 One of the biggest problems experienced the past year was inadequate communication systems. The park is also suffering as a result of resource shortage, particularly vehicles. Tourism Report *Statistics can not be compared due to lack of facilities during 2002/2003. At time of reporting only one luxury lodge,tshugulu Lodge, was ready for full operation, Rhodesdrift Lodge will initially be utilised as official accommodation. It is expected that the park will open for business during June (Tourism statistics found under Tourism Report) Conservation in the Park The whole northern part of the Limpopo Province was declared a drought disaster area early in 2004, but good rains since February 2004 have since alleviated the situation. Both the Limpopo and Sashe rivers have been flowing strongly since February. The veld and all animals are currently in excellent condition. The national park established an indigenous plant nursery to assist with rehabilitation of disturbed areas in the national park. All internal fences within the national park will be removed by April 2004, allowing for animals to roam over larger areas. We are planning to re-introduce tsessebe, red hartebeest and white rhino during 2004, on the other hand some animals are coming back on their own and these are ground hornbill, bateleur and larger carnivores. Tigerfish was introduced into Schroda Dam. Elephant numbers have escalated beyond the recommended quota and this is having a severe negative impact on the biodiversity integrity of the national park. In consequence the national park initiated an elephant research and monitoring program, to assist with future management interventions. Wildlife census Type of animal 2003/ /2003 % Difference Zebra % Waterbuck % Blue wildebeest % Gemsbok % Red hartebeest % Warthog % Elephant % Eland % Impala % Giraffe % Kudu % Bushbuck % Duiker % Steenbok % Above counts exclude Samaria, which had an "open system" with the national park. It is known that large numbers of eland, blue wildebeest and elephant were on Samaria during the census. Current game figures are still within the total carrying capacity of the park, even if some species such as impala are over their recommended numbers. People and Conservation Relations with local SA communities are good, especially with the park providing jobs for 700 people, but relations with Zimbabweans (legal and illegal) are more strained. The appointment of a Social Ecologist is needed to give this matter the necessary focus. Poaching is a problem from the Zimbabwean side, but under control, a consequence, we believe, of the strained relations. Fortunately the national park has a functional Park Committee which assists tremendously in managing relations with stakeholders. It was recently expanded to include third tier government and traditional leaders. The national park also has a Community Forum, which is mostly concerned with the Parks Empowering People Poverty Relief programme and labour-related issues. In a bid to improve regional coordination the national park is represented on the Musina Tourism Association, Soutpansberg Birding Route and Mapungubwe Route and we are in a process of establishing a closer working relationship with the provincial structures. Public Relations On Heritage Day (24 September 2003) people wanted to visit the national park, but due to the capacity of the area and logistical challenges only the VIPs, including the Premier, could come into the national park while the rest of the crowd continued with celebrations in Alldays. The Parks Empowering People Poverty Relief projects were launched in April 2003, during which numerous VIP s and representatives from the media attended. The national park appeared on the following television programs: Going Nowhere Slowly; Morning Live (three hours, two days); 50/50; numerous news channels and also some international channels (not seen in SA). Numerous stories were carried in a variety of newspapers and magazines. The national park played a visible role at the Vth World Park Congress, as a member of the TFCA stand in the exhibitions, which won a prize. Even more prominence was derived through a play based on Mapungubwe which was performed for the delegates on opening night. Guidelines for Materiality Framework Treasury Regulation, s requires that "for purposes of material (s50(1), s50(2) & s66(1) of the PFMA) and significant (S54(2) of the PFMA), SANParks Board (accounting authority) must develop and agree on a framework of acceptable levels of materiality and significance with the Directorate in consultation with the external auditors". Statement of auditing standard SAAS 320 par 3 defines materiality as "information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement. Thus materiality provides a threshold or cut-off point, rather than being a primary qualitative characteristic which information must have if it is to be useful". SANParks deals with the framework under two main categories, being the qualitative and quantitative aspects. Quantitative Aspects The Auditor-General has provided guidelines, which provide the basis for establishing materiality Guidelines for Materiality Framework limits. Using the guidelines, SANParks has a material amount as being R2,9 million.this has been determined by applying 0,75% on the gross annual turnover i.e. R318,2 million. In determining the said materiality value of R2,9 million, we also took cognisance of the following: Nature of SANParks business Statutory and disclosure requirements laid down by the PFMA and its regulations Control and inherent risks associated with the systems of internal control at SANParks In cases where criminal conduct is involved, all instances are regarded as material. The necessary actions to ensure that proper disciplinary steps and criminal procedures against perpetrators are taken to recover all losses, and internal control measures are reviewed and enhanced where necessary to prevent similar occurrences. Qualitative Aspects SANParks does not view materiality solely to the size and extent of misstatement of any elements in the financial statements. Where misstatements are large enough, either individually or in aggregate, which may effect the reasonable user s judgement, these will be adjusted and disclosed in the financial statements

35 Annual Financial Statements for the year ended 31 March 2004 Corporate Governance Statement for the year ended 31 March 2004 CONTENTS Corporate Governance Statement Statement of Responsibility by the Board 69 Report of the Auditor-General on the Annual Financial Statements 70 Accounting Authority's Report Accounting Policies Balance Sheet 77 Income Statement 78 Statement of Changes in Equity 79 Cash Flow Statement 80 Notes to the Annual Financial Statements Appendices to the Annual Financial Statements Annexure to the Annual Financial Statements South African National Parks subscribes and is committed to complying with the principles and standards of integrity and accountability as contained in the recommendations of the King report on corporate governance. During the year South African National Parks' Internal Auditors, Deloitte & Touche, performed a detailed review of corporate governance practices at South African National Parks and compared these with the recommendations as outlined in the King II report.their review indicated that South African National Parks' governance structures and processes are adequate when benchmarked against the requirements of King II and other governance requirements contained in other legislation, e.g. Public Finance Management Act. In addition, South African National Parks compares favourably when benchmarked against other government organisations. The Board is committed to providing timeous and meaningful information. BOARD OF SOUTH AFRICAN NATIONAL PARKS The Board of South African National Parks is established by the President by notice in the Government Gazette for the control, management and preservation of national parks and protection of public interest therein. The Board consists of 18 members to be appointed by the Minister of Environmental Affairs and Tourism, of whom: (i) one member, who is by virtue of his or her knowledge, capable of promoting the objectives of the Board in an unbiased and unprejudiced manner, shall be nominated by each of the Premiers of the respective Provinces; and (ii) nine members shall be appointed in consultation with the Cabinet or a Cabinet committee after the Minister has by notice in the Gazette invited all interested persons to submit to him or her, within the period mentioned in the notice, the names of persons, who in the opinion of such interested persons, are suitable to be so appointed, stating the grounds upon which such opinion is based. The Board meets at least quarterly. The Board monitors the performance of the Executive Management by ensuring that all material matters are subject to Board approval.the Executive Management attend Board meetings by invitation. The roles of Chairperson and Chief Executive do not vest in the same person and the Chairperson is a non-executive member of the organisation. The Chairperson and Chief Executive provide leadership and guidance to the Board and encourage proper deliberation of all matters requiring the Board's attention, and obtain optimum input from the other members. All committees of the Board are chaired by non-executive members of the Board. Executive Management The members of the Executive Management are appointed by the Board. The Executive Management are involved in the day-to-day business activities of the organisation and are responsible for ensuring that decisions, strategies and objectives of the Board are implemented.the Executive Management retain full and executive control over the organisation. Chairperson s Committee The chairperson s committee operates at the discretion of the chairperson and handles executive matters including any urgent or sensitive issues that need to be dealt with between scheduled Board meetings. Human Resources Committee The human resources committee reviews all staff matters and provides an important deliberative forum for the Board and Executive Directors on human resource policies and issues. This committee also monitors the progress of human resource-related policies approved by the Board. The human resources committee is an advisory committee of the Board consisting of four Board members elected triennially at the Board's last meeting of the year.the committee elects one of its members as Chairperson. Finance Committee The finance committee is an advisory committee of the Board. In addition to providing an important deliberative forum for the Board 65 66

36 South African National Parks Corporate Governance Statement for the year ended 31 March 2004 and Executive Directors, it advises the Board on all financial matters put forward by the Executive Directors, either as directed by the Board or on the Executive Directors' initiative. The committee consists of four Board members elected triennially at the Board's last meeting of the year. The committee elects one of its members as Chairperson. Audit Committee In keeping with Treasury Regulation 27 of the Public Finance Management Act No. 1 of 1999 the Board has instituted an audit committee which advises the Board directly - not through the office of the Chief Executive - on audit matters, and which assumes on the Board's behalf certain functions, such as the detailed study of the financial statements, the formulation of audit policy and its submission to the Board, and such like. The audit committee is an independent standing committee of curators which is appointed by the Board and which assists the Board by critical, objective evaluation of the Board's financial control measures, accounting practices, information systems and audit procedures, and which performs this function continuously by way of close liaison with the Executive Management and with the Board's internal and external auditors. The audit committee consists of two Board members appointed by the finance committee (preferably also serving as members of the finance committee), with the Chief Executive as well as the nominated representative of the Auditor-General attending ex officio. The Chief Executive may involve other persons in meetings for specific purposes. The authority and mandate of the audit committee, its duties and functions, its composition and its modus operandi have been approved by the Board in the form of a detailed charter. Conservation Committee The primary function of this committee is to identify, acquire, develop and manage a system of national parks for South Africa. This committee also monitors the application of both science and the ethics of conservation in South African National Parks and ensures that the Board is aware of international trends in conservation science and environmental management. The committee assists the Board in the formulation of policy especially with regard to reconciling conservation with human development needs by assessing and interpreting the significance of scientific and technological considerations. The committee is also responsible for formulating the land claims policy for South African National Parks. Resolution of valid land claims seeks to redress the injustices of the past without compromising the primary mandate of South African National Parks, which is the protection of biodiversity. Transfrontier Committee A transfrontier committee has been established by the Board. Currently all issues pertaining to transfrontier conservation areas are handled by the conservation committee of the Board. Tourism Committee The primary functions of this committee are to oversee all matters related to tourism, to assist South African National Parks management to raise the level of tourism in the organisation and to educate all sectors of the organisation as to the importance of the tourism function, which includes professional hospitality management, development of new products, marketing, sales and the identification of target markets, amongst others. The committee represents the tourism function at the Board and make recommendations for approval by the Board. The committee provides a monitoring mechanism on behalf of the Board on all tourism related matters. Remuneration Committee This committee is responsible for the quarterly performance appraisal of the Chief Executive and together with the Chief Executive determines the annual salary increases and performance bonuses for the members of the Executive Management. Risk Management In accordance with the requirements of the Public Finance Management Act, a risk assessment was performed by the Internal Auditors. Effective risk management is integral to the organisation's objective of consistently adding value to the business. Management is continuously developing and enhancing its risk and control procedures to improve the mechanisms for identifying and monitoring risks. Operating risk is the potential for loss to occur through a breakdown in control information, business processes and compliance systems. Key policies and procedures that have been developed to mitigate and manage operating risk, involve segregation of duties, transaction authorisation, supervision, monitoring and financial and managerial reporting. The insurance and risk management policies adopted by the South African National Parks are aimed at obtaining sufficient cover to protect its asset base, earning capacity and legal obligations against possible insurable losses. All buildings are insured. The following inter alia, are not insured: roads, bridges, fencing (perimeter and other), dam walls and content, driveways, pavements, outdoor recreation surfaces, outdoor parking surfaces, aircraft runways, fauna and flora. Risks of a possible catastrophic nature are identified and insured while acceptable risks of a non-catastrophic nature are self-insured through a dedicated Insurance Reserve. These risks are reviewed on an annual basis to ensure that cover is adequate. An amount of R10 million, as an Insurance Reserve, is allocated to cover these risks. This amount is included in capital and reserves in the Balance Sheet. Claims of a general nature are adequately covered. South African National Parks manages risks associated with financial instruments. These are dealt with in note 29 to the financial statements. Internal Control System In order to meet its responsibility of providing reliable financial information, South African National Parks maintains financial and operational systems of internal control.these controls are designed to provide reasonable assurance that transactions are concluded in accordance with management's authority, that the assets are adequately protected against material loss of unauthorised acquisition, use or disposition, and that transactions are properly authorised and recorded. A three year rolling internal audit plan has been completed by our Internal Auditors to ensure that risks identified in their risk assessment are adequately covered in their audit plan. The system includes a documented organisational structure and division of responsibility, established policies and procedures, including a code of ethics to foster a strong ethical climate, which are communicated throughout the organisation, and the careful selection, training and development of people. South African National Parks has appointed the consortium of Deloitte & Touche / Nkonki to provide internal audit services. Internal auditors monitor the operation of the internal control system and report findings and recommendations to management and the Executive Management. Corrective actions are taken to address control deficiencies and other opportunities for improving the systems, as they are identified. The Board, operating through its audit committee, provides oversight of the financial reporting process and internal control system. There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention or overriding of controls. Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation and the safeguarding of assets

37 South African National Parks Statement of Responsibility of the Board for the year ended 31 March 2004 Report of the Auditor-General on the Annual Financial Statements for the year ended 31 March 2004 Report of the Auditor-General on the Annual Financial Statement for the year ended 31 March 2004 The members of the Board of South African National Parks are ultimately responsible for the preparation, integrity and fair presentation of the annual financial statements of South African National Parks. The annual financial statements presented on pages 69 to 92 have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice and include amounts based on judgements and estimates made by management. The going concern basis has been adopted in preparing the annual financial statements. The Board has no reason to believe that the organisation will not be a going concern in the foreseeable future, however this is dependant on continued future funding from Government. The annual financial statements support the viability of the organisation. The annual financial statements have been audited by PricewaterhouseCoopers Incorporated and Fisher Hoffman PKF on behalf of the Auditor-General, and have been given unrestricted access to all financial records and related data, including minutes of all meetings of the Board, the committees of the Board and meetings of the Directorate. The Board believes that all representations made to the independent auditors are valid and appropriate. The report of the Auditor-General is presented on Page 70. The annual financial statements are signed on behalf of the Board by: REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF THE SOUTH AFRICAN NATIONAL PARKS FOR THE YEAR ENDED 31 MARCH AUDIT ASSIGNMENT The financial statements as set out on pages 69 to 92, for the year ended 31 March 2004 have been audited in terms of section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with sections 3 and 5 of the Auditor-General Act, 1995 (Act No. 12 of 1995) and section 16(3)(a) of the National Parks Act, 1976 (Act No. 57 of 1976). These financial statements, the maintenance of effective control measures and compliance with relevant laws and regulations are the responsibility of the accounting officer. My responsibility is to express an opinion on these financial statements, based on the audit. 2. NATURE AND SCOPE The audit was conducted in accordance with Statements of South African Auditing Standards. Those standards require that I plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. Pretoria, 27 May 2004 M MOROBE MD MABUNDA Chairperson Chief Executive 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. Furthermore, an audit includes an examination, on a test basis, of evidence supporting compliance in all material respects with the relevant laws and regulations, which came to my attention and are applicable to financial matters. I believe that the audit provides a reasonable basis for our opinion. 3. AUDIT OPINION In my opinion, the financial statements fairly present, in all material respects, the financial position of the South African National Parks at 31 March 2004 and the results of its operations and cash flows for the year then ended in accordance with the South African Statements of Generally Accepted Accounting Practice and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999). 4. APPRECIATION The assistance rendered by the staff of the South African National Parks during the audit is sincerely appreciated. S Labuschagne for Auditor-General Pretoria 30 July

38 South African National Parks Accounting Authority s Report for the year ended 31 March 2004 The Accounting Authority hereby presents their report, which forms part of the annual financial statements of South African National Parks for the year ended 31 March Nature of Business South African National Parks is a statutory organisation governed by the National Parks Act, no. 57 of 1976 as amended, primarily engaged in nature conservation as well as the tourism and hospitality industries. Financial Results Full detail of the financial results for the year under review are set out on pages 69 to 92. GROSS REVENUE FROM CONTINUING OPERATIONS Gross revenue increased to R392,62 million in 2004 from R318,21 million in This represents an increase of 23,4%. The increase can be mainly attributed to the introduction of the daily conservation fee on 2 June 2003, a growth in tourism and concessioning income which is mostly "on stream". INCOME FORM OPERATIONS Income from operations decreased to R36,72 million in 2004 from R46,04 million in 2003.The main contributing factors were: Improved gross revenue referred to above; and an increase of R24 million in the grant for land acquisition. The improvements above are offset by: the effect of inflation on cost; increased maintenance costs of R4,75 million due to continuous efforts to upgrade and refurbish tourism infrastructure; a decrease of R18,38 million in sale of fauna and flora for land development; a decrease of R15,81 million in donations received; a shortfall in the basis of calculating provision for leave payments of R5,68 million relating to previous years; a contribution to the cost of hosting the Vth World Parks Congress amounting to R5,40 million. INCOME FROM INVESTMENTS AND INTEREST RECEIVED Income from investments and interest and the adjustment to fair value of listed investments decreased by R3,47 million from the previous year. The decrease is due to a smaller operating cost balance and lower interest rates prevailing in the market. FINANCE CHARGES AND INTEREST PAID Finance charges and interest paid decreased by R5,76 million from the previous year. The decrease is mainly due to recoupment of interest paid in prior years on a long-term loan amounting to R5,41 million. WORKING-FOR-WATER PROGRAMME South African National Parks participates in the Department of Water Affairs and Forestry working-for-water programme. The programme aims to conserve the country's scarce water resources by eradication of invasive alien vegetation species which consume substantial ground water. The programme also contributes to alleviation of poverty in South Africa. During the course of the programme a total of ha of land ( ha) in 14 national parks was cleared of invasive alien species. The programme employed 810 mainly poor rural people ( people) living adjacent to national parks and R22,22 million ( R25,93 million) was expended on the programme during the year. ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT During the year South African National Parks acquired land at a cost of R21,97 million ( R57,72 million) for the purpose of expanding land under conservation and the system of national parks. RECOGNITION OF FAUNA AND FLORA As part of its mission, South African National Parks is responsible for managing a wide range of bio-diversity, encompassing fauna, flora, geological structures and unique scenery. The exact quantity and value of these assets can not be measured with reliable accuracy. South African National Parks, therefore does not reflect the value of these assets in its financial statements. COMMERCIALISATION South African National Parks, as part of its commercialisation strategy, outsourced the bulk of its retail and restaurant operations to third party operators in previous years. During the year, one additional facility at the Karoo National Park was awarded to a private operator. Income from the restaurant and retail operations was R18,69 million compared to R17,79 million in In line with the strategy, a total of 13 sites were concessioned in five national parks. The concessions entail allowing private operators to build and operate tourism facilities within the national parks on the basis of long-term concession contracts. The contracts enable concessionaires to use defined areas of land over specified time periods in return for the payment of concession fees. Against these rights of occupation and commercial use of facilities there are set obligations on the part of the concessionaires regarding financial terms, environmental management, social objectives, empowerment and other factors. Infringement of these requirements carries specified penalties, including termination of the contract, with improvements reverting to South African National Parks. Of the thirteen sites, eight are currently fully operational with the remainder in different stages of development. The design and style of the developments vary in style and cater for market segments which are not serviced by South African National Parks. Management's focus is to ensure that mechanisms are in place to monitor compliance with contractual obligations. POVERTY RELIEF PROGRAMME South African National Parks currently manages a total of 19 poverty relief projects funded by the Department of Environmental Affairs and Tourism. The total value of the projects are R255 million. The projects include clearance of alien vegetation species, rehabilitation of archeological sites, upgrading / maintenance of roads, new tourism accommodation, new tourism product development, removal of unwanted structures (internal fences, buildings, windmills, etc.), erection of new / maintenance of existing perimeter fences, upgrading or maintenance of existing tourism infrastructure and construction of new entrance gates. The programme also contributes to alleviation of poverty in rural areas and provide much needed opportunities for job and skill creation. During the year under review R145,3 million of the budget was spent. It is envisaged that the programme will be completed within the next financial year. So far the individual projects have contributed to the creation of jobs in the communities surrounding the 10 national parks involved in the programme

39 South African National Parks Accounting Authority s Report for the year ended 31 March 2004 LEAVE PROVISION During the year the Labour Relations Act was amended to provide clarification on the definition of remuneration. The amendment specifically includes all regular allowances as part of basic remuneration upon payout of leave. The ammendment has had an effect that the provision for leave pay relating to previous years was recalculated and is disclosed separately on the face of the income statement. WORLD PARKS CONGRESS During the year South African National Parks was appointed by the Department of Environmental Affairs and Tourism to host the Vth World Parks Congress. The congress was held in Durban. South African National Parks net contribution to the cost of hosting the congress was R5,40 million. BOARD MEMBERS ATTENDANCE AT MEETINGS AND REMUNERATION Number of Meetings: Abrahamse,T Dr 5 Khumbane,T Ms Klein, C Ms Kwaaiman, B Mbelani,V Ms Mchunu, M Mokgatlhe, ME Mokgoko, G Morobe, M 1 Nkosi, MS Nzimande, P Ms Patel, Z Dr Samuel, J Sithole, Z 4 Sokutu,T 3 Van Riet, WF Prof 2 Vrahimis, S Ms Walker, C Board Meetings 4 Chairperson s Committee 4 Conservation Committee 4 Finance Committee 3 1, Chairperson - Board and Chairperson's Committee 4, Chairperson - Audit Committee 2, Chairperson - Conservation Committee 5, Chairperson - Tourism Committee 3, Chairperson - Finance Committee SEPTEMBER 2001 FIRE DISASTER IN THE KRUGER NATIONAL PARK On 4 September 2001 the Kruger National Park experienced a devastating fire in the Pretoriuskop - Napi region. These fires led to the death of twenty four persons. A judicial commission of inquiry was ordered by the President. The commission has completed hearing evidence and its verdict is still awaited. EVENTS SUBSEQUENT TO BALANCE SHEET DATE No material events occurred subsequent to the balance sheet date and the date of this report. Audit Committee 4 Tourism Committee 3 No R No R No R No R No R No R EXECUTIVE MANAGEMENT S INTEREST IN CONTRACTS No material contracts involving Executive Management's interests were entered into in the current year. EXECUTIVE MANAGEMENT AND THEIR REMUNERATION The following people served on the Executive Management of South African National Parks during the Financial Year: Msimang, M Mabunda, MD Daphne, P Magome, DT Mkhize, I Dr Phillips, G Soma, AK Wagiet, R Dr Chabani, J Mketeni, FG Van der Merwe, CJ Van der Spuy, P Ms Mkutshulwa, W Ms Fearnhead, PW Chief Executive (Resigned 31 October 2003) Chief Executive (From 1 November 2003, Executive Director: Kruger National Park until 31 October 2003) Executive Director: Parks (Appointed 1 May 2003) Executive Director: Conservation Services Executive Director: Kruger National Park (Appointed 1 March 2004) Executive Director:Tourism Chief Financial Officer Executive Director: People and Conservation (Appointed 1 July 2003) Acting Executive Director: Kruger National Park (1 April 2003 to 29 February 2004) Acting Executive Director: Parks (1 April 2003 to 31 May 2003) Executive Director: Parks (Resigned 31 December 2002) Executive Manager: CE's office Head: Corporate Affairs Head: Commercialisation Basic Remuneration Allowances Note:The remuneration disclosed above excludes the cost of providing for post-retirement health benefits. Addresses Registered office: South African National Parks Postal address: P O Box Leyds Street Pretoria Muckleneuk 0001 Pretoria 0002 Auditors South African National Parks, as a Public Entity, is audited by the Auditor-General or its nominees Bonuses and Incentives Total Total

40 South African National Parks Accounting Policies for the year ended 31 March 2004 The principal accounting policies adopted in the preparation of these financial statements are set out below and are, unless stated to the contrary, consistent with those of the previous year: 1 Basis of preparation The financial statements are prepared in accordance with and to comply with South African Statements of Generally Accepted Accounting Practice. The financial statements are prepared under the historical cost convention, except where indicated to the contrary. 2 Financial instruments Financial instruments comprise cash and cash equivalents, investments, receivables, trade creditors, revenue received in advance, cash held to finance grant funded projects funded by outside institutions, leases and borrowings. Investments in financial assets are initially recognised at cost. Financial liabilities are recognised at the original debt less principal repayments and amortisation. Subsequent to initial recognition these instruments are measured as set out below: Investments Investments in insurance policies Investments in insurance policies are shown at the original amount invested plus actual investment bonuses declared up to the date of the financial statements. No provision is made for the possible early withdrawal of capital and the accompanying loss of income, since it is the intention to retain the investments until their maturity dates. Other investments Other investments are shown at their respective fair values. Changes in fair value are recognised in income in the year in which they arise. On disposal of an investment, the difference between the net proceeds and the book value is recognised in the income statement. Trade receivables Trade receivables are stated 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. 3 Property, plant and equipment Property, plant and equipment are stated at cost less depreciation. Cost includes all costs directly attributable to bringing the asset to its working condition for its intended usage. Depreciation is provided on the straight-line method to reduce the value of each asset to its residual value over its expected useful life. South African National Parks has acquired the usage of certain land that is registered in the name of the State and which is incorporated as part of its national park system.this land is not reflected as an asset of South African National Parks. The expected useful lives of the assets are: Buildings, roads and infrastructure Vehicles, aircraft and mechanical equipment Furniture, office equipment and computer software Land is not depreciated. 8 to 50 years 5 to 20 years 2 to 5 years 4 Construction work in progress Incomplete construction projects are reflected at cost. Cost includes direct materials, labour and overhead expenses. Interest costs on borrowings to finance the construction of infrastructure are capitalised during the period of time that is required to complete and prepare the infrastructure for its intended use, as part of the cost of the asset. 5 Inventories Inventory, which exclude fauna and flora, is stated at the lower of cost and net realisable value. Cost is determined by the first-in-first-out method compared to the weighted average cost method in prior years (refer Note 4). Net realisable value is the estimated realisable value in the ordinary course of business, adjusted for any selling. 6 Post-retirement health benefit obligation The South African National Parks provides post-retirement health care benefits by way of medical aid schemes to some of its retires. The level of entitlement to post-retirement health care benefits is dependant upon the employee's date of appointment and the employees remaining in continued service up to their respective retirement ages. The obligation is provided for in full. Current service costs are charged to the income statement and include the expense for benefits received by the employee currently in service and the cost of funding for the employee after retirement. Actuarial gains and losses are recognised in the income statement. The current service cost is determined by professional qualified independent actuaries, after taking into account the level of funding for the post-retirement benefits Accounting for leases Leases of property, plant and equipment where the South African National Parks assumes substantially all the benefits and risks of ownership are regarded as finance leases. Finance leases are capitalised at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant repayment of capital. The lease obligations, net of unamortised finance charges, are included in long-term borrowings. The interest component of the finance charge is charged to the income statement over the lease period. Property, plant and equipment acquired under finance leasing contracts are depreciated over the useful lives of the assets. Assets acquired under leases where all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. Where an operating lease is terminated before the lease expiry date, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which the termination takes place. 8 Provisions Provisions are recognised when the organisation 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. 9 Revenue recognition Tourism income Accommodation is recognised in full on arrival in a park, net of Value Added Tax (VAT) and discounts. Entry fees are recognised upon entry to the park and other tourist related activities are recognised upon commencement of the activity, net of Value Added Tax (VAT) and discounts. Sales Sales are recognised upon delivery of the products, customer acceptance and performance of services. Sales exclude Value Added Tax (VAT) and discounts. Concession income Income from concessions granted to operators to build, operate and transfer lodges and from rental of facilities to operators is recognised as it accrues over the period of the agreement net of Value Added Tax (VAT). Donations and special grant funding Donations received for the acquisition of property, plant and equipment, are recognised in the income statement when received. Funding by way of special project grants are disclosed under current liabilities and recognised as income to the extent of expenditure. Special grant funding utilised for the acquisition of assets, excluding land, are disclosed as a non-distributable reserve and amortised as a credit to the depreciation expense over the useful lives of the respective assets. Interest Interest is recognised as it accrues unless the collectability is in doubt. 10 Government grants Grants received from Government are accounted for in the income statement over the period to which each grant relates. 11 Pension and provident funds obligations The South African National Parks operates a number of defined contribution plans, the assets of which are held in separate trusteeadministered funds. The contributions to these funds are charged to the income statement in the year to which they relate. 12 Foreign currencies Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transactions. Gains and losses resulting from the settlement of such transactions are recognised in the income statement. 13 Extraordinary items Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and therefore are not expected to recur frequently or regularly. 14 Comparatives Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current period. 76

41 South African National Parks Balance Sheet as at 31 March 2004 Income Statement for the year ended 31 March March 31 March Notes ASSETS Non-current assets Property, plant and equipment Construction work in progress Investments Current assets Inventory Receivables and prepayments Cash and cash equivalents Total assets EQUITY AND LIABILITIES Capital and reserves Accumulated surplus Insurance Other Non-current liabilities Post-retirement health benefit obligation Long-term borrowings Current liabilities Trade and other payables Provisions for liabilities and charges Short-term portion of long-term borrowings Reservation deposits held Funding by way of special project grants Total liabilities Total equity and liabilities March 31 March Notes Gross revenue Gross operating revenue Other operating income Income from special project grants Total income Human resource expenses Office and operating expenses Depreciation Maintenance and consumables Expenses relating to special project grants Total expenses Operating loss (67 205) (75 623) Operational grants received Operating income / (loss) from total operations (3 365) Land acquisition grant Sale of fauna and flora for land development Donations Leave provision (5 681) - Cost of hosting Vth World Parks Congress (5 396) - Income from operations Investment income and interest received Adjustment to fair value of listed investments (1 356) Finance charges and interest paid 26 (3 311) (9 074) Income from ordinary activities Extraordinary Items - (1 000) Net income for the year

42 South African National Parks Statement of Changes in Equity for the year ended 31 March 2004 Cash Flow Statement for the year ended 31 March 2004 Accumulated surplus Insurance Total Balance at 1 April Claims against insurance reserve - (250) (250) Transfer to insurance reserve (250) Net income for the year Balance at 31 March Balance at 1 April Claims against insurance reserve - (44) (44) Transfer to insurance reserve (2 044) Net income for the year Balance at 31 March March 31 March Notes CASH FLOWS FROM OPERATING ACTIVITIES Cash received from visitors and concessionaires Cash paid to suppliers and employees ( ) ( ) Net cash generated by operations Interest and investment income Interest and finance charges (3 311) (9 074) Net cash inflow from operating activities Cash effects of other items Cash effects of extraordinary items - (1 622) Net cash inflow from activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (73 819) ( ) Construction work in progress (4 071) (26 620) Purchase of investments (5 499) (7 631) Proceeds on disposal of fixed assets Proceeds on disposal of investments Net cash outflow from investing activities (79 684) ( ) CASH FLOWS FROM FINANCING ACTIVITIES Long-term borrowings raised Proceeds from lease funding Net cash (paid) / received as special project grants (42 048) Repayment of long-term borrowings - (11 082) Payment of post-retirement health benefits (6 775) (5 816) Repayment of lease obligations (312) (790) Net cash (outflow) / inflow from financing activities (41 186) Net (decrease) / increase in cash and cash equivalents (13 360) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

43 South African National Parks Notes to the Annual Financial Statements for the year ended 31 March 2004 Notes to the Annual Financial Statements for the year ended 31 March Property, plant and equipment Year ended 31 March 2004 Opening book value Reclassification adjustment (10 280) Additions Disposals (20) (153) (44) (217) Depreciation charge (7 180) (5 456) (3 486) (16 122) Closing book value At 31 March 2004 Cost Accumulated depreciation (59 691) (42 177) (27 877) ( ) Book value Year ended 31 March 2003 Opening book value Additions Disposals (1 680) (2 179) (16) (3 875) Depreciation charge (5 183) (6 518) (813) (12 514) Closing book value At 31 March 2003 Cost Accumulated depreciation (49 588) (54 641) (10 460) ( ) Book value The register containing details of land and buildings is available for inspection at the Head Office of the South African National Parks.The Board is of the opinion that the market value of land and buildings substantially exceeds its book value. Certain land included above is registered in the name of the State. Land, buildings Vehicles, Furniture, and aircraft and office equipment infrastructure mechanical and computer equipment software Total (i) Included in movable assets are assets that serve as security for a notarial bond in favour of IDC as detailed in Note 10 (i) and (ii). (ii) Cost Accumulated depreciation Book value Included in moveable assets are assets that serve as security under finance leases as detailed in Note 10 (iii). 31 March 31 March Cost Accumulated depreciation Book value Construction work in progress Opening balance Cost incurred during the year Capitalised during the year (15 300) (99 596) Closing balance Investments Listed investments Shares Bills and debentures Unlisted investments Insurance policies and annuities Deferred remuneration policies Term investments Total investments Adjustment to fair value of listed investments (1 356) Fair value Market value of listed investments Fair value of unlisted investments

44 South African National Parks Notes to the Annual Financial Statements for the year ended 31 March Inventory Retail goods and fuel Consumables Raw materials Less : Provision for obsolete stock Change in accounting policy During the year, South African National Parks changed its accounting policy for Inventory. Inventory is now valued using the First-in-First-out method, compared to weighted average cost in prior years. Prior year figures were not restated as it is deemed impractical to do so. The change in accounting policy has had no material effect on the value of inventory. 6 Receivables and prepayments Concession debtors Value Added Tax Trade receivables Other receivables Prepayments Less: Provision for doubtful debts Cash and cash equivalents Cash on hand Short-term bank deposits On 31 March 2004 the South African National Parks had short term general banking facilities that amounted to R25 million (2003 R25 million). The interest rate on 31 March 2004 is prime (currently 11,5%). The facilities are unsecured. 31 March 31 March Other reserves Funded by way of special grants - Property, plant and equipment Construction work in progress Less : Amortised (Note 19) Post-retirement health benefit obligation Liability provided for at the beginning of the year Expense reflected in income statement (Note 17) Contributions paid (6 775) (5 816) Liability provided for at end of year Principal assumptions of the latest actuarial valuation are: (i) An escalation of 10% ( %) per annum in terms of contribution rates. (ii) A rate of 12% ( %) was used for discounting. (iii) A decremental rate equal to the published SA Mortality Tables for pre-retirement members, discounted by 3 years for females was used. (iv) For post-retirement members the PA(90) Mortality Tables were used. (v) The effect of HIV AIDS has not been taken into account in the calculation as the prevalence of HIV AIDS cannot be established with reliable accuracy. 10 Long-term borrowings Secured borrowings (i) Industrial Development Corporation - Land acquisition (ii) Industrial Development Corporation - Commercial development (iii) Wesbank Limited - Lease Obligations Unsecured borrowings (iv) Registered stock loans Total borrowings Less : Short-term portion transferred to current borrowings The secured loans were used mainly to fund the erection of tourism facilities inside national parks. (i) The land acquisition IDC long-term loan was entered into to acquire land to the value of R29,85 million. The loan is repayable in 83 equal monthly instalments of R0,358 million from 1 October 2004 with a final instalment of R0,286 million. The loan bears interest at prime less 4% (At 31 March 2004 the interest rate was 7.5% ( %)) subject to a minimum rate of 7.5%. (ii) The commercial development IDC long-term loan was entered into for development of new infrastructure to a total value of R35 million. The loan is repayable in 119 equal monthly instalments of R0,292 million commencing 1 October 2006 with a final instalment of R0.252 million. The loan bears interest at prime less 2.5% (At 31 March 2004 the interest rate was 9.5% ( %)) subject to a minimum rate of 7.5%. The IDC loans are guaranteed by a notarial bond over movable assets as detailed in Note 1 (i). 31 March 31 March

45 South African National Parks Notes to the Annual Financial Statements for the year ended 31 March 2004 (iii) Lease obligations are secured by moveable assets which revert to the lessor in the event of default as detailed in Note 1 (ii). The lease obligations bear interest varying between 8,90% and 15,25% ( ,70% and 15,25% ) per annum. (iv) The unsecured registered stock loan bears interest at 16,90% per annum and the capital is repayable on 31 December 2005.This loan was used to fund the erection of tourism facilities inside national parks. Maturity of long-term borrowings - Current Between 1 and 5 years After 5 years The present value of capitalised finance leases are as follows: Within 1 year Later than 1 year but not later than 5 years Trade and other payables Trade payables Accrued expenses Provisions for liabilities and charges Leave liability Balance at beginning of year Increase in provision Provision released during the year - (2 978) Other Balance at beginning of year Costs incurred during the year - (1 622) Provision made during the year Total provision Leave liability Employee entitlements to annual leave is recognised as and when it accrues to employees. A provision is made for the liability for annual leave as a result of past services rendered by employees to the balance sheet date. The organisation allows its employees to accumulate annual leave to a maximum of one year's allocation. The organisation remains liable to pay out an amount equal to the leave balance at the current rate of remuneration. 31 March 31 March Funding by way of special project grants South African National Parks periodically manage special projects. These projects are funded by various donors in the form of grants. For most projects the monies are received in advance but in other cases the costs relating to the projects are reimbursed on a regular basis. 31 March 31 March Opening balance Funding received Department of Environmental Affairs and Tourism - Poverty relief Coast Care Limpopo Transfrontier Park Global Environmental Facility World parks congress Working-for-water Cape Metropolitan Council Other Interest earned Expenditure Operational Advanced Assets under construction Property, plant and equipment Closing balance Balances of significant projects at year end Poverty relief Limpopo Transfrontier Park Cape Metropolitan Council Coast Care World parks congress 50 (497) Global Environmental Facility (1 894) 254 Working-for-water (3 789) (1 194) Other Other Provision for costs of the commission of inquiry into the fire disaster, less expenses incurred to date

46 South African National Parks Notes to the Annual Financial Statements for the year ended 31 March March 31 March Gross revenue The following items have been included in gross revenue: Retail Shop and restaurant sales Filling station sales Tourism Accommodation Conservation levies / Entrance fees Drives Trails Other tourism related activities Concessioning Commissions - Retail and restaurant operations (Refer Appendix Note 1) Lodge concession fees (Refer Appendix Note 2) Gross operating revenue Gross operating revenue is stated after taking into account cost of sales of retail operations amounting to Other operating income Rent received Sundry income Commission received and filming rights Services rendered Sale of fauna and flora Rebates received Water and electricity recoveries Profit on sale of property, plant and equipment Human resource expenses Salaries Pension costs - Defined contribution plans Post-retirement health benefit obligations Current service costs Interest costs Actuarial loss for the year Office and operating expenses Operating costs Operating lease payments Subsistence and travelling costs Consumables Office costs Marketing and promotions Water and electricity costs Vehicle and aircraft operating costs Minor assets not capitalised Bank charges Auditors' fees Losses and net shortages Loss on sale of property, plant and equipment Board members' costs Investment management fees Operating lease payments Total future minimum lease payments - Current Between 1 and 5 years The following represents significant leasing arrangements and the basis on which future minimum lease payments were calculated: (i) AXIS Finance Company. The lease is for the rental of digital switchboard equipment at the corporate office and Skukuza support offices. The minimum monthly rental of R0,046 million is payable in advance and expires on 1 July At the termination of the lease, South African National Parks has the option to acquire the equipment. (ii) South African National Parks rents office space at Westlake for the Table Mountain National Park operations. There are two agreements that govern the right of use. Both rentals are payable monthly in advance and escalate annually with 12%. The first rental expires on 1 August 2005 and the other on 1 March The current monthly rental payment amounts to R0,065 million ( R0,050 million). (iii) The rental agreement with VUSWA Fleet Services (Pty) Ltd provides for the provision of a vehicle fleet in the Kruger National Park. The agreement is for a period of five years which terminates on 1 August The minimum future monthly rental premium amounts to R1,326 million ( R1,326 million). 31 March 31 March

47 South African National Parks Notes to the Annual Financial Statements for the year ended 31 March Depreciation Charge for the year (Note 1 ) Less : Transferred from other reserves (Note 8 ) Maintenance and consumables Maintenance costs paid to third parties Consumables utilised in maintenance programs Operational grants received Department of Environmental Affairs and Tourism - Conservation Road Local Authorities Cape Town Municipality Cape Metropolitan Council South Peninsula Municipality During the year the operational grants from local authorities have been replaced with grants for special projects. 31 March 31 March Land acquisition grant Department of Environmental Affairs and Tourism Sale of fauna and flora for land development The sale of fauna and flora is applied to land acquisition to expand the national park system. It is therefore not reflected as part of normal operating income Donations Donations form a minor part of the funding of conservation and social-ecological programs of the South African National Parks. Due to the varying nature of such funding and the direct allocation thereof to identifiable projects, it is not deemed to be part of normal operations March 31 March Investment income and interest received Interest income Marketable securities - Dividend income Net surplus on disposal of marketable securities Net foreign exchange transaction gain Finance charges and interest paid Finance charges Interest paid Net cash generated by operations Operating income / (loss) from total operations (3 365) Adjustments for non-cash items: Net surplus on disposal of property, plant and equipment 173 (12 338) - Depreciation Provision for post-retirement health benefit obligations Other reserves (2 905) (364) - Reimbursement of insurance reserve for claims (250) (44) Changes in working capital Inventory Receivables and prepayments (12 118) (11 253) - Trade and other payables Provisions for liabilities and charges 856 (2 600) - Reservation deposits held Cash generated by continuing operations Cash effects of other items Land acquisition grant Sale of fauna and flora for land development Donations Cost of hosting Vth World Parks Congress (5 396)

48 South African National Parks Notes to the Annual Financial Statements for the year ended 31 March March 31 March Fair value of financial instruments Where the fair value of financial instruments are disclosed, the following methods and assumptions were used by South African National Parks in establishing fair values: 29 Financial risk management Liquidity risk South African National Parks manages liquidity risk by monitoring forecasted cash flows and ensuring that adequate unutilised borrowing facilities are maintained. Interest rate management Interest rate risk arises from incremental funding / new borrowings and the roll-over of maturing debt / refinancing of existing borrowings. South African National Parks borrows at both fixed and floating interest rates. Interest rate risk reprising profile: Exposure % of Total exposure 1-6 months % 7-12 months % Beyond 1 year % Total borrowings Credit risk management Potential concentrations of credit risk consist mainly of short-term cash, cash equivalent investments and trade debtors. South African National Parks limits its counter party exposures from its money market investment operations by only dealing with well-established financial institutions of high quality credit standing. The credit exposure to any one counter party is managed by setting transaction / exposure limits, which are reviewed annually. Trade debtors comprise a large number of customers, dispersed across different industries and geographical areas. Ongoing credit evaluations are performed on the financial condition of these debtors. Where appropriate, credit guarantee insurance cover is purchased. Trade debtors are presented net of the allowance for doubtful debt. Concentration of credit risks Exposure % of Total exposure Rated agencies % Government % Other parties % Financial instruments traded in an organised financial market The current quoted market prices are used to determine fair values. Monetary financial assets and liabilities not traded on an organised financial market The carrying amounts of trade debtors, trade creditors and accruals reported in the balance sheet approximate their fair values. Interest bearing debt The carrying amounts of short-term interest bearing debt approximates their fair values. 31 South African National Parks retirement funds South African National Parks joint retirement funds The South African National Parks joint retirement funds consist of the South African National Parks Joint Provident Fund and the South African National Parks Joint Pension Fund. Both these funds were founded on 1 November Contributions by employees are allocated to the South African National Parks Joint Pension Fund, whilst the employer contributions are allocated to the South African National Parks Joint Provident Fund.The funds are defined contribution plans which are controlled by the Pension Funds Act, 1956 and administered by a financial institution. During the year South African National Parks contributed an amount of R10,03 million for employees ( R7,88 million for 1373 employees), to the joint retirement funds.the main reason for the increase is members from the South African National Parks Provident Fund that transferred on the termination of the fund to this fund. SACCAWU National Provident Fund The fund is a defined contribution plan, which is controlled by the Pension Funds Act, 1956, and administered by a financial institution. Retirement benefits are based on the accumulated credits as contributed by both employer and employee. During the year South African National Parks contributed an amount of R3,21 million for 958 employees ( R2,81 million for 919 employees).the main reason for the increase is members from the South African National Parks Provident Fund that transferred on the termination of the fund to this fund. South African National Parks Provident Fund Retirement benefits are provided for employees by means of a provident fund to which both the employer and employee contribute. The fund, a contribution plan controlled by the Pension Funds Act, 1956 and administered by a financial institution, was terminated during the year and the members opted to transfer to the other two funds available. During the year South African National Parks made a final contribution of R0,09 million for 394 employees (representing one months contribution) ( R1,20 million for 394 employees) to the provident fund, prior to final termination and transfers to other funds. 32 Contingent liabilities 32.1 Legal disputes South African National Parks is currently involved in legal disputes relating to operational matters. No significant losses are expected to arise as a result thereof Land claims A number of land claims has been instituted on land owned or managed by South African National Parks. Whilst South African National Parks is supportive of the process of returning land to its disenfranchised communities, it also proposes that the conservation status of land be protected

49 South African National Parks Appendices to the Annual Financial Statements for the year ended 31 March Commissions - Retail and restaurant operations (Refer Note 14) The concession contracts for retail and restaurant operations entail allowing private operators to operate South African National Parks' existing facilities on the basis of a medium-term operating agreement. Investors manage and upgrade existing retail and restaurant facilities.the agreements enable the operators to use a defined area over a 9 1 / 2 year term in return for payment of concession fees. Against the right of occupation and commercial use of facilities, there are set obligations on the part of the concessionaire regarding financial terms, environmental management, social objectives, empowerment and other factors. Infringement of these requirements carries specified penalties, including termination of the contract with the assets reverting to South African National Parks. The monthly rental payable for the facilities by the contractor to South African National Parks for any given month shall be the higher of the fixed monthly rental as defined by the agreements, escalating on an annual basis; or the rental based on actual gross revenue realised, expressed as a percentage of gross revenue. The operators have provided South African National Parks with Performance Bonds equivalent to 3 months fixed rental in the form of Performance Guarantees that secure the operators performance under the Operating Agreement on the basis set out in the Facilities Rental Agreement.The Performance Bonds do not apply to Picnic Site concessions. The following schedule summarises the potential income receivable from the various operators for the various sites: The calculated annual concession fee is based on the bid percentage of actual gross revenue for that concession year. The specific obligations per concession are detailed in the schedule below: Commissioning Termination % of Gross National Park - Concession Area Concession holder Date Date Revenue Addo - Gorah Elephant Camp Hunter Hotels 1 Jan Dec % Addo - Nyati Lovany Game Lodge 1 Jan Dec % Golden Gate - Brandwag Hotel Faranani Consortium 1 Apr Mar % Kruger - Mutlumuvi Ndlovu Consortium 1 Jul Jun % Kruger - Mpanamana Faranani Consortium 1 Jan Dec % Kruger - Jakkalsbessie African Pride 1 Jan Dec % Kruger - Jock of the Bushveld Mitomeni River Lodge 1 Jul Jun % Kruger - Lwakahle Idube Game Lodge 1 Nov Oct % Kruger - Mluwati Imbali Safari Lodge 1 Jan Dec % Kruger - Nwanetsi Singita Lebombo 1 Mar Feb % Table Mountain - Roundhouse Halcyon Hotels 1 Aug Jul % Table Mountain - Koeël Bay Halcyon Hotels 1 Jan Dec % Commissioning Termination Minimum % of Gross Operator Date Date rental Revenue R % Tiger s Eye 15 Oct Mar % Nature s Group 15 Oct Mar % Dreamcatcher Four 15 Oct Mar % EJ Viljoen and Associates 15 Oct Mar % Mitomeni River Lodge 15 Oct Mar % 2 Lodge concession fees (Refer Note 14) The lodge concession contracts entail allowing private operators to build and operate tourism facilities within national parks on the basis of long-term concession contracts. Investors either take over and upgrade identified existing lodge facilities or build and operate new lodges.the contracts enable the concessionaires to use defined areas of land including any buildings that may already exist on that land over a 15 to 20 year term in return for payment of concession fees. Against the right of occupation and commercial use of facilities there are set obligations on the part of the concessionaire regarding financial terms, environmental management, social objectives, empowerment and other factors. Infringement of these requirements carries specified penalties, including termination of the contract, with the assets reverting to South African National Parks. The annual concession fee payable by the Concessionaire to South African National Parks for any given concession year shall be the higher of a minimum rental as determined by the agreement for the concession year; a fixed concession fee commitment equating to 65% of the bid rental for the concession year; or a calculated annual concession fee based on gross revenue for the concession year. At the end of the concession period the concessionaires shall hand over the concession area, the camp, all concession assets and its rights or interest in the developments to South African National Parks free of charges, liens, claims or encumbrances of any kind whatsoever and free of any liabilities in good condition, fair wear and tear excepted. The concessionaire shall not, other than as provided for in respect of the residual value, be entitled to payment of any compensation in connection therewith. Performance bonds were provided to South African National Parks by the concessionaires that are operative from the effective dates.the concessionaires will maintain valid performance bonds from the effective dates until 90 business days after the expiry or earlier termination of the concession contracts. The amounts to be guaranteed by the performance bonds shall be equal to R per overnight guest bed, to be constructed in the Concession Area, with a minimum of R

50 South African National Parks Annexure to the Financial Statements for the year ended 31 March 2004 Tourism Conservation Total Divisional information (Year ended 31 March 2004) Gross revenue Gross operating revenue Other operating income Income from special project grants Total income Human resource expenses Office and operating expenses Depreciation Maintenance and consumables Expenses relating to special project grants Total expenses Operating loss ( ) (67 205) Operational grants received Operating income / (loss) from total operations ( ) Land acquisition grant Sale of fauna and flora for land development Donations Leave provision (3 787) (1 894) (5 681) Cost of hosting Vth World Parks Congress (2 698) (2 698) (5 396) Income from operations (87 413) Interest and investment income Adjustment to fair value of listed investments Finance costs (1 705) (1 606) (3 311) Net income for the year (83 913) Tourism Conservation Total (Year ended 31 March 2003) Gross revenue Gross operating revenue Other operating income Income from special project grants Total income Human resource expenses Office and operating expenses Depreciation Maintenance and consumables Expenses relating to special project grants Total expenses Operating loss ( ) (75 623) Operational grants received Operating income / (loss) from operations ( ) (3 365) Land acquisition grant Sale of fauna and flora for land development Donations Income from operations (61 134) Investment income and interest received Adjustment to fair value of listed investments (764) (592) (1 356) Finance charges and interest paid (4 868) (4 206) (9 074) Income from ordinary activities (59 225) Extraordinary items (1 000) - (1 000) Net income for the year (59 225)

51 Head Office: 643 Leyds Street, Muckleneuk, Pretoria PO Box 787, Pretoria, 2001 Tel: Fax: RED ROCKET DEISGN & ADVERTISING