The Department of Mineral Resources (DMR) has introduced an online system for mining rights applications, to address corruption that plagued the process.
The system, which cost R3.4 million, is set to be up and running next week, and was a response to administrative and legislative problems, which previously resulted in some officials engaging in corruption.
The department has been struggling with mining rights applications where - due to system failure and/or corruption - rights for one piece of land were being granted to two different parties.
“Also the Kumba/ICT debacle was due to allegations that applications were received, but were being post-dated and back-dated. The system is supposed to lodge the application on the day it is received,” says a well placed source within the industry.
He adds that the Mineral and Petroleum Resources Development Act (MPRDA) is the source of the problem since it was not thought through and results in inconsistencies and ambiguities.
“The DMR was taken under review because people in the department don't understand their own Act and are making bad decisions.”
Admin failure
DMR minister Susan Shabangu says she instructed DG Sandile Nogxina to appraise and identify all these areas of concern, and this was done a year ago.
“As a result, I announced at the Indaba last year our intention of reducing the turnaround time for mining rights applications from the current 12 months to six months, while prospecting rights would be reduced from six months to three.”
Some of the problems that were identified were the inability of the administrative system to effectively manage competing applications, leading to double grantings, overlaps and rights that could not be registered; an increase in litigation cases and appeals, as well as letters from applicants relating to delays in processing their applications; and limited capabilities of the National Mining Promotion System (NMPS), leading to unregistrable rights.
The minister also says there was a lack of proper interface between NMPS and other planning and development systems, and errors or wrong property descriptions by consultants, leading to overlaps.
“Absence of an inherent accountability system for officials involved in processing applications and administering rights” were also lacking.
Shabangu says there was a lack of transparency in decision-making.
Overcoming limitations?
“As early as October 2009, I had commenced a process of developing an integrated electronic system for managing the mine health and safety portfolio.
“The system allowed a process of an integrated management of information and improved management of the mining industry,” says Shabangu.
She adds that it was due to NMPS limitations that the decision was taken to roll out the new electronic management system.
“To this end, we have migrated NMPS data onto the new platform to be integrated into the new system.”
She says the new applications would allow for limited human tampering and greater transparency.
Online tracking
“The system that we are launching allows for online lodging of applications, progress reports and viewing progress online. Compliant applicants should be able to receive acceptance letters instantly.”
Shabangu imposed a moratorium on the lodging of new prospecting rights in September, to prepare for the implementation of the new electronic system, since the data on the NMPS system had to be properly audited.
The system also offers spatial information, which - for the first time - allows the public to view the locality of issued rights, and land in respect of which applications are being considered, at any given time, through the department Web site, according to the minister.
It also has complete uniform application evaluation procedures, to ensure consistency, transparency, and to eliminate the possibility of human error in the evaluation process.
The system contains information from other government planning systems, including environmentally sensitive areas to eliminate the current challenge where rights end up being granted over these sensitive areas.
Everything transparent
“I am hereby proud to announce that when the moratorium is lifted, it will usher in a new era characterised by a long overdue online application system,” says Shabangu.
The moratorium is expected to be lifted in April.
“The system has been imbued with principles of accountability, transparency and efficiencies. The system would also address challenges of overlaps in properties being applied for, as it would not permit acceptance of applications with overlapping properties.”
Democratic Alliance shadow minister for mining Hendrik Schmidt says the new system should be effective. “Everything will be more transparent and that will definitely help with the corruption issue.”
However, Schmidt says application processes need to be speeded up and it remains to be seen if the system will improve this.
“That depends on the people in the department and how they work since there is a tick-box exercise in the application and department officials then check to see that all the boxes are ticked before formally approving.”
Lingering doubts
However, there are some concerns around how fast the system was built and how little money was spent.
“The old system failed, but was built over a long period of time and it did have good elements, it just wasn't being used properly. For them to replace the old system in just three months is worrying,” says an industry player.
“It was also built at a fraction of the cost of what was expected. If the Johannesburg billing system cost around R500 million and still fails, what will this system at R3.4 million do?”
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