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PROPOSALS FOR REPARATIONS FOR VICTIMS OF APARTHEID GROSS HUMAN RIGHTS VIOLATIONSKhulumani Presentation prepared for Workshop with Department of Justice
1
Although a number of initiatives have been implemented to respond to the needs of Apartheid victims of gross human rights violations, there are still significant gaps in this response
Globally accepted UN framework for reparations to victims of gross human rights violations
Satisfaction RehabilitationGuarantees of non-repetition
Restitution Compensation
TRC aimed to recognise the suffering of victims in a public platform
Various symbols and memorials have been developed (e.g. public holidays, names of places and streets, museums, etc.)
Many victims’ medical and psychosocial needs still need to be addressed, as many remain in desperate poverty and are unable to access basic services
The basic principles of the South African constitution aim to protect victims and all South Africans from future violations
Many victims continue to suffer from high levels of poverty and have been unable to make up for the lost opportunities they incurred as a result of the violations they experienced
The only financial compensation paid to victims (once off R30K payment) was well below the amount recommended by the TRC and other panels
Furthermore, it only reached a small portion of the complete universe of victims
Source: United Nations (framework)
The proposals presented today by Khulumani and partners aim to address the gaps in reparations for victims
2
Agenda
Individual financial grants to victims
Utilisation of the President’s Fund
Summary
3
An individual financial grant to victims will address their urgent needs for compensation and restitution
Globally accepted UN framework for reparations to victims of gross human rights violations
Satisfaction RehabilitationGuarantees of non-repetition
Restitution Compensation
Empowerment of victims to uplift themselves and improve their
circumstancesFinancial
compensation to…
Acknowledge their suffering
Subsidise basic living costs
Enable access to services
and facilities
4
A financial grant would empower victims to address the areas in which they require assistance themselves, as outlined by the TRC
Medical needs (physical and psychosocial)
Other (exhumations, burials, legal, etc.)
Educational needs
Housing needs
Core needs of victims that need to be addressed
5
A financial grant has a number of benefits over other forms of compensation methods (e.g. service packages) in two key areas…
Impact on victims
Creates the opportunity for true empowerment of victims as victims become responsible for their own fates and can take charge of their own lives and those of their dependents
Victims are best placed to know their own needs and to prioritise those needs
Is less public than other methods of compensation, to avoid community tensions
Impact on victims can be directly measured via their use of the funds
Cost and efficiency
Low cost to administer – only significant administration costs relate to the upfront verification of victims and the research component of monitoring the impact of the grants on victims
Infrastructure to implement already exists (SASSA) and can be leveraged
Suggested fixed amount for all victims does not require laborious assessments to determine the severity of suffering by victims
Ease of fiscal management
Research by both the TRC and Khulumani has revealed that financial compensation is the preferred method of compensation by victims – it speaks directly to their needs
6
The R30K payout that some victims received was well below the amount recommended by the TRC – and this has been confirmed by extensive research by Khulumani with an expert panel
TRC beneficiaries Khulumani memberswho were not
TRC beneficiaries
Other victims Victimverification costs
Research costs* Total
1.5
7.00.5 0.0 0.0 9.1
0
2
4
6
8
R10B
Esti
mat
ed c
ost
of
ind
ivid
ual
gra
nt
for
vict
ims
Note:*Research costs are an estimate at this stageSource: Khulumani
17K TRC beneficiaries will receive a further
R90K
Remaining Khulumani members
(~59K) receive R120K
Victims not yet recorded (~5K) receive R120K
7 years of research to track impact (R1.3M
per year)
To verify ~80K victims
Khulumani and partners recommend a total grant of R120K per victim. To reach ~80K victims, and taking into account those who received the R30K TRC payout, implies ~R9B in grants
7
Additional factors to consider in the implementation of an individual financial grant for victims…
Grant to be paid over a period of five years on a monthly basis
Administration of grants to be managed by SASSA
R120K amount in line with TRC recommendations and based on extensive research conducted by Khulumani in 2003, as to what would satisfy victims’ needs – amount has not been adjusted for inflation, in order to remain conservative
Amount equates to R2K per month, which is largely in line with current minimum wages for basic workers (e.g. domestic workers, cashiers)
Financial requirements of grant to be funded from special dispensation from Treasury
Victims whose financial situation is already improved and therefore do not require grant support, to pay their grant allocation into a special fund to be used for community reparation activities (initial victim verification process to set thresholds in terms of identifying such individuals)
Source: www.mywage.co.za (for minimum wage amounts)
8
Agenda
Individual financial grants to victims
Utilisation of the President’s Fund- Living Museum of the Struggle
- Psycho-social services
- Microfinance initiative
- On-going Khulumani funding
Summary
9
The four initiatives proposed for the use of the President’s Fund will cover a number of areas that still need to be addressed in terms of reparations to victims
Globally accepted UN framework for reparations to victims of gross human rights violations
Satisfaction RehabilitationGuarantees of non-repetition
Restitution Compensation
1. Apartheid Living Museum in
Grahamstown
2. Provision of psychosocial services
to victims
3. Investing funds to offer micro-financing
services to victims
4. Investing funds in support of Khulumani’s activities, which provide services to victims that cover all areas of required reparations to victims (advocacy, psychosocial support, economic support, etc.)
10
A museum victims will address their urgent needs for compensation and restitution
Globally accepted UN framework for reparations to victims of gross human rights violations
Satisfaction RehabilitationGuarantees of non-repetition
Restitution Compensation
The establishment of a Living Museum of the Struggle would
allows victims of Apartheid to feel not only that the struggle mattered,
but that THEIR struggle MATTERS
Mu
seu
m
11
It is estimated that an allocation of ~R40M would set the museum on a solid footing
5 years running costs
Set up costs
Building procurement
40
0
10
20
30
R40M
Co
st a
lloca
tio
n
Mu
seu
m
12
The Khulumani narrative workshops are aimed at psychological healing and skills development
Workshop itinerary
Narrative activity (2 day duration)
– Individual story telling
– Conversion of life stories into pictorial format for group sharing
– Outline of practical mechanisms for coping with past trauma
Skills development (3 day duration)
– Graphic design courses
– Screen printing workshop to develop saleable products
Sources: Khulumani website; stakeholder interview
Workshop goals
Narrative approach aims to bring about transformation through the re-interpretation of life stories
Issues are dealt with on an emotional, psychological and spiritual level
Time is given for individual reflection, creative exercises and opportunities to share in small groups
Practical skills are developed to enable financial independence
It is proposed that a lump sump investment from the President’s Fund is used to generate interest to fund ongoing narrative workshops
Psy
cho
-so
cial
13
The total cost of running narrative workshops will grow from R1,6 million to R2 million over a 5 year period
Nationalprogramme
manager
Traveland phone
Provincialfacilitators
Narrativeworkshops
2011F 2012F 2013F 2014F 2015F
1.61.7
1.81.9
2.0
0.0
0.5
1.0
1.5
2.0
R2.5M
An
nu
al c
ost
fo
r p
syco
-so
cial
wo
rksh
op
s
Inflation 5.4% 5.8% 5.6% 5.9% 5.8%
Note: inflation is calculated using an average of projections from leading institutionsSources: SARB; Nedbank; ABSA; FNB; Standard Bank
Assumptions
9 x provincial facilitators @ R3500/month
1 x national programme manager @ R17500/month
Monthly travel and phone allowance of R2000/person
30 x five day workshops per year
Workshop cost of R26000 including facilitator; travel, food and materials for 15 attendees
These narrative workshops will cater for ~450 people per year
Psy
cho
-so
cial
14
An initial lump sum of R31 million is required to generate sufficient interest to fund ongoing narrative workshops
Investment total
Interest rate
Interest received
Workshop expense
Interest for re-investment
2011
R 31,000,000
7.1%
R 2,208,750
R 1,608,000
R 600,750
2012
R 31,600,750
8.0%
R 2,528,060
R 1,701,264
R 826,796
2013
R 32,427,546
8.2%
R 2,648,250
R 1,796,535
R 851,715
2014
R 33,279,261
7.0%
R 2,329,548
R 1,901,931
R 427,617
2015
R 33,706,878
6.0%
R 2,022,413
R 2,011,293
R 11,120
Note: Interest and inflation are calculated using an average of projections from leading institutionsSources: SARB; Nedbank; ABSA; FNB; Standard Bank
Prime rate 11.1% 12.0% 12.2% 11.0% 10.0%
The interest rate is calculated at prime minus 4% but will be dependent on the type of investment
The additional interest generated is required for re-investment to offset the effects of inflation and fluctuating interest rates
Psy
cho
-so
cial
15
A dedicated microfinance fund for victims will directly address the urgent need for restitution
Globally accepted UN framework for reparations to victims of gross human rights violations
Satisfaction RehabilitationGuarantees of non-repetition
Restitution Compensation
“Foremost, microfinance initiatives can effectively address material poverty, the physical deprivation of goods, services, and the income to
attain them. When properly guided, the material benefits of microfinancing can extend beyond the household into the community.
At the personal level, microfinance can effectively address issues associated with “non-material poverty, which includes social and
psychological effects that prevent people from realizing their potential.” United Nations
Mic
rofi
nan
ce
16
The solidarity\group lending structure has proven the most successful
PlaceholderLoan group
Loans are offered to groups of between five and eight members, who meet the organization's requirements.
– Know each other well
– Live close to one another
– Trust each other and believe in each other's business
Individual
Leverages group cohesiveness to achieve individual financial goals
Lender*
Loan sizes range from R500 to R10,000
Groups are tested for group coherence
Members are encouraged to assess each other's businesses to ensure they are legitimate and that they will make enough money to repay a loan
* Based on Marang Financial Services operating model
Mic
rofi
nan
ce
17
The success of current financiers (despite a low capital base) implies that microfinance is necessary, scalable and sustainable
Funding since inception
Disbursements since inception
Current loan book
Row
Cumulative experience
Marang Financial Services
R102M for on-lending
R24M grants
R700M
R35M
3 Major SA micro financers
45 yrs
Current numbers of clients 145,000
Operational self sufficiency ratio 117%
Source: Marang Financial Services
Average loan size R2,002
Financial self sufficiency ratio 108%
A capital injection from the Presidents Fund, would allow a greater number of people to be access finance, while ensuring the capital is adequately mantained
Mic
rofi
nan
ce
18
Khulumani is well positioned to guide the process of restoration for apartheid victims
Overview
Is the main destination of referral for apartheid victims and survivors
Has a database of ~65,000 members
Can provide detailed analysis of violations against members and their resultant needs
Is engaged with multiple communities to:
– Memorialise apartheid transgressions
– Provide psycho-social services
– Provide skills development
– Initiate community rehabilitation
Sources: Khulumani website; stakeholder interview
Mission
“To build an inclusive and just society in which the dignity of people harmed by apartheid is restored through the process of transforming victims into victors”
It is proposed that a lump sump investment from the President’s Fund is used to generate interest to fund Khulumani’s ongoing work
Kh
ulu
man
i
19
The total running costs of Khulumani will grow from R2,3 million to R2,9 million over a 5 year period
Headofficetelephone
Headofficerent
Provincialtraveland phone
Provincialstaff
Headofficestaff
2011F 2012F 2013F 2014F 2015F
2.32.5
2.62.8
2.9
0.0
0.5
1.0
1.5
2.0
2.5
R3.0M
An
nu
al c
ost
fo
r p
syco
-so
cial
wo
rksh
op
s
Inflation 5.4% 5.8% 5.6% 5.9% 5.8%
Note: inflation is calculated using an average of projections from leading institutionsSources: SARB; Nedbank; ABSA; FNB; Standard Bank
Assumptions
9 x provincial staff members with a salary cost of R8,000/person/month
Provincial travel and phone allowance of R2000/person/month
1 x national head office with salary costs of R90,000/month
Head office rental of R9500/month
Head office telephone rental of R6000/month
Kh
ulu
man
i
20
An initial lump sum of ~R45 million is required to generate sufficient interest to fund Khulumani for a period of 5 years
Investment total
Interest rate
Interest received
Khulumani expense
Interest for re-investment
2011
R 45,050,000
7.1%
R 3,209,813
R 2,346,000
R 863,813
2012
R 45,913,813
8.0%
R 3,673,105
R 2,482,068
R 1,191,037
2013
R 47,104,850
8.2%
R 3,846,896
R 2,621,064
R 1,225,832
2014
R 48,330,682
7.0%
R 3,383,148
R 2,774,833
R 608,315
2015
R 48,938,997
6.0%
R 2,936,340
R 2,934,386
R 1,954
Prime rate 11.1% 12.0% 12.2% 11.0% 10.0%
The interest rate is calculated at prime minus 4% but will be dependent on the type of investment
The additional interest generated is required for re-investment to offset the effects of inflation and fluctuating interest rates
Note: Interest and inflation are calculated using an average of projections from leading institutionsSources: SARB; Nedbank; ABSA; FNB; Standard Bank
Kh
ulu
man
i
21
Agenda
Individual financial grants to victims
Utilisation of the President’s Fund
Summary
22
Apartheid museum
Psycho-social services
Khulumani running costs
Micro-financing
Individual financial grant
Cost
R40 million
R 31 million
~R45 million
Undetermined
R9.1B
Objective
Satisfaction:
– Publicly recognise the suffering of victims
– Ensure that the atrocities of apartheid are not forgotten
Rehabilitation:
– Help victims deal with the psychological effects of apartheid
– Develop practical skills that enable financial independence
Provide Khulumani with financial stability to enable ongoing work to support victims in addressing their needs
Restitution:
– Financially empower victims to address their most pressing needs
Compensation and restitution:
– Compensate victims in line with TRC recommendations
President’s fund
Special dispensation fund
Note: Costs pertaining to the Apartheid museum, psycho-social services and the running of Khulumani cover a 5 year periodSource: Khulumani
Summary of the initiatives proposed today…
Funding source
23
In addition, microfinance offers an opportunity to actively alleviate poverty in a sustainable manner
Credit facilities
Payment\ transfer facilities
Results
Enable taking advantage of profitable investment opportunities
Adoption of better technology
Enable expansion of microenterprises
Diversification of economic activities
Enable consumption smoothening
Promote risk taking
Reduce reliance on expensive informal sources
Enhance ability to face external shocks
Improve profitability of investments
Reduce distress selling of assets
Increase economic growth
Facilitate trade and investments
Impact
Higher income
More diversified income sources
Less volatile income
Less volatility in household consumption
Increase household consumption
Better education for children
Severity of poverty is reduced
Empowerment
Reduce social exclusion
Greater income
Higher consumption
Financial service
There is an opportunity to provide savings and insurance products, further increasing financial participation
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