'Soft' line on expropriation in new Bill
Publish date: 10 December 2018
Issue Number: 803
Diary: IBA Legalbrief Africa
Category: South Africa
The Expropriation Bill approved by Cabinet last week, but yet to be published, defines the circumstances under which property may be expropriated without compensation – and is an indication that more moderate voices in government are in charge, according to an article in Rapport. The Bill, which the newspaper says it has seen, introduces a new section 12(3) explicitly stating that it would be fair and equitable to withhold compensation under the following circumstances:
* Where land is used or occupied by a labour tenant as defined by the Restitution of Land Rights Act.
* Where land was acquired for ‘purely speculative’ purposes.
* Where land is owned by a state-owned company or any other entity owned by the state.
* When a landowner has ‘abandoned’ the property.
* When the market value of the land is equal to or less than the present value of direct state investment or subsidisation for the purchase of beneficial capital improvement of the land.
The previous Bill was withdrawn when the ad hoc committee on the constitutional amendment began its work as the ANC wanted to bring the Bill in line with the outcome of the constitutional review process. The latest Bill is therefore a clear indication of the government’s thinking around the issue, says the report. The latest version differs from the previous Bill only in that section 12(3) has been added. AgriSA legal adviser Annelize Crossby says the previous version was thoroughly debated and most role-players were satisfied with it. An unnamed senior ANC source is quoted as saying the Bill also differentiates between land and improvements such as buildings. ‘If there are any structures on the land, the owner would still have to be compensated,’ the source is quoted as saying.
