ANC disowns farm hand-over policy
Publish date: 30 June 2014
Issue Number: 3542
Diary: Legalbrief Today
Category: Corruption
The ANC did not mandate Rural Development and Land Reform Minister Gugile Nkwinti to push the controversial new land reform proposals, according to a report in City Press.
An unnamed ANC national executive committee member, quoted by the newspaper, said the policy proposals did not emanate from the party's 2012 Mangaung conference resolutions. The NEC member reportedly said he and some of his fellow leaders were unaware of Nkwinti's mooted policy proposals. 'These proposals come from government (not the ANC), and they were discussed in government,' he said, adding that the resolutions out of the ANC's 2012 Mangaung conference referred only to the reform of land tenure. Another ANC leader said the proposals were unlikely to 'pass constitutional muster if challenged as they amount to expropriation without compensation'. The policy proposal, which involves giving 50% of land to farmworkers, has been attacked as ill-considered and unacceptable by farmer representative bodies. Zizi Kodwa, ANC national spokesperson, reportedly told City Press the party did not have a policy position on the mooted 50% share equity scheme for farm dwellers. 'We are still awaiting an understanding of what exactly this means from the Ministry that made the proposal,' he is quoted as saying
Full City Press report
The radical idea that farm workers have paid for the right to part ownership of the farms they work on is likely raise strong questions about its constitutionality, says a Business Day report. Although the word 'expropriation' is not used, it appears that the policy - in its current draft - is not voluntary. Legal expert Tembeka Ngcukaitobi, of the Legal Resources Centre, reportedly said as soon as property is taken away involuntarily, it must be recognised as an expropriation. But the Constitution does not require compensation at market value, instead referring to what is just and equitable.
Full Business Day report (subscription needed)
The DA has listed five 'non-negotiables' in reaction to Nkwinti's proposal, notes a Sunday Times report. DA spokesperson on rural development Thomas Walters said his party was concerned that the policy was not costed, did not take into consideration land as debt collateral and proposed a forced regime based on sanction, rather than the better concept of a voluntary regime based on reward, as advocated in the National Development Plan. He listed five principles that the DA regards as not negotiable in land reform: It must conform to the Constitution; sustainability is imperative and experimentation unacceptable because of the disastrous effects of failure on food security, so any new model has to be thoroughly tried and tested before implementation; the business model cannot be dependent on continued state bailouts and its success has to be assessed without allowing for continued state input; food security and food sovereignty have to be the core considerations in an urbanising country; and for it to succeed, any system should be voluntary rather than forced and based on reward rather than sanction.
Full Sunday Times report (subscription needed)
The proposals will lead to disinvestment and pose a serious threat to food security, according to the Afrikaanse Handelsinstituut (AHi) in a report on the Fin24.com site. 'The AHi understands the need for broadening of ownership and overcoming the legacies of the past. However, the latest proposal by the Minister is just not feasible,' said Christo van der Rheede, CEO of the AHi. 'It will certainly lead to disinvestment and as such poses a serious threat to food security.' He notes: 'Farming is a business and requires huge input costs by farmers. Such input costs are usually financed by financial institutions.' He said farmers are also highly indebted and without security of tenure SA will lose thousands of commercial farmers who are the backbone of SA's domestic and export market. The alternative, according to Van der Rheede, is to incentivise farmers who invest in training and mentoring of farmworkers and who assist emerging farmers with developing sustainable agricultural enterprises. 'Government must also assist farmers with subsidies in order to improve living conditions of farm workers and to increase salaries,' said Van der Rheede.
Full report on the Fin24.com site