Bill sets rules for attaching state property

Business Day notes at present it is almost impossible to attach movable state property to satisfy a debt, regardless of how long the state takes to respond to a court order to pay. In June 2008 the Constitutional Court ruled in the Nyathi case that the State Liability Act of 1957 was unconstitutional because it did not provide an express procedure for the satisfaction of judgment debts against the state. The court gave Parliament 12 months in which to change the law but this deadline was not met and the Department of Justice applied for an extension. This was granted with the new deadline being August 2010 with a further extension granted to August this year. According to the report, the explanatory memorandum to the Bill says 'the objects of the Bill are to create an effective execution process to be used by successful litigants in civil actions against the state in cases where the state has failed to comply with final court orders sounding in money'. The Bill, in its present form, provides that no attachment or execution may be issued until there is a final court order that the state has not satisfied its debt. It provides 30 days for the state to satisfy a final court order unless the final order is subject to appeal. Full Business Day report Draft State Liability Bill Draft State Liability Amendment Bill (PDF file)