Real Estate Investor Magazine South Africa June 2014 | Page 18

COVER STORY
In the pipeline is legislation to give the state ‘’free
carry’’ in private sector investments in the oil and gas
sector, “final policy proposals’’ on the expropriation
of about half of all commercial farmland on behalf
of farmworkers, who would be given shares in the
expropriated land, and the misleadingly named
Promotion and Protection of Investment Bill (the
Investment Bill).

President Jacob Zuma and ANC Deputy President
Cyril Ramaphosa
For a bill to be passed by the National Assembly,
the House needs to have a quorum of 201 members
present out of 400. He noted that the DA and the
EFF could stage united walk-outs to stall ANC-led
bills. Opposition parties have in the past successfully
delayed the passage of crucial bills because of poor
attendance by ANC MPs.
This is good news, given that the ANC government
has proposed and passed some highly controversial
legislation. A l ready passed - despite massive
opposition and public outcry - are, among others, the
“Secrecy” Bill and the legislation enabling e-tolling
across the country.

According to Martin Brassey (SC) and Dr Anthea
Jeffery of the Institute of Race Relations (IRR),
speaking at a media brief ing at the Free Market
Foundation, a controversial Constitutional Court
ruling in 2013 has paved the way for the Investment
Bill - a sweeping new expropriation measure by
another name - which threatens the property rights of
individuals and enterprises, both local and foreign.
The ruling conf irmed that if the deprivation of
ownership is not matched by the acquisition of
ownership by the State, no expropriation occurs and no
compensation was payable.
“This means that if the State takes away private
property and holds it as a custodian on behalf of others
to be distributed at a later date, it is not ‘expropriation’.
The original owner cannot rely on the protection of the
Constitution and cannot expect to receive financial
compensation,” comments Brassey.
“If you believe in the importance of private property
as a facet, not just of commercial well-being, but also of
liberty, this is a very unhappy result.”
According to Dr Jeffery, a key provision in the
Investment Bill echoes this ruling in stating that
various actions ‘do not amount to acts of expropriation’.
As such, the Investment Bill could also provide a
solution to funding land claims.

SA’s Right2Know campaign has dubbed the passing of
the Secrecy Bill, Black Tuesday.
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June 2014 SA Real Estate Investor

“Provided the State takes land under claim as ‘custodian’
for land claimants who can use it for agreed periods, there
will be no expropriation – and hence no compensation
payable,” says Dr Jeffery. “On this basis, the Government
could gradually assume the custodianship of ever more
land, while more and more South Africans will find
themselves dependent on the State’s permission to occupy
the land on which they live and farm.”
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