Real Estate Investor Magazine South Africa Real Estate Investor Magazine - April 2017 | Page 15

T
he 2015 Expropriation Bill has received a lot of attention
in the media lately, mostly thanks to the controversial push
from Julius Malema (the leader of the Economic Freedom
Fighters (EFF)) to amend the South African Constitution to allow for
expropriation of property without compensation. The African National
Congress (ANC), appears to be divided on the issue, with some ANC
parliamentary members in strong opposition to Malema’s request due
to its unconstitutional nature. Concerning, however, is President Jacob
Zuma’s backing of expropriation without compensation. Zuma has put
out a strong call to “black parties” in Parliament to unite on the land issue
to effectively form a two-thirds majority that can then legally take such
decisions.
Unpacking the Expropriation Bill
The actual purpose of the Expropriation Bill has become somewhat
muddied in this process; a lot of misunderstanding still exists around the
Bill, and, Zuma and the EFF aside, it is good to remain clear on what it
intends to accomplish.
Expropriation of land is nothing new in SA
It’s important to note here that the expropriation issue is not a new
one: the existing 1975 Expropriation Act also makes provision for the
expropriation of land and other property for “public and certain other
purposes; and to provide for matters connected therewith”.
According to Jeremy Cronin, the Deputy Minister of the Department
of Public Works (DPW), this Act fails, however, in that it doesn’t
“recognise most owners with unregistered rights in property, as is now
required by the 1996 Constitution”. Most importantly, the current Act
“provides no guidelines to expropriating authorities ‒ and therefore
also to the courts ‒ on what is needed in the case of an expropriation to
meet the test of administrative justice, (as required by the Promotion of
Administrative Justice Act, PAJA),” says Cronin
The replacement Expropriation Bill makes provision for property to
be expropriated “for public purpose or in the public interest, subject to
just and equitable compensation; and to provide for matters connected
herewith.” Here, according to the Constitution, public interest “includes
the nation’s commitment to land reform, and to reforms to bring about
equitable access to all South Africa’s natural resources”.
HOW DOES IT WORK?
• Expropriation does not take place arbitrarily and takes place only for a public
purpose or in the public interest;
• Procedural norms and standards are set for organs of state and persons with powers
to expropriate;
• Persons who are expropriated of unregistered rights in property are treated on a
procedurally fair basis;
• A person whose right in property is expropriated is entitled to just and equitable
compensation.
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APRIL 2017 SA Real Estate Investor
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