Deputy Minister of Public Works briefs portfolio committee on the draft Expropriation Bill

17 Apr 2013

Today the Deputy Minister of Public Works, Mr Jeremy Cronin, MP, briefed the Public Works Portfolio Committee on the proposed new Draft Expropriation Bill to  replace the current Expropriation Act 63 of 1975.

The Deputy Minister said the current Expropriation Act predates the Constitution and therefore needs to be reviewed to ensure consistency with the spirit and provisions of the Constitution.

The redrafting of the Expropriation Act therefore became necessary to ensure consistency with the spirit and provisions of the Constitution dealing especially with equality, property rights, access to information and lawful, reasonable and procedurally fair administrative decision-making.

Of importance, is the fact that the new Act, when enacted by Parliament, will consolidate current disparate pieces of legislation and processes of expropriation (about 150 of them) across all spheres of government. "The Draft Bill has been Gazetted and the Department of Public Works (DPW) is inviting comments and other views" explained the Deputy Minister. The Bill has since been passed by Cabinet hence today's briefing of the Portfolio Committee by the Deputy Minister.

The Bill seeks to align the Expropriation Act with the Constitution and to provide a common framework to guide the processes and procedures for expropriation of property by organs of state.

The extension of the purposes for which property may be expropriated from the narrow term of public purpose to include expropriations in the public interest is critical in a developmental state like South Africa.  Expropriation in the public interest, for instance, provides government with a tool to achieve its commitment to land reform, and to reforms to bring about equitable access for all South Africa's natural resources.

The new Bill aims to engage all affected parties in the process of contemplated expropriation, to afford such parties an opportunity to raise objections and make representations to the expropriating authority, before a decision to expropriate is taken.  The Bill also expands the scope of protected rights to provide for compensation for both registered and unregistered rights.

In terms of the current Expropriation Act, only the holders of registered rights and certain unregistered rights are eligible for compensation upon expropriation.  Section 25 of the Constitution, however, does not distinguish between registered rights and unregistered rights. 

The new Bill will ensure that just and equitable compensation to persons affected by expropriations is paid out, with such compensation reflecting an equitable balance between the public interest and the interests of those affected.  Whilst the market value of expropriated property is a factor in determining compensation, the Constitution does not give undue weight to any single factor over others, but requires consideration of all relevant factors, including -

• the current use of the property;
• the history of the acquisition and use of the property;
• the market value of the property;
• the extent of direct state investment and subsidy in the acquisition and beneficial capital improvement of the property; and
• the purpose of the expropriation;

"The new Draft Bill allows access to courts in case of an unresolved dispute on the amount of compensation" concluded the Deputy Minister.

Statement issued by the Department of Public Works, April 17 2013

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