Amendment Bill on Expropriation is unreasonable toward land owners

The new Expropriation Amendment Bill is to a certain extent an improvement to the existing one which does not adhere to the Constitution and now offers owners of expropriated property the right to turn to the courts with regards to compensation.

There is however reason for concern, as not everybody will be able to afford expensive court cases. The fact that land owners have to maintain the land and buildings until a final transfer takes place, also creates uncertainty. The land owner will be held back in making a new start due to possible administrative procrastination.

In terms of the Bill, courts have the right to decide about compensation, based upon, amongst others, the market value of land and factors such as the current use of the property.

According to Mr. Pieter Groenewald, FF Plus parliamentary spokesperson on agriculture and land reform, these provisions could have an extremely negative effect on owners, if the long waiting time for court cases and expensive legal fees are taken into account.

That means that owners could be pressurised into accepting whatever the state offers if they are not prepared to wait for a court decision.

In contrast with this, the current act (of 1976) stipulates, amongst others, that market related prices have to be paid and that the state has to pay 80% of the price at the time of transfer of the property. This creates guarantees against the abuse of power to summarily expropriate property.

These guarantees are now being wiped off the table and the danger exists that it could clear the way for inappropriate enforcement.

Statement issued by Mr. Pieter Groenewald, FF Plus parliamentary spokesperson: Agriculture and Land Reform, April 18 2013

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