Expropriation Bill an attack on property rights - Credit Suisse
Not only AfriBusiness is concerned about the future of property rights in South Africa. According to AfriBusiness CEO, Cornelius Jansen van Rensburg, local and international business organisations regard the growing uncertainty pertaining to property rights as factors that increase investment risks.
Although the Expropriation Bill still has to go through the parliamentary processes, Cabinet's approval of the Bill sends a very negative message to investors.
In a recent report, titled, "South Africa: Monitoring the Cabinet, Election Promises and Legislation", the Swiss bank, Credit Suisse warns that the new Bill "undermines property rights, a cornerstone in a market-driven economy, and discourages investment in fixed capital". Credit Suisse analysed the Law as follows: "Any property can be expropriated by the minister in the 'public interest', and for redistribution purposes". Any possible compensation would occur at a level determined by Government and would not reflect the market value of said property.
On 18 April 2013, Jeremy Cronin, Minister of Public Works, described the Expropriation Bill as a tool to achieve its commitment to land reform and to attain equal access to natural resources to all South Africans. Minister Cronin also pointed out that property is not limited to land, but that it refers to all forms of property. He also indicated that circumstances may arise in which Government can "expropriate Andre's bakkie" when it's of public interest.
In June this year, AfriBusiness released a report on the future of property rights. The report warned against the impact the Expropriation Bill, amongst other things, will have on the civil rights of South Africans. "Property rights and human rights are inseparable. If Parliament depreciates property rights, they depreciate the Bill of Rights," Jansen van Rensburg said.
AfriBusiness plans on liaising directly with Members of Parliament now, regarding the growing attack on property rights. MP's should realise that their conduct will direct the future of South Africa in the next couple of months.
AfriBusiness has already sent their report on property rights to more than a thousand listed companies, foreign investment firms, embassies and consulates. AfriBusiness will launch a court application early in 2015 with the aim of protecting the property rights of a group of farmers.
Statement issued by Cornelius Jansen van Rensburg, CEO of AfriBusiness / AfriSake, September 5 2014
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