Expropriation Bill will strike deathblow to SA’s chances of economic recovery – IRR

20 March 2024

In passing the Expropriation Bill yesterday, the National Council of Provinces (NCOP) has given the green light to legislation that will strike a deathblow to South Africa’s chances of economic recovery.

The IRR will be writing to President Ramaphosa to urge him not to sign the Bill on the grounds that its provisions are unconstitutional.

The latest vote in favour of the Expropriation Bill should not come as a surprise. The African National Congress, which dominates the NCOP, has previously made it clear that it intends to pass legislation empowering the state to expropriate property without compensation. The party also faces strong electoral challenges from the EFF and MK Party and in order to outflank these parties it is looking to pass destructive legislation such as this.

The IRR has always stood firm in calling for the Expropriation Bill to be rejected and we continue to oppose it, especially now that it has passed through the NCOP.

The Expropriation Bill allows for expropriation without compensation (EWC), which is a direct threat to property rights, universally acknowledged as a cornerstone of every democratic and prosperous society. We have argued persistently in our submissions to Parliament, and in continuous media engagements and lobbying of other important institutions, that EWC violates the Rule of Law and the Bill of Rights, and fails any basic test of rationality.

The draft law allows for fixed property to be subject to EWC if “the owner’s main purpose is…to benefit from appreciation of its market value”.

It also allows property to be subject to EWC if the owner is “failing to exercise control over it”. In other words, if one’s property is invaded and “control over it” is effectively usurped, EWC may be triggered. This is particularly concerning, as land invasions are increasing dramatically, particularly in the Western Cape where public records have been made available.

Beyond these concerns, the Expropriation Bill has an open list of “relevant circumstances” in which the state may seize property without compensating an owner who has committed no crime. This means there is a risk of the property of innocent people being taken for reasons yet to be dreamed up by a state apparatchik in Pretoria.

The IRR will continue monitoring the passage of the Bill and will consult its legal team on the next steps to combat this pernicious legislation.

Says Marius Roodt, IRR analyst: “By passing the Expropriation Bill, the NCOP has shown that the ANC government disregards property rights. Property rights are a human right. The IRR will stand firm in its defence of property rights for all South Africans, as it has done since its formation.”

Issued by IRR, 20 March 2024