Ramaphosa signs expropriation law that allows the state to take land without paying for it
President Cyril Ramaphosa has signed the controversial Expropriation Bill into law, which sets out how organs of state can expropriate land in the public interest.
The government explained that this Bill, which has undergone a five-year process of public consultation and parliamentary deliberation, aligns legislation on expropriation with the Constitution.
Section 25 of the Constitution recognises expropriation as an essential mechanism for the state to acquire someone’s property for a public purpose or in the public interest, subject to just and equitable compensation being paid.
Until now, property expropriation has been governed by the Expropriation Act of 1975, which predates the expropriation mechanism provided for in section 25 of the Constitution.
This new Bill repeals the Expropriation Act and provides a common framework in line with the Constitution to guide the processes and procedures for the expropriation of property by organs of state.
The new legislation outlines how and on what basis expropriation can be conducted.
This law will assist all state organs – local, provincial, and national authorities – in expropriating land in the public interest for various reasons.
“Local, provincial and national authorities will use this legislation to expropriate land in the public interest for varied reasons that seek, among others, to promote inclusivity and access to natural resources,” the government said.
“In terms of this law, an expropriating authority may not expropriate property arbitrarily or for a purpose other than a public purpose or in the public interest.”
The legislation stipulates that expropriation may not be exercised unless the expropriating authority has, without success, attempted to reach an agreement with the owner or holder of a right in property for the acquisition thereof on reasonable terms.
An expropriating authority is, therefore, obliged to enter into negotiations with the owner of a property required for such purposes.
An expropriating authority must also attempt to reach an agreement on the acquisition of the property before resorting to expropriation.
However, this is not the case in circumstances where the right to use property temporarily is taken urgently under a provision in the legislation.
“The law provides for disputes to be referred for mediation or to appropriate courts,” the government said.
This legislation has faced severe backlash since its inception, particularly from the Democratic Alliance (DA).
In March last year, the DA referred to the Bill as “ruinous”. The party said it was a “desperate, last-ditch effort” from the ANC to gain votes in the run-up to the May 2024 elections.
The DA said the legislation is inconsistent with section 25 of the Constitution, which provides that property can only be expropriated “subject to compensation”.
In addition, it claimed the process followed in guiding the Bill through the NCOP committee was plagued by irregularities and an alarming level of disinterest in ANC-governed provinces to comply with proper parliamentary procedure.
The party also claimed that the ANC snuck a provision into the Bill to allow for expropriation with “nil compensation” in the hopes that this would pass constitutional muster.
“It is patently obvious to anyone who reads this bill that this is nothing more than expropriation without compensation in disguise,” the party said.
“In addition to this destructive clause, the Bill further gives the Minister of Public Works the power to expropriate property in the public interest or for a public purpose.”
“This clause is unreasonably vague with no definition as to what this may entail.”
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