The South African 18 - 24 March 2014

Page 1

www.thesouthafrican.com

18 - 24 March 2014

Issue 557

ANC INTRODUCES NEW BILL AS GUISE FOR LAND EXPROPRIATION

| The Investment Bill of 2013 threatens to infringe on any and all private property rights in South Africa, as the ANC tries to push for wide-ranging land reform measures before the 7 May 2014 elections

INSIDE:

by sertan sanderson A new bill is in the process of being introduced with the intention to contravene existing ownership rights of business operators and land owners across South Africa. Misleadingly named the “Promotion and Protection of Investment Bill of 2013″ – or Investment Bill in short – the act can be seen as a step towards land expropriation as part of the ongoing public discourse on land reform. The details of the bill appear to be worded in a vague fashion while deliberately minimising property rights currently held by land owners under the Expropriation Act of 1975. The changes to legislation would affect land and business owners alike, threatening to violate ownership claims whenever the state wanted to take over property while claiming any kind of public interest as a justification. The new bill would inadvertently lead to a repeal of the existing Expropriation Act. Until now, every person owning land in SA was guaranteed full compensation if any such kind of expropriation were to take place, meaning an immediate payout of the market value of the property in question plus compensation for consequential future losses, all on account of the original owners of the private property no longer being able to use their erstwhile land for investment. However, the new “Investment Bill” stipulates that owners will in future be paid out less than market value, without any stipulations made in regards to consequential losses. The new act also specifies that any such payout would be undertaken “in a timely manner” effectively voiding any entitlement for bank interest on outstanding compensation payments after the expropriation were to take place. UK Immigration • UK Visas • Permits • EEA visas • Residency • Citizenship • Appeals • Sponsorship Licences South African Immigration

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This would put claimants firmly at the mercy of the whims of government bureaucrats, who have a track record of sometimes taking years to process any claims. Another crucial clause in the Investment Bill also makes sure that certain actions undertaken by the state aimed at claiming ownership over previously privately-owned land would ‘not amount to acts

of expropriation’ – meaning zero compensation or payout in these cases. This would particularly affect land owners, who might – knowingly or unknowingly – have access to natural resources or minerals on their properties – even applying to the smallest plots. According to this clause, the state would now be able to take action over privately-owned land

in the form of a “custodian” or “conduit”. Under this provision, the government could, for example, install a coal mine or an oil well on any plot of land while not claiming a takeover in official ownership rights of the grounds in question. This clause is designed deliberately to give the government leeway to avoid having to pay any level of compensation at all. In such a

scenario, land owners could end up getting nothing at all from the state. The controversial bill was gazetted by the Department of Trade and Industry last November and was subsequently open to public comment until the end of January this year, making it likely to be made law before the elections to the National Assembly in May. When the bill is signed into law, it could be used to justify many different forms of expropriation, particularly in a bid to nationalise private mining firms and speed up land reform processes. The Investment Bill will apply to both foreign and domestic investors alike, with the term “investor” referring to ownership and not to commercial or agricultural value of land being used. In other words, it affects owners of diamond mines and allotment gardeners alike. Within this context it is also important to point out how the Investment Bill might interact with and endorse the upcoming Restitution Bill (officially called the “Restitution of Land Rights Amendment Bill of 2013”), which the ANC government is likely to push through parliament ahead of the upcoming general elections, after failing previous attempts to introduce expropriation legislature. ...continued on page 2

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