Following President Cyril Ramaphosa’s signing into law of the Expropriation Bill, several opposition parties have expressed their concern, notably the DA, who announced over the weekend that it would seek to ‘reset’ its relationship with the ANC within the Government of National Unity (GNU), while also declaring a formal dispute over both the Expropriation Bill and the NHI.
DA leader John Steenhuisen, in a briefing over the weekend, stressed the party’s opposition to the Expropriation Bill, noting the DA is of the view that the Act is unconstitutional.
However, in a statement on Friday, The Presidency said that the new legislation aligns expropriation processes with the Constitution and marks the culmination of a five-year process of public consultation and Parliamentary deliberation.
“The Bill assented to by President Ramaphosa outlines how expropriation can be done and on what basis. This law will assist all organs of State – local, provincial and national authorities – to expropriate land in the public interest for varied reasons.”
The Presidency added that an expropriating authority may not expropriate property arbitrarily or for a purpose other than a public purpose or in the public interest.
“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.”
The law provides for disputes to be referred for mediation or to appropriate courts.
AgriSA has also expressed its dismay at the signing of the Bill into law. AgriSA CEO Johann Kotze says private property is the cornerstone of agricultural sustainability and food security.
“The signing of the Expropriation Bill poses a risk to private property rights which is the primary basis on which South African agriculture is structured. Consequently, the Bill poses a risk to agricultural sustainability and food security. Therefore, AgriSA is committed to defending property values and rights and will utilize all necessary resources in consultation with legal experts to uphold these principles.”
Steenhuisen says the DA will challenge the bill in court, which sets the scene for the biggest test yet for the GNU.
Adding to the tension is the fact that the Minister of Public Works and Infrastructure, the DA’s Dean Macpherson has publicly stated that there will be NO expropriation of private property without compensation on his watch.
“The guarantee of property rights under Section 25 of the Constitution is not up for debate and is non-negotiable.”
Meanwhile, the Deputy Minister of Public Works and Infrastructure Sihle Zikalala defended the bill, allaying fears that the bill would lead to arbitrary land seizures.
At the same time, ANC Secretary General Fikile Mbalula, during this past weekend’s ANC Lekgotla, said once a Bill is signed into law, the Minister responsible for its implementation must do their job and implement that Act.
The disagreements come ahead of a Cabinet Lekgotla, set to take place on 29 and 30 January 2025 at the Sefako Makgatho Presidential Guest House, in Pretoria. The matter of the NHI is expected to be another bone of contention that will dominate discussions.
Below is a summary of the circumstances and processes that would need to be followed, under the Expropriation Act 2024:
Circumstances for Expropriation
Public Purpose or Interest:
Expropriation can occur only for a purpose that serves the public or is in the public interest. Public interest includes land reform and equitable access to natural resources, aligning with constitutional commitments.
Legal Framework:
The process must comply with general laws, ensuring no arbitrary deprivation of property. Compensation is mandated unless specified as nil compensation under just and equitable circumstances.
Unregistered Rights:
The Act accommodates the expropriation of properties with unregistered rights, ensuring due consideration for those rights.
Urgent Expropriations:
The Act allows urgent expropriations under specific conditions, ensuring expedited processes in critical scenarios.
Land Reform and Redress:
Expropriation aims to address historical injustices, particularly those rooted in past discriminatory laws.
Processes for Expropriation
Notice of Intention:
Affected parties, including owners, mortgagees, and right holders, must be served with a notice of intention detailing the reasons, purpose, and timeline of the expropriation.
Consultation and Investigation:
Authorities must engage municipalities and relevant departments to evaluate the impact of expropriation on municipal planning and existing rights.
Compensation:
Compensation is determined based on various factors, including market value, current use, historical acquisition, and state investments. The Act specifies conditions where nil compensation may apply, provided it is just and equitable.
Verification and Valuation:
Investigations ensure that all affected rights, including unregistered ones, are verified and valued appropriately.
Judicial Oversight:
Disputes or disagreements regarding compensation or the expropriation itself are subject to judicial determination.
Types of properties that may be earmarked for expropriation:
Unused or Abandoned Land:
Land that is not being used or has been abandoned by its owner can be subject to expropriation, particularly if it aligns with public interest goals.
Land Held by State Organs:
Land held by an organ of state but not used for its core functions, or unlikely to be required for future activities, may also be targeted for expropriation.
Portions of Land Parcels:
In some cases, only a portion of a land parcel may be expropriated. However, if partial expropriation would impair the use of the remaining portion, the entire parcel may be considered.