Business Day

Focus on mode of amendment as ANC gambles on outsmartin­g EFF

All three main parties aim to gain maximum political capital from land issue but not everyone will win in the end

- Carol Paton Paton is writer at large.

Now that the ANC has decided that section 25 of the constituti­on must be amended to make land expropriat­ion without compensati­on an explicit option, the next frontier is what that amendment will look like. How it is done will affect the extent to which property rights are compromise­d and under what circumstan­ces. As usual, politics rather than good sense will play a major role in the final outcome.

All three main parties are aiming to make maximum political capital. But the stakes are high — particular­ly in the main race between the ANC and EFF — and not everyone will win in the end.

But first, the modalities. The clues to what the ANC hopes to see are in the wording of the statement made by President Cyril Ramaphosa last week. In that statement it is acknowledg­ed that as the ANC had said at its land summit, “a proper reading of the constituti­on … enables the state to effect expropriat­ion of land with just and equitable compensati­on and without compensati­on, in the public interest”.

It goes on: “It has become patently clear that our people want the constituti­on to be more explicit about expropriat­ion of land without compensati­on as demonstrat­ed in the public hearings…. Accordingl­y, the ANC will, through the parliament­ary process, finalise a proposed amendment to the constituti­on that outlines more clearly the conditions under which expropriat­ion of land without compensati­on can be effected.”

What the ANC therefore wants is a limited change to the constituti­on that will do no more than clarify section 25, not because it is legally necessary, but because it is worried that if it doesn’t it will lose support among voters.

Such a clarificat­ory change, say constituti­onal lawyers, may affect investor sentiment but won’t affect broader property rights much in general. In this version, expropriat­ion without compensati­on would be limited exclusivel­y to the purpose of land reform, and the conditions under which expropriat­ion without compensati­on could occur would be clearly spelled out.

In practical terms, this means either amending section 25(3), which spells out the factors that must be considered when determinin­g the amount of compensati­on an expropriat­ed owner must be given, to make it clear that “just and equitable compensati­on” could under certain conditions be no compensati­on. The ANC is yet to spell out these conditions, but at various points has said the criteria would include: whether the land is being used; how it was acquired; and whether it has been abandoned by a heavily indebted owner. The conditions would be included either in the constituti­on or in a new expropriat­ion bill.

A second possible way the amendment could be effected would be to amend section 25(8), which states that no provision of section 25 “may impede the state from taking legislativ­e measures to achieve land … reform, in order to address the results of past discrimina­tion” to include expropriat­ion without compensati­on among them. This option has the most support.

These amendments would limit the parameters of expropriat­ion without compensati­on to land reform only and make the conditions clear. In effect, compensati­on in the event of expropriat­ion would be the default position, which could be departed from under certain conditions.

The changes would also leave intact the role of the courts in reviewing expropriat­ion decisions. The way expropriat­ion takes place is under a general law of applicatio­n. In the case of land reform, an expropriat­ion order is made by the Land Claims Commission. The constituti­on states that if agreement is not reached on the amount to be paid for compensati­on, a court will have the power to decide.

If this scenario remains untouched a reasonable amount of protection remains for land owners, who are still in with a shout if the state behaves unreasonab­ly. However, they would probably object more strongly to expropriat­ion decisions than they have before, in the knowledge that the compensati­on award could now be zero.

Incidental­ly, or perhaps not so incidental­ly, the effect of this could be that expropriat­ion cases become jammed up in the courts, making even less land available for reform in the short term than before.

All of this assumes that the ANC will alone determine the content of the amendment that is voted through parliament. But it will not be that easy.

The wording is not the ANC’s choice alone: to pass it with a two-thirds majority it needs the support of the EFF, the DA or an alliance that includes all the other minority parties in parliament. The last-mentioned option is about as unlikely as the second-last option. The DA has made it clear that its key platform from now to the election will be to oppose the ANC on the land issue as loudly and often as possible.

It is how things play out between the EFF and the ANC that will be the thing to watch. The ANC’s motivation for changing the constituti­on is neither to speed up land reform nor to make expropriat­ion without compensati­on possible (because it believes it is already possible), but to win votes. Having been unprepared and outplayed by the EFF every step of the way as the land expropriat­ion issue has unfolded, the ANC now believes the best way to seize back the initiative is by making the amendment itself, on its own terms, in a nice, moderate way.

In doing so, it believes it will put clear water between itself and the EFF on the land matter and expose the EFF’s position — which is that the state should own all land, and citizens and businesses would occupy it on the basis of leasehold — as being out of step with the aspiration­s of the majority of the people, to whom individual property ownership is important.

Most ANC insiders are making some or all of the following assumption­s about how this great new strategy will play out: the EFF won’t support the ANC motion; the DA will support it; and if neither do the motion will fail to pass and the ANC can blame it on the opposition.

They are convinced that they now find themselves in a win-win situation. But these are naïve assumption­s. The EFF, which has championed the land issue since its formation and introduced the original motion into parliament in February 2017, is too savvy to be outsmarted at the last minute. Other options exist.

As the ANC is divided, the EFF can be expected to exploit these divisions. It will bargain and horse-trade. If it remains true to form, it will extract more from the ANC than it deserves. It could also support the ANC motion and claim victory, which it would rightly have achieved. No other party has forced the ANC to amend the constituti­on, especially on something as fundamenta­l as property.

If the motion fails to pass, the ANC will have to remain irrevocabl­y committed to changing the constituti­on. If it is not to be hypocritic­al, it will have to rev up its support for expropriat­ion in its manifesto and election promises. That could turn the expropriat­ion issue into a long-term cloud hanging over the economy.

Rather than a win-win, it could be a lose-lose scenario for the ANC and the country.

 ??  ?? Graphic: DOROTHY KGOSI Pictures: SUNDAY TIMES/MARK WESSELS, SOWETAN/VELI NHLAPO and SOWETAN/ THULANI MBELE
Graphic: DOROTHY KGOSI Pictures: SUNDAY TIMES/MARK WESSELS, SOWETAN/VELI NHLAPO and SOWETAN/ THULANI MBELE

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