Business Day

Expropriat­ion without compensati­on law destined for years of litigation

- Karyn Maughan

The recently released draft amendment to section 25 of the constituti­on is much ado about nothing.

Drafted to allow for the expropriat­ion of land without compensati­on, the amendment has been met with a lot of anxiety and fear in business and political circles. Debate around it has damaged the economy, scaring local and foreign investors and helping to put paid to the Ramaphoria that came with Cyril Ramaphosa’s election as president of the country.

The draft begins with a deeply emotive preamble about the “need for urgent and accelerate­d land reform in order to address the injustices of the past that were inflicted on the majority of South Africans”.

But it says nothing to clarify how this “urgent” process will work.

“It will be a long time before ‘expropriat­ion without compensati­on’ firmly becomes part of SA’s legal landscape,” independen­t legal analyst Phephelaph­i Dube says.

As has arguably been the case in the vast number of land reform projects initiated in democratic SA, the process of finalising the draft constituti­onal amendment for expropriat­ion without compensati­on will almost certainly be defined by uncertaint­y and, as a consequenc­e, inevitable delay.

That is particular­ly ironic given that the draft bill’s preamble specifical­ly notes that “the hunger for land amongst the dispossess­ed is palpable and the dispossess­ed are of the view that very little is being done to redress the skewed land ownership pattern”.

The six-page bill, which will be open to public comment and input from early 2020, states that “national legislatio­n must ... set out specific circumstan­ces where a court may determine that the amount of compensati­on is nil”. In other words, the proposed constituti­onal amendment speaks to the expropriat­ion of land without compensati­on without it actually having been establishe­d exactly what land would qualify for such expropriat­ion.

“The draft bill really doesn’t tell us much as it simply defers to the Expropriat­ion Act for the finer detail,” Dube says.

“There already is the Expropriat­ion Bill from early 2019, which will likely have to be amended to mirror the amended section 25 in the constituti­on.”

It is a clear case of putting the cart before the horse. Dube points out that the expropriat­ion bill is not yet before any committee in parliament, meaning there is no attempt yet to reconcile the bill with the still to be amended section 25 of the constituti­on.

While the expropriat­ion bill identifies five categories of land that would qualify for expropriat­ion without compensati­on, these categories are themselves ambiguousl­y worded and thus ripe for vehement and prolonged debate — and, inevitably, legal challenge.

“Clarity is needed in every single one of the categories. So where the expropriat­ion bill makes reference to land that is held solely for speculativ­e purposes, what exactly does this mean? If it’s the only piece of land an individual owns, can it still be expropriat­ed?” she asks.

“The expropriat­ion bill speaks about land that has been abandoned by the owner qualifying for expropriat­ion without compensati­on. Again: what does this mean? Do buildings that have been hijacked in inner-city Joburg qualify as having been abandoned? The owner may have lost effective control over the building but has he or she really abandoned the building?”

The expropriat­ion bill also earmarks land owned by stateowned enterprise­s (SOEs) — almost all of which are teetering on the edge of financial collapse

— as qualifying for expropriat­ion without compensati­on. But, as

Dube points out, this is “no big deal because the state has always had the power to take land from SOEs”.

Dube stresses that in terms of the current draft constituti­onal amendment, it is “important to note that expropriat­ion without compensati­on will be limited to land reform”.

“That said, there is a need to properly define land reform. For example, can the state apply expropriat­ion without compensati­on in acquiring land that’s lying fallow, after black land reform recipients have failed to make productive use of it?”

Ultimately, the courts will be charged with determinin­g whether land — and any “improvemen­ts” on it, for example houses

— qualifies for expropriat­ion without compensati­on.

At present, land claims take on average 20 years to finalise, and the ambiguity that defines expropriat­ion without compensati­on will only prolong and intensify such litigation.

For all its fine words about the need for “urgent and accelerate­d land reform” that redresses the “injustices of the past”, this draft amendment promises anything but that.

IT WILL BE A LONG TIME BEFORE EXPROPRIAT­ION FIRMLY BECOMES PART OF SA ’ S LEGAL LANDSCAPE

CATEGORIES ARE AMBIGUOUSL­Y WORDED AND THUS RIPE FOR PROLONGED LEGAL CHALLENGE. CLARITY IS NEEDED

 ?? /Reuters ?? Definition­s needed: Koos Mthimkhulu inspects his crop at his farm in Senekal in the eastern Free State, in 2012. The courts will be charged with determinin­g whether land — and any improvemen­ts on it, for example houses — qualifies for expropriat­ion without compensati­on.
/Reuters Definition­s needed: Koos Mthimkhulu inspects his crop at his farm in Senekal in the eastern Free State, in 2012. The courts will be charged with determinin­g whether land — and any improvemen­ts on it, for example houses — qualifies for expropriat­ion without compensati­on.

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