Expropriation now closer

Opposition parties, economists warn change to Constitution will ruin economy

MINUTES after the adoption of a report paving the way for expropriation of land without compensation, economists, business and farmers’ organisations warned that the amendment of the Constitution would destroy the economy.

The DA and other opposition parties yesterday said they would be waging a titanic legal battle headed for the Constitutional Court to set aside the report.

AgriSA, which has been in consultation with the ANC and the government, was outraged by the latest development and promised a big fight.

The organisation described the recommendation as diametrically opposed to the crucial goals of protection of property, economic stability, job creation, investor confidence and sustainable agrarian reform.

AgriSA president Dan Kriek said the report was an unacceptable outcome of an extended consultation process, wherein the organisation had a firm stance against the expropriation of land without compensation.

“We have made extensive preparations in order to act effectively and will cast additional resources to this fight.

“AgriSA believes in constructive dialogue with all stakeholders, but now is the time to draw a line,” he said.

AgriSA said it would mobilise internally and internationally to pursue legal action to review the procedural and administrative law compliance of the parliamentary consultation process.

The Transvaal Agricultural Union of SA (Tau-SA) said it was a sad day that the committee had adopted a resolution recommending that the Constitution be amended.

“There is enough space within the Constitution that they can use to address land reform and all other things they want to do,” Tau-SA general manager Bennie van Zyl said.

The Banking Association of SA (Basa) said while it firmly supported land reform, the process had to be handled properly.

The banks were sitting on more than R140 billion in loans to commercial farmers.

Basa managing director Cas Coovadia said they had always argued that there was no need to change the Constitution.

“What people want is certainty and that certainty is that property rights are protected,” said Coovadia.

Economic expert Mike Schussler said the report created a lot of uncertainty, adding that even President Cyril Ramaphosa’s investment envoy, Trevor Manuel, recently said expropriation without compensation was a hard-sell to international investors.

“It creates a lot of uncertainty, and uncertainty is not good for economic growth,” said Schussler.

Azar Jammine of Econometrix said what was of concern was the principle to change the Constitution because it was one of the most progressive constitutions in the world.

AfriForum and Freedom Front Plus also warned that the adoption of the report was not the end but the beginning of the fight to ensure that land expropriation without compensation does not go ahead.