Land bill may cause bureaucratic nightmares

Ben Martins Picture SUPPLIED
Ben Martins Picture SUPPLIED
The draft Expropriation Bill now before parliament is silent over how it will interact with the Property Valuation Act promulgated last year‚ the Centre for Constitutional Rights says.

The act provides for the establishment of an office of the valuer-general whose job it will be to value properties earmarked for expropriation.

Centre legal officer Phephelaphi Dube said the bill’s silence on its relation to the Property Valuation Act “could create a bureaucratic nightmare as their functions and roles will run parallel”.

The act establishes a valuer-general appointed by the development and land reform minister with the power to determine the purchase price of land identified by the state for expropriation. The government proposed the law to overcome the logjam in land reform caused by the willing-buyer willing-seller principle and the large sums it had to pay out in compensation.

Dube welcomed the fact that the Expropriation Bill now included recourse to the courts in the event of a dispute over the compensation to be paid by the state. This was not provided for in the original “flawed” version of the bill first released for comment in 2013.

“We are also concerned that the terms ‘public interest’ and ‘public purpose’ remain unchanged. As they are‚ they are vague and subject to a variety of interpretations‚ which may run the risk of abuse of powers‚” she said.

The draft bill‚ adopted by the cabinet last September‚ is likely to stir up strong emotions in the wake of President Jacob Zuma’s announcement last week that foreign landownership would be banned‚ and a cap of 12000ha placed on the domestic ownership of farm land.

The Expropriation Bill will be the foundation for the pending Protection and Promotion of Investment Bill‚ which will replace the bilateral investment treaties which South Africa has terminated.

The expropriation clauses in the investment bill were removed by the National Economic Development and Labour Council in favour of a universally applicable law.

The bill will give legislative force to the constitutional provision on expropriation which provides for “just and equitable” compensation rather than market value. It will be closely scrutinised during hearings by parliament’s public works portfolio committee.

Committee chairman Ben Martins said the consultation process would be “thoroughly transparent and open”.

The bill meticulously follows section 25 of the constitution‚ which deals with the issue of expropriation.

The definition of property is not limited to land‚ which is a source of concern for Freedom Front Plus MP Anton Alberts‚ who fears abuse.

Expropriation will only be allowed in the “public interest” and for “public purposes” and only after an unsuccessful attempt has been made by the state to negotiate the purchase of the property “on reasonable terms”.

If the property owner’s claim for compensation is not accepted by the state‚ it will have to make an alternative offer. If property owners reject the offer‚ they can take the matter to court which will determine who bears the cost of the litigation on the basis of how close its award is to either the government’s offer or the claimant’s price.

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